Where to start? My wife and I would love to invest in real estate, house, 2 plex, 4 plex, etc. we have no idea how to even get started. We paid off our current home a year ago, and have investments in the stock market, but looking to liquidate it and get in to real estate. We are in the Las Vegas area.
Where to start? My wife and I would love to invest in real estate, house, 2 plex, 4 plex, etc. we have no idea how to even get started. We paid off our current home a year ago, and have investments in the stock market, but looking to liquidate it and get in to real estate. We are in the Las Vegas area.
B
It does help to have someone direct you through the process when you are starting out, no question about that. But they have to know how to ask you what your objectives are and then put together a plan. Las Vegas and Phoenix / Mesa are similar markets so the following link might help yo to begin to formulate your questions.
Sometimes people get tired of the scarcity, the work and the risk of Flips (I did) and they don’t like toilets and tenants and don't like buy and hold, so they do Turnkeys instead. This is what I call Cash Flow Method. You still own the property but the Tenant Buyer takes care of it while they pay down the mortgage and you get the cash flow and the tax benefits. It's nice and safe. Pretty Cool!
As you can see, it is a bit of an advanced technique so it requires a lengthy explanation. Too long for here, to explain everything, so you can go to my Profile https://www.biggerpockets.com/users/MikeM500 and follow the link, email me or PM me. I can help you there with more detail.
My suggestion would be to watch some of the rich dad / poor dad youtube videos. From there go to Morris Invest youtube videos and biggerpockets youtube videos. They are what I enjoy to watch.
You are going to want to setup an LLC but you will need to speak with lawyers and CPAs to help figure out what the best setup is. (One options is "Corporate Direct" to assist with LLC creation) Haven't tried corporate direct but I'm looking at going through them in the future to assist with re-org of my LLC.
After LLC is created get an EIN and get the business accounts created.
Rule 1 though is never have a rental property under your own name. Have it under the LLCs name. It is a form of asset protection.
Also look at all the ways you can get money / loans.
You can get a HELOC to assist with purchasing a property (Not a Home Equity Loan).
You can use companies like Fund&Grow to assist with using business credit to purchase real estate.
In my area in NC I've noticed that credit unions can have good rates for mortgages or HELOCS and will allow to pull up to 100% of the equity out of a property to go and purchase something else.
I almost bought a 4 plex a few weeks ago and decided not to after getting the inspection on it. That would have been my first property. I've learned that if your just starting out, get a single family home. Get a few Single Family Homes then try a 4 plex. Easier to build up experience as you go or you could do the trial by fire and dive all in.
Good Luck to you. Just take one step at a time and keep moving forward.
Lender · Everett, WA · Member since 2019 · 55 posts · 25 votes
7y
@Brandon Ellis better yet, a heloc with lock options. Line/loan hybrid. This way you can get the capital established without paying interest and you can wait to pull the trigger.
Investor · Las Vegas, NV · Member since 2014 · 471 posts · 241 votes
7y
Hi @Brandon Hulet...welcome to BP and the investing game! Feel free to connect with the local investor community also. There are some good investor meetings and meetups that you and your wife can attend/participate in. Check out the events section to see whats going on in Vegas. https://www.biggerpockets.com/forums/521-events-and-happenings
Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
7y
@Brandon Ellis I would encourage you to be careful with regards to Clayton Morris or Morris Invest. If you do a search on BP, you will see many posts from people who have invested with him who have lost their investments. I believe he is being investigated for fraud currently and has pending legal actions against him.
@Shiloh Lundahl , I completely agree. I love their videos and believe their videos have a lot of value.
I did some research in their turn key company I personally believe they're lacking in the QA dept. I believe what is happening is they're purchasing properties, handing them off to contractors but failing to keep up and make sure contractors are doing what they're supposed to be doing. Contractor then says it's done when they've really taken money and walked, saying it is completed.
That is my theory as to what is happening.
I personally believe that it's better to do most of the stuff yourself instead of hiring Morris Invest to do anything so you get the experience of dealing with contractors and finding good deals.