All Forum Posts by: Account Closed

 For every $100,000 you invest, you should aim to get at least a 10% return ($10,000 annually) divided by 12 months comes out to $833 in cashflow a month.

Also, refinance only gives you up to 70-75% appraised value back, so if you buy a property in cash for $60,000 then refinance after 6-12 months (minimum wait period), you'd only get between $42,000 and $45,000 back. 

Good luck.

How much savings do you have currently? How much more can you save each month? Do you have any equity in your primary residence?

I'm neither a lawyer nor accountant nor giving tax advice, but I've read that if you live in a property for 2 years that any profit is mostly tax-exempt (capital gains). Do some more research on this.

Adrian,

It's fascinating to read your excitement about getting started in real estate. I would suggest first getting a real estate related job and networking with investors in your area. 

Maybe you could live in your first property while renting out a room or half of it. 

Try not to get ahead of yourself. I'd spend this time reading dozens of real estate books, listening to podcasts, and networking. 

Best of luck. 

You can easily get 10-12%+ by investing. You could buy an apartment complex & have reserves left over with the cash you have. Or partner up with another investor. 

Look into an unsecured personal line of credit, or balance transfer/cash advance from a credit card if the deal really is that good. Or ask other investors about partnering or private loan. 

So many options!

Go ahead & get a free credit card with points like the Chase Freedom and pay it off in full each month. This will show length of history, increase available credit & give you some free points while building your credit. 

Keep saving cash! Good luck. 

 Wes, the properties I've been looking at, for example, have a purchase price of $75-100k. If I buy an $80k property, why should I expect to spend more than $20-22k ($16k down + closing & reserves)? 

Even at 25% down, $50k should get you a property in the $175-195k range. 

I notice that you are from SF, but if you are open to investing out-of-state, the costs can be dramatically lower. 

Continued success!

I think putting down $40k-50k isn't using enough leverage for an SFR. With that large of a down payment, I could consider small multi family or even commercial multi family.

I have been evaluating these companies, as well. Also, I have similar criteria to you. 

Memphis Invest told me that you must use their financing lenders & put 25-35% down. Here's from a conversation with them: 

"Properties in Memphis will start around $90k and go up to about $150k. Dallas properties will be from $130-180k. This is with renovation costs included. These properties are your typical 3bed/2bath houses. It takes about $40-50k to get started on your first property. This is if you go with a conventional loan. You are expected to down 25-35% and closing costs will be around $5k. You are required to go through one of our approved lenders."

$40-50k on my first turnkey property, especially a single family, sounds quite unreasonable, so I'm still looking into Norada and JWB.