All Forum Posts by: Steven G.

Nice! To be 18 and have $140k...that's awesome. Here's what I'd do, if I were you...

- Become a real estate agent. That way, you can learn the basics of real estate contract law, learn sales skills, learn how to use the MLS and how to find good deals. Over time, you'll get to know neighborhoods in your particular area that are good to invest in and ones that are not.
- After your earned income is sufficient and stable (if you are personable AND driven - there is no reason you should not make six-figures a year as a real estate agent, after a year or two)...then begin buying rental properties. Get yourself a bunch of them. Also, begin doing rehabs.
- By starting early...man...you'll not only be a millionaire, you'll be a multi-millionaire by the time you are 30.

Good luck!!!

If you plan on only having a few rentals, I'd keep State Farm (or Allstate, etc). If you plan on growing "big" in time, and want flexibility with your policies (e.g. you can convert a rental to a note and keep the same policy, have vacant/rehab coverage, etc) - I'd recommend National Real Estate Insurance Group. Their website is http://www.nreinsurance.com/

I found a program on Ebay, written by a property manager, which worked well for a while - but it turned out to be a piece of junk. LOL.

I have since switched to Notesmith Pro, because I have lots of notes - as well as rentals - and it tracks rental properties decently. 

Since you are just starting out, I would go with a normal mortgage broker who will give you a standard Freddie Mac / Fannie Mae loan. Get yourself 2 or 3 rentals, make sure you qualify easily enough (income / DTI ratios / credit score / etc) ... and most importantly make sure you enjoy being a landlord. Some people become landlords, and then hate it with a passion. Some people love it. Until you do a few of them...make sure you enjoy it first, and that you have a good business system down in place for dealing with tenants, the financial part of it, etc - whether you manage your own properties or not.

Personally, I'd advise against using a mortgage broker for too many properties as once you hit the Fannie Mae / Freddie Mac cap of 10 loans, that could mess up your own life if you find yourself earning more income down the road and want to buy yourself a newer & nicer main residence.

Anyway...after your first 2 or 3 loans through your mortgage broker, I'd then consult a portfolio lender or local bank for providing you loans. What would you ask them? The same thing you'd ask your mortgage broker...what are your standard loan terms for someone with good income/credit/cash reserves...interest rate, loan length (e.g. a portfolio lender may only do 5-10 year notes, vs Fannie Mae's 30 year notes), etc, etc - nothing complicated or that different.

Good luck!

- Get on wholesalers email lists
- Setup a free account on Zillow or Ziprealty - and get MLS-listed properties that meet a certain criteria (price, certain town, etc) emailed to you automatically; be prepared to make an offer on a property if it does meet your criteria...so have cash, or a pre-approved credit on standby so you can make an offer.
- Focus on a certain area...e.g. Richardson, West Plano, East Plano, etc. Get to know the neighborhoods well, and focus on marketing and calling FSBO signs in that area. That way people know you're the person to call when they want to sell their house

FYI - if they are not helpful when you call them. - send them the "open records request" anyway.

They would prefer NOT to provide that information...that is extra work that they do not normally do. But its "the law" that they provide the information...apparently Florida is just like Texas in that aspect (from what I read by Googling it). Code enforcement departments use computers, etc for keeping track of all their violations...they can find a way to print off the data for you. It may not be in Excel all "pretty looking"...but as long as you can get the property addresses, you can lookup who the owner is on your local count appraisal district website.

Well, a foreclosed property is typically sold auction style - usually on the courthouse steps of whatever county the house is in. Some investors buy the property on the courthouse steps by bidding on it directly from the trustee (the trustee is usually the lawyer for the lienholder, who is actually doing the foreclosure on behalf of the lienholder), but in many cases its sold back to the original lender/lienholder, and they in turn list it on the MLS or on an online auction website (like Auction.com). So...you will probably have the chance to buy the house at one of a couple different times.

Preforeclosures are a whole other animal. A preforeclosure, is still owned / controlled by the original owner, but its just getting ready to be foreclosed on by the lienholder because the owner is behind on his/her mortgage payments. If you want to buy one of those, you have to approach the owner directly and then offer him/her a deal that'll AT MINIMUM pay off their mortgage & any other related fees from getting behind...sometimes you get lucky with those offers, sometimes you don't.

In Texas, you can do an "open records request" for all code enforcement violations from a specific city, or say violations over a certain date range (01/01/15 to 02/01/15). If you are in Orlando - I'd imagine you'd send it to the code enforcement office there (but call their city offices to confirm that)

Here's an example open records request doc, for the state of Florida
http://www.nfoic.org/florida-sample-foia-request

What someone does in their spare time with tattoos...that's A-OK. Let them tattoo themselves right and left.

But in the business world... >> cover them up <<

I've always heard and practiced - dress, and look, successful. You don't have to wear a suit everyday...a nice shirt (with a collar) and shorts will work. Just try to look good. It appeals to almost everyone and will help you do more deals/sales. That means...*NO* nose rings, earrings (if you are a guy), visible tattoos (wear long sleeves if you have them on your arms), powerful colognes or perfumes, or rings or necklaces that are overboard (forget the ring on each finger, or the 1970's used car salesman necklace) --- save all that stuff for the weekend.

That's my 2 cents... ;)

I don't know the LA market, Andrew. But I imagine it has alot of good areas, and bad areas, but from what I have heard it has a lot more "expensive" housing vs many other areas of the USA; in particular the midwest. With higher price point properties....you do usually spend more making a house nicer.
 
With high end homes...you have to do what I call a "class A" finish out. I am not talking about mansions here - just homes in nicer neighborhoods where 2 working professionals (a couple) might live...AKA an upper middle class neighborhood. In those areas - you have to do crown molding, granite in the kitchen & bathrooms, nicer carpet with thicker pad, nicer cabinets, etc to be able to maximize your ROI. So in nicer neighborhoods...yes, you spend more money on rehabs.

You also have class B, C and D properties (you see those ratings often in the apartment complex world, but I personally also apply them to single family homes). In a class C or D house - say an older lower income neighborhood - you would spend far less money doing a house the same size (as in a class A property neighborhood). In a house like that, you can probably get away with saving and painting the cabinets, putting in basic countertops, basic carpet, and cheap flat paint throughout the house - heck maybe even all white paint! You can literally see a difference of 200-300% in repair costs for a house of the same square footage, but in different neighborhoods/areas.

For more info...I recommend you read the book "FLIP: How to Find, Fix, and Sell Houses for Profit"