All Forum Posts by: Laniece Miller

I have a fairly traditional path and currently own and manage one unit. I'm realizing I really don't want to do the day to day management of the rental. For various reasons I don't want to just hire a property manager. I also like the investment side of buy and hold to ultimately be passive income. So I'm trying to figure out how I can be involved in real estate and ultimately use it towards a few thousand dollars a month passive income but not be the one the tenants call. My first thought would be to find a business partner to do management while I work more the acquisition and office side of things. I just don't know enough to have an idea of where I need to even begin. Any suggestions are welcome.

Nancy, as someone getting started, thank you for your detailed post.

newbie question, are the smaller local banks limited in the same way the big guys are if they aren't going to sell your loan? Does this mean you might be able to get financing through the small bank but not Freddie or Fannie?  As I said, still a newbie but that's what seems like a possibility.

CAREIA (you can find it on meetup) meets on the second kinda Monday of the month in Lisle.  There are some agents from Evergreen who multiple of us work with who are part of the group.

I haven't been able to figure out how to tag anyone using my phone but there is also a Du Page Country BP meet-up that there are good people at.

I'm actively looking for my first property at the moment so I'm no expert.  From my reading you're not taking into account mortgage paydown.  With a 15 year mortgages, after that time you're now making the amount you were paying to the bank plus what your previous cash flow was.  Also you now own the properties free and clear, so all 5 houses at their hopefully appreciated value.

Also you have the possibility after a few years to use the equity in your properties to buy more or bigger properties which will make you more.  Brandon Turner wrote a plan 7 years to 7 figure wealth that may help answer your question.  Drop the title into Google (sorry copying links on the phone isn't the easiest)

@Patrick and @Christopher, thank you for the responses.  At the moment I'm actively working towards my first rental but thinking notes maybe a long term strategy.  I'm really just looking at possibilities at the moment. For now I'll probably keep lurking around the forum and asking a few questions as I learn.

I'm just now starting to do my homework into notes, so apologies for such a basic question. From what I've read, buying a performing note from somewhere like PRR is very different than buying non-performing note and trying to make it perform or foreclosing and selling the property.

Any thoughts would be appreciated.  At this point I figure actually investing in notes is probably two plus years out, but want to determine where I need to focus my research time.

The properties are worth almost $348K, so you own about half of the properties.  When you sell the properties, the sale pays off the $173K loan, and you get the rest minus selling costs (143K).  Basically equity is the difference between how much the property is worth and how much is owed on it.

As I'm looking at getting a loan for my first rental property, for an investment property, most banks will loan about 75-80% loan to value, or give you a loan for about three-quarters of what they think it's worth.

From someone else just starting to explore notes, thank you giving us newbies a place to start looking

Thanks for the good discussion, I'm learning a lot listening in as I figure out my next steps.