All Forum Posts by: John Mathew

Hi Isaac, it's great that you're interested in real estate investing and have done your research on various strategies. Here are some tips that might help you as a young investor:

1. Build Your Network: Real estate investing is a team sport, so it's important to start building your network of professionals who can help you achieve your goals. This includes fellow investors, agents, lenders, contractors, and property managers. Attend local real estate events, join online communities, and start connecting with people who can offer advice and support.
2. Define Your Goals: Before you choose a specific investing strategy, it's important to define your goals. Are you looking for passive income or long-term appreciation? Are you looking for short-term flips or long-term buy-and-hold properties? Once you know your goals, you can narrow down your options and choose a strategy that aligns with your objectives.
3. Educate Yourself: While you've already done a lot of research, it's important to continue educating yourself on real estate investing. Read books, listen to podcasts, and attend seminars and workshops. The more you know, the better prepared you'll be to make smart investing decisions.
4. Start Small: As a young investor, it's important to start small and not take on too much risk too quickly. Consider starting with a single-family rental property or a duplex before moving on to larger multi-unit properties. This will help you build your confidence and experience before taking on bigger investments.
5. Consider the Numbers: Whatever investing strategy you choose, it's important to crunch the numbers and make sure the deal makes sense. Consider all of the expenses associated with the property, including repairs, maintenance, property management, and financing costs. Make sure the property can generate positive cash flow and that it fits within your overall investing goals.

Overall, the key to success in real estate investing is to be patient, persistent, and disciplined. Take your time to find the right deals, build your network, and educate yourself, and you'll be well on your way to building a successful real estate portfolio. Good luck!

Regenerate response

Hi Seth, it's great that you're already thinking about house hacking at such a young age and doing your research. Here are some tips that might help you:

1. Cashflow vs. Appreciation: When it comes to your first house hack, I would suggest focusing on cash flow rather than appreciation. While appreciation can be great in the long run, it's harder to predict and relies heavily on market conditions. Cash flow, on the other hand, is something you can control more directly and will help you pay your bills and build your savings. Look for properties that can generate positive cash flow, even if it's not a huge amount.
2. Property analysis: It's important to conduct a thorough analysis of any property you're considering buying, including estimating repair costs and potential rental income. If the first property you're looking at requires a significant amount of rehab work, you need to be sure you can afford those costs and that you have the skills or resources to handle the repairs. It's also important to factor in the potential for unexpected repairs or vacancies, which can eat into your profits.
3. Financing: Since you're a college student, you may not have a long credit history or steady income, which can make it more challenging to get financing. It's important to explore your options and find a lender that is willing to work with you. You might consider applying for an FHA loan, which has lower down payment requirements and is often easier to qualify for than conventional loans.
4. Location: The location of your property is also an important consideration. While the second property you're looking at may have better appreciation potential due to its location, it's important to also consider the rental demand in the area. A property in a less desirable location might generate better cash flow if there is a high demand for rental properties in the area.
5. House hacking: Finally, make sure you have a solid plan for how you will house hack the property. If you're planning to rent out rooms to other college students, for example, you need to be sure you can manage the property effectively and that you have a plan in place for screening tenants and handling any issues that arise.

Overall, it's important to approach house hacking with a realistic and cautious mindset, especially since you're still young and relatively new to the real estate game. With the right research and preparation, however, you can find a property that meets your goals and sets you up for long-term success.

Congratulations on your entrepreneurial success and for your interest in real estate investing at a young age! It's great to see you taking action and exploring opportunities to grow your wealth.

As a college student with a small business and $75,000 in liquid funds, you are in a unique position to start investing in real estate. However, it's important to do your due diligence and thoroughly research any potential investment opportunities, especially when it comes to working with Section 8 tenants and properties.

Regarding financing, it may be challenging to qualify for a traditional mortgage without tax returns, but there are other options available, such as private money lenders or hard money lenders. You could also consider using seller financing or lease-to-own agreements to purchase properties.

It's certainly possible to transition from a career in acquisitions to one focused on real estate investing. The experience you gain in commercial real estate through your work in acquisitions could be valuable in identifying potential investment opportunities and assessing their viability.

As you shift your focus to investing in small multi-family properties and potentially syndications, you'll need to continue building your knowledge and network in the industry. This may involve attending industry events, building relationships with other investors, and staying up-to-date on market trends and regulations.

It's important to have a solid plan for how you'll make the transition from your current role to investing full-time. This may involve building up a portfolio of properties over time, starting with smaller investments and gradually scaling up as you gain experience and confidence

1. Hi Janell here are the things that I would do with 100k+
   
   Buy a rental property: Invest in a rental property and collect monthly rental income. This option can provide a steady stream of passive income, but it also comes with responsibilities such as property management and maintenance.
2. Participate in a real estate investment trust (REIT): Invest in a REIT, which is a company that owns and manages a portfolio of properties. This option can provide exposure to the real estate market without the responsibilities of direct property ownership.
3. Participate in a real estate crowdfunding platform: Invest in real estate projects through a crowdfunding platform, which pools funds from multiple investors to finance a property.
4. Fix and flip: Purchase a property, renovate it, and sell it for a profit. This option requires a significant amount of research and due diligence, as well as a good understanding of the real estate market and renovation costs.
5. House hacking: Purchase a multi-unit property and live in one unit while renting out the others. This option can help offset living expenses and provide exposure to the real estate market.

Hi Mahdi! Here are several steps to help avoid a negative cash flow when investing in rental property:

1. Research the rental market: Look for properties in areas with high demand for rental properties, to help ensure steady rental income.
2. Conduct a thorough cost analysis: Estimate the expenses associated with owning and managing the property, including mortgage payments, property taxes, insurance, and maintenance costs.
3. Calculate the potential rental income: Determine the expected monthly rent for the property and compare it to the estimated expenses to ensure a positive cash flow.
4. Consider property management: Hiring a professional property management company can help you collect rent, maintain the property, and handle any tenant-related issues, all of which can help avoid a negative cash flow.
5. Stay diversified: Investing in multiple properties can help spread out your expenses and reduce the impact of a vacancy or unexpected expense on your overall cash flow.
6. Monitor and adjust: Regularly review the performance of your rental property to ensure you're maintaining a positive cash flow, and make changes as necessary to maintain profitability.

1. Define your investment goals: Determine the purpose of your investment, such as generating passive income, building wealth, or both.
2. Research the market: Study local real estate market trends, property values, and rental demand to identify potential investment opportunities.
3. Create a budget: Determine how much you can afford to invest in a rental property and set a budget for buying, renovating, and managing the property.
4. Find a suitable property: Look for properties that meet your investment criteria, such as location, price, size, and rental potential.
5. Get financing: Decide how you will finance the purchase of the property, such as a mortgage, a home equity loan, or cash, and compare options to find the best fit for your investment strategy.

Continue your Journey and for sure you'll reap the rewards later on! My advice is that plan for the long-term: Keep in mind that house hacking is a long-term strategy, so it is important to consider how the property will fit into your future plans.

There are several benefits to living in a rental property before renting it out, also known as "house hacking."

1. Reduced living expenses: By living in a rental property, you can offset a portion of your living expenses with rental income from the other units in the property. This can make it easier to afford the mortgage payments and other expenses associated with owning a property.
2. Potential cash flow: If you are able to rent out the other units in the property for more than your own living expenses, you could potentially earn positive cash flow each month.
3. Hands-on experience: Living in a rental property can give you firsthand experience with the responsibilities of being a landlord, such as managing tenants and maintaining the property. This can help you become a more effective landlord and make it easier to manage your property in the future.
4. Potential equity growth: By living in the property and renting out other units, you can build equity in the property faster than if you were only paying a mortgage on the property. This can help you build wealth over time
   
   Hope this helps!

It's difficult to say which is better, real estate or the stock market, as it depends on an individual's goals, risk tolerance, and investment strategy. Both real estate and the stock market have their own set of risks and rewards, and what works well for one person may not be the best choice for another.

Real estate investing can provide long-term appreciation and cash flow through rental income, and can also offer potential tax benefits. However, real estate investments can be illiquid, meaning that it may take a while to sell a property, and they also require significant time, money, and effort to manage and maintain. Additionally, real estate markets can be cyclical, meaning that property values can go up and down based on economic conditions.

The stock market, on the other hand, can be more liquid, meaning that it is easier to buy and sell stocks quickly. It also allows for a more diversified portfolio, with a relatively lower investment amount. However, the stock market can be more volatile, meaning that stock prices can fluctuate rapidly and unpredictably, and it doesn't provide cash flow like rental income.

It's important to consider your individual goals and risk tolerance when deciding whether to invest in real estate or the stock market, or a combination of both. It's also important to have a well-diversified investment portfolio to minimize the risk, and to consult with a financial advisor before making any investment decisions.