All Forum Posts by: Thomas Elam

I have joined the Baltimore REIA and am happy with them. You can take a $1.00 test drive to see if you like it.

Thanks for the quick reply.

How do you do the @ThomasElam?

We are both new to real estate. I've been studying and going to seminars for a year. This time last year I was told the power plant where I work was being sold. I knew I would gain control of the money that has grown in my 401K for the last 23 years and I would get a portable pension. That is when I realized that I needed to do something besides the stock market to build an income stream. Real estate seems like a good way to build wealth and provide an income through retirement. Joe was already in the REIA when I met him there.

The google search worked well, thank you Chris.

I go to church with a man who is a certified home inspector and he also owns a contracting business. He will look the house over for me and give me an idea what the rehab will cost. I have a real estate agent that I have been dealing with for the last 4 months that can tell me house values and target potential buyers.

Jeff S Thanks for the recommendations, I appreciate that, you are very helpful. I assume you mean real estate broker. I'm sure I will be able to find someone in the REIA that will be able to recommend a lawyer that will handle the deal and my real estate broker will know someone.

John T, I plan on watching this deal like a hawk. I will be cutting the checks so I see where every penny goes. I have had a number of people tell me that if they had as much money as I do that they would not be a landlord but would just finance others. How does that build wealth? I would just have a bunch of cash. I thought the real wealth building is in owning real property.

I realize that Joe has no skin in the game. However this could be an opportunity for us to make money and get ourselves going in the real estate biz. Hopefully we will make some money and repeat the process. And if things fall apart I know a couple of general contractors and a property manager to finish the job.

Tom

Greetings,

I have been to Real Estate Expos and searched the web. There are plenty of ways to find out how to borrow money but very little about how to loan it. I need a sanity check please.

One of the members in my REIA (Joe) is trying to get started in real estate with buy and hold but has no money. I am trying to get started in buy and hold myself but am having a hard time finding that first great deal. I have an ample amount of money in my SDIRA. I want to work with Joe so we both can get started. I spoke with Joe and suggested that he rehab a few houses that I will finance so he can build up his cash reserve. I am looking for a short term financial commitment.

Joe is trained as an engineer so he builds spread sheets and knows how to crunch the numbers. He has found a house that is a a great candidate for his first project.

How do I protect myself?

Do I purchase the house in my LLC and finance the repairs, let Joe supervise the rehab and divide up the profits when it is sold?

Do I hold the note on the house? How do I create a note for the house?

Am I insane for even considering doing this deal?

My thought is that in the worst case I will end up with my first rental property.

Tom

I'm interested, now I need to find time to read it.

Thank you Raymond

I'm new here. What is the 2% rule?

Tom

Hey, Thanks for the warm welcome men. Jesus really changed the way I live my life. Becoming dept free has changed my perspective on life.

Hey,

We're in our early 50's and we talked to a financial planner at T Rowe Price last month. We told her what our desired income in retirement is and she ran the numbers. Unfortunatly we will not meet our goal on our current path with mutual funds. Fortunatly the power plant where I work was sold off by my employer to a new owner and I still have a job. I am able to roll over my 401K and portable pension funds into a Self Directed IRA. The sale of the plant turned out to be a blessing for us.

My wife Paula and I follow Dave Ramsey's advice to stay out of debt. If we can't pay with cash than we can't afford it.

We are looking for single family houses in distress in eastern Baltimore and southern Harford counties Maryland. We plan on buying 2 houses this year and 3 next year. Our goal is to own 25 houses by the time we retire.

Paula plans on leaving her job in 2 years to work as the property manager. I hope to make electricity for another 10 years. We have attended a seminar on purchasing houses in distress and are going on the MrLandloard cruise this February. I am reading more than I have in the last 20 years. We are forming our inner circle and have found people that appear to know what they are doing.

In the end it all comes down to everything belongs to God and we just manage it for the short time we are here.

Tom Elam

For example let's say I hire the kid next door to mow the lawn of the flip house. With the LLC I can cut him a check that day it's mowed and the deal is done. Otherwise they have to wait for the money which they may not be willing to do.