New Member - Kansas City, MO - 3 Month Listener

[Brandon Presley]

Hi everyone!

Thought I would take the jump and join the forums in my first step to investing. I've been listening to the podcast for the past 3 months or so.

I am 26, and have a BA in Business Management. Right now I own a small (micro) business that is my current only source of income. We make retail displays for high-end smokeshops, and custom retail displays for glass artists. 

My grandfather made majority of his money building storage units and renting them out, along with owning 5-10 rental properties. My mother currently owns two properties that keeps her busy, and I help her with things as needed. 

Right now I am renting a house with my longtime girlfriend, but I am looking to either purchase an investment property or a house for myself in the next 1-2 years. At first I wanted an investment property to start, but then thought that I could buy my personal home and then after a year take out a home equity loan on that property to use as the down payment for my investment property. Either way - I have plenty of saving to do before a purchase can occur.

Thanks for any comments and enjoy your Saturday and weekend!
Brandon Presley

[Rich Kniss]

Brandon, good jumping in on the forums and telling us a little about your yourself.

Getting knowledge through the podcasts is great, but don't limit yourself to that. Read some books (a cheap investment), like The Millionaire Real Estate Investor by Gary Keller, The Real Estate Rehabbing Bible by Than Merrill, Think and Grow Rich by Napoleon Hill and any other than you can put your hands on. Go through all the resources on the BP website.

Be specific about how much money you need, how much you will save each month and a timeframe to complete your goal. This way you can be deliberate about your actions.

Your home equity loan is a good conceptual idea, provided you get some equity in a year. My guess is it will not be enough if you are buying retail. Think only a 2-4% increase in your homes value per year ($100K home x 2% = $2,000). If you buy a fixer, your chances increase.

I might consider getting a duplex, living in one side and renting out the other to get you on your way. Whatever your purchase, think of it as a real estate investment first, home second.

Good luck!

Rich