All Forum Posts by: Adam Craig

Hi Andrew & James : Thanks for your thought.

Dont get me wrong, I dont have any aversion to cash flow - the more the better! It is just at the bottom of my list - I am set on a hiring a manager and taking less cash flow.

In other words, my acceptable CAP rate for a property is probably much less then someone who relies on rental income to live.

My time is far more valuable spent on my business then it would be finding/screening tenants/collecting rents/advertising/repairs. To me, the expertise of a good manager is WELL worth it.

So I am self employed with an internet eCommerce business - I averaged around 15K a month profit in 2011 and 2012 looking much stronger - I am very fortunate.

All I am doing is socking away every penny so I can realize my dream of getting a large real estate portfolio for true wealth.

For this reason - I have no interest in flipping houses and I dont need huge cash flowing properties.

I want to invest for equity build up, appreciation, and a tax shelter. My long term goal is to invest in single family homes in growing markets (Atlanta, Austin, Nashville are some of my interests), and hire a property manager.

Question part - From everything I learned from books/podcasts/forums, I should start local and manage my own properties so I learn the business. The problem is, I am located in Cleveland - where I can find cash flowing properties but you can forget about much appreciation.

If making $300/month cash flows VS $75/month makes no difference to me, should I just skip the local market and go strait to the market I like? I know a lot of people on these forums manage their own properties, but for those who use a PM - any advice is appreciate.

Thanks AG, very informative. From that answer it looks like I shouldn't have a problem getting at least 2 with some money down. I also read that 2 years of doc income is typically required but I talked to my accountant who thought 1 year at 140k along with a down payment should be enough.

Other then the books/forums/podcasts - I am a complete rookie - all its the best time in history to be a buyer and its killing me every minute that I am sidelined.

Hello All,

I am 23 years and graduated from college a couple years back. I started a very successful internet business selling electronics and I have been itching to get into real estate but ive been sidelined until I have can show documented income.

2011 will be my first actual business year in the books and I will send around 140K AGI to the IRS.

Now my question...

With 1 year doc income at 140K and a 740 credit score, would I be able to get more then one home loan in 2012? I want to purchase my first house along with my first investment property if not more.

Or is my short credit history/income history going to limit me.

I can most likely come up with 15-25% down on both purchases.

I would purchase 5 houses in 2012 if I could be financed, though I understand that might not be so wise my first year in.

Any insight on credit standards is appreciated.

I am in a similar situation, only with a girlfriend of 3 years and she hardly ever complains. But I feel bad when I am gone all the time and she is passive aggressive so keeps her mouth shut...but I know how she is feeling.

We are also at a breaking point, and in complete honesty, I want to peruse my dreams. As shallow as this sounds, being a successful business owner and busy all the time makes me happy. This may change as I age but right now business is what I want to do.

Weight your options, try to make her understand, or compromise your future business.

Good luck!

Thanks all.

To be completely honest - I am uncertain which investing route I will peruse.

From everything I have learned thus far - my aim is to own properties in growing markets with appreciation being my main goal. AKA - buy and hold and hire PM's.

Cash flow will be nice, but my business provides plenty of that for me so I am really concentrating on the future value with these investments.

I live in Cleveland - not where I want to build my real estate portfolio but I thought it would be a good place to start and learn.

First project idea - Split home for under 100K with 2-4 units. I want to manage it on my own to educate myself on being a landlord/repair costs/ tenant issues ect...

Right now, I spend roughly 70% of my cash flow on inventory for my internet business. I can get my hands on 20-30K (possibly more) but it would be in my best interest to obtain a loan because I make that money work for me.

I look at homes online/craigslist but have no idea how to spot a deal.

I have a slight grasp on running the numbers but have no idea on how to get these numbers - like expected rent/maintenance/repair/utilities for any given property.

Do you recommend I contact a Realtor to get access to more properties and have some guidance? Is there a trick to finding a good Realtor?

Thanks

Hello Everyone from Cleveland Ohio!

My name is Adam - I am 23 and I want to become a successful real estate investor.

I graduated from Kent State in 2010 and instead of doing finance, I started my own internet business.

I have been fortunate enough to experience incredible success in my business and will clear six figures this year.

With that said - I have a lot of expendable income that I want to invest in real estate.

I have been reading and educating myself and will try and soak up the forums.

My question is - This is my first year in business and I have no tax returns to prove my income until 2012. Is there any way to get financing through different documents? (bank/cash flow statements).

Or do I need to wait until next spring.

Regards,
Adam

Adam

Hello Everyone from Cleveland Ohio!

My name is Adam - I am 23 and I want to become a successful real estate investor.

I graduated from Kent State in 2010 and instead of doing finance, I started my own internet business.

I have been fortunate enough to experience incredible success in my business and will clear six figures this year.

With that said - I have a lot of expendable income that I want to invest in real estate.

I have been reading and educating myself and will try and soak up the forums.

Any mentors out there feel free to pm me

:D

Adam