All Forum Posts by: Account Closed

Okay here's the deal. I'm looking to invest in my first buy and hold property very soon and expand from there. I work as a nurse and I like what I do, it pays the bills, I have excellent job security and I can literally pick up and go ANYWHERE I want! Eventually I want to build up enough of a portfolio that I can transition out of nursing or maybe only need to work part time as a nurse and work more hands on with my investments. I'm fairly handy- I've done everything from laying flooring and carpeting, tiling, grouting, hanging kitchen cabinets, hanging and finishing drywall, roofs, fences, landscaping, minor electrical and plumbing repairs, etc. I'd like to maybe pick one skill and really perfect it, maybe get certified/licensed, something like electrical, HVAC, etc.

So I ask- what skill set do you really wish you had? or what skill do you have that helps you the most?

 The Amish are very, how should I say... tourist-y? They need to make money to cover things like hospital visits because they don't carry any type of insurance. Yes, they make many of their own food and clothing products but they buy the supplies at Wal-Mart! It's an interesting culture to say the least....

There are many different forms of corporations. The traditional corporation is what is traded on the open stock market- anyone can buy shares and their percentage of shares gives the share holder that much voting power. The day to day decisions are made by a board of trustees and the corporation may or may not pay dividends to it's shareholders. The next variation is the closely held corporation, same idea but the shares are sold privately.

For a small business owner, there are three options, LLC, S-corp and C-corp. The obvious advantage is, if you incorporate the corporation becomes its own entity and if for some reason you default on the loan or get sued they can't go after your personal assets- they can only go after the CORPORATION'S assets. You only stand to lose what you personally invested out of pocket. It acts like a shield protecting your assets (your personal house, car, money in the bank, etc.)

S-corp's and C-corp's are a little more complicated in terms of documentation, taxes, etc. C-corp's are subject to double taxation- any profits the corporation makes gets taxed and if you decide to pull money out of the corporation (i.e. pay yourself a dividend) it gets taxed again. An S-corp requires you to pay yourself a 'reasonable salary' so if you're trying to keep yourself under a certain income bracket or something like that this may or may not work for you. An LLC (limited liability corporation) doesn't really change the taxes- you will be taxed the same as a sole proprietorship (just you owning the business) or partnership (if you have a business partner) BUT it still protects your personal assets. Its also simpler in terms of taxes and documentation.

I suggest talking to an accountant and/or tax specialist to see which is the best option for you. 

**Here's a fun fact to leave you with- you do not have to incorporate your business in the state in which you live or the state where your business physically exists. Shop around and see which state offers the BEST deal. For example Delaware offers some really good rates. You can incorporate your business in Delaware without ever setting foot there.

I must say its very refreshing to talk to people who are so positive and supportive. Pretty much all of my friends and family say the same thing "don't do it!" And then they proceed to tell me about all the horror stories they've ever heard about real estate investing and bad tenants!! 

I say you only regret the chances you DON'T take!!

@Jeb Brilliant I'm hoping its something like that, this property has a lot of good things going for it and I'm not quite ready to give up on it yet.

Great! Thanks for the welcome! I'm excited to learn from everyone's experiences and start this new adventure.

@Bruno C. Thank you for the advice, I think I will give the listing agent a call and see what she has to say. 

@Tracie Davis Actually I was referring to rental properties, good triplexes and duplexes are selling faster than SFR's because there is such a strong rental market in this area. It's going to be tough to fight my way in- I put an offer in on a triplex that had been on the market less than a week but the seller received a better offer and went with that. Then a gorgeous duplex popped up for a good price and it was sold in just a little over a week. There's been at least two other triplexes that I was interested in that sold quickly but I wasn't in a position to make an offer at the time. That's why I'm a little concerned as to why no one is jumping on this one- like maybe they know something I don't? But I guess the only way to find out is to investigate.

@Mark Elliott Thanks. I think I will take a closer second look. I'm hoping its just the cosmetic work that's scaring people away- since two of the units are already rented I could be working on the third right now, ripping down the wall paper, new carpet, etc. I appreciate your offer to help! I'll let you know. Thanks.

Hi. I'm fairly new to real estate investing- I've been doing my research and I'm looking to buy soon. For my first property I'm planning on buying a triplex, living in one unit and letting the other two pay the mortgage and eventually expanding from there. I've found a house I like in an area I really like and I've been preapproved for a mortgage. Except when I took a closer look at the history I realized the house has been sitting on the market for a long time- 18 months, it was actually de-listed and then relisted in that time frame. This is a very stable and competitive market- good houses sell within days of being listed.

I walked through the property once- needs some cosmetic updates, new carpeting, wall paper taken down, ideally redo the kitchen in the one unit. A few minor fixes like the hand railing on the front steps needs re-anchored. Yes, obviously I would get a home inspection done to look for major problems.

This property has a lot of good things going for it (like tons of off street parking!) and as of right now 2 out of 3 units are rented but I'm a little worried as to why it has been sitting so long. Should I walk away or use this to my advantage and try to negotiate a killer deal?