All Forum Posts by: Sam Alomari

@Brad Young I used a heloc when I started. You will be treated as a cash buyer.

Make sure your heloc is interest only payment. PNC by default had my heloc checked for Principal + Interest even though I requested interest only payment. They fixed it and I went through a second closing on the same heloc.

When your payment is interest only, you have a better chance to handle the payment on your own longer, also that helps you to survive during rehab. Your holding cost is minimal.

@Jordan Gobely

Here is my 10 steps system (short version), that I leaned that on my own

1- Figure out your BIG WHY. Why do you want to become a real estate investor?

2- Read books, listen to podcasts, watch youtube videos, etc (self education), this will help you learn the basics.

3- Attend as many RE meetup groups as you can (group education), this will help you practice what you have learned in step 1.

4- Find your market. Are you investing locally or remotely, where and why?

5- Analyze as many deals as you can. Learn to quickly identify quick deals.

6- Find a mentor

7- Identify your investing strategy (with the help of your mentor). Wholesaling? Fix & Flip? Buy and hold? residential? commercial? Mobile houses? Land? Single family? multi-family? etc.

8- Find good source of properties (usually wholesalers), but you can be creative here. I found that some mortgage brokers have access to auctions 2 months in advance.

9- Make offers, don't be scare of making bad decisions and losing money. You know why? Because you will make bad decision and may lose money. There is a saying, to have what you never had before, you must do things you've never done. That's I learned from my mentor so I proceed with confidence!

10- Stay motivated by immersing yourself with books, podcasts, meetings, mentors and successful people and you will never lose your purpose.

Good luck!

Hi @Cynthia Ng, Just wondering, can't you offer them cash for keys to get your property back earlier and in a good shape? I know the ladies are current tenants, but if you are expecting issues in the near future, I would offer them a small amount of cash to leave the property NOW. If you need the rent, and don't mind going through the process, that should work too.

Hi @William Englehart,

Can't you just share the strategy so that everyone benefit from it?

I have the same question. How can we structure a deal that makes partner/investor happy to fund a deal?

Hi @Dave Bopp,

Hard money is not an option for rentals if you plan to hold the property for long term. It will cost you a lot, and usually HML doesn't lend you for more than 12 months.

You can use HML for bridge loan, but there is always a risk of not qualifying for a mortgage and end up under the water.

Seller finance is a one of your best options, but there is always a chance to partner up with more experienced investor. If he has the money, and you have the time and the hunger to find deals and work hard to make them successful, you can create a win win situation, and someone will invest with you.

Good luck!

Good job man!

@Heather Bettis I am afraid you need to calm down and learn a lot more before making decision to invest. You can't compare SFR values to multi-family units If you converts it to multi-family, you are not expected to sell each unit separate if that what you are trying to do.

Before you get very excited, how long it has been in the market? When you say the price is $30,000, do you know if there is a mortgage on the property? Is that what the current owner wants to walk out with? Do you know the condition of the property? Are you willing to spend $300 for inspection before you get your hands dirty? Do you have a budget to convert it to duplex if that's what you want to do? Is there any repair orders from the city? 

If you have a reasonable answers to my questions and bunch of other questions that an investor usually think about, then make an offer!

I am not a wholesaler, but you can make an offer, put the property under contract, then find an investor to buy your interest in the property before the final closing date. 

Good luck!

I am not an accountant or a CPA, but based on my research, if you expect to make a lot of money, use an LLC and elect to be treated as an S-Corp. When you do that, you can pay yourself a reasonable salary to satisfy the IRS, then whatever profit left should be distributed which saves you the payroll tax.

If you aren't expecting to make lots of money, I would use an LLC, and once you guys make enough, I would elect to be treated as an S-Corp by the IRS.

I recommend "Tax Free Wealth" book by Tom Wheelwright. It's an amazing book and must read to any serious investor,

Sam 

Hi Heather,

Why don't you put it under contract and wholesale it?

Sam