Comments on: You Don’t Have To Be A Professional Real Estate Investor

By: Dike Drummond

Dike Drummond — Tue, 17 Jun 2008 15:16:39 +0000

I have recently seen a real estate wealth plan that takes this from a duplex to a fourplex. Use a residential loan to buy a fourplex and live in one of the units. The tenants pay the mortgage – you can devote all of the income to the mortgage payment and pay down the principal more quickly.

Rents go up yearly and you sell at a profit any time after 2 years on the increased income and pocket all of the profit tax free since it was your primary residence.

Being a Passive Investor in syndicated investments is also a viable option for people who do not want to take on the active role of owning and managing their own properties.

By: Mike Farmer

Mike Farmer — Tue, 17 Jun 2008 14:02:57 +0000

Thanks Teresa.

By: Teresa Boardman

Teresa Boardman — Tue, 17 Jun 2008 10:39:30 +0000

I have some twenty something clients that are doing just this. They do have a vision. They will keep the tenant in the lower level and live upstairs. I met a couple if their 70′s who have lived in a duplex they own for 45 years. It was paid for long ago and their tenant’s rent almost pays them to own the place.

By: Nadine

Nadine — Thu, 12 Jun 2008 02:07:01 +0000

@ Big Game, I can understand that for peoples with conservative minded, it’s better to make saving in cash than do investment. But I think your wife will get your point once she read this article. It’s very clear.

By: Big Game

Big Game — Wed, 11 Jun 2008 21:15:37 +0000

Your article is perfect. My wife and I are in the exact position that your article describes. I am 25 and we are looking to buy our first place. I really want to get a duplex and do what you have described in the article, but my wife is hesitant. I have tried to explain it to her, but she is just very conservative and traditional. We are looking in the Provo, UT area. Thanks for the article. I emailed it to her and hopefully she will start to see the light.

By: Mike Farmer

Mike Farmer — Wed, 11 Jun 2008 17:50:57 +0000

Thanks for the comments.

By: Mortgage Sarasota

Mortgage Sarasota — Wed, 11 Jun 2008 17:07:50 +0000

The use of private money is a great way to make this happen. Often the big hurdle for young people is that they dont have much money down to get started using institutional loans, and in these times saving money is VERY tough. There is a lot of money sitting around looking for a place to go, and if the deal makes sense, you can get a good rate and expedite the process of getting a deal like this done. Plus, most private lenders to do not report credit so if a young person ends up making a mistake and going sideways, it wont ruin them for life with their credit… another major concern for young people interested in buying real estate.

By: Chris Lengquist

Chris Lengquist — Wed, 11 Jun 2008 15:25:06 +0000

I work almost exclusively with investors and not one of them is a full time professional investor. Most are just average guys and gals working other jobs. People get the wrong idea with all the gurus.

By: Mike Farmer

Mike Farmer — Tue, 10 Jun 2008 22:12:05 +0000

Yes, Jeff, and that is why it’s best to get good financial from a person such as yourself. That would proabaly work here because the rental market is strong right now and rent on the second unit should cover half the mortgage.

Thanks for the input Brandon — I think a lot of prople are going to be thinking long-term now — it’s the best way for a young person to think anyway.

By: Brandon - St. George Utah Real Estate

Brandon - St. George Utah Real Estate — Tue, 10 Jun 2008 21:21:33 +0000

This is definitely good information for the new people who are starting out who wish to invest in real estate. The biggest thing in knowing how to invest in real estate is looking at the numbers.

The best thing to do to make money is to do it for the long term and not try to always make a fast buck here and there. That is where I have seen a lot of people get into trouble.

By: BawldGuy Talking

BawldGuy Talking — Tue, 10 Jun 2008 21:05:01 +0000

We’ve been telling my son’s buddies to do the same thing, but using FHA instead. 3% down, plus the seller paying most if not all closing costs.

Would that work on a month to month basis in your market, Mike?