I'm a recent college graduate with no student debt and $40,000 in inheritance. I make $55k annually. My friend just graduated with 20k in student loans also making $55k annually. He has about $15,000 of savings. We are thinking about forming a partnership to invest in real estate.
My goal in this endeavor is to scale the business until I can generate enough free cash flow to quit my 40 hour w-2 job. I'm 23 years old and ideally would like to be managing my real estate full time by 33.
The strategy that is most appealing to me is to buy and hold cash flow positive apartment units. I am in the process of listening to all the biggerpockets podcasts and reading any books on real estate I can get my hands on. I have a few questions for the community:
1. If my friend and I form a legal entity (LLC), will we be able to get a loan from the bank in that entities name? Will the bank require the name on the mortgage to match the name on the deed?
2. Has anyone ever done a deal they consider a success off mls listings/ through a realtor? If this isn't how investors generally do things, how can my partner and I find potential properties?
3. Is there a reason fewer people seem to discuss this strategy (buy and hold) on bp, as opposed to flipping/wholesaling? I don't have renovating ability personally and am not really interested in constantly flipping homes.
4. I would love to hear about how community members found mentors in this business.
5. My friend and I are located in an expensive market, so I would love to hear from people who own property several hours from where they live. If it can work, keys to finding a good prop manager etc...
Thank you so much to anybody who took the time to weigh in. I'm really enjoying learning the business and am really looking forward to the first deal :). Good luck to you all!!
I don't think a bank will give a loan to a new LLC unless you give a personal guarantee.
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