Hello, I'm new, and I have a few questions

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Hello, I'm new, and I have a few questions

Timothy Langer
Warren, MI · Member since 2016 · 1 post · 0 votes

Hi, I'm new, I just purchased the books "No Money Down" and "the book on Rental Property Investing" from BP, I am kind of chomping at the bit to start buying properties and renting them out.  I've worked stupid jobs for too long.  I really want my time back.  (And to be a millionaire)  I saw a webinar from Brandon Turner, I am signed up for another one.  

I know a few people who are into real estate at my church.  One of them is a Real Estate agent.  I have heard that a lot of people try to avoid Real Estate agents because of the commission.  Is this a good idea or not?  

When I talked with her, she seemed to (like a lot of people) try to argue me out of doing any investment, and rattled off a number of documents and their prices that seemed relatively high.  

Also, I would like to buy my first house soon, I heard, (I think it was on the webinar) that there was a way to deal with bad renters, assuming I get some, how would I minimize issues?  

Is it better to set up an LLC in Nevada for avoiding loss of assets?

Is there some step by step procedure written down somewhere that I could look at to make sure I don't miss anything and screw myself over?

Also, I have gotten a lot of "what if this happens" from people trying to argue me out of RE investment.  Is this a common experience?

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  • Joe Ellis
    Fort Worth, TX · Member since 2015 · 121 posts · 28 votes
    10y

    Any time people mention the "what if" questions I just say "we'll cross that bridge when we get there!" As far as not using an agent, that's up to you. I'm biased since I'm an agent here in Las Vegas but it is possible to buy or sell without one, there's just tons of documents that need to be signed. As far as the step by step checklist, I haven't seen one so this might be the perfect time for you to document every step that you take and then you'll have it for later!!! 

    The best way to deal with bad tenants is to avoid having them. If you have a great list in place for you to pre-screen them before you ever take any of their money or let them in then you shouldn't have as hard of a time, however, lots of people lie so you must check and double check after people. Actually call their references and ask them probing questions. Actually call their previous place of living and ask if they'd rent to them again. Call their boss and ask about them. Those sorts of things. 

    I'm sure I'm missing stuff but others will chime in I'm sure. 

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  • Brandon TurnerPro Member
    Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
    10y

    Hey @Timothy Langer welcome to the site and I'm glad you attended the webinar. For your questions, you'd be surprised that these have been asked and answered a couple of times already, I might have even a couple of #AskBP episodes regarding them. Just type in the keyword at Search BiggerPockets on the upper right :) Hope that helps!

    Podcast Guest on Show #92
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  • JJ ConwayPro Member
    Financial Advisor · Stephenville, TX · Member since 2016 · 163 posts · 85 votes
    10y

    Welcome @Timothy Langer

    You just have to find the right Realtor! My brokerage has 3 investment (yes 3) groups run by myself and two others - each of us with a different focus. A good Realtor is well worth the commission- especially if they can get your flip sold faster than going it alone!

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  • Omar Merced
    Real Estate Investor · Las Vegas, NV · Member since 2016 · 399 posts · 260 votes
    10y

    Asking the wrong real estate agent about investing in real estate is asking a poor person about making money. I'm also an agent and I can tell you that I was investor first and didn't value agents as much as they should be valued. There is a lot of stuff that happens behind the transaction and a good agent is what I call "a manager of chaos". Some investors are so worried about the commission that they do not look at the bigger picture and see the money that there is to be made. I think if you come from a place of abundance and not scarcity you'll have a better experience. Now, I didn't hear the conversation that she had with you but she could have been concerned with the returns if you were doing a buy-and-hold. So maybe, she was trying to help you. The point is she is probably not the right agent for you. You should look for someone that is also an investor our works with investors specifically. There's no such thing as bad renters only careless landlords. Thats not true there's some horrible renters out there but I just wanted to say that. But that being said it's all in the screening and a good property manager. You can do it alone but once again it is an area that is undervalued by most investors. I was also one that under valued property managers until I became one. Now I feel that they are probably one of the most important if not the most important person on my team. As far as your LLC I wouldn't worry too much about it for now. You just have to start doing, taking action and as you go along and learn you'll seek competent advice from real estate professionals that will give you the best options for your structure to best protect your assets and tax consequences. Take your advice from those who are successful and learn from those who are not. To quote Dave Ramsey normal is broke and in debt. Unless these people that are asking the what-ifs are successful real estate investors I would take their advice with a grain of salt. Hope this helps and good luck!

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