All Forum Posts by: Dave R Ludolph

Joe, First of all thank you for the lengthy and in depth response. Some of your points are reassuring while others have caused me to re-evaluate some things. Because of people like you is why i love this community. Your answers were exactly what i was seeking. Heres a little response to each point you made to hopefully clarify some things. 

1. I only set a date for January 1st because i have been reading and researching so much that i was starting to think i would never be ready to start looking for deals. I have all my finances together and am currently setting up a HELOC on my personal residence. Setting the date has gotten me to take way more action than what i was previously doing which was really the main reason i set one. I wanted to start DOING things instead of READING about things. I definitely dont want to buy into a bad deal to meet my date. Ill have to keep that in mind while I am looking to buy.

2. I like my market here because the cost to get in is very low compared to much of the united states and starting local just seems a little less daunting. I dont plant on staying in this market very long to be honest. Id like to move to larger cities with more opportunities but i wanted to exhaust my local resources first. Like i said the main problem i could see happening is the rents just being too low here to be able to get someone to sell their property for what id have to buy it for to cashflow. If i consistently run into that problem without finding a deal ill probable consider going elsewhere sooner rather than later. 

3. This response was probably the most helpful of all your responses. It really made me think about our partnership and how we should structure things. My first thought was that he has more access to cheap capital than i do while i know more about the ins and outs of real estate than he does. I know that this will not always be the case as i gain capital and he gains knowledge. Him and i have been discussing our roles in this partnership and trying to get more concrete terms set. I think as of right now ill be responsible for bringing in deals while he will be responsible for managing contractors and property managers. 

I know you can leverage your bitcoin for down payments! There are several companies doing this now! Some centralized and some decentralized!

1. I made January 1st my deadline because i don't want to get stuck in analysis paralysis. I should specify that I want to close on a house by then. I will be actively looking for properties here in the near future. 

2. I am investing locally because i live in the midwest where prices are low and it is a very renter friendly state. We have a university here that brings in thousands of potential clients. We are also the largest city between st louis and memphis and from what ive seen there has been a ton of development in this town. My only concern is how rents do not raise rapidly here so it could potentially become difficult to find something that cashflows. If i run into that problem i plan on looking in the stl area. 

3. We are forming a partnership because we know if we use our resources together we can scale much more quickly as long as we can work together. We are both financially responsible and looking to exit our jobs. He and i both grew up fairly poor and we both want to give our children the lives that they deserve. We have common goals as to where we want this company to go and how much risk we want to be involved. We also are going into this knowing that the other can obviously pursue deals on their own if they so prefer. 

Hey BiggerPockets fam! I plan on buying my first property by January 1 at the very latest. I just kind of wanted to tell everyone my plan with my partner and see what you all think. Constructive criticism welcome! I plan on investing locally here in Cape Girardeau, MO to start out and then eventually branch out. I have lived here my whole life and have been studying the market long before I even thought about investing in real estate. I plan on using a partner for this for as many deals as possible. This partner is like a brother to me. I have known this person basically my entire life. We are very honest with each other and have always respected each other even with our differences. We are looking at this at the aspect that the more we can work together the faster we can scale. Twice the income, half the risk, half the monthly cashflow. We plan on reinvesting all the cashflow into more properties until we make enough for both of us to retire from our jobs. As of right now we decided to get an LLC right off the bat. This wouldn't have been as important to me if i was going into business by myself but my partner and I both value the benefits of having one. We figured we might as well get it out of the way if we are going to scale the way we plan to. We have an operating agreement that basically states we own 50/50. Trying to find a good accountant at the moment. I've talked to two so far and only one does the tax side of accounting. I may use that one but I'm going to continue looking for one. My real estate agent is actually a broker. I went to high school with him and played some sports with him. He is probably the highest selling realtor in town. He also invests in apartments AND owns a property management company. He has offered his services as a advisor, real estate agent, and property manager. I can't be thankful enough for that. This week i plan on getting a final answer on getting a HELOC for my current residence. I'm hoping to get access to about $15,000 from that. My partner and I both plan on using money from our HELOC on our personal residence as down payments toward properties for short term financing. We both want to BRRRR. From my understanding we can then get commercial loans on the property and a commercial loan to rehab the property. We want to repeat the process trying to double the doors acquired from each previous deal.

Michael. I am from this area. Welcome to cape! Lived here my whole life. A lot has changed in the place since I was a kid. Its crazy! I plan on investing here in a few months hopefully earlier! We should connect! I want to starting BRRRRing these streets. 

Can anyone inform me as to how i get access to foreclosure information for free? Is that even a thing or must I pay to have access to this?

How much would you suggest? I can get single family homes in b class neighborhoods valued around 100-150k. I was thinking I need at least 20k cash in reserves

I will never, ever, ever, ever quit. 

I'm wondering if I want to buy from a whole saler of if I want to buy forclosures that I would be able to get money to them quick enough if I wanted to get loans from my 401k, home equity credit, or hard money. I have literally 0 experience of buying properties other than traditional financing for my current home I live in and I'm just getting started in my educational journey on investing in real estate. On a side note any books suggestions are welcome. :)

As far as paying cash to whole salers how long does it typically take to get loans from 401k, home equity, and hard money? Would I ne able to get cash quick enough for a whole saler to want to work with me?