All Forum Posts by: David Lopez

Every situation is different but one thing that is constant is cash is currently cheap to borrow but doesn't seem to be staying that way for much longer (Much longer is relative). But overall it depends what your plans are. I bought a beach rental and did not mind paying some of the mortgage because my family and I used it for personal reasons 3-4 months out of the year so it was OK for me to have that minimal cost. I bought a second for investment and would not buy anything that did not bring in positive cash flow because it was purely an investment. So you have to look at the numbers and ask yourself what your overall plans are. If it is to use it personally some times and then retire their some day, and now is a good time to buy, and you can cover the cost with the rental income, then use your equity with no concern. But if you want it to be a pure investment deal then you need to make a ROI that would have to be higher so you can build positive cash flow or that allows you to hold for appreciation down the road without putting a strain on your current situation. So my experience is it all depends on the end game when I am looking at propertirs which changes the expectations on numbers I need to meet before making a move. Hope that helps.

From what I researched after my post I think you are correct in saying that a trust is beyond what I am currently requiring for this deal. thank you for the info and I will continue trying to research the best way to structure the deal. BTW I do have experience in partnerships but only with myself and one other person and have limited experience with commercial lending but have used it in the past for a QSR I owned but not for RE.

The smartest thing in my opinion is to find a duplex you can live in and that will build income so your mortgage is covered. At $900 a month savings on rent you will be able to gain a return on your cash investment fast since it will be your home and your a first time buyer so you can get in at a super low down payment. As other members have posted this gives you control over your first investment and the ability to gain experience in being a landlord etc... Then work on studying what you want to focus on for your future investments and start studying everything about it and surround yourself with people who are like minded and experienced. Good luck!

I am not very versed with a mortgage broker but have had some friends who had bad experiences and good experiences with them. If you have good credit and can borrow from a large bank it doesn't take much to look online at current rates. If your looking for smaller lenders then it will take some effort unless you go to loan searching sites like lending tree etc... But if you put in your info be ready for a lot of calls concerning the mortgage. Good luck and I am sure others will offer some more detailed expert advice.

I recently began the process of moving my career to full time REI. A good friend and colleague, who is also interested in long term real estate investing, said he has multiple investors who would be interested in getting involved in a large multi family deal through me in the market I will be working in. I have a basic knowledge of single family homes and singal rental units and am not versed in REiT's or their makeups. Can someone tell me if this is the best avenue to begin investing their money with me or is their another option? Where can I find standard REIT contract verbiage and how the deals are structured? Do I normally invest the same amount or is there a reasonable fee I can include towards property ownership since I would be creating, closing, and managing the property?

Any tips will be greatly appreciated.

Thanks,

Dave

thank you! 

Hi BP Community,

My name is David Lopez and I am excited in joining the BP group. I am 37 and currently winding down my career in steel construction to begin my career as a REI. I currently own (3) rental properties in NJ and will be selling two of them to reinvest in the Sarasota FL market where I will join my parents in creating a real estate portfolio. My goals are to reach 100 units in 5 years and to use flips to help generate additional cash flow for multi-unit acquisitions. I am also in the infancy of working out a REIT with some local investors who want to use my ability to focus on RE full time to invest their money in rentals or commercial RE. I am excited for my move to FL in a few short months and to meet as many people as I can when I arrive. Please reach out to me if your are a member in my focus area and I would love to hear about any information on local meetings and network opportunities. As a new pro member I also look forward to learning from seasoned veterans and will post my experiences for others to gain knowledge too.

Thanks,

David Lopez