All Forum Posts by: Tim Johnson

The only thing you need to know before purchasing your first property.....is if the purchase price is right for you. Unfortunately, in order to know that....you may need to learn some simple math and how to analyze the deal....or simply ask someone else for help.

I know of people who have backed into real estate investing with zero knowledge of what they were doing...and ended up succeeding in a big way. I also have clients who have learned and studied so much that they have never purchased a property.

It's probably somewhere in between but I would lean toward the first example and just start. Most of what you need to learn, you need to learn by doing.

Quote from @Brian Schroeder:

Hello, my name is Brian Schroeder I live in North Jersey!

I would love to work with very well experience individuals who are savants in their areas so we can benefit from each other and build long lasting fruitful relationships!

I am working to own 20-30 properties in the next 10 years and with the BRRRR method and would love to have some amazing individuals to work with.

Also, for investors on the platform that are just getting into real estate in Jersey, or have been established for a while I would love to network with you and accomplish our goals together.

Hey Brian, if I WAS a savant in my own area of expertise.....what would convince me to want to connect with you?  How exactly are you able to help me reach my goals? I mean....if this is going to be mutual....and we're actually going to benefit each other?

Quote from @David Martin:

Hello! My wife and I are planning to purchase a rental property or two in the near future and are considering purchasing them through a real estate LLC that we establish. I understand that most banks won't offer conventional loans to LLCs -- thus, is it pointless to purchase these properties via an LLC when we're just starting out?

 Most here on BP will think so. Why not check out the excellent response that @ Nathan Gesner offers almost weekly to folks on this forum that ask this same question. Here is the most recent thread: https://www.biggerpockets.com/...

Quote from @Matt Sora:

Can somebody explain LLC's and How I should structure it. I've done some research and was told you can do that and then put it into a holding company and then put it into a Trust? Or maybe a corporation? I'm all over the place. I would appreciate it if someone could straighten all these out for me and explain each one and how I should go about structuring the whole thing. Thank you!! Also is there an annual fee to have one?

 Hi @Matt Sora, yes your question is a bit all over the place. What you are asking for is actually not reasonable for an individual on this forum to provide (explaining LLCs, holding companies, trusts, and corporate entities). But how about if you start with a good book like this one: "How To Use Limited Liability Companies & Limited Partnerships" by Garrett Sutton....or one of several others out there.  That will get your thoughts organized so that you can ask specific questions that will solve your individual issues. 

Hey Chandler, good for you on getting started. Are you employed? Can you qualify for a loan? How much can you save each month? How much time can you commit to REI? All of these will make a difference on your strategies and goals. I would tend to think that 10K is a bit thin to jump into a house purchase. How about going full-in on frugality for a few months and doubling that? Then your options open up even further.

@Jewel B. yes, clearly too many areas of interest. You're going to have to do some self-refecting on your own skill-set and deepest interests.....and narrow that list down to one or two strategies at most...."try chasing two rabbits....and you'll not catch either one".

As far as dealing with conflicting information. ALWAYS consider the source. Print and online versions of ANY periodical or newspaper, magazine, etc. - they ALL make money off of circulation, readership, clicks online, etc. That's why most headlines can be considered pure click-bait these days. Your example is a great case: INMAN, a well respected source of information in the RE community - yet, look at their headline: "Airbnb Bust is Upon Us!!....a tweet hints at Airbnb's fall. But is it right?"  Ridiculous. They get you to click...and then they cover their tails with that final question - "but is it right?" No indication of whose "tweet" they're talking about. And you know that the article will end up saying "it's all local." I challenge you to quickly find 5 other headlines with this EXACT same pattern. They're everywhere - whether it's Redfin....or the Wall Street Journal.

The info you want to hear and listen to is information coming from other investors working and profiting in your local area. (Or trusted sources if out of your area.) 

@Christopher Dru yes.... on sticking with your 401k to employer-match level. Don't miss out on that.....and emphatic yes.....on moving all other excess and available cash to REI. While feeling scary or painful - at the very least it would represent a better balance and more stability in your investment portfolio. Your plan seems cogent to me.

Hi @Candyce Jackson would you be willing to share those questions and concerns?

Sounds like you need to just set up a month to month lease. Assuming you have a reasonable confidence that you can fill the unit again, it would be better for both parties.

@Alexia McIntyre  Welcome... your question is a bit broad for this forum. "How can I become financially free using rental properties?" is sort of what this whole BP is about. Offering some specific data on your situation...and some first steps you're thinking about allow forum readers to jump in with advice or suggestions.

Are you employed? Can you get conventional loans easily? What kind of rental properties are you interested in? How much time can you commit? How much capital are you starting with? Why are you limited to just 8 years? All of these would be hints for us in knowing how to help or what to suggest.