All Forum Posts by: Joe Strmiska

Setting up an LLC is the best option, it lowers personal liability and prevents double taxation of a C Corp. However, they are easily pierced if not operated as a truly separate entity. (Using personal cash to pay bills in LLC, or LLC to pay anything personal)

Rayshad, Welcome to bigger pockets. My advice is to continue reading educational material, learn a skill in real estate. (Painter, drywall, framing, title examiner, appraiser, or real estate agent, etc.) this will give you a base to continue growing your knowledge of the industry. Save, even if it's $10 a week, you will need cash at some point to make investments, and now is a good time to start. Work on improving your credit score. People will judge you based on your credit score, the higher the better. Go to meet ups in your area, and meet real estate agents, investors, and other deal makers in the community, they will be able to help you down the path far more than anyone from a distance. Word to the wise, real estate agents are looking to sell you something, they don't care if it's a good investment or not. Make sure you do your own homework. Lastly, start looking for a good deal. Find out what real estate is worth in the market you are looking at, so you know what a bad investment looks like when the time comes and what a great is. Best of luck.

Dustin, 

Im a little further south on I-35 in Temple, TX, and see investors paying up to $135k for class B SFH and renting them out between $1100 to $1200 a month. My back of the hand calculation shows a break even after PITI, repairs, and PM fees. Not understanding the market right now. Starting to looking out of state for rental oppertunities

Matthew, 

Welcome to BP, the best advice I can give is:

Keep reading RE books.

Start going to REIA meetings and meet other investors around you, you might find a mentor as well.

If you are ready to invest, house hack!

Start tracking the market you want to invest in now, to know what is a good deal looks like and what's overpriced. 

Find a RE agent that understands an investors mindset. 

Best of luck,

Joe 

Austin,

I would spend a few months educating yourself here on the site. In the mean time find a real estate agent who knows how to invest in real estate in the area you want to invest. Every agent will say they can help you with investment property, but they don't understand true investment cost, and will not look out for your pockets.

Also, find competent handyman/repairman. Can never have enouph contacts here. 

Chris,

What is the rent rate in the area? Have you looked at craigslist or Zillow for rents in the area? renting it for $1,800 a month with $1,400 in PITI, you might come up short for repairs and vacancy when they come up. Are you going to do maintenance on the property yourself? If your mom refinances, what will the new payments be with PITI?

Even, that's an interesting idea, and would makes life a lot simpler. What happens if they back out after the rehab, and before closing, and try to sell the house at the higher price themselves?  

Nice, what type of home? What condition is it in, and what are the rental rates for it? The more details, the more we can help.

From what I have seen with VA loans, they typically charge a lot in up front fees. One step that might save you $, would be to look at other financing options, before assuming the VA loan is the best way to go. A lot will depend on your credit score, and cash on hand.

Second making your first purchase into a duplex is a very sound decision when venturing into the real estate world. This will help lower your risk tremendously, and allow you to keep an eye on your investment. 

Lastly, if you have not already, look under: Tools/FilePlace: Free Forms and Files, and use the available resources to get off the ground. 

I was thinking about this idea today, and think it can be done. You would have to negotiate the sell now price, then add the incentive to partner together. Let's assume you would buy the house for 70% of the finished value, and the home needs another 20% in rehab. This would mean you would pay 50% of the value today, but would pay 55% within 90 days, or as soon as you can secure financing at 100% of the value. This would allow you to BRRR, but would change to RBR. The homowner is happy, because he has a better deal. Would need him to sign executive rights to the property with a fixed sales price at closing.