All Forum Posts by: Ben Freiman

I tell some of my trusted coworkers. Mostly to plant the bug on future tenants and deals. I work with some younger people who rent so I would love to have them as tenants. I say “trusted” because I don’t want everyone knowing. It’s not that big of deal for me since my prior boss has vacation rentals so we talk sometimes about it. Really it’s up to you and your privacy level.

Both have valid points but I would err on the side of caution too. $8k in student loan debt shouldn’t set you back much, though you will need to start raising capital to begin your investing career. If you use a conventional loan from a bank that would require 20-25% down and that’s a substantial amount of cash. Talk to a bank so you can begin to ask questions and see what’s best for you. Definitely read Set For Life and see how that changes your perspective on your situation, it’s the perfect book for where you’re at in life. In the meantime keep your eyes on deals, run the numbers and keep learning.

Wow Phillip that is great news! No money out of pocket is the way to go!! It’s all about how much you can leverage OPM. Good work and good luck!

Yes Jay I have heard wonderful things about timber! Very natural too. Love it. Unfortunately I don’t know much about it so I have much research to do. Thank you!

Hi Shawn welcome to BP! I wouldn’t sweat the car much sounds like you have that under control. I would focus on more the down payment money (assuming you’re using conventional loans from banks). Banks typically require 20-25% down for investment properties and that can be a substantial amount of cash. Definitely go talk to a few mortgage brokers so you can ask the right questions and they can tell you where you stand. That’s exactly what I did when I was getting started and it was time well spent learning about my options. Good luck!!

Jim said it perfectly. A faster way to build up your portfolio is to 1031 exchange, but that all depends on your goals and what you feel comfortable with doing. Good luck, sounds like you are in a good position.

Welcome Gerald! You have great goals and you are in the right place to achieve those goals. If you haven’t already, listen to as many podcasts and read/listen to as many books as you can to get yourself set up with the basic information you need to proceed on those goals. Some good advice is to pick a niche that you want to operate in and stick there until you master it or know it’s not for you. Sounds like single family residential is where you want to focus and that is just fine. All of us have so much advice to give, we are just not sure how far along you are, but if you have any questions feel free to reach out and I would love to help. Good luck!!

Nick S said it great. One thing to double check and firm up are the repair costs and ARV. Being your first flip with tight margins you really should make sure those are good numbers. Doesn’t take much for both of those to move in the opposite direction and that $26k can shrink quick. Also don’t forget about the tax implications too. Flips you pay ordinary income and self employment tax since it goes on your Schedule C. More to consider. Good luck!!

Wow what a great post and diverse discussion we have going on. That’s the great thing about REI is we ALL have different definitions of wealthy and many different reasons of WHY we invest, from money lasting generations, to I am already happy with a great spouse and healthy children. I would say we are all correct in some way or another because your own definition of wealthy should be what makes you happy or comfortable. The goal for me, I would like to replace my and my wife’s income (perpetually) so we can both pursue other interests/hobbies and always be there for our children.

That is great for selling a website! Lots of great suggestions in the posts, one item I haven’t seen mentioned are notes. You could have to opportunity to be the bank and not a landlord. This is a more passive activity and would officially move you to the “Investor” quadrant. Unfortunately I don’t know much about them or can offer much advice but I think podcast ~#206 or 207 (something like that) talks in detail about notes and it sounds interesting. I wish you luck!!