All Forum Posts by: Lateefah Mathews

Hey Alec,

Looks like the Realtor has sold you on this one. If you remove yourself from the desire to make this work, you can see that the margins are not adequate. Especially if you are looking to purchase at asking price. 

As a novice investor, your first approach should be carving out a particular strategy and niche that you are going to stick with for your first several deals. Starting out this way allows you to determine how you will analyze your deals, how you will fund them, and if it meets your investment needs. These ways you can weed out the deals that are not profitable when they are presented to you.

I'm sure that's not what you wanted to hear, however successful deals require investors to be selective when choosing properties, careful planning and execution. 

My pleasure. As an aside it is a much more complicated structure even for those who are experienced. Lots of luck with your business!

Do you have an LLC or C-corp? If so, you can leverage your finances by having those companies build its own credit lines. I also echo what @Craig Garrow says, build your agent business and you will have the proper resources to scale your investment business.

The best time to set up your entity is now. You should not wait to have a deal on the closing table to form your LLC. With excellent planning you can utilize each "cell" or series for multiple outlets aside from holding real property.

The SLLC model is a great asset protection strategy for real estate investment if structured properly. Be sure to work with a corporate advisor who can help you understand the formalities you will need to follow so as not to pierce your companies vail. 

Proper structuring is key here.