All Forum Posts by: Patrick I.

@Kneegel Benjamin I just saw your post. I see that you did not have a reply but hope that you still have the motivation to fight for a better future. In the past, I replied to similar questions that have been posted. These are a collection of things that I have addressed:

Before you acquire any property, spend some time reading a lot of articles and forum posts to get a grasp on the different ways you can make money in real estate. Learn these different ways, familiarize yourself with the different financing options, learn about the different structures of a home/apartment building (no need to be a pro for this - Just know what they are and the way they work). I cannot stress enough that reading a lot is going to give you the knowledge you need and more confidence when it is time to execute. Every day, I would google a specific area of real estate and learn more about it.

While you read a lot, attend as many open houses of properties for sale in your area as possible. Just walk in and exchange with the realtors. You may come across one realtor you can connect with and that person can assist you in your acquisition(s). He/she can also take you to visit any property that is currently on the market. That is how I met my realtor with whom I am about to close on my first property. Visiting the properties will also give you a sense of what to expect on properties coming in the market. Visiting a lot of properties also helped me get "desensitized" to the beauty of some of the properties I have seen so that I could focus mainly on the numbers and the property features.

Analyze some potential rental properties even though you do not intent to purchase them. This will help you understand how the different costs, mortgage and rent can affect the return on investment. You could use the BP calculator (5 times for free membership) or find some available online for free.

The most important thing that is going to get you ahead: commit to do 1 thing at least every day that is going to get you closer to your goal of acquiring and creating wealth through real estate: read, analyze, go to open house....

@Randall D Cheney There is a need for some context to answer your question. In which state/area are you buying in? What is the median home price? What are the rents rate in your area. Without those, it is difficult to help you.

I can tell you that in my area, you will not be cash flow positive renting a $150K single unit property because the rent are fairly low.

@Jonathan Cattani Your other renters may not cover all of your mortgage + expenses, but will you be cash flow positive if you had a renter instead? If yes, it is ok.  I will be in a similar situation in a couple of months. The other renters will not cover all the expenses, but I will be saving over $5000 per year going house hacking. So it is worth it (i think).

@Ed Park If one of you takes the mortgage, only that person can take advantages (and disadvantages) of REI. In my opinion, you can buy a property under your names (all three), but still use an operating agreement to help you navigate through the management of the business. Good Luck

@Peter Hynes I am no expert in asset protection, but I think there are ways to have the properties under LLC: option 1 - buy it all cash; option 2 - use a deed to send your property under LLC (but may trigger the due on sale close). I heard of LLC services provided by Garrett Sutton (from Kiyosaki's Rich Dad Poor Dad) but don't know how it works. You may look into it. Otherwise, liability insurances should work, for a beginning. Good Luck

@Travis Gallagher What is the main reason why you would like to go to REI vs. something else? What have you learn about REI? Have you read real estate books lately? You may need to tells us more about your motivation, what you have learned so far so we can better help you. Cheers!!

@Cody Culberson May I asked why you would like to invest in the real estate business?

Have you learn about the legal and taxes implications of being a landlord?

@Kenyetta Overton I am no expert in real estate investing but I doubt that there is a way to invest in real estate without any money. Even wholesale which does not require buying a physical property may require some money (please don't quote me on this). Try looking to start with house hacking, rural loans (for property in rural areas). Still, those will require something. Good Luck

@Eli L. Ku Given that you are just starting out, I would recommend looking for referrals from other investors or real estate agents. Once you have the list contact them to discuss. Make sure you get to know them (how long have they been doing this, guarantee of their work....) and also discuss the projects that you have (or will have). Out of these first contacts, you may find good qualifiers... Good Luck 

@Bob Jones I don't think (personally) that it is illegal, but I would recommend against it. You may expose yourself to some legal trouble should your rented come after you through the other business for one reason or another