Hi All,
Great to be in this forum.
My partner and I wanted to know where to start. My partner being a contractor could bring in a lot experience into this.
Unfortunately, we are cash poor and ideally we would like to own investment properties, especially to rent.
What avenues should we start with? Flipping, rental units? What’s the best way to start out?
Would it make sense to start out as a LLC and try to get loans? Would we even qualify for a loan, being a new LLC?
Thank you all!
Julian
If you could flip some houses, it would give you some capital to work with as long as you are successful at it. You have to know your numbers going into it, be conservative, and look at how long it takes to sell similar homes in your market. Financing will not be any easier to get just by forming an LLC. Banks will look at your personal assets vs liabilities as well as income. My wife and I have been at this for over five years and have a sizable rental portfolio. We still have to sign personal guarantees with the bank which opens our personal assets to risk. It’s just part of it.
Rentals will be a cash vampire in the beginning when you purchase and rehab. You’ll get your money back slowly over time if you do it right. If you can survive rehab and carrying costs, flips may be a good way to start to get to your goal of long term rentals.
You better start with Houses and other lands which will near to the city area and the living areas to people where all facilities will be easily fulfilled. Along with this you may also include some of the properties for performing short sales or second hand sales for growing up soon in the field, Inspite all these, also take the suggestions from an expert in the field.
Investment in Real Estate is some time the task included with Risk. The Real Estate is one of the best fields to earn more amount in less period of time. The necessary measures has to be taken before investing in the field. We should verify some of the details like where to invest and how to invest, the location, amount investment is worth able or not, Is that place have demand to invest the amount on it or not and many more tasks has to be taken into consideration. The proper consultancy of an experienced person would better serves the purpose of investing.