All Forum Posts by: Bryan Reid

First off - congrats on only being ripped off for the first $197, and not allowing yourself to be suckered any further with the more expensive pitch.

Second - your first step toward getting started is to put to rest any crazy notions that the 'Fortune Builder' gurus about how easy it is to get rich quick if only you knew their secret formula.  You will not ever be successful if real estate investing if you are so easily suckered into such schemes.

Third - If you're still interested in RE investing as a career, find a local property management or established REI LLC and try to get a job there. That really is the first step - to build your skills and experience in things like property maintenance, rehabbing, construction, estimating property values, tenant management, etc.

After doing this kind of work for a few years, THEN you will be in a better position to venture out on your own if that is what you decide to do.  In the meantime, focus only on: a) learning the trade by working for those who do it for a living, and b) building up some cash reserves and a solid credit history.

Biggest advice I can give you though is to ditch the 'gurus'.

Depends on the auction. HUD auctions or private ones usually allow entry before hand.

But due to the timing of your question, I'm assuming you're asking about the Master Commissioner sale tomorrow.

The previous posters are correct.  MC sales are sight unseen, as-is where is, no disclosure or warranty.

They also require cash, unless you have a surety bond.  The only situation in which you might be able to back out is if you discover a cloud on title within a a few days.

Termites or water is on you.  And MANY of the MC properties have serious issues like that.

I attend the auctions frequently, and am going tomorrow, but you must understand there are lots of pitfalls if you're not very experienced / knowledgeable.

If you're interested in pursuing, I highly suggest taking to mentor or investment-friendly realtor for advice

A traditional bank is going to have debt to income limits (usually around 40% for most loan programs) they are required to adhere to.

If you're currently making just $15K per year, your total debt service will need to be below about $500 per month... it'll be close on this deal.

BUT some lenders will be willing to consider potential income from the property itself. It will be some percentage of the expected market rent.

If the lender you're meeting with tomorrow doesn't work with you, shop around some.  You'll find one who can do the loan if there's enough income from the property.

@Joel Owens Ah yes, I hadn't seen that this is a commercial property.  I misread 'retail' as 'rental'.

Big difference there in landlord/tenant rights.

@Travis Hughes great advice on lease terms.  And yes, I agree that a judge probably shouldn't consider the 'waiver' argument unless the tenant knows to bring it up in an eviction hearing.  Unfortunately many judges, especially in some jurisdictions, are going to try to do anything in their power to side with a tenant over us evil landlords :)

Hi @Romain Amrani, and welcome.

I wish the best of luck to you - thinking about investing at an early age is a great way to set yourself up for financial success in your future!

Real Estate can be a great career and finding a mentor to help you along your journey sounds like a good place to get started.  Your young age isn't really much of an issue - as soon as you turn 18 you're a legal adult and banks will view you just as anyone else.

As far as getting a traditional mortgage loan though, you'll still need the same 2 factors everyone else does: credit and income.  Since you're a student you likely will have $0 income.  And since you've just turned 18 you have no credit history.

My advice at this stage if you foresee a career in RE investing is this: begin establishing a credit history as soon as you turn 18.  Get a credit card, charge a bit each month, and then pay it off in full every month.  It will not take you long to establish good credit if you do that.

If you intend to use a traditional mortgage to fund your deals, you're right that you'll likely need your mother's help to qualify since you do not have income to show.  The legality isn't an issue; don't worry about that.  If she is willing to be a co-signer or joint borrower on your loan, then that will get you approved AND will help you build credit history.

HOWEVER - this might all be a moot point if you're trying to flip homes.  Most investors need to resort to either all cash or hard money / private loans to fund flipping deals.  This is because most properties that are 'flip-able' are in bad shape, and will not satisfy a traditional bank's condition requirements for use as collateral.

My last (and most important!) bit of advice is this: enthusiasm in a career is great - in fact, to be a successful investor it is critical.  But no career is ever worth being the sole focus of life.  Never let yourself become so worried or obsessed with a job that it keeps you up at night :)

@Robert Whitelaw Yes, I've heard that argument before about FSBO not applying to DNC since it is being publicly advertised. It may be one of those areas where different jurisdictions/courts interpret the law differently. I'm not a lawyer and I'm not sure how the courts would see it.

However, I do know how NAR interprets it, and how my state's (and I would guess most others') real estate commission sees it. They are both very explicit that calling to solicit either FSBO or expired listings (unless the expired listings were yours, and then only for 18 months) is a violation.

It might be one of those cases where I would be OK under the federal law, but still be subject to penalties under the real estate board's more stringent requirements.

Great, thanks!

For that matter, my family visits Jamestown almost every year.  Great place.  Maybe next time we will rent from you :)

I would be hesitant to try to evict based on the unpaid late fees alone, at least not without talking to a lawyer.

It is possible that if your uncle repeatedly let late fees slide, that he (and as a result, now you) have effectively waived your right to collect those.  Same thing about being strict with rent being due on 1st.  An attorney should be able to tell you.

Painting the exterior is likely another matter altogether.  Check your lease, but I'd imagine there are restriction against that in it.  You may be able to evict on that basis.

HOWEVER: from what you've mentioned, you may want to consider carefully whether evicting is really what you want to do.

It sounds like these tenants are paying their rent each month, just not on the 1st of the month.  Are they taking good care of the property?  (Forget the painting - as long as they did an OK job, if you really hate the color they chose you can likely deduct from the security deposit the amount needed to change it back.)

If they are paying their rent and keeping up the property, is it really worth the expense and lost rent to evict them?  Sounds like things are going reasonably well...  Is it causing you cash flow issues if they keep paying mid-month instead of the 1st?

Welcome, @Brandon Baker, I wish you the best.  I'd be very interested to hear how this pans out.  Keep us updated!  There are lots of amazing tourist areas in KY that are ripe for vacation rentals.