All Forum Posts by: Shawn Parsh

Ertha,

You have to invest where it makes sense to you, but I can tell you that I have never had a problem finding properties to invest in the market I live in. Of course, I tend to focus on distressed properties which means I get them for well under the average market cost. 

No I do not live in Middle TN I'm in NE TN in Johnson County. Good luck to you my friend. 

Ertha,

Welcome to the site. The source I like the most is from personal referrals. I pay a finders fee to people who tell me about a property that is not listed that I buy. I also knock on doors next to distressed properties to determine who owns them and if a deal is possible. I also use a realtor to find me properties that meet my criteria. 

Why do you want to start out investing by buying out of state? 

Good luck. 

Billy, 

  Congratulations on your decision. Your background should give you a boost as you start. I agree with what Joe recommended about getting involved in a local real estate club. The trick is to find the people at the club that are actually investing in real estate. From my experience there are always a lot of members that are "planning" on investing in real estate some of which are more than willing to share their real estate advice.

I would focus on getting your first investment property and then speak with a qualified, hopefully recommended, estate planning attorney to work out the details on how to spread the wealth to your Children. I have four kids myself and I have made a point of teaching them about real estate. Whether they choose to be an investor like myself or they just use the knowledge to purchase their own property it should help them. 

I would also say that I would not use skilled labor to do non skilled work. With your access to skilled sub contractors you may be inclined to use the people you know for all work. I would challenge you to build a team that includes handymen and people that can do unskilled work like tearing out old cabinets if you do not have them now. With your goal of building a paid for portfolio you will want to build equity quickly so lowering cost will be important. I would also recommend looking into finding distressed properties that you can rehab and rent for positive cash flow. It sounds like you may have a good start to a team and you can build some quick equity with distressed properties. Of course that is what I like to focus on so maybe I have tunnel vision. Good luck. 

Byron,

Thank you for sharing your story and success. It takes a lot of internal drive, self discipline and motivation to overcome all the challenges, but you are another example of what is possible. To many people use Excuses to prevent them from expanding their potential. Thanks again.

 Jeremiah,

I really appreciate you sharing your story. I've tried to help people in the past, but I can not teach motivation or drive. Some have it and some do not. I love hearing the stories like yours, people that despite the challenges still find a way to be successful. No Excuses!

Avery,

I think investing where you live is a smart move, especially when you are first starting out. I think most places are good to invest in if the numbers are right. It's all about getting properties at the right price so I can make a profit. If you plan to rent then make sure after all expenses you have a positive cash flow. You will have to decide how  much cash flow you will want before you commit to a deal. 

I like to focus on distressed properties that I can rehab quickly to raise their value and add equity. It also allows me to get properties for lower prices which then increases my cash flow. If I can be of any help just let me know. 

Zachary,

I agree with Wale on steps you could take, but I would also like to ask where you live now? Do you own or rent? Why must you wait another 1.5 years to start investing? If you know you want to invest then I would continue to educate yourself on the business to include financing options. There are many on this site that go to school fulltime, or have fulltime jobs, or multiple jobs and yet still invest. I say if at all possible get started now. 

Ashley,

  Several have given you good advice, but I will add my input as well. For me one of your top priorities this year is to actually get started. I cannot tell you how many "real estate investors" I have met over the years that never actually invested in real estate. They were always just getting ready too...... I personally would not wait to invest until I was out of debt, but instead would use real estate to get me out of debt. Now I don't know how much debt you have or what kind of debt, but don't use that as an excuse to delay. 

You do have to make sure you have the cash flow to cover whatever you do for a period to get things going, but that just means you have to be more creative. I would take the advice about talking to a few loan officers to see what your options are for getting started. At least that way you know what you have to do to get a bank loan. 

If you don't own your own home I would start there. Whether that's a single family or a two, three, or four unit is up to you. I would look at cosmetically distressed properties that you could get cheaper, with less competition, and create faster equity. I would also look at potential lease options where you could get into properties in need of repairs or updates for little down and still have the option to buy it once you make the repairs. Good luck and let me know if I can be of assistance. 

Aracely,

As the others have said as long as the numbers work then you should be good to go, however, because it is your own house I would try to keep the debt down. I have no problem carrying debt against an investment property as long as I know it will cash flow or I will  make money in a flip, but I do  not like to have debt for my personal home. For example, I am currently building a new house for my family and I but have not taken a loan to do so. As a result it is taking me longer to finish it, but I will not have any debt on it when I move in. This has helped motivate me to find more deals that I can fix and flip to fund my personal residence construction. 

Your comment "I know I can make the payment" scares me a little. A life time ago I sold cars for a brief time and cannot tell you how many people were only worried about what the payment was going to be. A lot of buyers never even asked me what the cost for the car actually was. 

So when you decide to buy a property make sure you are not overpaying, and that you believe it is a good investment. I would also have at least a couple different exit strategies before I make any purchase. Good luck on the new place. 

Kevin,

Great point, and a solid plan.