Hello,
I am currently a college Business student graduating this summer. I have been trying to absorb as much RE info as I can for the last 2 years so I can invest in the Seattle, WA area immediately after graduation. I have been researching to pick my entry strategy and investment system to use. I am mostly interested in buying distresses properties,rehabbing and wholesaling. But, I am also interested in investing in some income producing properties, such as a Dueplex. I am considering starting an LLC for my investments. but when should I do this, as early as my 1st investment? I have saved about 60k to start investing.
It would be great to get some future path advice from successful investors in this area. I’m mainly interested in:
Should I start my LLC early and transfer the title of my first house into the LLC?
What kind of load should i get for my first rehab project, hard-money?
How much money should I put down, 20%?
With my current investment savings balance could I turn my 1st project into a lease option and still afford to invest in my next deal?
Should I start my LLC early and transfer the title of my first house into the LLC?
transferring title is not as easy as 1 - 2 -3 , nothing in this business is, until you have a grasp of the subject (only attained through experience).
What kind of load should i get for my first rehab project, hard-money?
this depends on your exit strategy (goal of purchase) - this is where many new investors (noob’s) get tangled up into not thinking things through and coming up with a plan for investing/purchases. they just look at if something is a “deal” or not. it’s only a deal if you know what you want for the investment.
How much money should I put down, 20%?
again, depends on your exit strategy.
With my current investment savings balance could I turn my 1st project into a lease option and still afford to invest in my next deal?
if you leased option a home - you either have to pay cash for it OR - use land trusts to purchase your homes - and O M G - this forum was riddled with land trust supporters about 8 months ago - they just sort of dropped off the face of the earth…on this site anyway. but the whole land trust thing is very complex. it seems simple, but it is not and as a beginner, i wouldn’t recommend wasting your time trying to figure it all out.
you advertise - you get calls - you log them down, visit them, follow up and track EVERYTHING YOU DO.
rei is a business. you have to have a system of operations and implement it. what guru courses and camps and the like do is provide you with a ready-made system. the rest is up to you.
it can save you time and effort. but it costs MULA.
it’s like they say at the expo’s - “Action. Don’t look at our product/service and say, ‘how much does it cost?’. but rather ask, ‘what is the investment going to do for me?’”
i’m not recommending anything to you. i can say from experience (albeit limited) that developing it all yourself is WORK. from creating a filing system to tracking properties, contacts to actually making your first investment and tracking all that (crossing the t’s and dotting the i’s) - it’s work.
now, the guru courses provide you with a system for advertising, tracking (software), contracts, etc. but you have to have what it takes to do it and actually understand it.