Looking to Help Beginners ! (Investing , Financing, Managing)

Starting Out
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Looking to Help Beginners ! (Investing , Financing, Managing)

Account Closed
Upstate, NY · Member since 2016 · 200 posts · 277 votes

Hey all,

 I am on bigger pockets simply because I want to help beginners make that leap like I had to all on my own before I knew about bigger pockets.  A quick blurb on my experience : 

I am a serial House Hacker 

I am a Bank Manager for a large Bank 

My wife is a Real estate Agent specializing in Flips and Investment Properties

My friend and I have a total of 104 rentals in our area which are all self managed he owns the bulk of the 104 rentals

Also my father is an attorney and my mother is and has been a real estate agent my whole life.

I have lived with tenants , managed my own properties, helped grow and develop a property management team,  helped investors find deals,  helped investors get financing , and a bit more ! 

That all being said I have a bit of experience in buy and hold , financing traditional and creative , self managing, and MLS deals and using the MLS. I am still learning myself (always will be) but I feel like I can help people analyzing deals and making the leap into REI!

Please feel free to ask anything that comes to mind and I will try my best to answer all questions. 

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Pao Yang
Real Estate Professional · Oak Creek, WI · Member since 2016 · 4 posts · 9 votes
9y

Hello,

I'm new to REI, just graduated from college, and fell upon Robert Kiyosaki's books. It lead me to start watching REI webinar, and and attend seminars. Learned a great deal, and they keep saying take action. Only problem is, where do I even start?! REI is and has so many strategies and topics, where does a beginner even begin to take action? I'm currently enrolled in Rich dad's seminar 3 day beginners real estate program ( Plan to stop due to high fees for the program). I've been reading REI books, mostly general strategies. And I've been analyzing properties mostly on the MLS. I'm trying to connect with local REI clubs, and meets with local BP, as well as local REI investors/agents. All of this is a load of great information, but doesn't really have a decent structure on where someone like me with no experience even begin. Any suggestions would help.

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  • Gardi A.
    Investor · Kew Gardens, NY · Member since 2016 · 16 posts · 4 votes
    9y
    Bryant Schur hi Bryant thanks for taking questions. After doing some reading a lot of people say to go commercial as the banks use the cash flow and the deal itself to qualify you and not so much your personal info as they do for 2 to 4 units how true is that?
    0Reply
  • Brian Henry
    San Diego, CA · Member since 2016 · 13 posts · 5 votes
    9y

    @Mark Scarola

    Thanks for the tip..I'll start looking into that option.  

    0Reply
  • Ryan Marquette
    Fargo, ND · Member since 2017 · 1 post · 0 votes
    9y

    Thanks for doing this forum... I just went to look at a duplex with my agent this morning. The price seems fair, but it may require a bit of work. Hoping to do 203k loan for $139k & $35k in rehab, but I'd have to get the rent to $1100/$800 for the top/bottom units, which would be possible with updates and such i believe. The lower unit is currently occupied by a family that has been there for 7 years and only paying $400/ month! This is very difficult, whats the best way to approach the situation of telling them their rent is doubling or get out? What protections will I have? I assume I'd have to honor the current lease when buying the property? How will i be protected if they trash the place before they leave and I take over?

    0Reply
  • Sagiv O.
    Real Estate Investor · Austin, TX · Member since 2017 · 116 posts · 31 votes
    9y

    thanks for offering help!

    since i see that you're from upstate NY - would love to get any recommended brocker/company for insurance. i'm looking to buy a 4-units building and 2 family house in upstate NY next week.

    0Reply
  • Ethan Cooke
    Rental Property Investor · San Francisco, CA · Member since 2016 · 227 posts · 365 votes
    9y

    @Account Closed  You are a generous man. THANK YOU for paying it forward and being of service to so many new RE investors. I grew up in Boston and went to college in Poughkeepsie, so you are near my old stomping grounds! I will PM you in hopes that we can connect. 

    I'm looking for your advice about good resources to research RE markets with good inventory of multifamily properties, strong cash flow, low price/rent ratio and solid economic fundamentals (job growth, population growth, etc.). What resources and people do you recommend that have a good handle on this? I'm particularly interested in areas I can drive or fly to within 2 hours of San Francisco. Thanks in advance for your help.

    Background: I have the good fortune of owning 3 SFR's in San Francisco (strong appreciation but weak cash flow vs. other opportunities). I am highly leveraged with a good income and looking to shift to to much better cash flow so I can achieve financial freedom in the next 6-8 years.

    1Reply
  • Ron Martinez
    Investor · O'fallon, MO · Member since 2016 · 22 posts · 4 votes
    9y

    Hello @bryantschur ,

    Do you only lend/finance in your local area or are you comfortable working with out of state investors. I am currently located in Missouri and am always looking for investors to work with. Also, any deals you would want to run my way would be great, I am certainly not afraid of purchasing/investing out of state. thank you for what you are doing to help others, with enough experience I would like to do the same down the road. Hope this post finds you well! 

    Thanks,

    Ron Martinez

    0Reply
  • Belal Haidari
    Mechanicsville, VA · Member since 2017 · 3 posts · 1 vote
    9y

    hi all,

    First i would like to thank you Bryant for taking your time to share your knowledge. one of the questions i had was about overall responsibilities of a manager. I wanted to ask everyone what is their definition of manger or when you decide to do be the manager of your rental (which is what i want to do) what responsibilities do you carry?

    Thank you for reposes ahead of time.

    0Reply
  • Ashlee Doerr
    Real Estate Agent · St Augustine , FL · Member since 2016 · 8 posts · 0 votes
    9y

    My husband and I are just starting out. We currently do not have any reserves to put down on property so we are considering wholesaling to start. We have an investor who is willing to lend us cash should we need it. If anyone here has had experience wholesaling, I would love to hear about it. We are doing so much research and trying to figure out where to start.

    Thanks,

    Ashlee

    0Reply
  • Erica Stamps
    Real Estate Professional · Blue Island, IL · Member since 2015 · 2 posts · 0 votes
    9y
    Originally posted by @Kuba F.:
    Originally posted by @Erica Stamps:

    Hi I'm liking to get started as a investor however I really need mentoring.  Any advice?

    You should look on meetup.com for your local REIA (Real Estate Investment Associations) and related FIBI (For Investors By Investors) meetings and network in person. Chicagoland is pretty active so you should have no problem finding multiple meetups.

     Thank you! 

    0Reply
  • Craig Moore
    Commercial Property Manager/Facilities Manager · Boston, MA · Member since 2015 · 187 posts · 41 votes
    9y
    Originally posted by @Account Closed:

    Hey all,

     I am on bigger pockets simply because I want to help beginners make that leap like I had to all on my own before I knew about bigger pockets.  A quick blurb on my experience : 

    I am a serial House Hacker 

    I am a Bank Manager for a large Bank 

    My wife is a Real estate Agent specializing in Flips and Investment Properties

    My friend and I have a total of 104 rentals in our area which are all self managed he owns the bulk of the 104 rentals

    Also my father is an attorney and my mother is and has been a real estate agent my whole life.

    I have lived with tenants , managed my own properties, helped grow and develop a property management team,  helped investors find deals,  helped investors get financing , and a bit more ! 

    That all being said I have a bit of experience in buy and hold , financing traditional and creative , self managing, and MLS deals and using the MLS. I am still learning myself (always will be) but I feel like I can help people analyzing deals and making the leap into REI!

    Please feel free to ask anything that comes to mind and I will try my best to answer all questions. 

     What's your first move if you're a recent college graduate with $20k saved? What was your plan with house hacking?

    0Reply
  • Wendell De Guzman
    Investor · Chicago, IL · Member since 2013 · 2k+ posts · 1k+ votes
    9y
    Originally posted by @Tim Yang:

    I recently quit my corporate job and am selling on ebay full time.  It isn't much income yet until I start growing, but should I wait until my income from ebay is more consistent and performing before investing?  Or can I still invest with other people's money?

     You can start in real estate with little to no money. Listen to my podcast and learn how I bought a $6M apartment complex with only $5,000 cash out of pocket - http://Biggerpockets.com/show65

    1Reply
  • Tera Carter
    Radiologic Technologist and Real Estate Investor · Severn, MD · Member since 2016 · 57 posts · 31 votes
    9y

    @Ashlee Doerr

    Welcome

    Me and my husband recently started out also with very little money.  The loans to start this business will start soon but at least we have a way to pay them down.  We both work, me part time and him full time.  I'm currently working building my power team and putting in place the right and correct contracts. I wish you well and never stop learning.  

    Currently on my 3rd podcast this morning already.

    0Reply
  • Conway Churaman
    New York City, NY · Member since 2013 · 114 posts · 20 votes
    9y

    Hey there @Account Closed

    You're advice on this thread has been very impressive.  I was hoping I can get some of your advice too.  

    I'm stuck in a dead end job in New York living paycheck to paycheck with no real savings to speak of.  I'm tired of it and I want a change in 2017.

    I am strongly considering swallowing my pride and relocating to Orlando, Florida and temporarily move in with the parents which would give me an opportunity to give myself a new start.  It will mean a pay cut but I'm not saving anything with my New York expenses anyway.  I wouldn't have to pay rent if I relocated to Florida with the parents which should help in my savings funds (plus the folks are not well and is another reason I want to move).  I want to hook up with a BP member there who is running a wholesaling mentoring program which would be an opportunity for me to learn about the local market in Orlando while hopefully raising funds I can use for rental purchases later in the year.

    I intend to look for an accounts payable/financial clerk position so I can pay for my expenses in the meantime.  That is the overall plan.  

    I was hoping if you could help hammer out a better plan.  Perhaps you might have a better idea.  Perhaps I could enter a real estate industry type job so I can pay my bills while simultaneously learning the market.  

    I hear wholesaling is extremely difficult.  Perhaps wholesaling is not the way to go.  Are there names of any mentors you know that would be willing to take me under their wing in the Florida area or New York area?  

    0Reply
  • Kuba F.Pro Member
    Real Estate Investor · Los Angeles, CA · Member since 2013 · 2k+ posts · 694 votes
    9y

    Hey @Conway Churaman

    There's no shame driving an entrepreneur mobile and living with your parents, especially when they're not well.  I think that's time well spent.  

    You should hang out in the wholesaling forum https://www.biggerpockets.com/forums/93-wholesalin... to get more of an idea if it's for you.  Many active folks in that forum are in Florida, so I'm sure you'll connect with someone.

    0Reply
  • Conway Churaman
    New York City, NY · Member since 2013 · 114 posts · 20 votes
    9y

    @Kuba F. I appreciate the encouragement. But even though I care for the parents I wouldn't want to move down without a good plan in place. What if I suck at wholesaling? This is a risk for me. It's 2017. I am sick and tired and want a change. And yes, while I do love the parents it will be difficult living under one roof again...very difficult. But I am willing to do this if this opens up an opportunity for me to have a eureka moment and ignite in me inspiration for REI. I would like my life to be drastically different and for the better one year from now.

    1Reply
  • Conway Churaman
    New York City, NY · Member since 2013 · 114 posts · 20 votes
    9y

    @Account Closed Sir, if I haven't mentioned it before I will mention it again...I am very impressed with this thread that you started.  I invite you to my thread: https://www.biggerpockets.com/forums/109/topics/401671-need-a-new-lifestyle-plan-heck-i-need-an-intervention…@AffordAnything 

    I need an intervention really bad!  I would greatly appreciate your input.

    Thanks.

    0Reply
  • Tom Chen
    Real Estate Investor · Flushing, NY · Member since 2016 · 210 posts · 77 votes
    9y

    So here's a question about the BRRRR...

    I plan on investing in a market that does not appreciate, but the houses cash flow because of the low cost of entry.  If I buy these homes, and only do minor repairs, will this still be appraised at a higher amount for the refinance to pull my equity out?

    Thanks in advance!

    0Reply
  • Danny F.
    Waianae, HI · Member since 2016 · 111 posts · 47 votes
    9y

    @Conway Churaman I commend you for realizing that you need to make a change.  Planning is always great yet we need to remember that we can plan so far the next step is action.  Many things take  risky moves and reading what you have shared so far all you need is to continue on to the next step.  I live in Hawai'i and how risky is it that many locals have to move away or invest out of state as risk much at the nearest state 2000 miles away.  Here at BP there are many who are willing to share advice and great advice, build a team, due diligence and invest...take the plunge, I know you'll do fine.

    Much aloha,

     Danny

    2Reply
  • Sherman Ragland
    Involved In Real Estate · Upper Marlboro, MD · Member since 2014 · 246 posts · 230 votes
    9y
    Originally posted by @Tera Carter:

    My first Title Company meeting was great.

    The young lady made me and my partner feel at ease.

    That morning I had my clothes already out to look professional and my hair was in a wrap to match my dress.  We pulled into the parking lot 20 mins early and so we walked in 15 mins before the appointment.  We introduced ourselves to the front desk, while my stomach to cartwheels. They took us into the conference room ( a long and large table with many chairs and reference books with tons of pens).  I introduced me and my partner. She introduced herself and asked to describe the type of business we were.  I did not say right out "wholesalers".  I told her that we help families or people who can not sell their house the traditional way like through real estate agent or banks that will not take them.  We find out the situation first and put a plan together that will help them the best. We do sell to other investor and like minded people such as ourselves.

    After that the meeting just flowed so smoothly.  She told us what a title company was and its many services that they provide.  Then I realized that I had a list of questions such as: 

    1) are you investor friendly

    2) assignment and double close

    3) referrals

    4) fee

    She answered so many question and explained what a HUD-1 statement was and how it was useful. We discussed the areas that investors were spending time in and what the average closing cost on the seller side and end buyer side would cost about.

    Overall, it was not that bad.  I don't know why I waited so long to start looking and building my power team and now I'm ready.  Just needed that first push.

    Currently I'm looking for the "Purchase and Sale Agreement" (between me and the seller) and A one page Assignment Clause (between me and the end buyer). ANY SUGGESTIONS

     Tera - Congrats on taking that first step!  You're on your way.

    Two suggestions:

    1) For those deals you are going after that are listed in the MLS (multiple listing service) you'll want to use a Board of Realtors agreement/contract. It can either be from the County/City where the property is located, or the State Realtor Contract. You can add Addendum to the agreement to put in the protections you need, and your Buyer's Agent can assist, provided they understand how to work with investors;

    2) For your non-MLS deals a/k/a FSBO (for sale by owner) deals, I'd suggest you go back to the same title company you met with and ask the attorney if they have a model agreement they like. In Maryland the title company will be run by an attorney, and one of the value-add services they provide is helping you with agreements, as well as suggesting documents for doing deals taken in trust versus LLC.

    2Reply
  • Tera Carter
    Radiologic Technologist and Real Estate Investor · Severn, MD · Member since 2016 · 57 posts · 31 votes
    9y

    @Sherman Ragland

    Thank you for the information. I would feel more comfortable if the Attorney from the Title company gave me their preferred contract and we can add addendum's to them on the spot (for the non- MLS).

    The Board of Realtors agreement/contract.... is that the 10 page contract from the real estate company?

    1Reply
  • Joel S.
    Rental Property Investor · Brooklyn, NY & Jersey City NJ · Member since 2016 · 39 posts · 7 votes
    9y
    Originally posted by @Tom Chen:

    So here's a question about the BRRRR...

    I plan on investing in a market that does not appreciate, but the houses cash flow because of the low cost of entry.  If I buy these homes, and only do minor repairs, will this still be appraised at a higher amount for the refinance to pull my equity out?

    Thanks in advance!

     Greetings,

    Does the rent roll appreciate?

    Does the tax appreciate?

    If Yes then the property appreciate too, and therefore you can appraise the Property higher and you can refinance your equity or most of it out. 

    Your best bet is to ask a local appraiser or Local Banker how they appraise the property, They will do so based on rents. Therefore if your rents appreciates well enough based on your minor repairs, you are good to go. 

    This was my experience in. 

    0Reply
  • Cory Newton
    Randallstown, MD · Member since 2016 · 9 posts · 0 votes
    9y

    Do you need to have a LLC in Maryland to start flipping houses

    0Reply
  • Tom Chen
    Real Estate Investor · Flushing, NY · Member since 2016 · 210 posts · 77 votes
    9y

    @Joel S., thank you for that insight. 

    0Reply
  • Kuba F.Pro Member
    Real Estate Investor · Los Angeles, CA · Member since 2013 · 2k+ posts · 694 votes
    9y
    Originally posted by @Cory Newton:

    Do you need to have a LLC in Maryland to start flipping houses

    I'm not a lawyer so I'm not giving advice.  

    One uses an LLC to protect personal assets. If one doesn't have assets, then technically one has nothing to protect. That being said, given that flipping is a pretty risky activity, one still benefits from having several layers of asset protection, including an LLC structure, as well as liability insurance coverage.

    0Reply
  • Joel S.
    Rental Property Investor · Brooklyn, NY & Jersey City NJ · Member since 2016 · 39 posts · 7 votes
    9y
    Originally posted by @Cory Newton:

    Do you need to have a LLC in Maryland to start flipping houses

     Cory, 

    In order not to be labeled by the IRS as a Flipper you need a S Corporation. 

    You don't want to be labeled as such, because If you do get labeled by them as flipper or wholesaler you'd loose the Tax Favored Capital Gains rate and pay ordinary income and self employed tax and all. 

    one of the reasons Real Estate is attractive is for its tax favorite treatments by the IRS. 

    attached is a link to Intuit tax forum discussing this very issue.

     https://ttlc.intuit.com/questions/2586637-i-invest...

    0Reply
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