All Forum Posts by: Paul Parker

Looking to purchase up to 5 homes in the Tulsa area and looking for contacts to help me find local REI contractors rather than HomeAdviosrs like services. I've looked at REI meetups as a resource but it appears that mechanism is lacking. So, I thought I'd reach out to the BiggerPockets community for insight.

Paul 

Document, document, document. Then move on.

Alda - One option to consider is to buy a Multi Family Home(i.e. Duplex, 4-plex, etc.) and live in one unit while renting out the other unit(s). I know of a real estate investor who did this to get started. In this scenario you may even qualify for a loan with as little as 3% cash down. Again, focus on what your goals are first and then build a strategy around those goals. Most average investors have limited resources(i.e. time and/or cash) so developing a good plan with a good team of people you can trust is important. 

In my experience it's always a good idea to get quotes from 3 or more lenders. It's more work upfront but it gives you options. I always try to find lenders that my fellow investors have used in the past. The only lender that I'm partial to is my hard money guy and that's because he is a sounding board. 

In this business, I'm always a bit disappointed at how the people that offer a good service are so busy. Imagine that! So, it could be the guy has a deal he is focusing on. If he doesn't get back to you mid-next week then move on.

Chris - My advice is be patient in learning the business and finding good people who are interested in helping you on your journey. This process takes time but you'll be better served in the long run. Join some local REI groups. You may have to visit several to find the group that is a fit for you. I have a few I go to regularly and some I visited that I would never visit again. Some people are just working their angles and not interested in you. Be careful.

Alda - Welcome to BP! I'm 53 and started in real estate in 2017. I still work full time and I have 4 rental properties. You can do this. I would first recommend to write out what your goals are. Be specific instead of just saying retirement income. 

Secondly, read some good books. I found Richard Kiyosaki's book Cash Flow to be a good beginners book. This is not a definitive book on how to buy rental properties but instead a very high level read about some basic concepts. You'll want to read other books after this but this one is good starter. I'm sure of people here on BP will have other recommendations. 

Thirdly, join an REI group(s) to meet like minded individuals who are doing this in your area. Despite your plans to move to FL, it would be good to understand from people in your area what the best approach might be.

The rental vs flip question depends on what your goals are. My goal is to have an income after retirement maybe retire early if things go as planned. 

Rentals require you to use your money for purchase or cash down for the life of that rental unless you can use a strategy like BRRR where you can pull your initial investment(cash down and/or rehab cost). Cash flow is usually the most important thing with rentals. I only have one rental that I bought completely and this is bc I used my IRA monies with gets complicated with holding a loan with. All my other properties I have mortgages on so for me I have to make sure I buy properties that will produce positive cash flow after all expenses.

Flips require you to use your money for purchase for the life of the rehab until the property is sold. There are tax implications(i.e. short term gains) to consider here. But here you are using your cash in shorter time frames to produce more cash, hopefully(i.e. Make sure you do your homework with comps/ARV & expenses).

I also lend some of my monies to another REI for his rehab budgets but this not what I would I call being a hard money lender. If you want to be a hard money lender my advice is to join a local REI group(s) to meet people who do this that could help you understand the business side of it.

IMO: Cash is still king so use yours wisely. Also, the more seasoned investors(not me yet), learn to use OPM to structure deals with little of their own money.  

All 3 tenants should be on the lease. The E-7 may be the person who is responsible for paying but legally all 3 are responsible for adhering to the lease and keeping up the place.

I don't like dogs or cats in my rentals because they stink up the place. I'm sure I'm going to have animal lovers who will disagree but that's been my experience. Additionally, they're too much liability in my opinion. Most insurance companies have a list that is quite lengthy of dogs they prohibit. 

I think most of the posts on this thread pretty much cover it. My experience is that I read 2 of his books(RDPD & Cashflow). They motivated me into action. After reading the books I reached out to a company associated with him that offered to help me(went thru several interviews, etc.). I declined to go that route(too much $$) but instead found a great REI realtor. She worked with me to help me overcome my fears to get my feet wet. IMO, there are a lot of average people who are on BP. I'm one of them. I just got tired of leaving my future to my employer. I still have an 8-5 job and I do this on the side. It's work like anything else but it's rewarding too.

My advice is keep reading but doing is where you learn. You will make mistakes. Find good people to help you make small mistakes instead of big ones. BTW: These are the same people who will most likely help you live thru your mistakes. 

 @Ken D.: Here's the funny thing about that. They offered full price but turned around and appear to ask me to pay for their down payment in Section 12 of the contract. :)

12. SETTLEMENT AND OTHER EXPENSES:

A. The following expenses must be paid at or prior to closing:

   (1) Expenses payable by Seller (Seller's Expenses):

      (a) Releases of existing liens, including prepayment penalties and recording fees; release of Seller’s loan liability; tax statements or certificates; preparation of deed; one-half of escrow fee; and other expenses payable by Seller under this contract.

      (b) Seller shall also pay an amount not to exceed $X,XXX.XX to be applied in the following order: Buyer's Expenses which Buyer is prohibited from paying by FHA, VA, Texas Veterans Land Board or other governmental loan programs, and then to other Buyer's Expenses as allowed by the lender.