All Forum Posts by: Ned Carey

@Daniel Watson hard money lenders lend mostly on the value of the asset more than your credit. However they generally want money down and a value add property. They are short term loans until you can refinance (or sell). 

DSCR lenders do the loan based on the income of the property however again they expect you to put up some funds generally 20%

Private lenders like friends family and associates can lend to you based on their trust and respect for you and the terms are whatever you can negotiate. 

The reality is scaling without any money and expecting to do all your deals with no cash out of pocket is just not realistic. It can be done but it is quite rare. It also often entails much greater risk.  You have made a great start. Good luck. 

@Allie Pizzo Welcome to BP. We have a lot of Baltimore area investors here on BP. 

My first property I bought at an auction in the city of Baltimore for about $39k and it rented for $800 mo.

See if there is a real estate investors group down there. Someone else will have some experience and feedback. Also consider reaching out to an attorney. 

@Renee Adams The first time I heard of it, I knew it was job. 

Hunter what I meant was the BP has a lot of investors from the area. Not me as a wholesaler. 

@Matt Boerlage Personally I would pay an attorney. But you want not just the operating agreement, that is the easy part. You also want some guidance as to what formalities are required to keep it from being pierced.

I Suggest the legal self help books by NOLO Press. They have some on understanding LLCs and also how to create your own. Even if you pay an attorney to create your LLC these area good read so that you understand some of the legal issues and can better work with your attorney.

@Hunter B Cookson welcome to BP. We have a number of investors who are from the Seattle area. 

@Maurice Roman I have no experience with her in the last 5 years. I can say she is respected as one of the good gurus. However no one person is going to give you everything you need to know. And no one is going to do it for you. 

Yes $19k is a lot of money. A lot of guru courses are available on ebay for a tiny percentage of the original cost. I believe in investing in myself and educating myself. I have spent well over $100k on courses and coaching. But I also know many that never bought a guru course and are very successful. Also a lot of people have spent tens of thousands on classes and never do a deal. 

@Nicci Anderson welcome to BP.  Age 36 still gives you plenty of time to build wealth in this business.  You are are starting about a decade earlier than I did. 

@Arthur Schwartz yes if the interest rate is higher than the cap rate, the more you borrow the lower your return.  Personally I think it is downright stupid to buy at a cap rate below the interest rate. It is an indication the market has gone to far. 

Yes there are exceptions as @Henry Clark points out. Also if you are buying a property to reposition and increase the rents and value, it might make sense to take on that short term cost and risk. 

The bottom line is; your thinking is correct. Sadly many new investors don't understand the basic math and it can lead to bad decisions.