All Forum Posts by: Anthony Beckham

Hi Brian,

Great job getting started and building your foundation by reading books! 

My question for you would be.. Is not having an LLC holding you back from getting started? Often times when we are getting started in real estate we have the idea we have to have an LLC, business cards, logo, website, facebook page, etc. When really these things are the minutia that are keeping you from just getting started and doing what you should be doing, which is buying your first property! :)

An LLC is not necessary for you to purchase your first property. If you do not already own a primary residence, most people would start there. Purchase a 1-4 unit with a 3.5% down FHA loan and rent out the other units, or bedrooms in the home. That will get you started on the right foot. Owning a cash flowing asset and/or living for free. Just keep learning and analyzing deals so you know a good deal when you see one.

Talk with some local lenders and agents and they'll be able to guide you to having all your ducks in a row so you can make the above happen! 

I wish you luck, my friend!

Hey Scott,

I think you know the answer on that one, and that's the fact that there's plenty of deals to go around! This is a relationship business, and if the newbie can bring you a JV deal or two you'd be well compensated for driving around with him for an hour.

I've gotten to a point where I can't accommodate most coffee requests, and I don't feel that you have to give at that level all of the time. But for someone to ride along and pick your brain, I don't think any of your partners should get mad at you for that.

Keep up the good work!

Following. I've been trying to get a hold of this information myself. Would love to hear if anyone has any good ideas/resources for obtaining such list.

Welcome to BP!

You're definitely on the right track already. With a little networking I'm sure you can find someone with experience in your area. 

My only advice to you would be go in and get your pre-approval if you haven't already. That way you know if your credit is up to par, and how much of an investment you can afford (Duplex, Triplex, 4-Plex?) Getting the credit history established was the biggest hurdle for me, and a quick trip to the bank can tell you where you sit on the spectrum and what you can afford. 

If you've got that done all you can do is wait for that deal to come on the market, network on here, and study like your investment depended on it!

Good luck my friend!

Anthony Beckham

Hello Jonathan,

Even if you don't qualify for a VA loan, you may qualify for a FHA loan requiring only 0-3% down. I would recommend finding a multi-family property up to 4 units that will finance FHA or VA.

The most difficult thing for an investor using a government insured loan program is that they are very strict on what properties qualify. If you are wanting to purchase a distressed property/moderate rehab, it most likely will not qualify under FHA or VA without some work. The appraisers for these types of loans are just as thorough as a home inspector. In my own experience I had to put my own money into the deal to make repairs to the property before the property even qualified for a loan. This is taking quite a bit of risk, and isn't always the way to go.

If you haven't already obtained a pre-approval I would start there. A good lender will be able to answer your financing questions and figure out the best financing route for your personal situation.

Hopefully this helps and good luck!

Anthony

Thank you for the responses. I am in full agreement with all of you. The house also has electric heat from wall units in each room, so the wood heat is not necessity.

Would it make more sense to remove the stove completely, or just to make them sign an agreement not to use the stove?

Hey BP,

I recently bought a property that needs a little TLC before turning it into a rental. I'm currently laying new laminate floors throughout the house and have now gotten to the living space which contains a wood stove. Before cutting and laying floors around the stove I have to make a decision. 

I've been up in the air about whether or not a want to remove the wood stove. It's in code. It works just fine. However, I'm not certain I want to give permission to my tenants to be starting fires in the living room. Something about that just leaves me uneasy. It also does take up more space than I would prefer, and don't want to decide to remove it later and then have to redo the floors on that side of the room.

What do you guys think?

Thanks.

Anthony Beckham

Welcome to BP!

I myself am taking my real estate courses right now, to help assist in my investing. I'm supposed to be done mid December, so I'm sure you could probably give me some guidance in that respect :)

As far as investing books I'm going to start with Brandon Turner's rental property books. I listened to the audio books and found it really easy to listen to, and it had a wealth of compiled information.

Hopefully you have read Robert Kiyosaki's almighty Rich Dad Poor Dad. He has a bunch of books but I have only read What the Rich Teach Their Kids About Money and Cashflow Quadrant. Both being great starting points.

I also enjoyed Gary Keller's Millionaire Real Estate Investor. You may be familiar with his book Millionaire Real Estate Agent. I have read both and found them to be very helpful with a large number of examples of real life people have done it, exposing the systems required to be successful in the field.

Listen to podcasts and audio-books every time you get a chance. And search the forums, there is months worth of articles to read even just on the BP site.

Best of luck,

Anthony Beckham

Hello Christopher,

Have you thought about investing a little further out of your footprint? I know your prices up North are high and rising, but there may be other opportunities in neighboring cities at much more affordable prices. You of course just have to research and make sure you know learn your numbers for those areas as well.

What would impact your ability to finance more properties conventionally would be your debt to income ratio. So yes, anything that increases your DTI ratio 43%+ limits your chances of conventional financing through an average bank.

Best of luck,

Anthony Beckham

Thanks Josh. I totally agree with your thoughts on the office! My plan has been to take up sales so that my work ethic has a direct impact on how much income I make. Rather than the time extensive 25 cent raise I can look forward to netting after a year of hard work.. And what better way than by being an agent??

Again, I just feel that starting out may be rocky if going at it full time without a real estate portfolio built to support me, or some sort of part time job to help fund my savings.