Ep. 146: From House Hack to Commercial Multifamily with Jay-R Domantay

A house-hack is a great way to get started in real estate. You live in one unit and rent out the others, so the residents pay the mortgage and expenses. Jay-R Domantay used this strategy to get his first deal and then invested in a couple of duplexes before making the leap to commercial real estate.    Born and raised in the Philippines, Jay-R moved to Chicago in 2007 and has used hustle, grit, and ingenuity to build a 27-unit portfolio. Even more impressive, he’s done it all while working a full-time job and another part-time gig. He is not a licensed CPA and real estate broker, helping others get started in real estate investing. We talk about his steps to go from house-hack to commercial real estate, lessons learned along the way, and what's next on his investing journey. Partner: Join me at the Best Ever Conference plus 15% discount with 15DEAL    Key Insights Raised in the Philippines and moved to Chicago in 2007 at 17 years old Did a house-hack on a new 2-flat in Berwyn, IL  With an FHA loan, he only brought $7,500 to the closing table The rental income covered the majority of the mortgage and utilities Acquired a 2-flat foreclosure in Cicero for $80,000 Needed 25% down, but did not have all the capital Took a loan on his 401k to get the remaining capital  Made the leap to commercial multifamily apartments Tips for seller financing: build rapport, demonstrate capabilities, establish trust, and be easy to work with  The lending process was easier for commercial properties than the 2-4 unit residential units Looking to do a passive deal to learn more about syndication Seeking 8-24 units for his next active investment  On the Westside of Chicago, 2-4 units are still going strong Cash flow, cash reserves, and long-term financing   Partner: Download a Free Sample Apartment Deal Package   Bull’s Eye Tips:   Apparent Failure: Not having enough cash reserves, had to tap into W2 income to cover costs   Most Recommended Book: Eat That Frog by Brian Tracy   Most Recommended Digital/Mobile Resource: Google Docs and Dropbox   Daily Habit: Miracle Morning Routine   Wish I Knew Starting Out: The importance of cash reserves   Advice to College Student: Consider the cost of college before you take out a loan   Advice to Ignore: People who have not done what you want to do   Current Curiosity: AirBNB   Best Place to Grab a Bite: Lola Tining   Connect with Jay-R: Email: [email protected]   Leave us a review and rating on Apple Podcasts or Spotify. Be sure to check out more info at TargetMarketInsights.com.