All Forum Posts by: Michael Williams

Sounds like a bad deal if the property is not at least cash flowing $100 (minimum) after all expenses are paid. You want your investment property to cash flow, you could increase the rent to but would it be a rentable property for the area for that price?

I suggest you try and stay local, I know its difficult to find a cash flowing deal (especially in the bay area) but you know your market and it would be harder to invest in your first deal out of state. You have to trust your out of state team, from your agent to your property manager. However if you have to go out of state I would say Texas, its a growing state and you 'd be able to find a great deal that would cash flow. Good luck!

Before I purchase my first commercial multi family property (5-12) units in Sacramento, Ca should I have an LLC already created for private investors and lenders? How would I add my current property with my future purchase? Would a lawyer help me through this process? Should I create an LLC after tax season? Should I already have a domain name chosen and purchased before creating an LLC? How important is creating an LLC when my portfolio increases?

Before I purchase an apartment building (5-12) units in Sacramento, Ca should I have an LLC already created for private investors and lenders? How would I add my current property with my future purchase? Would a lawyer help me through this process? Should I create an LLC after tax season? Should I already have a domain name chosen and purchased before creating an LLC? How important is creating an LLC when my portfolio increases?

You could ask each real estate agent you meet if they own or have ever owned any rental properties. Agents who own rental properties are more aware of what you should look for when buying. Be specific with your agent about what you are looking for and tell them about your long term goals for the property. And referrals are great too. 

@Jason Kang House hacking would be the best route for you. It’ll get you experience as a landlord and you’ll have your first investment property. I know the prices for homes in LA are some of the highest in the nation but when you find the (RIGHT) deal it’ll be worth the wait.

Is it a good idea to give tenants Christmas gifts? I give tenants target gift cards with a nice note, they’ve payed their rent on time and they have not caused any major damage to the property. Anyone gift their tenants Christmas gifts?

Speak with your lender or multiple lenders to see how you can raise your credit score, pay off as much unnecessary debt as you can (credit cards, car loans, etc.). Maybe get a higher paying job or a second job to help build up your savings. Check with local banks and lenders they should be able to give you the best terms and rates. 

Start looking in your local market because you'll know it the best. You know what areas the worst crime areas, where the city is building new developments, where the best and worst schools are, etc. Looking out of state for you first property you'd have to put a lot of trust in other people (property manager, real estate agent, etc.), if anything look an 1-2 outside of your local market, somewhere you'd be able to drive to if an emergency were to come up. And different state have landlord tenant laws that may or may not affect your cash flow. Good luck. 

Looking for an example mortgage/ promissory note (Contract for private lenders) for private "family" lender. I have a family member whose willing to invest with me to purchase my first apartment building, they want monthly payments for 2-3 years until I'm able to refinance to property and pay them back in full. Should I contact a lawyer to draw up some kind of contract or are there templates I can use for real estate private investors? I will still have a lawyer review everything to make sure it's all legal, and does it vary by state?