All Forum Posts by: Josh Bakhshi

I use quickbooks online.  One suggestions is to keep a separate bank account(s) and credit card for your real estate.  Do your books at least once a week.  Rule of thumb is to keep 2500 AND 4 months of operating expenses aside for days that you have vacancies.  But you should know your numbers better than we should.  

Go with your gut.  If you think renting is a good option, then go with it.  If you think the crash is "inevitable", why are you even thinking of buying now?  You have to know your goals and make plans to get there.  But areas like Boston, Miami, NYC, LA, SF... are hard to make a profit unless you hold it for 10 years (at least 4 years) to get the appreciation.  Good luck.

Call local banks and realtors. I just sold a property in KS for 70K and it was FHA so there are lenders for it. It might be cheaper to get an unsecured loan b/c of the closing costs and everything. What is your goal for this property?

Get pre-qualified for a loan and talk to three realtors.

Get a mentor. One that has experience, knowledge and you can trust.  

What are you good at?  Numbers?  Renovations?  Sales?  Raising Money?  Maybe write a cover letter and that will help you organize your thoughts and assets.

Great job!

Ask your local bank. It may not be worth it to do a HELOC, especially if it is an investment. Depending on how much you plan to get out, it might be cheaper to get an unsecured line of credit. Rates will be more, but the costs will be less and you're not tying your property up for 3 years.

Don't worry about any organizations.  That pretty much means they pay dues to someone.  A referral from a trusted source is much more meaningful.

Abdul,

That is a very good and fair question.  At the end of the day, you need to trust your gut.  From what little I know, I would personally go with the family.  Assuming everyone is a good person and honest.  I remember when I was in my 20's and I remember when I was a newlywed w/ a baby.  I am a different person.  More responsible and appreciate consistency more.  I honestly like the fact that they came to you and asked for a discount b/c it shows they care about their finances.  I'm not saying you should give in, but it is a fair request.  Go with your gut, but I vote for the family.  Please DM me and tell me what you picked.

Josh,

I don't know a lot about your business but it sounds like you know what you are doing.  When we buy properties (residential and commercial) I only care about the numbers.  But when I buy a house for my wife and family to live in, it is a different game.  If you are breaking even or even losing a bit is something you have to think about yourself and I know you will.  But this is a property for your business(es) to grow into.  You make your money in business, not in real estate.  If the owner decided to sell it to someone else that would have plans to kick you out when your lease is over, then you would be in a much worse situation.  Is 1.4M a lot of money?  HELL YES!  But based on what little I know about you and your situation, it's not that much compared to the value of your business.