All Forum Posts by: Jonathan Towell

@Elizabeth Jackson Have you talked with a bank? A bank may finance the purchase + rehab with 20% down. Maybe the 20% is a challenge for you, but at least you're not having to come up with 100%. Or, maybe you partner with a family member that brings the 20%? Of course, you could do the same kind of thing with a hard money lender.

I hope that helps! I wish you the best.

Hi Chibu,

When you purchase the property, the lease will transfer to you. Make sure you introduce yourself to the new tenant and be clear about where payment should be made and how they can get maintenance help. The security deposit should also transfer to you. Make sure you see that on your settlement statement.

I hope that helps! I wish you the best.

@Michael Hayworth I like the way you think.

The Lubbock REIA meets the 3rd Thursday of the month at 12 noon at Fox & Hound, 4210 82nd St.

Google "Lubbock REIA" and you should be able to find out more.

Hi Jacob,

If you individually meter each unit, you can have the tenant get the utilities in their own name. That is a great way to do it, but can be expensive.

You might also look into a ratio utility billing system (RUBS). Basically, it is a formula where you take the bill from the utility company, the split it between the tenants based on occupants per unit. It requires you to pay the utilities, then get reimbursed from tenants. That means more paperwork each month. It can also be frustrating for one tenant to pay more than they owe because another tenant ran the A/C too long. But, it is a cheaper way to do it.

I hope that helps. I wish you the best!

Finding duplexes can be hard. Investors snag them up the second they hit the market. So, you have to buy them before they go to market. To do that, you have to network.

We make a list of our investor friends. We try to schedule 1-3 lunch meetings each week. We always buy. We talk business, ask for advice, refer deals, etc. We ask them to introduce us to other investors. We ask those investors to lunch. During all these meetings, deals pop up. Generally, this has resulted in more deals than we can handle.

I bet if you do something similar, you'll find plenty of duplexes. 

I hope that helps. I wish you the best!

Hi Anthony,

It won't matter how you structure your entity. The banks are going to look at your global cash flow to make their decision. Until you get established, your personal income is going to need to sustain the debt service on the rentals. As you start adding rentals to your portfolio, you want to make sure each property is contributing to positive cash flow if you want to scale up. If cash flow is negative, or even close to break-even, that property will be seen as a liability.

I hope that helps. I wish you the best.

Hi Brian,

When we were getting started, we made it a habit of buying lunch for another investor, usually once each week. We started with guys we knew from church or family friends who owned a few rent houses. We'd ask them questions about the market, getting started, property management, finding deals, etc. Then we'd ask them to tell us which friends of theirs are in the game, followed by asking those friends to lunch. Rinse and repeat that for a few months and pretty soon we were meeting with and learning from the guys who own half the town. Some of them would even toss us deals. You can never go wrong with networking.

I hope that helps. I wish you the best!

Getting started is a fine balance between education and motivation. It helps to read and learn. But, the best learning comes from doing. So, I usually see new RE investors get their best starts by jumping in and buying something manageable.

That said I think you are wise to be careful to invest in a seller's market.

My advice: dig hard to find a deal then jump on it.

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