All Forum Posts by: Shawn Parsh

Leslie,

I would recommend that you get a qualified asset protection attorney on your team to go with your CPA. Setting up business structures can get expensive so you want to make sure you are making the right choices early. I live in NE TN where are your TN properties located?

Patrick,

Hey unfortunately I will be of no help just thought I would mention that I am also looking at creating a website. I have been told that I can make a simple website myself through sites like cheap domain registration. I've been debating whether to try and do my own or continue to look for someone to help. One way or another I'm going to get it down soon. I hope you find the help you need. 

Taylor,

I think you have made a wise choice to look at real estate investing as a goal. I agree with the feedback you have been given so far, but want to challenge you on what you do with it. In real estate, and in life in general, there will always be challenges to achieving anything great. Those that are successful and achieve great things are those that find ways to make what they want happen. Unfortunately, most people use excuses to not even try. 

Knowing that the likelihood of you getting private money at your age with no previous experience is low what are your options??? That reality shouldn't stop you it should motivate you to learn more to find out what Will work. Maybe you should focus on getting a place for yourself close to the college you plan to attend. Is it possible that you could rent out rooms in the same house to other students to create income? You may want to look at lease options on cosmetically distressed properties that you could rehab to increase its value. 

I encourage you to stay involved in BP, ask questions, learn from others, and find what works in your situation. Don't let Excuses prevent you from reach your goal. Good luck my friend, let me know if I can help. 

Over the years I have heard a ton of excuses from people on why they are unable to invest in real estate. Just one of many has been "I do not have the time because I have a fulltime job." I would love to hear from investors that have fulltime jobs yet still find the time to invest in real estate. In particular, I would like to hear how you make the time or what methods you have put in place to be successful. 

Joshua,

I would say that using a realtor on deals or not should be based on your experience level and time. When you can find the right realtor they can be worth a ton to you. I've had some great realtors over the years that took care of all of the leg work for me. They found great investment options for me and then I would go through the list at home to weed it out before I even left the house. On the flip side a lot of realtors are not worth my time. 

I can attest to what Tyler said that a good realtor that knows what you're looking for might bring you deals that have not been put on the market yet. I can tell you that has been the case many times for me over the years. 

Donald,

That's great that you found someone that has enough trust in your ability and word that they are willing to loan you 100% of the purchase. People that believe in you and are willing to help are more important than any single deal. I only do deals that are good for all involved, the seller, the investors, and myself. 

Having said that I need more details to understand the potential deal. You said they are selling for 114 and you assess the property to be worth 130. Why the difference? Why is the seller not asking 130? Is the property cosmetically distressed? I see you also mentioned that the property probably needs a new roof. I would confirm the roof condition by getting a couple roofers to look at it and provide bids if it is needed. 

Will you be able to raise the value of this property within the first year by making repairs, updating, adding useable square feet, renting out storage space, or with some other method? If you can raise the value enough you may be able to refinance the property to pay back your friend. There are multiple lenders on BP that can advise you on the loan to value ration they utilize.

Another option is to be clear with your investor friend about the expected amount of money you could get in a refinance down the road. Let's estimate that you are able to get 70,000 with a refinance to pay to your friend would the investor be willing to take the remaining amount of their investment in monthly payments? Or would they be willing to be a partner in the deal and be a part owner? 

In the end if the numbers don't work with what your investor requires than move on to the next deal. You will gain a lot of creditability with your investor friend if you pass up the deal because it is not a solid investment for him or her. They will know that you are looking out for their best interest as well not just your own. Good luck on what you decide. 

Zachary,

Congratulations on your business success so far. I think it is a great idea to diversify into real estate. I would suggest a few first steps. First I would research and speak with a qualified CPA that is experienced in real estate investing. You are a high earner and the correct tax advice for your particular situation is important. There are numerous CPA's on BP maybe even some located in your area. 

Second I would research real estate investing clubs in your area and get involved. In my experience a lot of the members are people "planning" to invest in real estate, but there are usually some in the group that are actual investors. I would network with them and start to learn what is working in your markets. Additionally, I think participating here on BP is a great idea. From what I have seen there are a ton of people with great experience that are more than willing to help others. 

As far as your investing strategy I would focus on residential properties to start. Jason provided solid advice about targeting multi-families. You may also want to start with a single family property to get your feet wet. In either case finding a good property manager is likely going to be a key to your success. If your main focus is your current business then you will need someone to handle the day to day responsibilities. I personally like a mix of single family and multi-family as an option. Much like you are trying to diversify from your regular business you can diversify within real estate as well. 

I would also find an attorney with extensive experience in real estate, in particular asset protection. I would ensure that my investment properties were owned in a structure like an LLC. If paying cash for the property or putting a large amount down I would make sure that I clouded the title. Maybe by taking an equity line of credit against it even with no intent to borrow against it. I'm not an attorney so get the proper advice before you make your first purchase.

As far as where to invest I would invest in your local market. Owning property from a distance creates more challenges. I'm not saying it's a bad idea in general just that when first starting out I would focus locally. As far as your desired 5% return I think you can do much better with the right investments. 

Anyway, I hope something I said is helpful. Good luck my friend. 

David,

I have never looked to see if a Starbucks was near any of the properties I was investing in, but most of my investments have been in rural or small town areas. I learn the market I'm in and then invest where it makes sense. I think the locations one invest should also be based on the investment strategy for the property. I would likely look in different areas for STR and LTR, commercial properties, and so on.

Jeremy,

I appreciate your insight. I agree with almost everything you said. I can't tell you the number of properties I've looked at over the years where the seller didn't even attempt to clean up the place. I never understood why someone would not do what they could to make the property look more presentable, but the uglier the property looks the better deals I seem to get. When others get scared away I can see through the property condition and can see what the property will look like when I'm done with it. 

The current fix and flip I'm working on had a dead bird in the living room and dog poop in one of the bedrooms. Properties like that usually scare away most people including real estate investors. The house smelled like money to me. ;-) I'm about two weeks from finishing the rehab on the property now. I will post the numbers when I'm done with it. Thanks for the input. 

Daniel,

Congratulations on your decision to become an investor. You picked a great place to expand your knowledge. I've been investing in real estate for about 25 years and I continue to learn with every deal. I think that BP is a great place for you to be because from my experience there is no shortage of folks willing to help on this site. The combined knowledge base here is a great force multiplier. Good luck with your investing my friend.