All Forum Posts by: Heath Ryans

Give me more than a vague reply from your lender and I might be able to help.

You should absolutely build your credit history. Not just for real estate but for life.

**the following is not financial advice. Consult a licensed professional** 

The moment you turn 18, get your own credit card. Use it and pay it off in full each month. Also, If your parents will agree to it, have them add you as an Authorized User on one of their old credit cards that's in good standing. You don't need to get a copy of the card. But it will transpose their long credit history to your credit profile which will give you a great edge in life starting out.

You can absolutely buy a house young. Keep watching your parents successful actions. Go on a deep dive with them on their numbers, how they analyze, ect. Listen to podcasts. BP is an awesome source of knowledge but don't restrict yourself to just this platform. Read books. Browse Zillow in your free time looking at listings and how different neighborhoods are priced.

When you get your license, drive neighborhoods that you have looked at online. Pay attention to the quality of the area relates to pricing and Days on Market. What areas list high, what areas move inventory quickly, ect.

Get a job working for another investor. Whether that be your parents or someone else.

Go to meetups as soon as possible and being networking. Meet everyone in your area that has involvement in investing.

Start narrowing down what you would like to pursue. Be that flips, single family rentals, multifamily, wholesaling, ect.

That should get you started.

Are you asking about a loan for your emd? To my knowledge, noone in their right mind would lend money for an emd unless they are getting an equity position in the deal. That money can very easily disappear if for some reason you aren't able to close. Granted, you should have enough contingencies to cover all your bases.

Why try to find a loan for emd? Just for the sake of not locking up capital?

@Wendy Fate

I'm not familiar with the specific model your talking about. However, in our REI meetings, we have talked about the growing need to cater to the older generations who are coming in to the area. It's certainly something that's becoming more prevalent as bigger assisted living facilities are being constructed and opened up. I believe you rsvp'd for our meetup on Monday. I won't be able to make it but bring this up. Look at Don Fenley's reports on CoreData. He's done a couple reports on it and spoke about them at our meetings.

***We will be meeting in the Century 21 building downtown as our previous location undergoes renovations***

This month, we will be watching the BiggerPockets Webinar "How to Evaluate and Offer on Rental Properties." As we go through it, we will pick apart the webinar as a group and answer any questions that come up. Rental properties are an instrumental part of the path to financial freedom. If you are considering getting into a rental property and want to hear from experienced investors, you need to be here.

@Alex Albarran well your off to a good start financially. My advice would be "don't get shiny object syndrome" and by that I mean figure out what your goal is and what kind of properties you want, and don't deviate from that just because you might make a dollar on something. Don't be distracted by every single property you see that could possibly work. And if you don't get excited about a property when you see it, don't buy it.

@Steven Stutzman with a VA loan, you have to occupy the home for 1 year before you can move out and turn it into a rental property. At that time, you can use whatever money left in your entitlement to purchase another for 0 down.

VA loan also allows you to purchase up to a 4 unit property. So when your 1 year is up, look at doing a house hack and getting into a small multi with it.

I suppose you can sell it already, I don't know if it has any contingencies against that. However, there is a chance you would have to pay capital gains tax for buying and selling in the same year.

@Adrian Jenkins The people buying at such low cap rates are fine with losing 50k/yr because they know that they will be making a huge backend profit when they go to sell because of the rapid appreciation of those assets. If you can't afford to lose huge chunks of money like that, most people can't, then you need to be looking in other markets where prices are more reasonable. 

In hot areas like LA, you also have overseas investors buying in cash just to park their money in the more stable US economy so that also drives up prices. So you have a lot to compete with there.

@Adrian Jenkins Cap rates are usually an indicator of demand for an asset in a certain location. People are willing to pay more and get a lower return for an asset that has a greater chance of continue to produce income and appreciate. The more likely the chance that asset could stop producing income and the lower chance of appreciation, the higher the cap rate. That means you would get a higher return for a "riskier" investment.

A quick search for properties in LA, even on Loopnet, reveals an average cap rate of roughly 3%. Ranging between 1% and 6%. 

@Tina Trussoni that's your only option if the numbers don't work at 20.