October 24, 2008
Does this real estate investing plan make any sense?
jeffnicolas asked:
I am 21 years of age, no kids, in a relationship, a college student studying business administration and i stay with my parents. I have a job that pays just about $1440 a month. My crdit is ok but i’m working on getting perfect. I’ve been studying real estate for about a year now i’m trying to network to get some advice from real people not books. I have about $50,000 dollars saved I know for sure that i want to hold real estate under a LLC. But i don’t know where to start. In a month or so i’ll be attending seminars on real estate and i even plan to enroll to a real estate class at the local community college. This is what i was thinking about doing:
1. Buy a multi-family property under my name not my LLC. Probaly a 2-4 unit property.
2. I would live in one unit and rent the remianding units to tenants.
After 2 years of paying the mortgage, i would use the equity, if any equity to purcahase an investment property under my llc. Probaly another multi-unit. And that would be the star
I am 21 years of age, no kids, in a relationship, a college student studying business administration and i stay with my parents. I have a job that pays just about $1440 a month. My crdit is ok but i’m working on getting perfect. I’ve been studying real estate for about a year now i’m trying to network to get some advice from real people not books. I have about $50,000 dollars saved I know for sure that i want to hold real estate under a LLC. But i don’t know where to start. In a month or so i’ll be attending seminars on real estate and i even plan to enroll to a real estate class at the local community college. This is what i was thinking about doing:
1. Buy a multi-family property under my name not my LLC. Probaly a 2-4 unit property.
2. I would live in one unit and rent the remianding units to tenants.
After 2 years of paying the mortgage, i would use the equity, if any equity to purcahase an investment property under my llc. Probaly another multi-unit. And that would be the star
Filed under Renting & Real Estate by Administrator
Comments on Does this real estate investing plan make any sense?
Sounds like you have a good solid work plan thought out. That is the way I started but I bought a duplex and lived in one side and rented out the other. A few years later I bought another located on my same street, that way I was able to keep my eyes on the property.
This works well for you. A 2 - 4 unit property still qualifies for an FHA loan as an owner occupied property. You can then take the equity out later to purchase investment properties.
You’ll probably have to buy it in your own name, then quit claim it to the LLC, as the LLC will not have any credit in its name. Or, try to buy with the LLC, using yourself to personally guarantee the loan (to build credit).
Make sure you find a good Realtor and lender to build your team - as they’re the professionals and will be able to help you to buy right and buy correctly.
Best of luck, you should do fine. This is the best investing plan I’ve seen here on Answers. Well thought out and definitely possible.
Very impressive plan for a 21 year old! Good job. If you need advice from experienced real eestate investors and realtors you can go to this new site called Home Finder Forum. In addition to finding houses, you can ask questions, it’s pretty useful. There are great links too!