All Forum Posts by: Dean Weltman

FYI, I'm pretty sure there's a bunch of threads on this already...

@Account Closed, I don't know why Bob goes on these tirades, but he's easily ignored. The other 99.99% of people on here are more helpful, or at the very least they're more polite. 

You were very clear and your idea makes sense. I would double check with a 1031 expert/CPA to ensure you correctly understand all the tax ramifications of a 1031, but it's my understanding that if you trade-up everything is deferred, and you begin depreciating the difference in the larger property. If your grandmother is no longer able to depreciate the property she currently owns that removes one of the advantages of a rental, which could be helpful in shielding some of her other income from taxes. 

How you invest her $400k depends a lot on what she wants, but if she's looking for cashflow it would seem that small apartments in a more affordable corner of the country that aren't over-leveraged would be the right call. I have a similar situation with my mother, who is looking to 1031 some properties to put into a small apartment building to make everything easier on her, but I think it's time for a property manager to take over. I saw some mentions of the continued property appreciation, but I feel that someone towards the end of life isn't concerned with that unless they are more concerned with their heirs than their living expenses. Certainly, you will have to take into account rent appreciation and the difference in property taxes to get a good assessment, but finding the right deal should prove easy as long as you're not in a hurry. 

Good luck!

Go to your local REIA meetings and hookup with some wholesalers and Realtors that specialize in investor deals ... The wholesalers already spend a lot of time and money marketing for properties. I don't think it's economical for you to do it to just get yourself one or two deals at the moment. That's the kind of thing you commit to long term if you're going to be doing some wholesaling, and of course cherry picking the properties you want to keep...

 Then that's going to be a bit different, doing buy and hold. You need money - or access to it. If you don't own a house you can get the first one as an owner occupant which gives you access to loans with lower down payments (since cash seems to be an issue). After that you can get a few through a 'regular' lender, like a bank, with about 20% down. Hard money is usually not your first, second or third choice for something like this, and you would need pretty good cash flow on a deal you could not fund any other way before a long term hard money loan seems like a good idea. Hard money has its merits and you need to look carefully at the cost of money versus the speed and ease of access... Somewhere in there is what works best for you. Private lenders and portfolio loans would probably be the next way to go, buy that's all in the distance.

Focus on your short term plan, talk to a few banks and save up your down payment... If it's possible, you should maybe focus on moving ever few years to keep adding them that way...

Oh, and the podcasts are outstanding. A recent one with Tom Krol (sp.?) focused on wholesaling. I'm guessing you're talking about DM for wholesaling, especially since you mention that you don't have much cash on hand...

And then there's Brandon's book about investing with low and no money down - or something like that. There's a ton of good resources on here, just look around a bit before your ask questions. After you've been here for a little while you'll feel embarrassed over asking the same question for the ten millionth time... Best of luck!

 Hello! There are a TON of posts dealing with your question. I'm a small, part-time investor and don't currently do direct marketing, but I feel like I could answer your question fairly well from all the posts I've read on here. BP is a great resource.

That being said, many wholesalers get a property under contract and immediately put it out to their buyers list. Some have cash, lines of credit, etc. and they'll either pay for it themselves off the bat, or if they can't sell it fast enough to their buyers, and some will flat out cancel the contract... A lot depends on what you want to do with the property. I imagine most wholesalers that have been at it awhile don't go into a property without multiple exit options available from the beginning.

@Mark S. Looks like I'm missing another one... Got the kids at home and a remodeling crew working on the bathroom. Maybe the next one. I hope you have a great turnout. 

 Thanks for your long comment on this topic. That's one of the things that makes this such a great place - people will go out of their way to explain things for the benefit of others.

I don't know much more than before regarding these IUL's, but I would certainly say @Thomas Rutkowski is knowledgeable, but that doesn't mean he isn't biased. I'm glad that he's bringing another viewpoint to this discussion since most of what I hear is 'Don't do it!' This was something I was considering, but I wasn't able to get both sides of the issue to help me develop an informed opinion. 

Good luck Ravi! Hit these forums hard and start getting an idea of the niche you want to start in. There are tons of threads entitled 'Starting Out' or something similar... Do a search. 

Not to hijack, but I wanted to thank @Thomas Rutkowski for giving me a different way of looking at some life insurance products for RE investing - the water cooler experts seem to bash those types of insurance products on the basis of hear say...

Thanks to @Charlie Fitzgerald for showing your position on the matter. After having spoken to you several times I value your opinion and now I am certain that I need to put an IUL product into my life  planning (wealth planning) as well as my afterlife planning. Thanks again!