The first few steps before the purchase

5 Replies

What's going on everyone! Before I ask my question, I'd like to fill you in on my REI back ground.

I'm a huge Robert Kiyosaki podcast&book fan. As well as Passive real estate investing with Marco santarelli and ofcourse BP Podcast as well. I'm currently buying and reading plenty books on REI and really learning (textbook) before I get my hands on.

Iv previously just sold my first single family home.

 Purchase price - 165,000 2-lots

Downpayment - 6,000 

Repairs - 30,000

Sold - 230,000 - 1lot - my check was 62850$

Holding vacant lot for future sale.

Vacant lot Assessment price at 51,000 2015 I'd like to sell for 20,000 when the time is correct. Lived in the house for 3 years

Now. After my payoff on my car and credit cards, and my private money I'll be left with roughly (35,000) liquid. 

Now for my question.

Before I find a deal, I thought it would be a good idea to open an LLC Structured by corporate direct and add my vacant lot that I hold under my LLC? Next I'd like to pick up a single family home or mobile and get a renter in it? Before I do that, would anyone recommend I find a property manager to work with my homes before I buy? Or shall I buy and then find a manager? Also - how would you recommend my tenants pay? Should I have a website up and going?

I would like to have my foundation up and going before I jump. And I'm willing to add value to anyone anyway I can. Sorry I'm super new and I understand its rude to ask without being able to add value, but a little guidance would take me a long way.

Updated over 2 years ago

I just remembered my manager will take care of the payment collection.. lol

I would talk to managers before buying that way you can ask them what the estimated rent value is on a property before you pull the trigger.  As long as you don't overuse them on things you aren't close to buying they shouldn't have a problem with it.

@David Decker You don't need to hire someone before you buy but you should certainly speak to some Property managers to make sure your plan makes sense.  In my area, Baltimore city, there are some neighborhoods property managers don't want to manage. That is just one example of something you would certainly want to know before you buy.

Another vote for what @Ned Carey said: I have a property in Baltimore City that I sometimes can't find trades willing to go into that neighborhood.  And a friend of mine is an excellent property manager, and I never thought to ask her first about managing mine (she does NOT go into that neighborhood).  The property manager I hired when I moved out of town not only was comfortable with the area, but already had a good pulse on the rents and fees