All Forum Posts by: Account Closed

It would not hurt but companies like legal zoom make it cheap and simple. My father is an attorney and he even recommended online avenues over attorneys.

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Originally posted by @Brady Holt:

What is the fastest rate that a first time, part time, buy and hold cash flow investor should safely try to acquire rental properties to keep from getting in over their head? As fast as you can find good deals? 1 per month?; 1 every 3 months; 1 every 6 months? 1 per year? I recognize this is probably a very complex question and my ignorance is trying to simplify it. Any guidance or help in the rate one should try to intelligently build their portfolio is appreciated.

Take what the market gives you and go from there ! It's super hard to quantify it because it may cause you to force something that isn't there to hit your monthly goal or what not . I say come up with the perfect ideal property find them and attack ! Obviously you need to be smart about your reserves etc but buy what you can with what cash you have and consider you need 6 months reserves for

Each property .

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@Vincent Ramsey to elaborate a bit more . You can't bet on equity that's how people get ruined in REI . There is too many good deals out there that do cashflow . Just don't do it !

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Originally posted by @Vincent Ramsey:

I'm a beginner and considering my first investment property. All I read online is that cash flow is king (as opposed to equity) but I wanted to get your opinion on this. I understand why cash flow is king for the vast majority of people. However, if someone is wealthy and not looking for cash flow (because it would be a drop in the bucket), but rather to grow equity and probably hold onto a property for >> 30 years with plans to potentially hand it off to a child, is it OK then to accept a negative cash flow?

It seems to me that paying a couple hundred dollars a month to build equity in an expensive property in the very long-term still makes sense despite a small cost to me per month. If I were to buy the property myself it would obviously cost much more. Thanks for your input on this!

Never do a deal that negative cash flows . Ever

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Originally posted by @Joel Poualeu:

Hi @Account Closed. Thank you for your help. I am a beginner and is currently going through podcasts and all resources I can find. I am looking into buying and renting. I do have a full time job so am considering having a property manager assist me at least for the first year(s). After reading some forum, I am considering house hacking on a MFH, but still having it partially manager by a property manager while i get my feet wet. Is this reasonable based on your experience? Or would you suggest some other method for a first timer?

I personally would not recommend a property manager for a first home that you will live in . The amount of experience you would gain at such a small scale would be so valuable. Honestly just haveing 1-2 tenants should not be to difficult even with a busy schedule . I also do not think there are to many MFHs that could come close to cashflowing when you live in a unit and you are paying a property manager . Now i could be wrong about the cashflow part of you find a great deal but the main part is the experience you can gain if you do it yourself .

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Originally posted by @Craig Moore:

Originally posted by @Account Closed:

Hey all,

I am on bigger pockets simply because I want to help beginners make that leap like I had to all on my own before I knew about bigger pockets. A quick blurb on my experience :

I am a serial House Hacker

I am a Bank Manager for a large Bank

My wife is a Real estate Agent specializing in Flips and Investment Properties

My friend and I have a total of 104 rentals in our area which are all self managed he owns the bulk of the 104 rentals

Also my father is an attorney and my mother is and has been a real estate agent my whole life.

I have lived with tenants , managed my own properties, helped grow and develop a property management team, helped investors find deals, helped investors get financing , and a bit more !

That all being said I have a bit of experience in buy and hold , financing traditional and creative , self managing, and MLS deals and using the MLS. I am still learning myself (always will be) but I feel like I can help people analyzing deals and making the leap into REI!

Please feel free to ask anything that comes to mind and I will try my best to answer all questions.

What's your first move if you're a recent college graduate with $20k saved? What was your plan with house hacking?

Originally I did not have a plan I just wanted to live for free and test out the whole landlord thing. What ended up happening was I saw the potential and realized I had a passion for REI I started looking for another rental that I could move into so that my first house could cash flow properly. I then moved into a new rental and did the same thing ! Than once I was conformable enough and had accumulated more units I purchased my first SFR for myself.

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Originally posted by @Gardi A.:

Bryant Schur hi Bryant thanks for taking questions. After doing some reading a lot of people say to go commercial as the banks use the cash flow and the deal itself to qualify you and not so much your personal info as they do for 2 to 4 units how true is that?

If the deal is over 5 units you have to go commercial . And yes they typically look at the deal first and then the buyer . Residential is the other way around the buyer and then the deal .

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Originally posted by @Adonte Lipsconb:

Hello I'm a new investor and don't know were to start. I will be moving from Florida to North Carolina in 6 months to a year. My question to you is should I buy a 2-4 unit in Florida or wait to get to North Carolina. Also what do you think about wholesaleing.

I prefer to invest locally , however many people have huge success investing in other places . I would see what market is stronger first and also find out if Florida has any top notch property manager that you can trust while you are out of town .

Wholesaleing is interesting to me . My wife being a real estate agent she finds deals and put them on the mls and notifys buyers that she knows may be interested , and buyers who typically purchase similar properties . It is very similar to wholesaling. I see the need for wholesailing and I think it has a solid Future but I also see some issues with all these gurus getting people to wholesale. I think it's going to be the "shiny easy way " to make a ton of money fast in real estate but at the end of the day it's a job.

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Originally posted by @Christopher Anello:

Bryant Schur and everyone else thank you for this entire discussion I'm loving the vital information.

I am currently living in Florida and searching for my first investment property which I'll be house hacking and looking to acquire a FHA loan since I do not have a lot of capital. I was wondering in your opinion what are the pros and cons to house hacking? What have you learned over the years that you wish you knew when you first started? You have done this for some years now, any important tips I should keep in mind going into my first property?

Hey Chris ,

I have a few pros and cons when it comes to house hacking .

Pros :

Low down payment like you referenced with the FHA loan.

Lowers your monthly cost to live allowing to save more money for more properties .

Allows you to test drive being a landlord and decide if this business is really for you .

Cons:

Can be slightly annoying to live with tenants .

Many people buy a bad deal that won't make money when they move out and do not realize it until it is a problem down the road.

TIP

Run the numbers as if you are renting both units it . This way you can make sure it cash flows properly . You need to know your numbers because you will be moving out of the house . Don't purchase a house because you fall in love and want to live there , purchase because it's a good cash flowing property. Most likely you will only live at the property for a few years or less.

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Originally posted by @LaMonica Evans:

Hi Bryant!

I'm actually entering the REI world. I'm already involved in Real Estate as a new agent in Saint and I'm also getting into wholesaling as well.

I am 24 and I'm looking to purchase my first investment property soon. I am not a homeowner currently and I make pretty good money at my 9-5 sales job.

I'm working on my credit which is mid 600 range right now.

I've found a recently rehabbed duplex in a pretty decent part of town that's been on the market for about a year.

My question(s) to you however are:

Should I continue to approach the seller with owner financing if he's open to it or just finance through a bank? I know I can probably take out an FHA loan and house hack it but I would rather rent out both units to cash flow better and not take the additional hit to my credit right now.

If I do have the option of seller financing? What kind of terms would you focus on? (Low/no down payment, what's the highest interest rate you'd consider before saying nevermind, I'll just go to a bank.)

Thank you!

It never hurts to ask for owner financing . I have had owners give me terms of 5 years and a whole 30 years . I usually shoot for 5-6 % interest rate. Really it just comes down to the numbers . If I can pay 7-8% and the deal still works I would have to consider it . So the short answer is yes I would shoot for owner financing. It never hurt s to ask and see what terms he offers you and go from there . I feel he asks you to foment up with the terms I would shoot for 20-30 years and 5-6% interest . See what they say

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All Forum Posts by: Account Closed

Account Closed has started 14 posts and replied 196 times.

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Post: Looking to Help Beginners ! (Investing , Financing, Managing)

Post: Looking to Help Beginners ! (Investing , Financing, Managing)

Post: Looking to Help Beginners ! (Investing , Financing, Managing)

Post: Looking to Help Beginners ! (Investing , Financing, Managing)

Post: Looking to Help Beginners ! (Investing , Financing, Managing)