No cashflow… No maintenance?

[Halid Parladi]

Hello BiggerPockets family. I wish you are all doing great.

Still a young university student, I am really nervous about the purchase of my first property. I still do not have enough balance to pay the down-payment (consider the fact that the houses are so expensive in Canada); however, I want to fulfill my knowledge before I am ready. 

To be honest, I do not want to take risk on my first property and, therefore, planning to agree with a company to take care of my property. I wonder if the offer that I am going to list down for a brand-new house is rational and can be applied:

- I will pay the down-payment.

- The company will take care of the house and the tenant; however, I will get my monthly loan directly from the company regardless of the vacancy.

- The company will take the cashflow ( or the buyer will only get a small amount such as $50 )

-  The company will take care of the repairs.

- The agreement will not be able to get broken by the company until the amortization ends.

- The company will be a 3% shareholder of the house… for a possible sale.

I wonder if this would be an option for someone like me who does not want to take risk for his first property. 

By the way, there may be other points that can be added or removed from the list. Can you please share your opinion and expertise on this issue?

Best Regards,

Halid

[Steven Foster Wilson]

Quote from @Halid Parladi:

Hello BiggerPockets family. I wish you are all doing great.

Still a young university student, I am really nervous about the purchase of my first property. I still do not have enough balance to pay the down-payment (consider the fact that the houses are so expensive in Canada); however, I want to fulfill my knowledge before I am ready. 

To be honest, I do not want to take risk on my first property and, therefore, planning to agree with a company to take care of my property. I wonder if the offer that I am going to list down for a brand-new house is rational and can be applied:

- I will pay the down-payment.

- The company will take care of the house and the tenant; however, I will get my monthly loan directly from the company regardless of the vacancy.

- The company will take the cashflow ( or the buyer will only get a small amount such as $50 )

-  The company will take care of the repairs.

- The agreement will not be able to get broken by the company until the amortization ends.

- The company will be a 3% shareholder of the house… for a possible sale.

I wonder if this would be an option for someone like me who does not want to take risk for his first property. 

By the way, there may be other points that can be added or removed from the list. Can you please share your opinion and expertise on this issue?

Best Regards,

Halid

 Hi Halid, 

What is making you so risk-averse? Sometimes in life, you have to take that risk to get the reward. It kind of sounds like you want a partner but one that is more like a property manager/contractor. I think it would be easier if you shared a potential deal you would be looking at as an example. The more you learn the more it can help with that fear. I would listen to more podcasts and read some more books. Everyone starting out had to take a few risks here and there.