All Forum Posts by: Nachole Johnson

I appreciate all of the dialogue. I'm absorbing it all. 

@Account Closed I know my capital is limited, but that's all I have to work with at the time due to unexpected medical bills over the previous 2 years. You have to start somewhere, right? I'm great at saving, so that's why I have a 3-5 year goal to purchase my first rental, by that time I very well could have 50k to invest. 

Hello @Colin Williams! 

I'm in the Houston area as well and would like to connect with others in the area just to network and learn. I'm not ready for a rental yet, but would like to be involved with real estate until I can make that step to purchase a rental. 

I would love to meet up with area investors sometime soon. When are the monthly meetings held?

@John Cohen, 

What a timely post! I just posted my first post ever on BP yesterday about notes and REITs.  

https://www.biggerpockets.com/forums/70/topics/260...

My five year plan is to "passively invest" and then build wealth through rentals after that specified time. I don't have much to work with now (around 10k), but from here on out will be maxing out my Roth for future investments since I now have a solid income. 

I'm trying to learn about notes, but I'm having a hard time with some of the concepts. I'm looking for someone willing to teach, if you could assist, I'd appreciate it. If you have any other possibilities for passive income during my 5- year plan, I'm open to hearing about them as well. 

Thanks!

 Thanks Brian. You're yet another person I've heard mention Vanguard. I'll look into them as  well. I'm getting excited for what 2016 will bring as far as me starting in real estate.

Thank you for your detailed response Chris. Please forgive the typos I now see. (I wrote the post after a long day.)

I can see why private REITs aren't the best choice from the previous post you linked. I'm interested in more of the commercial REITs based upon what I've been reading. I've made a few calls to investment firms today to see which would be the best to hold my Roth. 

As far as notes are concerned, I'm still reading up on the process trying to learn. I see a ton of posts on notes, but not as much detail as I would like so I could learn. I plan on getting involved with my local REI group here, but based on what I see, they focus mainly on rental income strategies. I suppose that would be good for future reference and networking though.

Hello all.

I've been a member of Bigger Pockets for a few months now but this is my first post. I have always been interested in real estate and now I believe it's time for me to actually set goals and milestones for myself. 

For reasons I don't have time to get into on the forum, I'd like to passively invest for at least the next 3-5 years before divulging in actual rental properties. I currently have 10k sitting in a Roth that I could invest now and plan on maxing out my contributions from here on out. I don't want to tap into my 401k just yet.  

From what I've been reading potential sources of passive income include investing in REIT's, buying notes, and crowd funding. I'm most interested in REIT's and notes in that order, but still don't quite get the concept of them based upon my research. I admit, it's getting clearer, but I still have a lot of questions. Please forgive my ignorance in advance.

REIT's

-If I purchase them within my Roth am I still subject to being able to only take out what I have originally invested and not the dividends I may receive on the REIT's? Meaning can I use the gains I made in REIT's for investing in rentals in the future?

-What should I look for in a company that holds my Roth? Currently I have my Roth through American Funds. From what I have read here people seem to like Vanguard. Is going with a company who does strictly investments like Vanguard or Fidelity better than regular bank IRAs like Wells Fargo and Capital One? I only ask this because I have bank accounts with both. 

-Can I actively trade REIT's? Meaning if I want to mix it up with retail, medical centers, student housing can I do that? Or do I even have a choice?

- Is their an advantage in investing in a mortgage REIT over a equity REIT?

-Is their an advantage of owing private REIT's over public REIT's or vice versa?

Notes

-Can this be done within an IRA with 10-20k? Or do I need to move the money into another account and save more?

-How do you obtain notes...I mean if someone has a mortgage that is about to default, how would you be able to come in an purchase it for under value?

-If someone does not pay the note, can you always automatically go into foreclosure mode and then essentially own the property in question?

-What happens when the note is paid in full by the homeowner? Is the transaction complete and the investor just walks away?

-Is there any good reason to be in 2nd position when buying notes?

Thanks in advance for the responses. I'm looking forward to learning from experienced investors.