help this "newbie" analyze and make a plan

[Ze Zee]

I'm in the pasadena area and have just started and don't have any experience in real estate. i've gone to all sorts of classes with every guru selling books and tapes. I found a deal and jumped without a plan. It's a condo that is $100,000 below comps. we'll go into escrow this week. I am going to keep it but I can't move in to it for awhile. I've got such a great situation where I'm at and I run a little business where I am at. It could be a 2nd home, or, it could be a rental. My tax person (this is almost too much for them) says to use it as a 2nd home for the write-off. I don't know how to take title.....personal or LLC. I don't even have an LLC but that seems to be what the guru's say for each property and I think I want to try to buy & flip, things like that. I'm a single person and have 3 jobs, modest income, great fico. I have someone that will give me the $100,000 difference in a loan, like an equity share, but I don't know what to do with them and they don't know anything, they just have the money. Should I create and LLC with them and/or this loan? Or, should I secure the note with a 1st trust deed? I am very honest so this person isn't worried and will go along with whatever is best for me and protects their money.

[J Scott]

Originally posted by Ze Zee:

i've gone to all sorts of classes with every guru selling books and tapes. I found a deal and jumped without a plan.

You've spent tons of money on gurus and yet you don't have a plan?

I think this is the problem...you need a plan. ASAP. As in, BEFORE you buy this condo. If the condo fits your plan, great. If it doesn't, can you get out of the deal?

I think most people here are going to be hard-pressed to tell you what YOU should do with this property, as without a plan, you can't provide enough information.

As for what I'd do with the property... I'd turn around and resell it (perhaps even wholesale it), and capture part of that $100K in equity it is providing.

Btw, are you sure there's really $100K in equity there? Where did your comps come from? How do you know they're good?