All Forum Posts by: Jeff Lundeen

I'm looking to get started with the elusive first deal. I'm currently paying very little for monthly rent. I'm seeing some advice that house hacking or purchasing a 1-4 unit with an FHA or traditional loan is a smart way to go. Is this strictly from a funding point of view? I am most interested in long term holding for cashflow and BRRRR strategies. Is financing the reason why this is recommended?

Do the experienced people of bigger pockets agree that your first investment should your own home so that you are no longer paying rent?   Does this still apply if you can charge more rent for the unit than you are paying in rent?

@Matt Engle  What would be your strategy in finding these smaller apartment complexes?  It seems that finding an apartment that value can be added would make sense.  What kind of sellers are you looking for in this situation and where do you find a motivated apartment seller?

I don't mean to hijack the thread, but what happens with the 1 year occupy rule if you move to a different state within 6 months (or anytime less than the full year)?  Do you have to sell the property?

Thanks @Rob Hakes for the law firm recommendation.  I will certainly reach out to them.  Also, thanks @Eric Gardiner for the info about the MACU loan.  I agree that having an entity available at anytime makes sense so that I'm not scrambling after I find a deal to get it set up.

As for the "due on sale clause" I assume most lenders will have this clause in the contract. It seems like it's not an issue until it is. How can I figure out if it is an issue or not? Is this something that I should openly talk to the lender about when making the purchase? If not, I could put myself into a tough situation where the property is 'stuck' in my name because I can't transfer the ownership to the LLC without triggering this clause.

My market is Utah, but I'm also interested in long distance properties if the numbers work. I understand that setting up an entity is very important to reduce liability and for potential tax benefits. When is the ideal time to set up an LLC? I don't want to set one up prior to having my first deal, unless this is part of the actual deal, because it seems like setting up an entity is a form of procrastinating instead of actually acting on finding a deal. I see the benefit of having the LLC already in place, but I assume that one can be created fairly quickly once a deal is under contract.

I'm new to real estate investing, but I've been taught to hire out anything that is 'below my pay grade.'  I personally am not getting into real estate to work with my body, rather with my brain.  I've been taught that a good heuristic is $6/sqft.  

We'd rather over estimate than underestimate, and we'd rather use other people's time than our own.  Best of luck to you!

Jeff 

I am so interested in any meetups in Utah.  Please keep posting about these.  Would love to meet you guys!

Hey guys!  My journey into real estate has just begun.  I'm on the tail end of a two year "career break" where I resigned from a government job to travel the world.  I had achieved the American Dream, but was unfulfilled.  I had saved a large portion of my paychecks, and I'm pretty sure I can return to my former career if I would like to.  I learned so much while traveling.  I met some amazing people who told me about their financial independence through real estate.  After getting over the jealousy phase, I asked them how they did it and where I could start after reading Rich Dad Poor Dad.  I've since read Cash Flow quadrant and have attended a couple local real estate meetups.  The meetups were selling the Renatus education system, but I'm getting a pretty bad feeling about it, so I'll stick with learning what I can from here and other less expensive resources.  I've made some audacious goals of reaching financial independence in 2-3 years, so let's start creating value!

I am interested in the BRRR Strategy, long term holding for cashflow, house hacking my first deal, and developing quality relationships with good people who will help me improve as a human being. I can't help but think that the entire market, or at least my market in Utah, is VERY OVERVALUED! I know I can't time the market, but my current plan is to spend as much time as I can reading and educating myself, while waiting for the market to return to equilibrium. I know that I could be waiting a long time. I've spent several months studying the 2008 financial crisis, the policies of the federal reserve, and what money actually is. This has lead me to strongly believe that Bitcoin, and a few other blockchain projects will become increasingly popular over time. Bitcoin is currently being considered property, does that mean that I could potentially use a 1031 exchange to sell BTC and buy my first deal?

I've been continuing to ask the question: What can I do to create value?  So if there is anyone here located in Utah that could use some help, please let me know what I can do.