25 year old investor from MA looking to network and learn more about investing

[Nareth Y.]

hello BP world, My name is Nareth, 25 yeras old, began in real estate at 21 managing family real estate portfolio 16 units while in college when my dad passed, had to step up. But there is so much to learn but I feel that its my time to branch off, take some risk, and work on establishing my own portfolio. I would like to buy, fix, and hold. I am licensed real estate agent and newly licensed loan originator.

I'm interested in incorporating into an LLC, buy properties in my personal name with co-borrower (considering I do not have 2 years of established work history) and transfer to LLC, and build off on it. I would have about $50k to start off with. Are there any suggestion, tips, advice, word of wisdom you experienced professionals have for me?

[Account Closed]

Hi Nareth! :D

I am new to Bigger Pockets but not real estate! :-)

I have a couple suggestions. The first is that if you are looking to buy and hold, you need to have 5-10% of the Market Value of the Properties you are holding in cash reserves to be used for emergencies...to give you moving room if you need it, especially when you are relatively new to this kind of investment. I hope that isn't discouraging---I think its most wise.

So, if you have $50,000 to invest, I would keep 5-10% of that for reserves for the building you will purchase in case of unexpected repairs, etc.

The rest you can use for a down payment towards an investment property. I would suggest buying properties for cashflow in Texas---we have great spreads for cashflow.

An LLC is really easy and relatively inexpensive to set-up, but I would have an attorney write up your articles of organization. I would suggest having 2 managing members in the LLC rather than just you--if you are married your wife. If not, you can set-up a single member LLC now, and alter it later. It just makes the LLC stronger legally.

Also, I would recommend doing some quick flips while you are building up your long-term wealth for the first 6 months-year. You can do what is called "double closings" (if you are in California you may not be able to do this), and not have to put down any money at all. In other words, its very realistic to make $10,000-$50,000 in 6 weeks doing quick flips...and make that per month every month after that.

This will tremendously help your liquidity and will quickly increase your confidence in real estate investing.

Hope this helps!!!

Blake Templeton
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