All Forum Posts by: Tom Sylvester

Kevin - $84k on a wholesale is pretty crazy. Care to share some more detail on this one?

I just wanted to update this post and let everyone know that my goal has not been completed yet, but is on its way. All of the papers for the LLC has been filed with the state, and we are just waiting on them to finish their work.

I have a BA in computer science. I have been in the corporate world for two years, but do not plan to be there the rest of my life. I am all for education, but make sure, like with any investment, that ti gives you the returns you are looking for and does not just add a negative cashflow onto you.

A great example is my fiance. She got a degree in Zoology, couldn't find a job, and now work in an office. In the meantime, she now has all of her student loan debt that she will be paying for for the next 20 years. She could've skipped the whole degree and ended up with the job she has now.

For myself, the degree definitely helped me get my job, and I make enough of a difference to cover my student loan payment and still come out ahead.

But for me, my degree and current day job are just a means to an end. The day job pays the bills, and allows me to build up my real estate investing on the side.

I would suggest the same for you. Do the nurse thing, and build up your real estate portfolio on the side, so that you can leave your nursing job.

Yeah, that is a good idea.

Don't get me wrong, there is nothing wrong with education, just make sure the education you are paying for is quality and you are getting the return on it you need.

For example, if you get some material off ebay and decide you would like to do lease options, then you could read a book or two on lease options and go out and do them. Down the road you may want to get into something more advanced like rehabbing. In this case, it may not be a bad idea to take a quality course on rehabbing. If you plan you to use what you learned, the course will pay for itself.

You have to look at it like going to college. It is a big cost, but if you choose the right major and put it to use, it will pay for itself.

If you are starting out, I think it is a good idea to get a feel for all of the options that exist in real estate. I would go on ebay and purchase Carleton Sheets course, for $20-$30. Read through this and listen to the Cds, and you will have a better idea of what is out there. From here, decide what your niche is, and pick up a book or course on that subject.

Overall, you will have a few hundred invested and should be ready to start doing some deals. Just please don't feel like you have to spend thousands of dollars on some guru course to begin.

I just formed my LLC and set myself up as the Registered Agent. I am thinking this is not the ideal situations, since my name will be on the public record.

As far as real estate goes, who do people typically use as their registered agent?

The best deals that you will find almost always come from your own marketing or through people you have networked with. Look at ti this way... whoever has more options in a negotiation has the upper hand. If a property is on the MLS and a seller gets 3 offers, you are competing against two other offers. Additionally, you will submit these offers via an agent and will not talk ot the seller directly.

If you say, hear about someone who moved to another state but their old home is sitting vacant, you may be the only person talking to this seller. You can find out a lot more information, such as their motivation. You can also do a lot more negotiation on the price. Since you may be the only one talking to them, you have more options than they do.

As someone else mentioned in your other post, I think you are confused on what exactly subject to means. Subject to is a way to buy property. You can buy any property that has a mortgage subject to/ Basically, you are buying the property "subject to" the existing mortgage staying in place. So you get the deed to the property, and instead of going out and applying for a new mortgage, you will just begin to make payments on the current mortgage that the seller has.

So this is one way to buy property. Some seller may not want to sell this way. By talking to the seller, you can find out what their motivations and needs are. Based on this, you will want to structure a deal that works for both you and the seller.

I am in the process of forming an LLC myself through legalzoom.com. Much cheaper than several of the attorneys I talked to. The three packages range from $150 to $250 to $350 based on what you want.

FS - Like I said, it depends on the sellers needs. If you are talking to a seller that is selling their house and want to buy another one, they are probably not a good candidate for owner financing.

On the other hand, if you find a retiring landlord who is selling off 30 different properties that he owns, he may have trouble selling them all or may not want to pay taxes on them all in the same year. In this case, the landlord might like the monthly payments, which you can point out he will continue to receive if he owner finances, but he won't have any of the tenant hassles.

See how these two situations are totally different? A real estate investor has many tools in their toolbox, and you have to make sure you are using the right tool, or combination of tools, for the job. You wouldn't use a hammer to paint a house, would you?

As others have mentioned, looking solely at appreciation is speculative. This is one way to invest, but I would not recommend it for yu as a new investor.

I would tell you to pick up some property that will provide you will cashflow each month after all expenses are paid. By doing this, you will receive numerous benefits:

1. CASHFLOW
2. Principal paydown of your mortgage
3. Tax benefits (like depreciation)
4. Possible Appreciation

As you can see, there are several benefits. Even without appreciation, you can make money. Appreciation should not be the sole consideration. I look at it as icng on the cake if it happens.