Good Evening BP!
I am a part-time real estate investor in Muskogee/Tulsa in Oklahoma. I have one rental in Muskogee and I am looking to expand, quickly. My goal is to become a full-time investor as soon as possible by utilizing different avenues of RE investing. My focus at the moment is buy and hold, but by reading other threads, it appears to be the slower, long term investment strategy. Any advice to kick start my business venture? I am at a stand still and I want to make sure my next move is my best move. Thank you in advance!
There are 3 pieces of advice:
1. Build a team - I am still in the process of this and it is critical. Attorney, accountant, contractors and specialty contractors, RE agent are your immediate team members. I can't stress this enough.
2. Set up financing - There is nothing worse then having a deal but no way to close because you don't have the money. Having lenders set up is more important then any pod cast or book has explained. Again, I am running into the issue where the business is wanting to move faster then the financing will allow it.
3. Confidence - In this business you cannot "think" you will be successful. You have to "KNOW" you will be successful. Knowing, will allow you to move forward when mistakes happen, when you lose great deals, when you partner with the wrong people. I always thought I could do this, but now I KNOW I can. It makes all the difference.
Buy and Hold can be a great way to make money short term as well. It depends on purchase price, rental income and where you buy. Clients of mine are making several hundreds per property in Cleveland OH after the mortgage is paid. Here in Rochester we are profiting monthly after our mortgages are paid as well. In higher cost area's monthly profits may not be as great, but appreciation is better in this situation many times.
@Jerry Padilla I feel as though it could be lucrative as well but, I don't want to be naive either. What do lenders typically look for when an investor is supported by rental income instead of a W2? What hoops should I expect to jump through in order to grow at that point?
DTI's are going to be a concern still, most likely.
Tax returns are used, if you currently own the property long enough to reflect on your taxes. If the income isn't reflected on your taxes than 75% of the potential rent is used and that is determined by the appraiser, and lease agreement.
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