All Forum Posts by: Brian Beck

@Stephen Morton    I would echo what @Evan Polaski said with regards to hard money.   I'm in the DC metro market and still relatively new to the investment side of things, but I work as an estimator for a large GC in Virginia so the construction side of things comes easier to me.    I utilize hard money for all of my flips thus far, a necessary evil, to allow me to get into the game.  I've been profitable so far, you just need to remember to factor that into your costs when you run your numbers, I'd also factor in at least 3 months longer than you think it will take as a cushion for your interest payments, if you sell on schedule, just extra money in your pocket.  It will make it harder for you to get deals especially in today's market as there are people able to buy with cash and they can go a lot higher in price as what I'm loosing in financing expenses is simply a smaller profit margin for them.   I would definitely look at hard money especially if you're going to be in a market in California or somewhere else high priced.  

I think a lot of it is personal choice.  Does your employer off a 401K match, if so, I would definitely do at least that into the qualified plan at a minimum as that is free money.

As for the rest of it, I'd say it would depend heavily on what type of real estate your looking at, are you looking for cash flow now, long term appreciation, are you making too much money where you need the tax benefits.   I'm in somewhat of a similar position with regards to what to do with my W2 income, but right now I'd like to create more freedom for myself in the near future so I'm trying to maximize my return via real estate, once I have the level of comfort and freedom I want I will likely shift my focus to long term wealth.

But that's just me, really depends on your goals.

@Glenn Hastings Congrats, keep us posted on how you do down there.   I'm interested in it as a cash-flowing market, wouldn't really bank on the appreciation there as I would up here, I'm very interested in how you do down there!

@Robert C. I can second @Dario Cruz with regards to the character of the people running Home Dream Realty.  I met them thru a meetup they put together, I don't have buy and holds yet but I would definitely give them a ring.  Very honest with me in all of my conversations with them.

@Glenn Hastings I have similar goals, utilizing the flips currently to try and build up capital for buy and holds.  I actually have a friend on the police force in Roanoke City also.   Having a built-in team is nice.   I was down there a year or so ago (right before Covid) and was surprised at how much there was there.  Not sure if it will be as stable as Northern Virginia but the price point is much more bearable and it looks like it'll cash flow a little easier.  Will you be buying more in the area?

@Glenn Hastings  Congrats!   I've been looking at Roanoke recently as well, I have family friends who live in the area and price point is much more manageable than the DC area.  I'm currently working on flips but want to get into long-term buy and holds.  What made you look into Roanoke?

@Dahanayaka De Silva Just messaged you

Hi @Upesh De Silva,

I'm not currently in the Richmond market but have been to a few meetups and events in the area, Richmond REIA and Richmond RING I think our the two networking groups names. There are also a lot of people on this forum who do a lot in the Richmond area. If you are looking at areas for rentals in the city there are few property managers on here also who have a lot of experience and credibility in the area. Hope this helps!

@Matthew Maggy  I haven't personally used @Stephen Glover's company as I'm not currently in the RVA rental market. That being said, I have met him before at some REI events in the area and he's been very honest and forthright in answering my questions and has been recommended to me by others if I were to get into the RVA market.

I'd second what @Joe Splitrock. Unless you set up a more complex LLC (thinking series LLC, LLC's owning other LLC's, etc...) which is typically costly to create and maintain, the insurance will offer a more vigorous protection as it's in their best interest. I'd say it depends highly on how much equity you have in them and how much net worth/income you have to loose as that would be the goal of either of these.