Greetings!! Buy&hold investment help

[Rohit Parchuri]

Hello BP members, Joined the community recently and pleased to see a lot of like minded folks and most importantly ppl with a lot of passion to help and make the deals happen. I have been doing some education regarding the REI thru multiple books but still there are some gaps on understanding the numbers, property valuation etc. which i believe doesn't make sense until i actually make a deal work. And that is exactly why BP has been tremendously helpful, and i would like to go ahead and ask one little favour: I would like to purchase buy and hold properties with a positive cash flow and would like to invest out of state(given the high prices here in CA). Some of the neighbourhoods i was planning were Omaha, NE; Portland/oregon city, OR. I would like to work with any of the active investors and see if i can learn something from the deal. I can act as 'your local person' if at all you are looking for a deal in bay area, CA and around. Thanks in advance, looking forward to working with you all, Rohit

[Michael Lee]

Hello and welcome to BP!  I have heard that you can invest anywhere.  You just need to hustle and make more offers.  I have also heard that "all cash" offers in this market are succeeding in this market today.  Get your financing done before you make an offer.  Have a pre-approval loan letter handy that states how long it will take to close it and a maximum amount that you qualified for.

Just try to stay as close as you can afford stay as close to the main city that you can.  Do what is the average look and price in that neighberhood.  If you keep failing  after you offer you might have to go elsewhere and budget for property management that is experienced and who you can trust and call regularly to ask how it is going so you do not have to do a bunch of traveling.

If you have got to travel, you should consider the bigger towns in Texas.  I might be pretty biased about Texas but it will continue to go well as long as it gets all the people immigration.  I was born and raised in Dallas Texas and it always did better even in a recession.  Do not cut any corners on a prospective deal to make it look better.

Always do the math analysis and try to look at the prospective property before you submit an offer or at least have a clause in the sales contract that allows you some time (about 10 days) to make a detailed inspection without having a penalty that will hurt you too much.  If you can't look at a prospective property within 24 hours turn in your offer because speed does succeed in most sales.

Make sure you know of anything in the building code that is unusual and budget for it. Build a relationship with the seller and try to solve his major problem. That should help you resolve your closing time. Be patient and consistent on everything. Do not give up, just keep on going. Depending on your self wealthiness, you might ought to form some type of corporation or a LLC.

You might ought to get some advice from an attorney and/or a CPA (or a tax accountant) on this matter.  I am now 60 years old and have plenty to say.  I have been in the construction business since I was 17 years old including those college years.  I also held a broker license active for about 30 years but never did that full time.  I got a business degree that emphasized real estate.  

My father has been in the buying and selling in real estate (mostly commercial) for about 45 years and he has taught me a little bit.  I have only closed one investment deal for myself.  If you think that I can help you in anyway please contact me through BP at any time.  Good luck to you!