Newbie enjoying the challenge of getting educated - Spring Grove, Illinois

Newbie enjoying the challenge of getting educated - Spring Grove, Illinois

Spring Grove, IL · Member since 2014 · 6 posts · 4 votes

Hello, all. :)

Our family is just getting started in the process of investing in real estate. Neither of our families have done so in the past, so it's completely new to us, yet we feel up to the challenge.

We're really fortunate to have built connections over the years with professionals we trust (e.g. an amazing realtor who treats us like family, a mortgage broker who is as straight-shooting as we are, etc.) and we feel like we have a solid foundation for getting educated on the process.

We definitely are NOT looking at flipping at this point - neither one of us is particularly handy, and with homeschooling 4 of our 5 kids I don't really want to find time for learning to be handy :) - but definitely interested in landlording and slowly building wealth.

We feel blessed to be under 40 with no debt (we own our home) and are intrigued by the idea of using this process to teach our children, especially our older two (ages 15 and 13), that there is more to savings than a piggy bank.

At the moment our main questions are related to getting started (do we create an LLC? When? How?), financing (mortgage? HELOC?), and when to begin (do we wait for the property Hubby inherited in Tucson to sell, thus giving us a big chunk of seed money to maybe start out in a small multi-family, or do we use our own resources now?).

We're getting there!

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Investor · Northridge, CA · Member since 2012 · 249 posts · 73 votes
12y

Congrats on taking the first step!

Here's my attempt @ answering your questions = please keep in mind that different markets & different situations could affect these

do we create an LLC? - no,too early - focus on getting a deal

financing (mortgage? HELOC?) - if you have steady jobs a mortgage might be a good option, mortageg rates are a little over all time lows - average 4.25% (for 30 year fixed, according to bankrate.com)

, and when to begin? -> Now. Now is the time

I hope this helps. Good luck

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  • Investor · Northridge, CA · Member since 2012 · 249 posts · 73 votes
    12y

    Congrats on taking the first step!

    Here's my attempt @ answering your questions = please keep in mind that different markets & different situations could affect these

    do we create an LLC? - no,too early - focus on getting a deal

    financing (mortgage? HELOC?) - if you have steady jobs a mortgage might be a good option, mortageg rates are a little over all time lows - average 4.25% (for 30 year fixed, according to bankrate.com)

    , and when to begin? -> Now. Now is the time

    I hope this helps. Good luck

  • Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes
    12y

    @Shannon Watson

    Welcome. Time to build the foundation below.

    Check out the Start Here page http://www.biggerpockets.com/starthere

    Check out BiggerPockets Ultimate Beginner's Guide - A fantastic free book that walks through many of the key topics of real estate investing.

    Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice. And you get the benefit of having 60 past ones to catch up on.

    Two Great reads, I bought both J. Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbook

    Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and all the cash buyers (rehabbers) you will need. Locate the best real estate CPA to discuss legal entities.

    You might consider Niche or Specialized Housing like student housing. Rents can be 2-4 times more. Remember you don't have to own a property to control it.

    Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over

    http://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-book

    Good luck

    Paul

  • Spring Grove, IL · Member since 2014 · 6 posts · 4 votes
    12y

    Thanks very much to both of you. :) I've read the Ultimate Beginners' Guide (one box checked!) and should have mortgage preapproval on Monday (another box checked!).

    Maybe one of you can answer this - everywhere I read, it says that separating the real estate investment assets from personal assets is a must. At what point in the process is it best to have it in place? For example, let's say I find a super deal and I get the process rolling. Let's suppose that it's move-in ready at closing. Wouldn't I want to have the LLC in place so that I can interact with possible tenants as XYC Property Management (and have a bank account, etc.) rather than Shannon Watson?

  • Spring Grove, IL · Member since 2014 · 6 posts · 4 votes
    12y

    Just read your section in the book, @Paul Timmins - great job! In fact, I just emailed one local REIA for more info and found out that one of the main board members has an office 5 minutes from my home. Fantastic!

  • J. MartinPro Member
    Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
    12y

    Welcome Shannon. There are a lot of super helpful people and great advice on this site! I'm a 'fix and hold' investor from the Bay Area in CA, and loving it! A lot of others doing flips, wholesaling, notes, everything. A few tips.

    You can tag people by typing @ before you type their name, then clicking their name when it pops up at the bottom of the message box. You can click on the 'vote' button if you like someone's post or is helpful, and there are 'awards' to earn on your profile. The "Learn" link across the top navigation bar has lots of great info, and most importantly, the BP members! Welcome to BP, and good luck on your investments!

  • Spring Grove, IL · Member since 2014 · 6 posts · 4 votes
    12y

    Thanks for the input, @J. Martin ! I had missed the clicking the box part. :D

    Have a wonderful Sunday!

  • Brandon TurnerPro Member
    Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
    12y

    Hey @Shannon Watson Welcome! Definitely start jumping into the community here! Be sure to read through The Ultimate Beginner's Guide to Real Estate Investing to help you get started.

    Finally -be sure to setup some keyword alerts - especially for "Spring Grove" so you can jump into local conversations.

    See you around the forums!

  • Spring Grove, IL · Member since 2014 · 6 posts · 4 votes
    12y

    thanks, @Brandon Turner ! Believe it or not, I had that read within a day (or maybe two :) ) of signing up here on BP! Between that and the Rewind PDF, I feel so much better educated than I was even a week ago.

    I really appreciate everything you have set up here at BP! Thank you!!

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