Newbie looking for advice!

[Brandon Jefferies]

Happy New Year BP Colleagues!

I am new to REI and I am looking for advice on how to start. I am located in the Memphis area and would like to start local. I am looking for any advice you amazing people are able to provide! I want to stay in the SFH to start. I would like to buy and rent out the properties.

I have listed a few of my questions below but please feel free to add any other actions you feel I should take!

How to find hard money (or other types of) financing?

Do I setup an LLC before buying my first property?

Do you recommend finding a few easy turnkey properties before going into BRRRR?

Thank you in advance for your help and any connections you are able to provide!!

Sincerely,

Brandon

[Dalyn Hazell]

@Brandon Jefferies Hi Brandon!  It’s awesome that you are getting started into real estate. Way to start this new year off right!

Regarding your question about Hardmoney, this is fairly simple to get. You can Google for a hard money lenders, but I like to start out with local lenders first. The way I found my current hard money lender is by asking around at my real estate investor meet up group.

Regarding your question about setting up an LLC, it is definitely not necessary for your first purchase. I transferred my first rental property from my personal name to my LLC a couple months after I bought it. I don't see anything wrong with that approach, but you may want to read some other forum post and talk to attorney about this to be certain. If you opt not to use an LLC though, make sure you have good insurance in place, including an umbrella policy.

And you can definitely do a BRRRR for your first property. This is one of the best strategies in real estate to build wealth. However, these properties tend to have more repairs needed, so make sure you have a budget and contractors in place to handle that type of work. Turnkey can be a good solution, although you don't have much room to add value yourself, since the property is already rent ready.

Good luck, and let me know if you need me to elaborate on any of the questions above.