All Forum Posts by: Ned Carey

@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. 

@Amit Chugh the issues you mention are all risks regarding auctions. Your bid should reflect that risk. Auctions can be a great buy in some markets and a terrible buy in others. Relatively recently auctions didn't seem to be good deals to me. That may be changing especially in the commercial space.  

@Ray Pantle If a rental cash flows a  few thousand dollars a year, does that really move the needle regarding your income? It takes a lot of rentals to really add up.

That said, yes it is just harder to find cash flowing deals today. They are out there. 

@Sarah Biggs no one program will tell you everything you need to know.  Many are very misleading and some will even tell you to do things that can get you into legal trouble. 

                  "I want to start ASAP!"

That makes you a perfect target for the vultures. Real estate is not a get rich quickly proposition. It takes time and your wealth compounds over time. Trying to go to fast is more likely to cause you to crash and burn. I know that is not what you want to hear. It certainly isn't what you hear from those that want to sell you their course. 

I suggest you keep reading and listening here. Gradually it will start to make sense. In the mean time as you are learning go out and network with other investors, lenders, agents etc. Also go out and look at a lot of deals. The more deals you look at the better you will know your market.