All Forum Posts by: Derek Diamond

Welcome Dennis! You have found a great community.  Check out the blogs, podcast and all the other wonderful education materials.  Be specific with questions and active on the site.  You will make some great connections! Good luck!

First off I am not an accountant but I would probably mention that if he sells right now he would have one large lump sum of money that he will have to pay taxes on.  If he sells to you with owner financing then you can pay him monthly, a check that he can depend on that is back up by a real asset.  You can stretch this out for however long allowing him to have a steady stream of income into his retirement.

Hey Paul! A well thought out post. First of all, it is defiantly possible and you will get there.  There are many creative strategies that you can use for this end goal.  You won't be able to jump right in if you want to be conservative.  You have the potential to save  a large sum of money $45k a year, that is so good.  Having such a good job will help with such a large purchase. Here are a couple ideas for you:

comercial properties usually need 25% down and 6 month reserve funds.  So for your million dollar property that means 6 years or so of saving $45k. Simple path but not much leverage used.

Buy a smaller property, maybe a duplex or fourplex, improve it with your skills and up the rents.  Do this with a few properties then refinance all of them or sell them, take the money and buy your dream place.

Another option is get a partner or a few partners to go in with you.  Cuts that expense down greatly. They could even be limited partners meaning you make all the decisions and then just pay them a % of the income from the other parts of the building.

You will soon find there are many many ways to get this done.  Good luck!

Hey Brian, welcome! I have been in your position or very very close to it. I had even less money than you and sunk it all into my first deal (not quite what I would recommend looking back). Day two I had to replace a water heater at my own expense but it gave me a chance to learn since I could not afford to pay anyone else to install it. I ended up doing a FHA loan and only putting down 3.5% on a duplex. I lived in the back unit and rented out the front. I had a good credit score but my income was horrible at the time so I got a family member co-signer. A ton of learning happened that first year, money with mistakes on my part. With this one leap of faith I was able to buy 4 other properties from deleveraging this first one. Good luck with the house hacking!

Welcome Jakob!  This is a great site to connect and ask questions.  I am sure you are listening to the podcast but if not you should start; many successful people sharing what they know.  When you do ask questions make sure they are specific so we can help you out to the best of our ability.  Good luck!

It looks like a cover to a crawl space(?).  If so it is easy to fix.  I just fixed mine with pressure treated wood and some 2x4's.  Just make sure you have some kind of water proofing to prevent that happening again. 

Welcome Siha! Check out some local meet ups.  Here is the next one right downtown on the 23rd.

https://www.biggerpockets.com/forums/521/topics/59...

Cary, I am no lawyer, but a simple answer is you use a contract that you buy or have created for that very reason.  Typically you have a line that says you or someone you work with or someone you find will buy the property.  Then you can sell the contract to another investor for a set price that will go into your pocket.  Another option is you still find an investor but you go to closing, buy the property and immediately  sell it to your investor.  This is typically known as a "double close" where you act as the middle man.  In this situation you keep the difference from what you bought the property for and what you then sell it for.   

Hey Lauren! Welcome to you and your husband to the BP community.  I am sure you have found the great book an blog sections of the site.  I invest in multifamily as well.  I found Multi-family Millions by David Lindahl very helpful. Good Luck!

@Ian Tvardovskaya is right Columbus is a great area for your strategy.  I live in Denver and I invest in Dayton, OH for the same kind of cashflow requirements.