All Forum Posts by: Nii Okai

@Kierna Mason

I agree with you 100%.  Property Management route is a must for me too. I also believe that I go into Real Estate Investing in order to have the time to do things that I love most and not to be running around fixing toilets or leaky roofs. That said - one needs to have a plan and stick to the plan. Period.

Hi Megan,

 The minimum cash flow requirements for deal analysis is different for each and every person. In the beginning, depending on your strategies, you need to determine for yourself what you consider a deal - and this depends on a lot of things. (# of units, rent, management type, competition etc). These will be your numbers. You need to decide from the onset if you are going to do the day to day management yourself or not. This alone will let you know the size of property to acquire. The income must be enough for you to pay somebody to manage. etc. 

Once you have determined what a deal will look like for you, then you would know how much you need to make from the property by way of cash flow. By so doing, you have a yardstick to compare your performance to.

Hi Noah, Congratulations, you have a deal... but you do not know what to do. No problem. In my opinion, at this point in time, as a newbie, team up with a trusted and experienced wholesaler in your area to do the deal. 

@Andre Ross,

This is very interesting indeed. Andre, If you are going to be buying properties as a business, why would you not treat it as a business, get an entity formed and get to enjoy the peace of mind associated with it?

The advantages associated with buying in an entity set up correctly cannot be over stressed.

Buying properties in your own name is okay if you are looking at just one or two properties, other than that, you need to take a closer look. 

Furthermore, it is advisable to buy in different entities - one property per entity - you do not want to put all your eggs in the same basket, just in case....

A word to the wise....

Good Luck and Happy Investing.

@Tasha

I am a  Realtor in MD. I live in Clinton and may be able to help you. How long ago was the house listed, any idea? 

Hi Josh, 

Are we talking about a single family house? In a SFR with one tenant, you can only have 100% occupied or if vacant it is 100% vacant. You cannot add 10% for vacancy.

(The house is either occupied or it is vacant) But on the other hand if it had been a 10 unit property, and if one unit were to be vacant, that would have given you 1 out of 10 or 10% vacancy).

As it is, this deal may or may not be a good deal. All depends on what you call a deal. A deal means different things to different people. If you think the figures do not jive, based on your criteria, walk away....  A juicier deal is just around the corner, huh?

If I may, I will suggest you should join your local REIA. Look around and make friends with other investors. Take one or two to lunch and pick their brains. If necessary, make them your friends and you will not regret it. You must be teachable and coachable. Remember, there is no shame in asking questions, Ask and you will receive, Seek and you will find and Knock and the doors will be open unto you.

Wishing you all the best

@Robert. Hey Robert ....

All I can add to what you have written is "So be it". 

And to you Jose, remember that you may have to talk to a few guys before you get somebody that you might be comfortable with. But do not worry... just get started and the rest will be history.

Good Luck

 @Jose

It all boils down to having a mentor or a coach. There is no shame in approaching someone who is ALREADY doing the stuff and asking him for help - Ask and you will receive. This process is very simple - Locate a REI Club in your area. Go to the meetings and make friends, ask questions and questions. Hire/recruit one of the experienced investors to guide you. This will shorten your learning curve tremendously (just by watching and doing). And in no time you can talk Real Estate...even in your sleep.. without blinking an eye. Go try it, buddy... and Good Luck

Hi Josh, give us some meat on the bones so that we can help you to analyze the deal.  Give us concrete figures -  Numbers don't lie..... 

If, as you say, you have done your DD, how can we, who have no knowledge about the deal other than what you are telling us determine your risks?

In general terms, yes he can give you a land contract - know of wraparound mortgage? what about Rent to Own? Check them out....

@Michael,

You need to do your own homework and know what kind of lending you want to do, determine what you want to charge as interest, determine for what period you want to lend  (6 or 12 month terms), determine who your ideal borrower's qualifications should be, what maximum amount you are willing to give to a single borrower, what loan to value you want to go in for ... etc, etc. 

You would be better served by approaching other people (lenders) and learn from them. You do not need to reinvent the wheel. "A fool and his money are soon parted" they say. It might be worthwhile to team up with someone already in the business and learn the ropes from that person. You will sleep better. I can assure you.

Remember, experience is the best teacher. You may commit to go all alone, Why not? And learn the ropes as you go along and burning your fingers in the process. 

The kind of inside knowledge that you need may not be readily available on this forum - That is specialized knowledge or should I say ...professional secret? Keep looking....

Wishing you good luck