All Forum Posts by: James G.

Hi Harrison, get your name out there- go to your local investment group meetups, network on biggerpockets and on social media, do your research via books, biggerpockets, podcasts, etc. so that you know your stuff, and then reach out to agents, other investors, and lenders via cold calling or through email. Your network is your net worth, so make it your goal to do your homework and simultaneously meet as many people as you can!

Hi Jalen, while you're young I would recommend reading all of the books and listening to all of the podcasts that you can! Now is the time to absorb as much knowledge as you can without the stresses of work or family. I would also recommend driving your market as much as you can. When you get into real estate, understanding your market is going to be a huge part of being a successful investor. Don't forget to tell everyone what you want to do as an investor along the way! Networking and getting your name out there early is going to help you!

Another big advantage is that you can use selling property as an exit strategy. If you find a seller who is looking to sell his property, there is not enough margin for to wholesale, there's not enough margin to flip, and you're not interested in holding the property as a rental, then you could offer to represent the seller as their agent. This is now an additional exit strategy that you can use, and if you do it correctly, you could make a lot of money in commission on several deals.

I imagine there will be some pain in the next couple of years. Many tenants aren't going to pay rent, evictions delays may go farther into 2021, and foreclosures are going to take place left and right. So you may find that a lot of properties are going to be on sale in a few short years. On the other hand, if you purchase properties that are in good areas, with good tenants, you can still find plenty of properties with tenants that are paying their rent- thus a property that will acquire cash flow. Ultimately, if you find a good deal or  you find the right opportunity I would go for it- sitting on the sidelines for too long usually isn't a good idea.

I would ask your accountant this question. My understanding is that there is a pretty big tax bill for switching a property from an S-Corp to an LLC.

Use zillow and go to the rent segment. See what properties within a .25 mile radius, same beds, same baths, and similar amenities are renting for. You can do the same thing with the MLS, or you can use rentometer, which in my experience is actually pretty accurate. Lastly, you could hire a property manager to do this work for you- after all, this is their job.

A big thing for me is to trust but verify... You learn all of these great strategies from books, podcasts, etc. but you never stop to think that you need to really watch over your investments- especially in the beginning. This means hire a property manager but watch them closely, hire a contractor but watch them closely (and don't pay them until the job is done), hire a broker/agent but follow up with them regularly and build the relationship... Don't hire someone, trust that they're going to do their job and go to the beach. Hire someone, trust them, but verify what they tell you and make sure to manage them properly.

It's a great point that you bring up and many landlords are thinking the same thing. It is now more crucial than ever to try and work with your tenants, maybe offer them cash for keys if necessary, maybe consider working a side job for extra income... I'm not quite sure why the government is doing this at all- seems to me like they are just delaying the inevitable 

Your goal isn't to cash flow if you are house hacking, the goal is the lower your mortgage payment. You may get lucky and find a property that breaks even (if you were in the Midwest this would be more likely), but if you really want to increase your chances of cash flowing, I would suggest trying to find a 4 unit property. You are much more likely to find a property that cash flows if you have 3 units working for you rather than 1. After 12 months of living in the unit, you can move out, and if you ran your numbers correctly, it will be cash flow season from that day forward.

Hey Javier, in my market (St. Louis), you legally can't kick out a tenant from your property without an eviction. I see that you have three options here: You can ask them to leave, you can offer them cash for keys, or you can evict them; and I would do so in that order. In the future, I would make sure that the previous seller takes care of this issue BEFORE you purchase the home from them.