All Forum Posts by: James G.

@Michael Matasich wholesaling can be a great way to save up some capital. I wouldn't get too caught up as to how you are going to generate income, just find something that you are good at that can generate income, and become really good at it. I am an engineer, and the extra income that I have received from my job has helped me to save up the money that I need for my investments. Just make sure you don't hop around from job to job or side hustle to side hustle. Focus on one thing and become really good at it!

The best way to find deals is going to be either direct to seller or through your relationships. Set up a direct mail campaign targeted to reach out to out of state, absentee owners and you'll increase your chances of finding a deal. Also tell anyone and everyone that you are looking for real estate deals. Brokers, wholesalers, friends and family, etc. can be a great source for finding great deals.

This money shouldn't go to you. The money goes directly to the title company on closing day. I would set up an LLC and be 50/50 partners of the LLC.

Taking this from a bit of a different angle, I find that many engineers tend to become great real estate investors. As an engineer, you need to pay attention to detail, be good with numbers, and sometimes, think outside the box. Not to mention, you get a pretty nice salary outside of college! I am an engineer, and while learning thermodynamics hasn't helped me in my real estate career directly, the skills that I needed to learn in pursuing the degree, and the salary that I have received have been really helpful. 

You can go either route. I've purchased deals with conventional financing and I've purchased deals through conventional financing. Don't forget to also ask the seller if they're willing to carry any of the down payment in the form of a second mortgage. Maybe you go the conventional route and you find a private money lender to help finance the down payment. You have plenty of options to finance your deal, you just need to be creative and come up with the solution that works the best for this particular deal. If you want to be more conservative, save up the money and find a conventional lender, if you want to be more aggressive, borrow the money and be extra careful.

@Anthony Barnard To me, this ultimately depends on your risk tolerance (or as some people call it, your stomach). Real estate investing comes with a lot of problems - maintenance issues, non paying tenants, evictions, etc. If you have the stomach to handle larger deals, then it might be something to consider. However, I see no problem with the "starting small" strategy. My first investment was a single family home, and i was able to grow from there. If you do decide to get into a larger deal, make sure you really study up, or partner with someone who knows what they're doing. You don't want to make a mistake with other peoples money that can run you out of business. All in all, think about your risk tolerance, your reserves, and your knowledge. The speed of growth is different for every real estate investor.

@Account Closed You absolutely can, anyone saying that you can't is wrong. I've done it myself. The money needs to come from somewhere however, whether the seller is willing to hold a note in the form of a  second mortgage, a private lender wants to invest with you, or a different strategy. Make sure that you really know what you're doing if you're going to go into a deal without any of your own money. The more leverage you use, the more careful you need to be.

Hi Nathan,

I just graduated from college and have acquired a decently sized portfolio in 3 years, so I think I can bring some light. Having a good paying, W2 job has single handidly been one of the largest contributing factors in acquiring assets. The income allows you to save up money for down payments, and it keeps you from appearing desperate during your negotiations (needing to make a deal to eat next month). My opinion is, whether you decide to go to college or not ,  your goal needs to be to get or a job (or a skill) that will give you consistent, high paying income. If you are going to college to be an engineer, doctor, lawyer, etc. it's certainly worth it (if you're going for a liberal arts degree, probably not). Keep in mind that this decision is going to put you in a considerable amount of debt, so if you have a skill/opportunity that is going to allow you to have high income without the need of college, my opinion is that you should pursue that skill/opportunity. The high income, discipline, and the desire that you seem to have will allow you to acquire more assets over time. If you want to be a full time entrepreneur from the start, you are going to have a hard time getting loans, providing for yourself, and sleeping at night, but if you have the grit in you to do it then go for it! Hope this helps.

@JD Martin Is it also common to bill the tenants for this if it's NOT individually metered? Is it unheard of? My property manager manages several units and says I am the only one who asks if we can bill the tenants for water, sewer, trash on a duplex. I feel like it's eating all of my cash flow and I feel like it makes more sense.. She says its up to me if I want to send a notice to the tenants but that they will have a right to leave afterwards.

I received a bill for $1,300 from the sewer company, basically all of my cash flow. Is it common practice for the landlord to handle this? The units are not individually metered. Could I charge a set amount per month for this?