All Forum Posts by: Jorge Quintero

Hey, BP! I’m new to REI and as I’ve learned more about financing, strategies, and getting started, I’ve figured that house hacking will be my best bet to start with low money down through an FHA loan. I currently live in Houston and was wondering where i can start looking for potential multi family deals? It seems that all the websites I have looked through online sell multi-family properties that are rent ready or are over my budget. Preferably I would want to find a duplex under $250k. I’m ready to get started and achieve my goals for 2018, which is to buy my first rental property by 2018. Anyone have any leads or resources they could share? Thanks in advance.

Hello, everyone! I am new to RE and I’ve wholeheartedly committed to becoming a buy and hold real estate investor. I’ve been exploring different real estate possibilities and one of those is commercial real estate investing. I was wondering, however, how friendly this space is to new investors. In particular, one of the ideas that a friend and I have is to develop an RV park in Harris county on about a 1 acre plot of land. However, neither of us have held a property before but we have dealt with real estate in some capacity (internships with a family real estate investor, wholesales, etc). If we were to do careful research and analysis, are there going to be people interested in investing with us or is the inexperience enough to rule us out, even if the numbers look good? I’ve heard that HML invest on the asset, not necessarily on credit scores or current debt. I’ve also heard that HML don’t do business with new investors. We could do private lenders but as of now we don’t know anyone with the kind of money we’ll probably need. What has been your experiences financing these projects? Did you go in with real estate experience? Are there organizations that finance based on the asset and analysis, regardless of the investors experience? Thanks in advance, guys!

Here is a link to a good breakdown of what you can and can’t withdraw without penalty for different age groups. http://www.schwab.com/public/schwab/investing/retirement_and_planning/understanding_iras/roth_ira/withdrawal_rules You can take your contributions out at any time without tax or penalty. Your earnings that you’ve made on your contributions will be taxed and hit with a penalty if you withdraw them before you’re 59.5 years of age and you’ve had your Roth IRA has less than 5 years. If your Roth IRA is older than 5 years, you can withdraw earnings without penalties if you have a legitimate reason like Matt stated in the previous comment.

@Samuel Kwak sorry for not specifying. With a Roth IRA, you can withdraw the money you've contributed to them at any time without paying a penalty for withdrawing early. You also won't pay tax on the money because you've already paid that up front. Also not to be confuse contributions with earnings. If it's a traditional IRA, you'll have to pay tax and a penalty on any money withdrawn. 

Is there anyone you know with a significant IRA/401k balance? Even if you don’t, you could potentially pool from several people’s IRA/401k accounts in the form of a loan to possible cover the money that you are missing. The best part about this is that the money/interest you pay back to them is tax free and reinvested, so their profits are making profits!

@Roi C. @Effram Barrett I'm most familiar with the N/NW side of Houston (inside the beltway loop), so I want to mostly start investing in that area. I know some areas above 610 are doing really well, and I'm also looking at areas around 249 and I-45. What about yourselves?

Mihir Bhimaraju excellent answer! I really appreciate your help. I’ve definitely learned something today. I will be applying these concepts this week.

Mihir Bhimaraju When you say saving 10% for CapEx, is that every year? Also, I did read about the 1% rule! Have you applied that rule to multiple markets or does it happen to work for the market you’re investing in? And yes! I believe electrical engineers are some of the most hard working and intelligent people out there! I’m fairly new but am getting a better hang of it everyday! Glad to know another electrical engineer has already made the jump to REI and is succeeding.

Mihir Bhimaraju I’m seriously considering house hacking my first property but just used SFRs as an example. Now that you mention running numbers on properties that I might not even buy, what are the tools or methods you use to determine if a deal is a good buy? I’ve been reading the BP book on rental properties and it seems like a lot of numbers need to be correctly estimated to have an accurate number of the cash flow you can expect. For example, I know how to find rent, mortgage payments, and taxes, but am lost on how to account for things like CapEx, Rehab, or insurance costs. Do you have any advice you can provide?

Mihir Bhimaraju thanks for your response! I’ve definitely been trying my best up to this point to follow the six steps you’ve outlined. In terms of a niche though, say I decide to focus my energy on SFRs. If I wanted to close a deal, are private lenders willing to lend me money if I have a good deal with careful analysis? Or are they typically only looking to lend to people with more experience?