All Forum Posts by: Esta Ryder

Hi! I can relate to so much of what you are saying here! So let's start with Florida. We were in a similar position- we felt like we were priced out of some markets that we liked so we chose a market that was in Florida, in our price range and near the beach. We fell in love with it and now are in a position to buy in a more expensive area of Florida but are emotionally torn because we love our first place (close to beach and family memories). So I think that starting in a market where you can get more bang for your buck is a good idea. But, stay in Jacksonville/St Augustine before you decide to buy. And if there is a certain condo building or neighborhood that you are interested in, rent an STR there first to see if it is everything you think it will be. For example, we stayed in a beautiful gulf front condo building that we were sure was the building where we would buy BUT every night between 10-2, there were HUGE parties on the beach right below us. We would watch the police come multiple times to break up the party because there was no way we could sleep! Had we not checked it out in advance, we would have bought there- and regretted it. We went back for another trip and stayed in the complex that we ended up buying in. Thankfully, we stayed right next to the unit we were going to look at the next morning so we were aware of how loud (traffic) and bright (street lights) it was during the night. So we bought a unit more in the interior of this complex and love it! By staying there before you buy, you can make sure that it is a good fit.

As far as buying on the Cape, don't just buy there to buy.  Make sure that your budget can get you a place that people are renting.  For example, if people are only primarily renting homes on the water and you buy something a mile away because that is all you can afford you probably won't be successful.  

Here are my suggestions:  Get a Realtor in both markets (FL and the Cape).  Most likely I would say to buy in Florida first and then go to the Cape OR wait until you can buy at the Cape (The Realtors in each area will be able to help you with that)

As far as the LLC, talk to the lender and title company. They will have some suggestions for that. I know of one lender in FL who will let you do the loan in an LLC but it will cost you- about 1% point higher than the normal rates.

Feel free to reach out to me and I can give you more details on how we did it- including how we manage from a distance without a management company.  I am excited for you and your family!

 

Hi! Congrats on your first investment property! I think that it depends on your goals- how many investment properties do you want and if you are going to "flip" this one or hold it long term. This is what I would personally do: if you're going to hold it as a rental and you intend to buy more rental properties, I would do a downpayment and then get the loan at 7%. If you are going to fix and sell, I would use the HELOC and the private lender. Best of luck!

Hi Thomas!  First of all, great job having such clear plans and being a go-getter.  That is very impressive!  Now here is my opinion as someone in real estate for 17 years and a full-time entrepreneur (and married to one).  Slow down just a bit.  $10K in savings and checking is a great start!  But quitting your full-time job with only $10K in cash and the rest in credit cards may not end up the way you want it to.  I love that you want to get out of a job that you don't like and that you have goals with a clear deadline to make that happen.  I love that you already have a title company and Realtor in place.  My suggestion would be to talk to a financial planner or someone similar to help you set the financial goals for quitting your job.  A suggestion might be to have purchased your first property by your birthday and quit your full-time job by your 26th birthday.  Again, I don't want to crush your goals because they are great goals.  But I have seen too many investors in over their heads and one of the ways this happens is lack of money. So I am just giving you a few things to think about.  Although I sound like a dream crusher, I am really not trying to be.  I do know that you will be successful because of the way you set great goals- clearly defined and a time frame. 

Keep in mind that I am not a lawyer so this is 100% my opinion. Personally, I would do the LLC. I've had clients do both. I am not a risk taker and I tend to be a worrier so I set mine up in an LLC. Perhaps you could talk to a lender about opening a LOC (personal line or HELOC) to give you cash to use to purchase the homes and then put them in an LLC? I'm very glad to see that you spoke to a lawyer at the start of this. That shows wisdom on your end. Best of luck!

@Jonathan Alvarenga if I were to start all over, I would start young like you are doing.  Our original plan was to buy a duplex in our 20's and live in half and rent half.  We didn't get serious about it until we had our first son (we were both focused on our careers at that time).  We looked at a few rentals but our family grew and we felt like a duplex was too small.  So we were in our mid 30's before we bought our first investment property (although as a Realtor, I had sold investment properties to many people by that time).  That is why I love seeing young people making real estate goals and achieving them :)

I have worked with a good one but he is a general business coach- not a real estate specific coach.  His name is Richard Walsh.  If you're looking for a real estate specific coach, find someone who is successful at what you are trying to accomplish.  A great place to start could be a local investor or investing group in your area.  That group might be able to direct you to a good one.   Good luck!  

Congrats! Finishing the first one is a very rewarding feeling. 

Great question!  Using a checklist is always a great way to have systems in place to be successful.  I don't know if Bigger Pockets has anything but if you can give me more of specifics of what you are looking for, I can give you a few tips to start your own checklist based on my experiences.  

Two reasons:

1- It is a good way to help them save/invest for retirement

2- I think that it can help agents work better with investors if they own real estate.  While the experience of working with investors certainly helps, you are on an entirely different level of understanding as an agent if you have been in their shoes.  Does that make sense?  

Agreed.  And you're very welcome.  Happy to help!