All Forum Posts by: Wil Reichard

Thanks Meghan, this is very helpful. I had my numbers run and I can safely afford a 100k home with room to spare with a budget. Unless I got an investor I would not be able to do a duplex or triplex. Thanks again for input. I will do so

Rich dad poor dad is one of the best books one can read. It put my whole world into perspective. Our generation goes broke trying to look rich.. I'm not sure if I read that somewhere or it has just always made sense to me. I loved buying nice watches, having a nice car, etc. It made me feel like I was doing good and was making a life for myself. Honestly it was just throwing me further down the hill in debt. So I stopped buying all these unnecessary things. The Rich Dad Poor Dad really puts that into perspective. Another book is called "Good to Great" Its not about RE but it explains what separated companies and people form being just "good", to being "Great" also, the E-myth is mentioned a lot on the podcast, I need to read this one next. I'd love to touch base with you now and then and see where we are and be able to bounce ideas off of each other. Let me know if you have any questions on how I do things. 

I have gotten to the point where I've done my research, gotten myself out of credit card debt (yay!) and am now looking for my first home to invest in. I will be living in this one for a year or so, so I only have to put down 3.5%. I am leaning towards a multifamily home to start off with. I've heard so many great stories from these properties and since this will be my first home I think its best to start off with something like a multifamily home. Problem is I've used zillow and other house search engines and can't seem to find any in my area (Greenville SC). Do you think its about time I reach out to a realtor so they can use MLS. Also, would a (300k max) MFH be too hard on my DTI? current salary is around 25k. I have a second job but thats only for the summer. Am I biting off more then I can chew? Or is a partner or investor something I need to look into a little more?

I am in the same shoes you are. 19 years old with not a lot of work history. I have done a lot of research and the mortgage company that I had run my numbers said a lot of places use any existing school (full time in college) as work history. So I've been in school for a year and a half and I just started a full time job. So technically they see my work history as almost two years long! That helped me get a loan for around 100k if I need it.

Also, I too started my thoughts and running numbers using a 3.5% down FHA loan. I was told I can use a conventional loan as long as my credit was alright, and that requires only 3% down

Set a plan if you have not already done so, something to follow along and one of the first steps that I found helpful was to read, read, and read. Also, look at trying to meet with any family or friends who dabble in RE or REI. Even if they can't loan you money or find you deals or help, they have connections.

Feel free to DM me if you have any questions or would like to share anything with me. Like I said I am fairly new too.

Good luck to you

Hey BP community! My name is Wil Reichard. I am 19 years old and am looking to invest in my first deal towards the end of this year. I do not know all of the ins and outs of REI, but I have been listening to a lot of podcasts on BP, searching through the forums, reading a couple books, and reading every article I can find. I'd love to talk with some of the local investors or anyone who thinks they could share some helpful advice for me. I have a goal in mind, I want to achieve financial freedom through buy-and-holding. I want my first property to be either a SFH or a MFH (Possibly a duplex or triplex) and in the next couple of years look towards getting commercial loans for complexes. Anything between 5 and 25 units. I know I have a ways to go, and a lot more to learn, but that is why I'm here. Thanks for reading!

That gives me a good stand point on how well I can trust him. Thanks for the advice. How does one normally work with an investor on these types of deals. How is the split and who takes care of what?

I have read several books and talked to multiple small time real estate investors and have spent a long time with research and making sure I want to go down this road. After two months of playing with numbers, reading blogs on here, and listening to the podcast I took went ahead and ran my numbers to see what I could be approved for (I am 19 years old with a steady full time job at a bank) and I decided with the rent rate I would receive and after hazard insurance and taxes and every other misc. expense being covered, that I should stick to around 100,000 for my first home. I also have an appointment with an investor interested in meeting me. My question is, should I stick to a cheap home for my first deal, or should I go with an investor who knows what their doing? Make minimum, but be able to learn everything I can in the first year or so. This way I'll be able to better myself when it comes to future deals. If I do decide to go with an investor, I don't have a good idea on what grounds I should stand on, as of how much of the ROI or cash flow I would receive, say if I was living in one room, or one unit of a multifamily home and doing the property managing for him/her. Or would a typical deal be along the lines of, with a100,000 house, if he invested 20k to put down and I paid the mortgage, would we split cash flow 80/20? What would you guys do in this situation? Thanks for any feedback, always looking to learn