All Forum Posts by: Brian R.

Thanks Joe. I plan on doing plenty of due dilligence and learn as much as possible before I dive in. There are multiple ways to successfully invest in real estate and I want to do it right whichever avenue is taken. I never assume I know something without double and triple checking my assumptions for flaws. We can all learn something new and that leaves a lot for me because its all new.

I'm guessing you would tell your friend to go find someone else if you were in my shoes? We all have to start somewhere and just because some people start from almost nothing and make it in REI without an investor doesn't mean that's the only way it can be done successfully.

I didn't make losing money part of the plan. I left it out of the plan on purpose. 

Thanks Joe

Makes sense. Thanks.

It is more likely that I just don't know where to look to find better deals. I have done a lot of reading over the years but have not really had the money to invest so I have not really looked for fixer uppers except on the mls website and for sale by owners type searches. If i can make money renting houses then why not do it close by so I can manage them myself? Please understand that I am not arguing with you. I know you know more about this than I ever will and I want to learn. Thanks for your responses.

Brian

Thanks Joe.

The one problem I see is that flip worthy homes in this area are few and far between. Even run down homes in need of repairs only go for about 20k to 30k below market for a home in good condition. It seems like it would be easier to just buy homes slightly below market value if available and rent them out. Eventually needing to borrow against some of them to buy more. We would always have a stream of income from the rentals. We would always have assets that equal or exceed the original amount invested plus rents coming in. If we take no money out except expenses for 10 yrs we would have built it up a lot I would think. The funds are not needing to be paid back other than the ownership the investor would have. My thinking was maybe a 50/50 split in the ownership in the company with the initial investment subtracted first. In other words I would get 50% of any value that we add on top of the initial investment. Do you see any major flaws in that plan?

Thanks,

Brian

Hello.

I have a scenario I would like to get some feedback on. I currently have no money to invest but I am a fast learner and the wife and I rented out her condo when we got married for a few years. I know some stuff and can learn the rest by spending all of my free time doing research and speaking to professionals. Here is the question.

I have a friend who I spoke to about investing in rental homes. He mentions his Brother In Law who lives outside the country and is not a citizen (my friend is a citizen) asked him to invest in real estate and manage it for him a few months ago when they visited him for a week. To be clear his BIL has cash money to invest in real estate. My friend told him he knew nothing about it and that was that. Now that was a few months ago. He still needs to find out if this cash still needs a home but he trusts me and knows I will work hard to ensure we make money. This cash is over a million dollars and I just want to get some tips on how we should set up this partnership and what percentage should I get for doing ALL of the work. My friend would not be helping in any way. The BIL would likely just give him the money so I would be partners with my friend. Any and all suggestions are welcome. It is still a long shot on whether this will happen but I may have other investors that could do maybe half a million if this falls through. I understand you not wanting to wast your time on a hypothetical scenario but I would appreciate it if you do.

My basic plan is to buy several 3bd, 2+ba homes (around 150k each), leaving plenty in reserves. This would be done one home at a time possibly at auction or foreclosures since cash would be readily  available. Once it is made ready and rented then buy another. Cash flow would be coming in from the rents and at some point we would probably need to start taking mortgages out on some of the properties to purchase additional properties. No money would be taken out for many years. I would be working for my percentage of the company, basically earning my equity. At some point I may need to quit my job and do this full time and then I would also need a salary. I would love to have that problem. The goal is to buy as many cash flow positive properties as we can manage for 10 to 15 years and then retire comfortably.

Thank you for any input you may have.

Brian