All Forum Posts by: Abel Curiel

Hello Bethany Corey , I like the suggestions made by Neil Schoepp .. You want to learn as much about the brokerage as possible. Treat it as if you're interviewing them for a job. Questions I would also ask: - What kind of (if any) trainings do you offer your licensees? How often do they usually take place? - Are the majority of the licensees under your supervision employees or independent contractors? - What fees are you responsible for? What fees are licensees responsible for? (Internet use, open house/for sale signs, desk fee, etc) - Does your firm share listings with the regional/local MLS? I'm missing a bunch. As Neil mentioned, hopefully more experienced agents and other members chime in as well... Best of luck to you! -Abel

Scott Cornelle Welcome to BP!! I have to agree with my fellow BP members dishing out this great advice. Get to know finance, understand the variety of investment options associated with RE (wholesaling, flipping, buy & hold, etc), use all the wonderful tools right here on BP, and also.... GET TO KNOW YOURSELF! You have a lot going for you and it sounds like you have a great/successful future ahead. Take some time to reflect, think about what you want from this business then go after it! Best of luck to you! -Abel

Hello Jeremiah, 

Just off the bat, it seems like rents are a little low for option 2 to make sense. Its tough to pick a best option for you without knowing what your goals are. You mentioned already having done 2 flips and having 2 rentals under your belt. 

If you're looking for positive cash flow, identifying areas with high potential for cash flow will help you narrow your search and make a decision on which route to take. Same thing can be said if you're looking for less cash flow and more appreciation over time. Search around/ask around here on BP for specific areas that might meet your goals.

In the meantime, don't do anything drastic! You have a good income, good reserves, no debt, moderately priced rent and you're only 30! TAKE YOUR TIME! Once you identify your business approach and target area, you'll be in great shape.

Best of luck to you!

-Abel

Good evening,

Judging from your comps, the 3 units would sell for somewhere between 195K-225K. Gross rental income would be about 3K/month. Factoring expenses including those that have piled up over the past few years is what is going to determine the attractiveness of this deal. 

Is your family member going to clear up the balances due for HOA and taxes?

Also, If you are to acquire the 3 units for lets say 210K, what would be your goal for the property?

You mentioned wholesaling which could be a good option, but it has to fit into your goals as an investor. 

Seems like there are a few different routes to take here. Best of luck to you and your relative.

-Abel

Hello Flora and welcome to BP!

A lot of the homes that I have seen advertised here on BP in that price range are located in the Midwest- Iowa, Indiana, Michigan, Ohio, Missouri, and some other states. I would familiarize myself with the forums and blogs as well as the marketplace where members post specific details about deals.

One word of advice would be to thoroughly research the areas you intend on investing in prior to making any moves. Low priced homes with high cash flow can be risky investments for a number of reasons that include; the neighborhood itself, depreciating local market, distressed local economy, bad school district, and any number of reasons.

I hope this helps and I wish you the best of luck on your quest for a target area!

-Abel

Derrick Williams PMI is private mortgage insurance. Lenders require their borrowers pay this on loans in which they put down less than 20%. Its an insurance policy that limits the banks risk of taking a loss in case of the borrower defaults on the loan. Daniel Klebba I'm not sure how exactly its calculated but it is a significant part of the decision making process while analyzing a deal. PMI can significantly affect cash flow and most investors and home buyers in general should avoid it whenever possible. There are, however, situations where PMI doesn't have such a detrimental effect on a deal but that has to be carefully analyzed and calculated.

Good Evening Joe and welcome to BP! Be sure to check out the Networking Events link under the "Community" tab above. Look for REI meet-ups in your market. Great way to meet like-minded individuals. Meet-up.com also lists local meetings where you can network and share some ideas and experiences with others.

Best of luck to you!

-Abel

Good Evening fellow BP members,

I am scheduled to take my NY State RE exam in the next couple of weeks. I debated for a while on whether or not to get my license but the pros outweighed the cons. I am hoping to; earn extra income, learn the ins and outs of the transaction process, work with/learn from investors, save on/earn commission on my own deals, etc.

I have met with a few brokerages and I may have found a good fit for me. The head of the company mentioned the need for an agent to focus on the commercial side which is the roll I would like to take on. I mainly want to take on this role so that I would be working mainly with investors (I have a full-time job and I've read/heard working with retail buyers can be a drag at times and very time consuming).

Before I dive in and learn everything I can about commercial real estate in my market, I wanted to ask the BP community...

***What do investors look for in a good commercial real estate agent?*** 

Any advice helps and the more specific, the better.

Thank you in advance for your help!

Hello @Jen Anderson, I think your approach is a good one especially when you think about the perks. Acquiring an asset and simultaneously cutting back a bit on your own living expenses can be a huge help when you think about raising capital for your next investment. 

Now that you're a PRO member, you should take advantage of the deal analysis calculators. Analyze any duplex or triplex you are looking at as if you weren't house hacking. This way you can get a good sense of what cashflow will be like once you move onto your next investment. 

I live in an expensive market as well and I am going to pull equity out of my first home to house hack a multifamily here in NY. I won't be cash flowing either but you and I share similar approaches (I'm assuming). I think once you determine what kind of cashflow or appreciation you expect to earn in the next few years, you'll be able to narrow down your search and zero in on the best option.

I hope this helped.

Best of luck to you!

-Abel

Hello Nely,

I don't know much about the rent to own option but I do know there are plenty of states that allow you to purchase a multi-family home with an FHA with 3.5% down which makes house-hacking a great way to start off with little money down.

Brandon Turner wrote a book on investing with little or no money down which could answer your question and then some. Also, searching these topics right here on BP could answer your question as well.

Best of luck to you!

-Abel