right now im on my second book and plan to read another 15 books. I have money, a CPA, a tax attorney and a re agent so i cant be doing to bad i just need to learn the business. Me and my partner are going to join the local re club as well. What is SFH’s?
right now im on my second book and plan to read another 15 books. I have money, a CPA, a tax attorney and a re agent so i cant be doing to bad i just need to learn the business. Me and my partner are going to join the local re club as well. What is SFH’s?
You HAVE $$$, CPA a tax attorney and an RE agent, great. If you don’t know a thing about the RE business, then what you’ve got is a good start at a poker game. For example, “What is SFH’s?” This would have been in any REI book on basic investing. It stands for single family home.
Top left side of the screen also has an investing glossary.
Hold on to your money for awhile to learn the business or be prepared to lose it fast.
Raj
You’re definitely ahead of the game having that much cash at hand, but don’t fool yourself into thinking that’s all it takes to guarantee success. If I were you, I’d put that cash in a 3 to 6 month CD and spend that time learning the business. Deals will still be there in 3 to 6 months.
Anyone else think this thread is awkward? Sounds like someone tugging you all along on some sort of joke questionaire.
If I had $200k, a partner, an RE Agent, CPA, etc., I would have made an investment or be able to ask them how to do so. Unless you’re 15 and inherited the money from someone, I think you’re full of agriculture.
id prefer not disclose where my money is coming from just because thats the way i am. I just turned 18 and me and my friend want to be successful in life. Im not a drug dealer though that was a joke. Im very smart and can do anything i want. Ill be majoring in business management this fall so that should help i hope. Im planing on reading as many books as i can and going to all the real estate meetings in the area. Id never think of risking so much money without knowing as much information as i can. Would putting a big down payment be a good idea on a duplex to help me stay out of negative cash flow if one tenant moves out? Ill be selling the house a year later and get all my money back.
I highly doubt you’d make money by selling it in one year. You have to pay closing costs to purchase the house, money down to get it to cash flow, and then pay all of the selling prices along with any taxes on your profit (if any). I wouldn’t go that route. If you’re looking to learn on something maybe you can take an apprenticeship with a local investor.
Well it doesn’t matter how much money we make on it though, as long as we don’t go into negative after the one year thats fine. I just want to learn how everything works. Then i want to buy a 6-12 unit apartment building. Me and my partner want to sign a contract saying we are not allowed to use any of the money for 4 years we are only allowed to reinvest it into real estate, is this a good idea? Its fine also since we will be in college for the 4 years and not have very many expenses.
can someone please back me up and tell Joker to stay out of it at this point.
Joke, you’re going to college, who’s managing the property? Why would you want to risk the money for no return? Why can’t you read the books and get a mentor to learn the business? Why don’t you two put the money in a CD for 4 years and invest when you graduate college? At a 5% rate, you would net $43,101 in profit to use for a downpayment on a smart investment. $243,101 would be a 20% downpayment on a commercial property of roughly $1.2mm.
Risking your money on something that you just want to learn on is stupid, no offense.
This is my last post on this thread. Someone else can keep it going.
yeah let me put all my money into a down payment and not have anything left in the bank… great advise, and can u stop telling me to read books i already said i have a long list. Even if i find a deal way below market value your telling me theres no way im going to make money?
I’m starting to wonder where an 18 yr old might get $200k…
Look joker: No one is telling you what you can and cant do, you asked for an opinion/advise and thats what you got I tend to agree with gsuidiot, only because you come on here and say you have this and that but you dont even have a clue of whats going on in the REI biz. I understand you read some books (or a book) and have some people in your corner but if you dont know what SFH means thats telling me you need to stay in school P.S. Im not trying to slam you or put you down Im also new at this and Ive been reading,studying,learning for a couple of months and I still dont know all the RE lingo just my 0.02 and PLEASE dont take it personal. GOOD LUCK :beer (oops almost forgot you only 18) LOL
Your right i have no idea what im talking about, im just a kid with a lot of money trying to make it big. Should i ask around in re meetings and find a successful investor i could apprentice on some deals?
Plus i would like for my first deal to be a nice commercial property of 800k-1m but if i only put down 10 percent wont the banks reject me or will my reserves be enough?
Also would it be a good idea to take the time i have now to learn what marketing strategies work and which do not work as well? (car sign, news paper, business card, intersection signs)
Joker, you might want to start with a small property first, rather than an 800K one. You want a smaller amount of risk while you are getting your feet wet. Normally you won’t be able to only put down 10% on commercial - usually at least 20, and sometimes 30% depending upon the lender.
Since you have a lot of money now, go slow. Apprentice under someone at your local REI club. Since you have funding, there are probably going to be more experienced investors who will want to work with you. That is a leg up from those that have no money, no credit and no experience - so take advantage of that. Let that investor’s experience help guide you through your first deal.
thanks lorik, would it be a good idea to take the time i have now to learn what marketing strategies work and which do not work as well? (car sign, news paper, business card, intersection signs)
The same thought crossed my mind but it really doesn’t matter where he got it, Rich…at this rate, in about 6 months he won’t have any of it…nor anything to show for it.
joker:
Hastedt Life Rule #8 – If you can’t stand the answer, don’t ask the question
Here’s my opinion and it appers to be the opinion of several others - the worst place a newbie can start is with a large multifamily! Listen to what the others are saying…start small and build. If you start large, the odds of failure multiply astronomically. You’re not Trump. You’re 18 and wet behind the ears. The wolves are out there just waiting to find someone like you with a roll of money that thinks he knows something but doesn’t…they’ll eat you alive. The folks in here are trying to save you from you.
Keith
Well, Keith just summarized what everyone else here has been trying to say, so I hope you take it to heart (doubtful, but miracles do happen).
yeah let me put all my money into a down payment and not have anything left in the bank… great advise,
I didn’t see anywhere in the posts where someone gave you the advice to put down a large downpayment except from YOU.
and can u stop telling me to read books i already said i have a long list.
Then stop asking what you should do.
Even if i find a deal way below market value your telling me theres no way im going to make money?
There is no way that you’re going to find a deal below market value, much less WAY below. And, yes, even if you do, it’s very doubtful that you will make any money at it because you don’t know what you’re doing. No one, repeat, no one, has become an instant master of a trade or an overnight success, without lots and lots, of learning and hard work. You simply can’t skip this part.
Your young. Your posts show it. Let me give you one piece of advice before I too leave this thread behind. If you truly do what to learn this business, and you truly do intend to become a success (in any field), I suggest that you drop the teenage attitude that you’re a genius and everyone else older and more experienced than you at life are idiots. Be humble and appreciative of any advice given to you (especially free advice) and take it to heart. Learn from the mistakes of others so that you do not have to learn from as many of your own mistakes (the whole reason we study history, though the vast majority of people fail at that too).
A rich young man that thinks he knows something will soon be a broke young man left with the true knowledge that he didn’t know enough.
Raj
Although I think you should continue to learn, I wanted to add one more comment considering you have a lot of money available to put down. If you put down enough of a down payment, you should be able to make just about any property cash flow positive, but this is does not necessarily mean you have found a good deal. If you cash flow $500/month off your $100k down payment, you’re only yielding about 6%. You might still end up a winner in the end if the property appreciates, but I wouldn’t go in counting on that these days.
You mentioned that you’ll be happy as long as you don’t lose money, and chalk it up as a learning experience. As much as you want to protect your downside, don’t go into a deal shooting for mediocre returns - otherwise all you’ll do is learn how to run a mediocre business.
You mentioned possibly doing wholesaleing before - If you’re truly intent on getting started quickly, I’d start networking with successful investors and begin by doing some wholesaling.
Full disclosure - I’m a REI rookie myself, but I made a lot of poor financial decisions when I was younger because I was too eager to jump right in to things (I ended up investing at the height of the stock bubble) without doing enough homework. I think your eagerness can be your biggest asset or your biggest liability - the key is to not get ahead of yourself. Channel that energy into learning and networking (instead of immediate action). Believe me, I wish I could have back the money that I pi$$ed away when I was younger.
Joker,
I think that you’d have a better chance of succeeding if you took the entire 200K and put it on one spin of the wheel in Vegas! If you’ve got 15 books, then why are you asking silly questions here before you read the books. Read the books, understand the basics, and THEN ask an intelligent question.
Good Luck (you’re gonna need it),
Mike
Hope he don’t go into a REI group “boasting” of all his money, because there will be someone there to help him dump of his load. :crying
Joker, you need to attend some meetings, LISTEN but keep your mouth closed.
Best of luck
thanks for all the info guys, i didnt mean to come off as a know it all loser with alot of money im just asking questions as a noob. I think ill start off looking for a successful investor in re meetings and seeing what he can do for me to learn the business. That was a great idea thanks.