All Forum Posts by: Levi F.

I am with the guys above, OPM makes for best returns.

OPM = Other People's Money

The more OPM you use the more deals you can put together. The more properties you buy the more you (renters) pay off. The more you pay off the more net worth you have.

Sometimes when the sale price is really low we will pay cash to avoid the hassel and time of getting a loan, but for the most part it's 20% down.

Spend 15-20 hours on this site searching, reading, practicing evaulations, studying your market, factoring in your available investment money, then set some GOALS. With that base you should be able to decide for yourself what will fit your entry level property or investment.

What I'm saying is that this business has so many facets it's impossible for one to advise you with the given information.

The encouraging part is......

It's for you! One way shape or form you can do it. You can start anywhere and grow your business to anything you want.

Best of luck

Grind, grind, grind. Be ready with pre-approval letter or cash and make offers that work for you. Be the first to see properties on craigslist. Comb your markets MLS daily. Be on auction sites watching. Be willing to do what the next guy isn't to get the best deals. Give yourself an end picture of your goals and do whatever it takes to acheive them. If it was easy EVERYBODY would do it.

My partener and I leave deals for better ones because we are cash limited. Someday we hope to have the purchasing power to close them all. Last year we closed four properties and have 3 more under contract. We formed our business in Oct. 2012.

We gave our contractor specialist expert handy dude $500. He does us an exceptional job. Our property manager got a $100 gift certificate to a nice local restaurant. We did not do anything for tennants. Having regrets but we enjoy our anonymity.

Currently we do only buy and hold but we structure our return targets in a similiar way; by area/quality. In lower cost areas we target 20% as a minimum in other areas 12-15% depending on quality and condition. Again, these are our mimimums, we aim for more, but our purchase/renovation investments are limited by estimated ROI.

In my circumstance, I have several streams of passive income and choose to keep a break even property. The property WAS my residence and I have lots of cash tied up there. The advantages to keeping it are principal pay down and depreciation to offset other passive earnings.

If you are starting out cashflow is THE MOST IMPORTANT thing. Anything not cashflowing prevents or delays the purchase of more properties.

My taxes are rather complex. Several limited partnerships, 2 LLC's, 2 W2's, and an S-Corp owned coffee shop. CPA's in several states handle the seperate business taxes then we take that to our personal CPA for completion.

Taxes can be a huge cost or a huge windfall. I used all the CPA's and a lawyer to design our matrix of passive income and loss streams.

Knowledge is power!!!!

I also like the idea and will propose to my partner we do the same.

Thanks for the tip!

@Luke M.

shoot me a text please, I would like to get your advise.

9367772564

Bump before bed.

midnight shift....