All Forum Posts by: James Galla

Cutting corners is generally not the way to go, and that is the premise that Ali's article appears to take. You ought to consult an attorney when trying to investigate the benefits of having an LLC.

Ask your lawyer.

I hope you have some backup mechanism for securing credit rather than expecting lenders to throw money at an unemployed person. Honestly, to make the most of your situation, you need a strong full-time W-2.

You're better off with a mentor than a guru. Rich Dad Poor Dad is a scam and so is Than Merrill.

Aside from listening to the Podcast, introducing yourself to the local REIA, I'd start by familiarizing yourself with the different neighborhoods in the area you are looking to invest. Drive and walk around as well as identify any specific reports on neighborhood demographics/specifics.

When you become familiar with the neighborhoods, you'll then have a better idea of what a good deal looks like. I'd probably just start looking at homes on realtor/Zillow/Trulia/redfin/etc. Following that, you can become familiar with the probate, mortgage and tax foreclosure processes. Perhaps you could even go and see an auction. Learning about those will give you more contacts (folks bidding on properties are sometimes worth getting to know).

The foreclosure and probate processes would give you some insight on where to find good deals that you wouldn't be able to get on the normal market. You'll also have to keep in mind that getting a deal through these avenues would require way more effort, but the initial purpose is just familiarizing yourself with how they work and how you can take advantage of them.

Consult a lawyer.

Generally, the sooner you start, the sooner your cash can compound and snowball. However, if you choose to hold off, consider that money in the bank is money wasted because it won't be pulling back a return for you. Perhaps for the time being check out a mutual fund or some other less-risky stock portfolio to park your money.

In reality, folks don't know how to value their properties, so assuming your post as true, I'd generally low ball with the 90k. Saving 10% on each deal really adds up in the aggregate, considering both your cash and credit reserves.

Possibly. The general idea is that your offer is presented to the lender, irrespective of the list price. At that time they can come through with an acceptance or not. So, approval of the list price doesn't really mean they will automatically accept the offer. Rather, it just means they authorized the broker to list the property at that number. For instance, some list prices may be below market value with the expectation that those who make an offer will come above the list price in a competitive effort.

Good luck with your short sale. I'm trying to pick one up myself, but the property is in an estate, and it is painstakingly long to even hear back.

Money talks, so when you are at the negotiating table, you ought to place an emphasis on that over your age. If the numbers make sense, the seller will pick up on that. The biggest advantage your age gives you is the ability to start early, which can snowball.