Hello alll, my names kyle and im from Illinois
I am looking to get started on my real estate adventure to freedom. Im in the midst of purchasing my first home after what feels like searching forever.
a little about myself, im a self employeed(own a landscaping company). So i am not a w2 employee, so it seems im already at a disadvantage when it comes to the loan process. my credit is mid 700's and building slowly . im 24 and hoping to have 10 plus rentals by 35. What would be the best way to approach this? Not being a w2 employee my expenses are deducted out of earnings so it shows less. If i were to make a nice amount like 80k after taxes and expenses i would be taxed like crazy. With that being said im trying to reduce my taxable income using a SEP or another retirement vehicle. However if i show little earnings then im back where i started a few years ago with "you dont make enough to afford much" . what do i do? i either pay the taxes and bite the bullet or can i buy real estate through the business? Id like to do larger down payments on properties and leverage my way up . Im interested in multi unit buildings , but anything where the numbers work i dont mind looking at.
The house im mid deal now, i will be living in and renting out a room to a buddy to help off set the mortgage and what not, possibly another room as well. I want it paid off or down rather quickly (put about 35% down) . Next , if i can i would like to "house hack" a multy unit while living there.
Any input for any of these would help! thanks
Welcome! I am originally from Evanston, IL. One of my best friends lives in Bloomington, and I have tried to get him into REI for a bit.
Self employment is a small disadvantage. What you may have, as a landscaper, is 'know how' and a good crew to get the job done. There are loads of money people who would be happy to partner with a reliable do'er, if you can be that.
My recommendation is get a track record started with partnership deals. For your first sources of funds, friends and family tends to be the easy choice. Build the track record, and come back and sell the next few deals.
Best of luck.
@trevor ewen where do you currently live / invest now a days
Welcome to Bigger Pockets.
Hey Kyle, welcome to bigger pockets. I help investors increase their cash flow while minimizing their taxable gains. PM me and let's chat.
Kind of off topic, but If your interested, Id love to buy your landscaping company :)
Thatll give you plenty of cash for investing in properties, and Im move than happy to do a 368 exchange to help you dodge the tax bullets.
Also, part of my portfolio strategy is buying near military bases. If you are interested in investing in Texas, we should talk.
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