All Forum Posts by: Michael J.

Whats the purchase price?

HVAC alone is going to be close to $6000, so how did you come up with your dollar amount on repairs?

Have you pulled a list of title companies around you and called them to ask?  Build the relationship with them.

The CE Shop is great for doing a self paced online course.

Hey there! Great to see you're diving into wholesaling, it's definitely a journey worth taking. Wholesaling vacant lots can be an excellent entry point. The key is to understand your market deeply, pinpoint where the demand is, and identify lots that have potential. Start by networking with local investors, realtors, and other wholesalers to get the lay of the land. Educate yourself on the legal aspects, too. Remember, each deal is a learning opportunity. Stay persistent, focused, and always keep hustling. You've got this!

First off, big props to you for hitting that $100k mark consistently as a self-employed business owner. That's no small feat, and it's a clear sign you've got the hustle and the brains to make things happen. Now, looking at your situation, you're right to think about sustainability and diversification. Income can be a rollercoaster, especially when you're self-employed. It's savvy that you're eyeing the real estate game, especially with a successful relative in the biz.

Now, on to the real talk: real estate in LA and Orange County isn't just another gig. It's cutthroat, high-reward, and all about connections. Getting your license is a solid move. It's your ticket to the party. But remember, this game is about building your brand, your network, and your reputation. 

You mentioned not wanting to depend solely on your relative's client base - that's the spirit. Forge your own path. Yes, learn from his success, use it as a launchpad, but the end game is to create your own legacy in the real estate world. As for finding clients, it's about marketing yourself, networking like a boss, and providing top-notch service. Clients want someone who's not just selling a house but providing a dream and an experience. So, get out there, shake hands, join clubs, attend events, and get your name known.

In short, go for it. Get that license. Start as an agent, learn the ropes, then consider if the broker's path is right for you. And remember, in real estate, it's as much about selling yourself as it is about selling homes. Keep that entrepreneurial spirit alive, and you'll build not just income, but a legacy. Hustle hard, play smart, and keep aiming higher. You got this!

Hey, congratulations on passing your MD real estate exam! That's a solid win, and it's just the beginning of a thrilling journey in real estate.

Now, when it comes to setting up an LLC for your real estate activities, it's a smart play for several reasons. An LLC can offer you personal liability protection, separating your personal assets from your business dealings. It's also savvy for tax purposes, allowing you different options for how you want to be taxed, which can be beneficial.

Before you rush into it, though, you'll want to consult with both a good accountant and a lawyer. They'll help you understand the specific benefits and considerations for your situation, especially since laws and regulations can vary significantly by state.

As for having the broker pay commissions directly to your LLC, that's a common practice and can help streamline your finances. Just make sure that the broker's policies allow for this and that it aligns with your business structure and goals.

Paying your monthly broker and association fees from your business account is also a good move. It keeps your personal and business expenses separate, which is key for financial clarity and easier come tax time.

Bottom line: You're thinking in the right direction, but get professional advice tailored to your unique situation to make sure you're setting everything up for maximum benefit. Keep hustlin' and crush it out there!

First off, props to you for diving headfirst into the world of real estate investing at such a young age. That's the kind of hustle that gets noticed and pays off!

Now, about that property in Hamilton, NJ—you're right to think creatively about financing, especially as a fresh grad. Traditional bank loans might not be in the cards just yet due to your income history, but don't let that stop you.

Enter the world of hard money lenders and private money lenders. Hard money lenders are all about the property's potential, not so much your personal financial history. They might be more willing to bet on the deal you've found, especially if the numbers make sense. Higher interest rates and shorter terms are part of the deal, but they can get you that quick cash you need for the purchase and rehab.

Then, there's private money, which might come from individuals like your dad or other investors looking for a solid return. They might be more flexible and understanding of your situation but will still need a convincing pitch on the deal's potential profitability.

Remember, in real estate, there's always a way forward. Keep hustling, keep learning, and don't be afraid to take calculated risks. You're on the path to big things!

Wishing you all the success on your investment journey! Keep pushing, the world is yours for the taking!

Hey there,

First off, kudos to you for smashing it with those restaurants and getting your financial game strong. You're doing better than most, and that's something to be proud of. Now let's dive into the real estate game, which is clearly your next battlefield.

If I were in your boots, I'd weigh out a couple of things. First, think about your risk tolerance. Bigger properties mean bigger risks but also potentially higher returns. It's like deciding between betting on a sure-fire small win or going for the jackpot. If you're not looking to learn a whole new business or get into short-term rentals, consider scaling up slowly. Maybe look for a fourplex or a small apartment building next. It's a step up, but not a leap into the unknown.

Remember, real estate is about location, location, location. Keep an eye out for emerging areas or places where you've got a strong gut feeling about growth. Networking with other investors or joining a real estate investment group can give you insights you might not have considered.

In the end, it's about making moves that align with your goals and comfort zone. Nobody knows your situation better than you. So trust your gut, stay informed, and keep hustling. You've got this!

Best of luck!

First off, welcome to BP. It's a great place to get into the nitty-gritty of real estate, and you're asking a solid question. Let's break it down.

Interest rates, while they're a part of the equation, aren't the end-all-be-all. Yes, they've been on the rise, but the real question is: how are you planning to structure your investment?

Here's the deal with FHA loans: if you're going with one of these, it's got to be your primary residence for at least 12 months. The exception? If you're diving into multifamily and you're gonna live in one unit while renting out the other. That's a smart move, by the way, especially if you're starting out.

Now, onto your 20% down vs FHA question. The thing is, if you drop 20%, you're definitely going to reduce your monthly payment because you're borrowing less. No rocket science there. But here's what you gotta consider: FHA loans often have smaller down payments, which means you can potentially get into the game with less cash upfront. That's a quick way to leverage, but it comes with its own set of strings - like PMI, higher interest, and the primary residence thing we talked about.

It's not a black and white answer. Sometimes, freeing up that cash for other investments or to have as a safety net can outweigh the benefits of a lower monthly payment. But if you're stretching yourself thin with a lower down payment and higher monthly commitments, that can get risky real fast.

I get what that podcast is saying about long-term success rates curing all. Over time, real estate generally appreciates. But that's a generalization. You gotta do your due diligence, understand your market, and know the property. Real estate ain’t a set-it-and-forget-it game. You gotta be on top of it. And if the numbers work in the long run, sometimes it's worth paying a bit more on interest to get started sooner.

House by house, case by case – that's how you need to approach it. Your strategy needs to fit your goals and your current financial situation. So, take a step back, look at the bigger picture, and then decide on the details. Good luck out there!

First off, props for taking the initiative and looking into the real estate game. It's a space where serious moves can be made if you play your cards right. Now, onto manufactured homes...

1. Ownership of Land: You hit the nail on the head with this one. A lot of times, with manufactured homes, you own the structure, but you're leasing the land it sits on. This can introduce some risks. You might face rent hikes on the land or other restrictions that could dent your ROI. If the land lease expires, and isn't renewed, you could end up with a home and nowhere to put it. Big factor to consider!
2. Depreciation: Unlike traditional homes, manufactured homes can depreciate in value over time, kind of like how cars do. That might eat into your long-term gains.
3. Financing and Insurance: It can be a little more challenging to get traditional financing for manufactured homes. Lenders see them as higher risk than stick-built homes. Insurance might also be pricier.
4. Quality and Longevity: Don't be fooled by the "recently renovated" tag. Check the build quality. Some of these homes might not age as well as traditional homes. That might mean more maintenance costs in the future.
5. Resell Potential: The market for reselling manufactured homes isn't as vibrant as for traditional homes. Just something to think about for your exit strategy.

Look, the 1.5% rent to price ratio is enticing, and I won't lie, there's money to be made here if you're smart about it. But you've gotta weigh the short-term gains against potential long-term pitfalls. Get clear on your goals, do your due diligence, and crunch those numbers.

Stay sharp, play smart, and keep hunting for those opportunities! Remember, it's all about spotting gaps in the market and making them work for you.