All Forum Posts by: Michael Privitera

Thanks Ali!

Would you say one is "better" than the other for a first time investment?  Or does that not really matter and the criteria you listed above is really what's important when making that decision?

I'm out in Suffolk like you but if you get something started up I will be there.  Keep me updated please.

Hello all,

I would like the opinion of BP on this. I am looking to purchase some rental property out of state. It will be either a 3 or 4 family unit. One of my best friends is going to manage the property for me. The reason I pick out of state is because it is more affordable versus where I live on Long Island. The property will return a positive cash flow of course, or else I wont be doing do it. Cash flow can range anywhere from $400/month to a $1,000/month depending on the deal. I do not have a portfolio at this time, so this property would be my first and also my first step into gaining bigger pockets.

Back here at home, I have a friend that is a commercial agent. He has been giving me some advice and tips since I started talking to him about it. In our last conversation he seemed to try and steer me away from the potential property and look more for a flip situation here at home. He's not against rental properties, but it seemed like he thought something like a flip or wholesale deal would provide "more of a splash." The initial outlay for the rental combined with the work involved in being a land lord and not having the property local may not be worth what I would get in retrun, even in the monthly cash flow is positive.

So I turn to my friends here. Does going buy and hold as a first step seem like a good/bad idea? Including out of state? Is my friend right in trying to look for a bigger splash to help build up some capital? He says a lot of the things I read on here, especially with respect to alleviating my fear of the expensive market I live in. He tells me that if I find a great deal, the money will follow.

Thanks all!

@David Kosiorek I agree and you can count me in for either or those locations.

NOTE: This is a replicated post from "Starting Out."  Looking for more exposure.

Hello BP! I'm looking to see if there is an experienced RE investor in Long Island that wouldn't mind sharing some of their expertise. I realize this is something that gets asked a lot and am hesitant to post, however I understand the importance of finding a mentor and am humbly asking for a hand.

I currently work in I.T. and would have no problems offering my services in that arena in exchange. It would only be fair as I know I'm asking someone to invest some of their time and knowledge in me. I could provide consultation, break/fix, malware clean ups, etc. An exchange of computer services for REI knowledge :-)

Thanks in advance for anyone who wouldn't mind helping a new investor!

Regards,

Mike

Hello BP! I'm looking to see if there is an experienced RE investor in Long Island that wouldn't mind sharing some of their expertise. I realize this is something that gets asked a lot and am hesitant to post, however I understand the importance of finding a mentor and am humbly asking for a hand.

I currently work in I.T. and would have no problems offering my services in that arena in exchange. It would only be fair as I know I'm asking someone to invest some of their time and knowledge in me. I could provide consultation, break/fix, malware clean ups, etc. An exchange of computer services for REI knowledge :-)

Thanks in advance for anyone who wouldn't mind helping a new investor!

Regards,

Mike

I'm new to the game but I will tell you how I would feel/think if I was in your shoes.

1. The monthly income is definitely there to cover the rent.  I would absolutely wait on those background checks to come in as well.  I would also try to vet the son a little more as one month on the job doesn't instill much confidence.  The collections is a bit concerning.  Did she just go through a rough spot in life or is this a serial problem for her?  It's possible she could be an out-of-control spender and that could have an affect on things.

2. I would call them and get their side of the story as well.  It seems there could be more to the story here so I would do the due diligence in finding out.

As you said, both don't seem ideal but #1 would sound a little better to me.  I'm sure there are folks on here though with way more experience than I that could talk more about the collections red flag and whether it's worth it or not.  I would definitely entertain some more offers before making a decision.

Just my two cents!

I appreciate the feedback @Donald Placide. Can you enlighten or point me in the direction of some of these disclosure issues you mention for wholesaling?  Or is it simply I need to let it be known to all parties involved that I am licensed?  (Hypothetically, I am as of this writing not licensed).

Are there any draw backs to being a license real estate agent in NY and venturing into REI? Would it make it illegal in any capacity to wholesale, flip, or invest in any way?

Thanks in advance!

It was a solid idea anyway Josh.  It's unfortunate that it met such a quick demise but as you said, do not throw that code out.  Maybe a bigger or more elaborate marketing campaign to the users of BP regarding the chat feature can be used in the future prior to another rollout?  I'm fairly new to BP so maybe I missed the initial buildup to the release and enough information was given initially.

I can see the chat feature playing a huge role on a site like this so hopefully this is only a temporary good bye.