All Forum Posts by: Account Closed

@Mark Nolan

I've not done a net search yet, but that would be an obvious step.  I thought I'd ask the forum first to get "real" feedback and a little background info prior to sifting through the Google returns.

@Tiger M. @Brian Burke

Thank you for the clarification, gentlemen. I am absolutely not planning on defaulting on the property(s) I have in mind.  In fact, I follow the "If you can't make the monthly payments during vacancy, then you shouldn't own the property" motto.  My main concern was in regard to the "accidental" slip scenario.  Your feedback is enlightening.  I do plan to purchase umbrella insurance for any investment property as well

Thank you for your input @Brian Burke @Tony Hardy and @Tiger M.  To provide more specific details, the property(s) I'm considering are 2-4 unit properties.  I have considered a recourse loan with a personal guarantee, however, I have read that a personal guarantee would provide a loop hole in legal situations which might destroy the whole purpose of forming a corporation.  To be specific, my personal guarantee on a recourse loan would create the potential to put my private assets in jeopardy in the case of a lawsuit.  Therein lies my dilemma. 

@Dhiren Mistry

I'm pretty close by.  I work in Sunnyvale.  Nice to see another south bay-er on here.  I like to reach out to the locals who show an interest in RE.  Regarding your last post, the SF bay area is about the last place you'd want to buy and hold especially if you're just starting out.  Some might disagree with me, though I think the majority are in favor.  There's multiple reasons why one would avoid investing in buy and hold in the SF area.  If you're interested in chatting over lunch sometime, let me know.  

Welcome to BP

@Dhiren Mistry and @Mario Bermudez.  This is a great community to ask questions, network, and form partnerships.  Definitely take advantage of the free learning materials offered through this site such as the podcasts and the ebooks (See the "Learn" tab above).   Don't be afraid to ask questions!

I am interested in purchasing residential rental property in either Chicago or Milwaukee via an LLC. I will need financing, which brings me to my question. Does anyone have a recommendation for a lender that would provide a non-recourse loan? Would the big banks (Chase, Wells Fargo, etc) lend to an LLC with a non-recourse loan, or should I shop around with small local banks?

The following is from page 19 of the Ultimate Beginner's guide to Real Estate Investing, available for free on this site. See the "Learn" tab above.

“Hi, my name is (so and so) and I'm looking for someone to invest a significant portion of their time and energy telling me how to get rich. I offer nothing to this relationship, but expect you to jump at the chance because you probably have nothing better to do. Most likely, I'll just disappear once I realize I can't get rich overnight, leaving you exhausted and irritated. So, who's first!?”

My advice
1. Never ask for something for nothing. 
2. Decide which aspect of real estate you're most interested in
3. Find someone who is making it using that strategy/approach. Network to get to know
   other investors in your area.  Find investors that share your philosophy. 
4. Offer that person something that will benefit them before asking them to help you. 
5. If you don't find someone that you're compatible with, try again

Does it come with Kevlar vests? 

@Perry Z.

To answer your question, yes, the $400 plane tickets are worth it if you're able to secure a nice cash flowing property. Remember, any out-of-pocket expense you accrue is tax deductible so long as you can show that the expense is related to your business (see LLC formation).

I am currently using turn-keys, though you have to do your homework on these types of businesses as there are plenty of turn-keys companies that can't wait to take full advantage of the next naive CA real estate investor.  However, after doing some networking, and relying on friends and family in my target area, I plan to make a purchase on my own without the help of a turn-key. 

San Antonio and Houston are super hot markets right now.  I have read that they are likely to continue to show appreciation for the foreseeable future, though not as strong as compared to the previous three years or so.  The problem with these markets is that word has gotten out about the lucrative RE opportunities there and they have become seller's markets.  In other words, if you don't have the resources to act fast (within hours, not days) on a potential deal you can forget about securing a property.  With that in mind, the idea of turn-keys once again pops up.  However, you have to remember that turn-keys are in the business to make money just like everyone else. You'll pay near or at full market value for a tk property. 

Lastly, regarding CA properties, even if I did find a cashflow property in CA I am hesitant to invest here due to the very friendly tenant laws this state has.  I've had a friend who spent thousands on an eviction which took on the order of 6 months.  During that time the tenant was getting a free stay and ultimately did not pay for past rent. Rent control is another major deterrent for my considerations as well. 

Welcome to BP @Gustavo Orozco.  I live in San Jose, but will be investing in the Chicago land area.  Currently, Chicago is one of the best buy and hold markets in the country.  I'm also interested in buy and holds and am envious of you since you're where the action is.  

I joined this site in January of this year and at first found the wealth of information on here to be overwhelming at first.  However, if you take the time to check out the forum posts, read the free downloadable ebooks offered through this site (see the "Learn" tab on the top of the page), and listen to the podcasts, you'll begin to expand your RE knowledge.  As a word of caution, however, and as 

@Linval T.

pointed out, don't allow the "analysis by paralysis" prevent you from taking action.  With all sincerity, one could spend hours on this site every day for months and still not cover all the content. 

Have fun on here and don't hesitate to reach out to other members.  I've found most members on here are very willing to share stories, tips, and helpful information. 

Best, 

Chris