All Forum Posts by: Michael K.

You should know that you are up against a literal army of real estate agents if you try to be a wholesaler. Agents are also doing mailers, knocking on doors, and cold calling up the wazoo. Moreover, agents are highly discouraged from doing what wholesalers do (net listing agreements). A net listing agreement is when the seller and the agent agree on a sale price upfront and if the home sells for above that amount then the agent pockets the overage. So despite having to pay a percentage to a realtor at least the relationship is transparent. Not saying you can't make money as a wholesaler but you should at least know what you're up against. 

@Emily Hsieh That sounds like a good set-up. I find that keeping good tenants is often more important than raising the rent. What does your cash flow look like after all expenses/mortgage are accounted for?

The type of financing you can get will depend upon what your income and liabilities look like. You still need somewhere to live, and I'm guessing you don't want to live in a van, so maybe a multi-unit is the best idea. If there are none in your area then look for townhomes or single families. I would suggest residential unless you have some other interest or knowledge about commercial (maybe you have a business of your own?). As a beginner, I think it's easier to understand the fundamentals of residential property than commercial property. House-hacking or buying a fixer-upper would both be good options. 

@Emily Hsieh That's awesome, how do you manage it while being out-of-town? And have you seen much rent growth?

200 HOA is going to be difficult to find in any building with amenities, so you will probably need to look at smaller walk-ups. For 400k 3 bedrooms (so long as it's not a townhouse or multi-level) should be doable in a good number of neighborhoods. I'm thinking Lakeview, Uptown, Humbolt Park would be good places to start looking.

@Matthew Bernal Congrats, that looks like a nice project! So you bought out your partner for the 15% equity? What happened there? and since it you had the option to go alone what made you consider bringing them on originally?

@Joshua Milam anything that will help you understand money and business would probably be helpful. But honestly, just start doing real estate. Maybe buy a crappy place near campus with help from family and rent it out to your classmates. You can be your own property manager and start learning. If that's not an option then get a side job and start saving for a downpayment after you graduate. 

Personally, I got a liberal arts degree and I'm not all that sure what it did for me. I grew up in the city (Chicago), so I can't say that I met more diverse people from going to college either. I did get a chance to explore a lot of different things, mostly because I was involved in lots of clubs on campus. A lot of my classmates didn't do that though, and instead just spent their time doing homework or playing video games. I think motivated and driven people will succeed whether or not they go to college. Looking back I do wish I had got a more marketable degree, but then again, that might have just kept me inside my comfort zone and never pushed me to go into business for myself. Can't say for sure. 

The purchasing aspect is easy if you and the seller can agree on a price, just get a lawyer to handle it for you. There is not much for us to contribute on that side of the conversation. If you are asking us how to finance it based on your current portfolio, then that mostly depends on your individual preference and financial situation. How far along are you in the BRRR process?

You have the cash on hand to buy two houses outright? That's a desirable situation to be in. Can you get a loan? Are you invested in anything else currently? I would suggest sprinkling some money in the market if you haven't already. Get some third party price opinions and then get a lawyer to facilitate the transaction for you. I can recommend one if you need it. As for how you finance the deal that's up to you.