All Forum Posts by: Michael Lee

Good morning,

I am new to bigger pockets.  I joined an investing group about 2 years ago and received little help or assistance.  I am a bit weary about this.

I do not have much money to put down and I know that most private lenders require 20% to 30 % down, is it possible to get private funding?  I am looking at a couple of duplexes here in my area that look to be good investments.  Hopefully some one will send in the right direction or give advice

I'm an online marketer who is making a move from Austin to Dallas very soon. I have been listening to the Bigger Pockets podcast off and on, and am looking to begin investing in 2016. 

What interests me is starting with a fourplex, and living there so I can learn the ins and outs of property management, and generating cashflow with renting. 

My hometown is in the suburbs of Dallas, but I don't know the geographic area or market that well. I'm looking to learn all that I can with the help of Bigger Pockets!!

I have always enjoy buying and selling properties as my side gig. As I am looking to retiring from one job, I am looking forward to providing low income homes to abused women, homeless veterans, etc. I attempt to buy and rent or sell to low income families. 

I am always looking for an opportunity to help.

Well, I think I'm qualified to respond on a number of levels.

In 2009 I had heart attack, emergency heart surgery to repair a ruptured aorta, massive stroke, coma, paralysis, etc. I fact, I was still in the coma 6 years ago today. 

However, it was the cognitive damage that was most distressing, not the paralysis (have both to some extent to this day). Probably why I exhibit so much contempt for those posters who piss and moan about their "problems."

Since real estate involves so much to understand, cognitive skills are essential. Having an understanding of the foundation and essentials of RE  is critical. If you are familiar with the collateral, valuation, title research and documentation, you are well in your way.

Legal aspects of tax liens (and affect on title and subordinate lien positions) is quite involved and will vary state by state. 

If you decide to go forward, I would specialize in a tight geographic area with a particular state and focus your efforts on being an expert on these counties. 

Energy level is a whole other topic. Personally, I employ strategies that work well given my own limits and adhering them, despite others not always understanding. The definition of maturity is learning how to say "no" is one word.

I don't know your personal financial situation, so you want to assess your own tolerance for risk and hassle factors in deals. 

Also, I've learned to become a capital guy to my industry and my competition, in particular. Because I'm a good marketer and have retained much influence with the CA probate legal community, I've been able to leverage the relationships and refer a substantial percentage of my leads to my competition, including deals that I fund but don't want to work for one reason or another.

Lastly, don't let others define your limits for you. Only you can decide what is a good use of your time, money, brainpower and energy!

Assuming you feel competent enough to undertake these types, I would spend a lot of time researching which states/counties to invest in. Some states (such as IL, where I practice) are very tax buyer friendly (clear title on deeds, good returns on redemptions, ways to get your money back on "bad" properties), and others are not (low returns, no opportunities to get your money back, the need to file a quiet title action after getting a deed). Good luck!

Once your spouse can transfer her employer retirement plan to an IRA, she will be able to invest her retirement funds in tax liens.

Michael,

You alluded to collecting rent in an earlier post? Could you explain further please?

Well, I think I'm qualified to respond on a number of levels.

In 2009 I had heart attack, emergency heart surgery to repair a ruptured aorta, massive stroke, coma, paralysis, etc. I fact, I was still in the coma 6 years ago today. 

However, it was the cognitive damage that was most distressing, not the paralysis (have both to some extent to this day). Probably why I exhibit so much contempt for those posters who piss and moan about their "problems."

Since real estate involves so much to understand, cognitive skills are essential. Having an understanding of the foundation and essentials of RE  is critical. If you are familiar with the collateral, valuation, title research and documentation, you are well in your way.

Legal aspects of tax liens (and affect on title and subordinate lien positions) is quite involved and will vary state by state. 

If you decide to go forward, I would specialize in a tight geographic area with a particular state and focus your efforts on being an expert on these counties. 

Energy level is a whole other topic. Personally, I employ strategies that work well given my own limits and adhering them, despite others not always understanding. The definition of maturity is learning how to say "no" is one word.

I don't know your personal financial situation, so you want to assess your own tolerance for risk and hassle factors in deals. 

Also, I've learned to become a capital guy to my industry and my competition, in particular. Because I'm a good marketer and have retained much influence with the CA probate legal community, I've been able to leverage the relationships and refer a substantial percentage of my leads to my competition, including deals that I fund but don't want to work for one reason or another.

Lastly, don't let others define your limits for you. Only you can decide what is a good use of your time, money, brainpower and energy!

Michael,

That is a tough question to answer due to your health and unknown financial situation. If you have money set aside that you can invest and if lost, you will still be ok, then I say get into something you can do that won't cause much stress. I haven't personally persued tax liens because of all the things that go along with it. I'd possibly suggest investing in REIT's instead. This should give you a more structured return on your

investments with less time/energy involved. 

@Michael Lee

Jay has a point. I suggest you join your local REIA and find locals who buy the same type of liens you'd be. Learn from them. I also suggest you check out at least one of the national lien teachers and buy training that attracts you. The more REI I do, the more I've come to believe you have to jump start your success by networking with folks doing the same thing (REIAs and BP and else where), hire mentors and coaches, buy training systems. I started when I was older and could not have done 35 SFRs in 5 years had I gone the path of learning on the job, vs mentors, REIAs, buying training to shorten the process.

Good luck. BTW one of the tactics that really ramped up our progress was my wife retiring teaching and moving her 403b to a SD-IRA and buying a bunch of rentals in her IRA. I have read of crafty people changing jobs strategically just to get at the 401k cash to move into a SD-IRA to buy houses vs being stuck in the stock market. I mention strategic job change in regards to your wife still working. Just one trick to get a larger exposure to real estate passive income.

Today, since we self manage 14 or so (taxable) rentals, we are entitled to have a solo-401k. Any type of self employment, managing your own taxable rentals qualifies (where rentals in an SD_IRA does not), you to have your own solo 401k. We will move our SD-IRAs to solo 401k, a MUCH better situation than working through a SD-IRA custodian. You have to live through buying, rehabbing, managing rentals through a custodian to realize the serious pain that is. A solo-401k gives you check book control, no custodian and a lower IRS penalty foot print should you have your retirment account audited.