All Forum Posts by: Jaspreet Baveja

@Brandon Fish - Also, depending on location, you could have Snow, Hurricanes, or other stuff that adds costs as well! Yard maintenance, HVAC / Roof / Appliances/ Plumbing/ Electrical/ pavement (concrete outdoors)/Flooring/ Tenant Turns/ and oh so many things that will cost money, and best to plan for them up front. Use the average life span of each component, divide the cost by # of years and use that annual cost added up as your "Reserves", and then add Maintenance costs on top of that...

@Julie McCoy - I've been involved with both. Longest being a 10 year term.

@Julie McCoy - Definitely a great idea to help generate a passive income vehicle on top of the very involved and active STR business. I only ever originate loans, and have been involved with over a 100 or so of those. I usually only lend to fellow RE Investors, but either way, Due Diligence is key and then of course having a solid Note, Mortgage and Personal Guarantee to back it all up. I find it less risky to originate than to buy existing Notes, just because I have control of the terms from the get-go, earn points and fees up front, do a BPO / Appraisal up front (usually when vacant), and know my borrowers (always an entity, not personal name)! Let me know if you'd like to chat further, always happy to talk! Best of luck.

@Skye Penland - You should perhaps consider either lending to a flipper or go into a JV with one and share the profits. Quicker and better ROI, yet still secured against an asset... I know that's what I would do! Best of luck!

Hey @Chris M.! Welcome to the BP Community bro and super excited to see a driven and smart individual get started on attacking his goal of gaining financial freedom through Passive Income the RIGHT way! Reading, learning, absorbing and doing! I was hopeful to get started on my dream back in '17, and listening to this BP Podcast, building a network, starting with something comfortable, and scaling, I was able to do it in under 2 years! My family & I (wife + 2 kids) just spent last summer traveling across 9 countries over 2 months! (drove across 7 in Europe & 2 in Asia) I would love to talk about travel, and sure, shop too, whenever you want! Out here in the East Bay, so, looking forward to chatting and seeing your DEAL completion posts soon too! Best of luck.

Hey @Andrew Neaville & @Jaey Dallas - If you guys are starting out, instead of only procuring existing notes, you may want to explore the option of originating your own notes. You basically act as the Lender from the starting point, and don't need to take on the additional risk of someone else's Due Diligence (or lack thereof) when they originated the loan. This is just something that many people tend to skip over, and allows you the ability to have more exit strategies. You also have the security of working through a Title Company, Escrow accounts for wires, probably even Title / Property Insurance in your name - just to name a few! I can't agree more with all the advice in this chat so far- read books / watch YouTube videos, explore options, pick 1 you like, dig deeper, familiarize yourself and take action! If you ever want to chat, feel free to reach out and best of luck!

@Lance Jackson - Perhaps this may be your best option, as the lower limit is $5k as per this website: https://fhaloans.guide/loan-limits/illinois

You're most welcome! Yeah, feel free to DM or connect and we can chat further if you need help. There are a ton of posts on BP, videos on YouTube, local meetups (Virtual nowadays) and ample people eager to help you get started! You can even look into Turnkey rentals, if you're comfortable taking on rehab projects, or just explore the MLS in an area you DO know, and go for those! Again, best of luck and feel free to reach out if you need anything specific. Private Lending can be a simple loan to other investors that will buy and fix and flip or refi in 6 months with Traditional (bank) financing and pay you for that duration, with a lien (collateral) against the property itself...

Hey @Sam Conway, Welcome to BP! I believe this all depends on the level of participation you want to have, what Class of an asset you want to retain (and the headaches or lack thereof that comes with it), along with if you have any friends / family who happen to invest and you can leverage a network they've built and many more such things! Not knowing what your W-2 salary is, not sure how long it will take at the $150k quadplex / deal basis to replace it, but, make sure that regardless of WHERE you choose, account for ALL your expenses, immediate and long-term, before you arrive at your "NET Cashflow"! Too many people fudge the #s for the deal to make sense, as they get antsy and want to act, but, I think that sticking to your conservative approach, accounting for everything, and then moving forward will keep you safer longer! P.S. - Indiana, Arkansas and a few other states have the potential for those price-points and cashflow. You should also consider the Private Lending space as an alternative to this approach, which is a LOT more passive, and can generate exceptional returns with a secured asset as collateral. Best of luck sir!

Hey @Shweta Bharti - I agree with @Taylor L. that doing your research is the first step. I would research:
1) The strategy (turnkey rentals) | 2) The Company selling you the home | 3) The Property Management team (in-house vs 3rd party) are all KEY things to be done BEFORE you look at the fee structures and the potential "pitch". Because as many smart people have said before me, this is a Long-Term relationship business, and their reputation will speak volumes. You can then gauge whether the fee is worth what you're getting! Also, you can find other means to passive income, just need a goal first and the strategy will follow! Best of luck!