All Forum Posts by: Josue Guerrero

@Account Closed 

Roger, one of the greatest pieces of advice I've been given by a mentor is to NEVER go into business with friends or family. From what I'm gathering, your father in law wants to be your general contractor AND your business partner, yet you're the one financing all of the properties and taking on all of the risk. 

Taking on a partner in real estate, especially one that's family is going to take on a lot more stress than you would want. Especially when you have to split your profits in half with someone you feel isn't going to be taking on nearly as much risk as you are. Like Jonathan said above me, firing a contractor is easy work, and once it's done, it's done. Firing a father -in-law is going to strain your relationship with him, and in the long run, strain your relationship with your wife. 

Still, if you felt like you could trust your father in law to be a reliable contractor that was going to stick to deadlines and give you fair prices, it may be a good idea to look into just hiring him as your go to the contractor, but not much else than that.

Best of luck to you, please keep me updated on your situation, would love to hear more about it.

Josue

Hey Thomas, it sounds to me like it could be a worthwhile investment. There definitely seems to be a big trend in renting rooms to college students nowadays. I don't have experience renting out to college students, though, but the only piece of advice I can offer is to make sure you set a high security deposit. The last thing you'd want is for somebody to do some serious damage to one of the rooms or bathrooms. The high security deposit would help motivate them to keep everything relatively orderly.

Best of luck to you Thomas! I'm curious to know about how your investment plays out, so I'll send you a colleague request!

@Victor Argueta

To begin I would be more interested in house flipping. In the state of North Carolina, I've been having some difficulties finding good multi-family properties that would cash flow nicely every month. I also wouldn't want to get into buying and holding a SFH home for my first investment either. Then again, if I were to find a 3 - 4 unit multi-family home, I could possibly find a job, get an FHA loan and live in one of the units while I rent out the others, and use the cash flow to fund a future investment. Once I fulfill the Owner-Occupant requirement, I could move out and rinse and repeat, to which hopefully by then I'll have enough steady income from my properties to qualify for a loan.

If I can't find one though, I could always go the route that's been suggested and take out a private loan from someone with an SDRA, and use it on a house flip.

You're right though, it's definitely difficult to achieve and would take me doing some homework, but it's possible!

@David Dachtera

Most definitely, I doubt a private lender would be eager to invest his money on the first guy promising a good deal ;). Thank you for the advice David, I'll definitely put it to good use.

@David Dachtera

Thank you for the sound advice. The more I read up on it, the more I'm beginning to see that a private money lender may be the way to go to get started, especially if it's through house flipping, correct?

Hey Steven,

Thank you very much for the reply and clarification. I see now how silly my question may have sounded! Now I have an excellent credit score, but I'm assuming that wouldn't mean much to the banks, would it? 

I definitely have a family member that can sign with me to start me off, so I may end up going that route instead. 

Hello all,

I've been currently doing plenty of research on getting started as a Real Estate investor. I have all of the knowledge to get started, I'm just curious about one thing: What are my options for financing an investment home while I'm currently not making any income. 

To be a little bit more clear, I have some money saved in the bank (though not quite enough to finance myself) and I currently have no debt whatsoever. I'm currently in the process of forming an LLC for the purposes of my investments. While I'll technically be self-employed once I have the LLC formed, I won't actually be generating any income until I can start investing, since I currently do not have a job.

To summarize, I'm mainly curious if a bank would loan to a guy like me, or if I would have to try my luck at finding another means of financing besides the conventional mortgage or portfolio lender.

Thanks in advance,

Josue