Newbie paranoid questions

[Aariff Kadar]

Hello REIs,

I am from Corona, CA and totally new to REI. I am planning to start my investment out of state, and I am stumbled upon few newbie questions. Please guide me to be a successful investor. I will keep my questions simple here to get more replies/suggestions.

1.LLC or Umbrella (In CA, we need to pay $800 per year for LLC).

2.Funding: Conventional loan not possible with LLC, How funding possible. Please give me some ideas.

3.Should I get funds from credit card/401 and pay off for the property or going on Mortgage is a good idea for better tax return and increasing the wealth?

4.How do you get deals on out of state properties?

5.How the fund transfer happens? Do we escrow and close it? How to trust that escrow companies and sending the funds to their wire?

6.How do you find out it is a good deal?

7.How do get local contractors to do some work on the property?

8.How do you find Property management company in that area?

9.Do you use Turnkey investment companies to do everything for you?

I understand it is lot of questions, please let me know

[James Wise]

@Aariff Kadar

1.LLC or Umbrella (In CA, we need to pay $800 per year for LLC).

If you want to finance it with a 30 residential loan you'll need to put it in your own name. No LLC. Banks won't lend to an LLC.

2.Funding: Conventional loan not possible with LLC, How funding possible. Please give me some ideas.

Finance it man. No other business in the world allows you to borrow money this cheap. Best part about the real estate biz.

3.Should I get funds from credit card/401 and pay off for the property or going on Mortgage is a good idea for better tax return and increasing the wealth?

Mortgage. Do a 30 year mortgage. Best financing in the world. Leverage is good if it's good debt. Horrible if it's bad consumer debt.

4.How do you get deals on out of state properties?

The Bigger Pockets Marketplace.

5.How the fund transfer happens? Do we escrow and close it? How to trust that escrow companies and sending the funds to their wire?

You will use a state licensed title company.

6.How do you find out it is a good deal?

Run comps. Get an appraisal & a 3rd party inspection.

7.How do get local contractors to do some work on the property?

Hire a property management company. They will handle this for you.

8.How do you find Property management company in that area?

Google. Bigger Pockets. YouTube.

9.Do you use Turnkey investment companies to do everything for you?

I am a turnkey provider so I am on the other side of coin on this question.