All Forum Posts by: Yuuj V.

Hey All!

I just had a conversation with a friend (You know where this is going) and he wants to partner up with me in REI.

Our situations are very different. For one, I'm in another country/continent and he's back in MA. He's trustworthy and hungry, just as I am. He has a good job making about $65K/Year and I'm making $100+/Year. He tends to be flamboyant and wants to make moves quickly without methodically thinking them through, where I am a little more slower and pragmatic. (I tried to explain how to analyze a house using the formulas from the book while he spewed numbers, though sorta close, out. But if we did the math, I'm sure he'd be off by quite a lot).

We both have the same ambitions, and Id say the same goals as far as REI is concerned. But he lacks the capital where I have it, but he is willing to do all the foot work as well as putting in capital. We briefly discussed an LLC 50/50, but I told him lets work on capital first. Once we both have $10K in capital ($20K total), we can prove our commitments and start looking. I explained to him we will need a team, not just him and me, but a CPA, Lawyer, Book Keeper and contractors/handymen as well as an agent. He agreed, and I happen to know a few but unsure about their expertise yet.

He suggest we do this under an LLC, so I know he's put thought into this (because I wouldn't have it any other way), and he's constantly looking at properties, so I give him points for motivation. He's a risk taker (just like me), so we are equal in that mentality and he is a trustworthy friend that I've known for about 6 years.

But baby steps first, and the first steps are to get capital raised so we can move forward. I've had a failed venture already with a  friend who bailed when the going got tough and it costed me $20K from my own pocket while a measly $200 of his. So I am now in the mode of never trusting people who don't share the risk with me, though we are still good friends, I am very careful and selective now. Lesson learned!

What are some of your experiences working with friends in REI or even family members? How did you structure deals or the LLC or split the responsibilities? Any lessons learned or pitfalls?

Appreciate that @Mike B. Did some additional research and it does look like lenders want us physically there for 12 months...

Guess that will have to be in the back pocket for when I purchase a house for myself.

Meantime, still reading and looking through all the content here.

My goal I think, should be a MFH.

@Madeline Burke Appreciate the input! definitely making use of the information here.

@Matt Lefebvre Appreciate the insight. I read it'll be easier to acquire a MFH if it's my primary house? (Using loans or the VA, I get a better deal, or so I'm told) I'm curious how that will play out if I'm out here in the middle east. If I could move my family there, I believe that would qualify me to meet that criteria (My father and brother). Also, do you happen to have any articles on house hacking you'd recommend?

Thanks everyone for the warm welcome! I am really looking forward to digging my heels in and getting to work.

Thanks for the info! I am going to be doing some homework on MFH. Might have to look up 'House Hacking' as well :)

My first thought was to look to Somerville/Malden or even Medford as those are coming up, and are up, but I'm sure my assumptions are off. Looking on Zillow, I can see that getting a hold of one of those will be tough.

More reading for me! I'll be signing up with a PRO account here soon so I can better leverage the tools available once I'm ready.

My first post, I broke protocol and skipped the introduction thread :P.. don't hate me!

About Me: Currently I am in an optimal position making a little over 6-figures tax free in a foreign country. I am 26, hungry, and looking to invest long term in myself, for my family and future family. I want to start now, instead of sitting on capital and spending it on dumb things like a $60,000 car or blowing it on stocks or.. you get the idea, trying to put it to good use! (No real capital yet, but expect to in about 4 - 6 months time.) I also am a vet and have the VA home loans (0 down payment) available to me and pretty good credit (about +720)

I am an empty cup, looking to get filled with knowledge and hopefully make the right moves. I began reading the book, and reading through forums/blogs and eventual podcasts (lots of info to soak up!).

My goal is to build a Real Estate Renting Empire, I believe I'd be able to purchase almost 2 houses a year (@~$100,000 with a 20% down payment) or atleast that is the goal.

My immediate thought is to buy a house in MA, somewhere for that money, and move my family in there and just have them pay the mortgage off through rent while I focus on finding another rental property to purchase. Boston and surrounding area's are mostly Duplexes or multi-family, so I'd be interested in purchasing one of those, but those can cost upwards of $300,000 - $450,000 and still need repairs.

Anyways, I am really excited to be apart of this forum, community, and looking forward to building my empire! I'd appreciate any help, resources, direction or just information and even a friendly hello :)