All Forum Posts by: Michael Mulrooney

Just be careful and not over build in the area. Sounds profitable but if you are just starting out, I would start with a few smaller projects first to understand all the costs involved. (materials, labor, permits etc.)

Taking the LLC out of the picture, I would never buy a property with a partner. One partner always feels like they are doing all the work and it almost always ends in a dispute. This is a bad idea.

LLC's are the way to go but you will probably need to establish your business first as a sole proprietor first and then begin transferring a few properties.

Again, please rethink the partner idea. Never do business with friends or family.

I have found that a lot of the national speakers are just trying to sell you a bunch of CD's that lead you into buying something else from them. Hook up with your local REI group. I have also found that you have to be willing to get your hands dirty on the first few deals you do. Others may have a different experience. Once you build enough cash to begin buying out of pocket, then you can relax a little ont he repairs but you must stay heavily involved.

The first few properties I purchased, I lived in first and then rented them out as I moved to the next one. This helps to begin building equity.

The numbers sound right if you are going to live in the property but it all depends on how much work is needed to make the property liveable to you. You do not need a Realtor at this point. They will just add 6% to the offer. You can download a contract from www.uslegalforms.com for an state. That is what I would do, but don't use a Realtor at this point. You have done all the work.

I know many people that have a few property's in several LLC's for protection, but that would be best decided between you and your attorney.

My dad has always warned me about being sued and has thrown that at me ever since I have been buying property. He has never purchased property or tried to improve his situation because of that type of fear. If you get sued, then deal with it at that time. Don't let that hold you back from making a profitable decision.

I have found that the books you buy online or in book stores give you hte best information. Many of the big speakers give you tid bits of information to try and get you to buy additional thigns from them.

Start working with investors in your area. Birddogging can pay off big time and you will gain valuable knowledge and cash. Once you have teh cash, then you can purchase your first deal. If you have no money know and try to buy a property, then you will really have problems.

While riding around as Wesley suggested start knowing the areas and what houses are selling/renting for. I would look into your local REI group and start networking with people in the business. Realtors are good resources but sometimes they get caught up in the sale vs. actually helping you out. I would stay away fromthe No money Down Deals if youare serious about buying property. Some of the deals work, but most do not. You will spend a lot of time making ridiculous offers that people will laugh at. Work towards a line of credit against your home. That is the best way to start out.

I would consider joining a local REI group ( Real Estate Investing Group) and start offer your services to help the investors in the gorup clean up their propertires. You would then be involved in the business and hopefully learn some things from someone in the business, whil earning a little nit of cash. You are still young and I assume you still live at home. Take advantage of that !