All Forum Posts by: Samir Shahani

You have several options in my opinion.  

Although, your best advice will come from a lawyer, so please seek their advice over mine.

1) Form an LLC. Buy the home under the LLC.

2) Promissory note.

3) Find a lender who doesn't care where the down payment comes from.  

@Michael Fratalia

Thank you good sir, much appreciated.  Once the studying is over, I will take you up on your offer!

Thanks again

:) 

@Paige Kelsey Before I start - how are you getting 20% COC on unfinanced properties? That's insane? So a $100,000 house is cash flowing $20,000+ a year ?

With regards to your "dilemma" - define your goals, write it out, and work on executing them.

I would start by saying .. "in 10 years I want to own my primary residence and 50 properties free and clear each cash flowing at least 10% annually"

Then you can easily figure out the correct path that makes sense to you and your family .. maybe that means you keep the 23 doors and use the money that it generates to buy your primary residence.

Maybe that means refinancing all your properties and using the large influx of money to own significant equity in your place.

Every avenue will have pro's and con's, but ultimately, it's up to you and your family how to plan this out .. 

It's a really good problem to have :) 

@Craig Moore @Steve Bracero

I am also in the same boat.  I am studying for the PA real estate licence.  

In response to your question, you have to figure out what your goals are.

If you want to sell homes, standard single family homes, and make a career out of it, you can easily join any of the national chains.  (Berkshire, etc)

If you want to sell larger multifamily, you will likely have to join a specialty firm that handles that.  The good firms are very difficult to get into (requires experience, a certain look, etc) but they will make you super rich in a small amount of time - of course you have to be a salesperson and know what you are talking about.  But these firms get direct lines to the richest sellers/buyers and close dozens of HUGE deals a year. (Typical salesperson can easily do $200MM+ in sales per year.)

In my case, the real reason I am getting my real estate licence is to represent myself in my investment purchases and earn 3% back in each transaction.  For this reason, I am going to target a small local broker who is willing to hire me part time for this purpose. 

In summary, find out what you would like and go for it.

@Nathan Gesner  thank you.  Well written and duly acknowledged.

@Ashley K.

Based on what you're saying, it may make the most sense to do exactly what you suggest .. buy a duplex or triplex w/ minimal down (3.5%).  W/ closing costs you will end up spending maybe 15k on a property in that price range that you suggested.  

If the rents work in your area, you will go from spending $650/mo on living to MAKING money.  It's a no brainer in my opinion. 

Side question, what do you do that makes you 30k a month as a nomad?

Real estate is far bigger and dynamic than your discussion alludes to.

Without a doubt, there are large forces and macro-trends that take place over time.  It is a cyclical industry/market after all.

HOWEVER there will ALWAYS be opportunity.  The market trends have no effect on a situation where a seller may become motivated and needs to leave their property (job, divorce, death, etc).

If you buy low, you can make money renting or resell at a higher price.  This dynamic will always be present even in a rising or falling market. 

Sure, sometimes its easier to find deals (2009 onward). Sometimes its a bit harder (now). However, even in a very "hot sellers market" there is opportunity to buy properties w/ COC return of 20%+ and MFU w/ 10%+ cap rates.

@Edgar Gonzalez You will find that 90+% of people on BP will suggest to not buy negative cash flow properties.  It is likely unsustainable and you won't be able to scale.

@Edwin Palacio

I think a standard thing to do is to grow your W2 income to a point where it is funding your investment portfolio until it reaches "critical mass".  Once your investment portfolio reaches that point, you can justify leaving your job.

In terms of growing your income through your W2 job, I'd strongly suggest networking within your field.  Lawyers have thousands of resources out there and many places to network (online and in person).  Ultimately I would suggesting finding your way to a very prestigious firm with the goal of ultimately making partner or start your own firm and reach the sky.

@Kevin Dureiko

Welcome to BP

Interested in your rates, t&c's, etc. in PA, please PM me.