All Forum Posts by: Felipe Gonzalez

Good morning,

A little bit about me.

I am planning on starting to invest in real estate in the next 6 months.

I am 23, I live in NYC because of work but plan to invest in my hometown in Texas. It’s a town that is growing but not as big as San Antonio or Houston.

There are a lot of old houses for sale. Modern houses seem to be in demand. Not a lot of apartments in demand but people do rent.

My problem is that I don’t know what my first investment should be.

I can either buy land and save a bit more money and then build either a house or a duplex. ( I fear that the cost will be too high or that I will be stuck paying the mortgage without any income coming in. I also fear that construction will take too long and that the houses will make me make a lot of payments before even seeing profit)

I can also buy an apartment or a house and start renting it right away. (The problem is that most modern houses are too expensive for my price range and there are a lot of old houses for sale and that leads me to think that the demand is low for those houses.)

Flipping seems like an alternative but because I don’t live in my hometown, it could be a burden to do everything through the phone.

Any recommendations?

Thanks!

Thank you for the response. 

There  will be a mortgage involved and that's why I was thinking of giving him certain percent of the property. If he gives me $10,000 on a $100,000 should he own 10% of the property or less? I ask because I am taking on the mortgage and greater risk.

Also, if I will be renting the property, should I give him 10% of the monthly net operating income? Or less because I will be doing administrative tasks?

Thanks

 Does this mean that I should pay him back the whole amount he invested with me with 10% interests or does it mean that after 6-12 months I start paying him the monthly Net Operating income of what he invested in me? For example, if he invested $10,000 in a $100,000 property, he owns 10% of the property. If I make let's say $1,000 a month in net operating income, should I pay him $100 a month? 

I am about to start my Real Estate Investing company.

An uncle of mine wants to invest $10,000 with me.

My question is, if I buy a $100,000 property, does that mean he owns 10% of the property, or some percent of my company?

I don’t want to give him any percent of my company, but a percent on the property his money is being used in is something I consider.

Is there a general rule when people are investing money in your real estate company? Out of that %100,000 property I buy, how much percent should I give him?