All Forum Posts by: Jeffrey Albaum

Hey @Jacob Davis! Super exciting all around man! I'd definitely recommend working as an agent while you're in school - find a rockstar agent in the Fayetteville area, and offer to work for them for free and hustle. Even though you don't have any work experience you can offer your drive and energy and take on tasks that they don't like doing. Learn everything you can from them while adding ton of value to their business. Then once you've added value to them, you'll begin to start making money from all the resources and knowledge that they've given you. That will put you in an awesome position to start investing yourself regardless of what you choose to study at University. Best of luck and hope this helps!

Hi @Alyssa Magyar - get an umbrella insurance policy! Call an insurance broker and let them know what you're doing, they should be able to recommend something that will work out nicely for you!

Hi @Edward Giyo! Biggest expense as a seller is going to be staging and realtor fees. As the seller, you're typically responsible for paying both the seller's agent as well as the buyer's agent's commissions. 

Hi @Charles Carrillo! If you offer them a month to month lease, you can usually charge higher rent than a year long lease as the tenants have more flexibility, and you have more risk that they'll leave at any point. Hope this helps!

Hi @Joshua Milam! I had to throw my two cents in there, and this might be a little out of the box, but stick with me! I'm going to push for an engineering or some sort of STEM degree for a few reasons:

1. STEM, while having many downsides, has a ton of upsides in that it really helps you to learn how to think about the world. Whether it's engineering or physics, it teaches you how to model big ideas, and bring them down to reality.

2. If you can do the math of a STEM major, real estate modeling becomes much easier!

3. Although your friend is certain that he wants REI to be his future, it wouldn't be insane to think that someone could change their mind from when they're 18 (I know I did!!). By having a STEM degree, it'll open up a ton of jobs/opportunities outside of REI that will set them up for success no matter what path they choose to pursue.

4. A lot of folks have said it already, but there is nothing stopping you from getting a STEM degree, AND learning everything you can about REI - reading books, listening to podcasts etc. It's not one or the other!

Hope this is helpful and best of luck to your family friend!

Cheers,

Hi @Jesse Carmack! I've invested a little bit of cash with a big crowdfunding site, and it feels very similar (to me at least) as owning stock. Should you own stock in your overall investment portfolio? Probably! It all depends on what your goal is for those funds - if you want to learn a ton about how to invest in real estate, than maybe it would make sense to buy a property yourself. If all you care about is earning a high return, than a REIT could be a great investment as well! I hope that's helpful, and let me know if you have any questions!

@Luka Jozic for sure! It's always a great idea to meet in the middle...no need to stick to one extreme over the other!

Hi @Luka Jozic! I was in a similar situation to you and started buying less expensive multifamily properties out of state (first duplex purchased was $65k). If I had to do it again, I would just skip those properties all together and go right into the more expensive, less "headache-y" properties. Would love to chat further in depth if it would be helpful! Best of luck!

Hi @Vicki Figueroa! I'd go for a commercial loan - you can use a Debt Service Coverage Ratio Loan (DSCR), which is a type of commercial product - i.e., you won't need to personally qualify for the mortgage. The rate will be slightly higher and the LTV requirements might be more stringent, but that's the cost of doing business. Hope this helps!

Hi @Laura Gomez! 

Ask them for a total breakdown of their fees - loan origination fees, loan points (fancy term for a percentage of the loan),the interest rate, loan term, amortization period, anything else they charge so you can get an idea of the total "cost" of capital. Also ask them what documents they'll need from you. Once you know this, I'd make a new folder with all of these documents handy so you can send it off to other lenders easier! This will typically include things like a few pay stubs if you're a W-2, a few years of tax returns, your mortgage statement/rent, other loans you have (credit cards, car payment etc.), bank statements, any investment summaries, 401ks, etc.