I built a rental portfolio of 127 units and soon to double in the next year.  I've experienced a little bit of everything: wholesaling, flips, single family rentals, multi family rentals, office, commercial, development...and now I want to give back.

So, here's your chance...

What's stopping you from getting started? If you could have your biggest questions answered, what would they be?

Just starting out. I am looking to purchase an investment property through cash refinance.

There are limited multifamily within my price range (ie. in Salt Lake City, Portland, Eugene, Santa Fe) that would completely service the refinance monthly payment. The risk is also in making sure the duplex or triplex are fully rented out.

Should I be looking at Single Family Home or Condo instead, and don’t max out on 75% cash refinance?

Hey Salvatore, 

I have a questions, but first - thank you for sharing your knowledge and time. 

Austin and San Antonio TX markets are BOOMING right now, and I've always been interested in BRRRR strategy as well as flipping. I'm a real estate agent in both markets right now looking to invest in these two markets, and have actually found some private investors willing to fund some of the properties BUT my question are:

1) How do we set up this partnership/structure with investors? More importantly how do we split profits? 

My contributions would generally be: Find the deals/properties, make sure the numbers work, present/update investors, I already have a solid network of contractor, master electrician, plumber, roofers, etc. 

Investor: Provide the funds

2) How does this structure change if they want to buy the property themselves, and build their portfolio but I still oversee and coordinate the rennovations/etc? 

3) What else should I be keeping in mind? 

Thanks again! 

@Salvatore Lentini

Thank you for taking the time to redistribute your knowledge and experience.

Currently I feel that I’m being held back from investing due to school. I am the captain of a division 1 swim team and we have a season that lasts until May so I feel like I have a serious commitment, and I want to invest in an area 280 miles south of where I go to school. Is this a reasonable obstacle or should I just be more creative and try to find a way to get involved now.

Additionally, what is your take on co-signing/splitting a deal with a long time friend? I have a few friends that I have gotten interested in real estate but not quite to the same level as myself so I’m sure the majority of the analysis and prospecting would be my job they would simply be funding partners. Is this viable or could this ruin a relationship/is it not smart to partner two inexperienced investors?

@Andrew Sprague - why are you looking 280 miles from where you are?  One of the things I teach in my course is that new investors tend to fall in to the trap of "the grass is always greener".  99% of the time you can find something within 20 miles of where you are, even if where you are is a high priced area.

@Andy Vazquez - Question 1: I set mine up as LLCs with the investors as limited members/partners.  Your operating agreement spells out voting rights, responsibilities, payment structure etc.  Question 2:  I would always make sure you get equity.  It doesn't matter if you are investing money or not.  Finding the deal and managing the asset are just as important as the funding of the deal.  If you're not getting equity you're just getting a job.  Wealth creation is in the equity.  And the more you grow you portfolio, the easier it will be to find more deals.  I have commercial brokers calling me now because they research the owners of expensive/commercial properties.  So instead of me chasing brokers down for deals they're chasing me down to sell me their off market deals.  Question 3 is too vague.  There's a lot to keep in mind.

@Ray Wu - I'm a little confused on your question.  You can't acquire a property through a cash refi.  A cash out refi can only be done on a property you already own.  You can then use those proceeds to acquire another property. There's no right answer on the type of property you should buy.  I know investors that only buy single family rentals and I know others that avoid single family rentals like the plague.  Depends on what you're looking for and what your long term plan is.

Originally posted by @Salvatore Lentini :

@Ray Wu - I'm a little confused on your question.  You can't acquire a property through a cash refi.  A cash out refi can only be done on a property you already own.  You can then use those proceeds to acquire another property. There's no right answer on the type of property you should buy.  I know investors that only buy single family rentals and I know others that avoid single family rentals like the plague.  Depends on what you're looking for and what your long term plan is.

Hi, thanks. Yes, I should clarify. I have a property and equity in the property for the cash out refinance.

Your raised a good point. My goal is to generate passive income; but with cash out refinance strategy to buy and build equity, it will take a long time for the loans to be paid off and the passive income to kick in. I may need to reconsider my objectives.

@Salvatore Lentini

I agree, I should have mentioned it’s where I live normally outside of school. I know the area much better than where I attend University.

@Salvatore Lentini

Newbie investor here and curious about your response that "99% of the time you can find something 20 miles from where you are" . .. Do just change your strategy to accommodate? Initial plan was to use the BRRR strategy but - in Phoenix - the cash flows don't seem to make sense, as monthly rents are in less than the 1% rule.