Online House Hunting

I want to get 'IN' on the real estate game. Any suggestions?

Hey all, I've noticed one very common thing about some of the richest people I personally know. They all own various prooperties. I would like to take a page out of their book, and buy a house to flip or rent. My grandfather recently passed away, and my Mother says she will sell it to me at a fair price. His home would make a perfect way for me to test my plans. So, my question is, do I have to start a property management company? An LLC or Corp? Since I am a woman, and have never personally purchased a home before, are there minority or first time buyer loans I could take advantage of? I'm very excited, my dear hubby is going to give me a sizeable down payment, and is ok with this company being in my name only! What more could a girl want?! He has his own company, and I think he is going to take $$ from that to give to me for start-up costs. He says big companies give birth to smaller companies all the time. How does this work? I'm confused!! Any ideas/info most appreciated.

Public Comments

1. The market is ripe to lose your shirt if you don't know what you're doing. I don't even want to talk to flippers right now - I want fixers, families and investors. All three of those will do very well - but the situation is wrong for flippers. Go get a real estate license and find a good mentor to work for. Real estate, like everything else, requires a lot of work, and a lot of knowledge, and you will lose money if anything about the situation doesn't fit. The license will give you a base of knowledge. The mentor will give you the benefit of their experience. You can work with clients or just for yourself, but there's a lot you need to know first. You don't have to start a property management company, but it would be money well spent. Talk to an accountant and a lawyer about your alternatives - every situation is different.
2. Buy a run down house-fix it up nicely-resell it and make a profit. Keep doing this until you get rich.
3. Note the following: 1. Do you have a prenuptial agreement? 2. Do you live in a state where properties are community assets? 3. Then have your hubby file a "quit Claim Deed" on the property after you bought it under your name 4. Real estate maket is not "a game" as you can be burn deeply 5. Read about how top flip properties as it is not a good idea to "flip" on a down side market 6. Can you affort the time to handle the property? Please go into this new project with "baby steps" to avoid "falling"!! Best wishes!
4. We have had rentals for over 10 years now ,I have heard a lot of stories that would turn you away from rentals,You start with one and keep up the property and you well over time build up enough credit to get the next.As far as a company that is up to you.Find your self a got account you trust and your set.1 Note be sure to screen your renters carfully. Good Luck.
5. OK, first off, this is not a bad time to get into investing. We are starting to see auctions, foreclosures, and desperate sellers. All represent good buying opportunities. To answer your question, you do not need to start a property management company. You want a legal entity to put the property into, preferably an LLC for the protections it gives you personally against collection. However, you are not really in the 'management business' unless you are managing property for others and charging a fee for it. This would necessitate forming a 'company' and would probably call for a corporate identity (Ann's Property Management Services, etc). So in your case, you just want an LLC or trust to be the official owner of the property, with you as the managing member of the LLC or beneficiary of the trust. You can hire a lawyer to set these things up for you. It should not cost more than $500. You will spend more money on an attorney when you close on your first home. On Buying: To start, buy some books on real estate investing, and look online, but be careful of sites that are really just there to get you to buy something. The key to investing at this stage of the cycle is to be patient and focus on buying value. You cannot time the recovery of the market, so you need to make sure the 'deal' works today. First time homebuyers do get special treatment. You can take money out of an IRA (op to $10k), and get better loan terms. Shop around online for the best loans. However, they are generally for people buying homes they intend to live in, not investments. You may need to be judicious in what you tell the loan officer. I don't think buying a fixer-upper makes sense for you. It doesn't sound like you have a lot of construction knowledge. What I tell people is that buying a fixer-upper puts you in the construction business, not the investing business. You are really getting compensated for the time you work. It can be difficult, costly, and make the process less fun if you spend every weekend working. Instead, I suggest you start with a condominium. Condos can be great because a nice one does not need to be fixed up, and you don't need to do any maintenance (snow plowing, mowing, exterior painting, etc) because the association does it for you. Try to find one that is well located and has reasonable utility bills. To be sure, ask the seller for the last 12 months' utilities (the utility companies will give them this for free if they call, go online, or write a letter. Start with a loan. Make sure you get one that is fixed. Try to get the lowest rate. Points are ok. The goal here is to keep costs low so that if there is a vacancy on the future, you can carry the condo until it's rented again. Next, figure out how much the condo costs you per month for maintenance, taxes, condo fees, and utilities when the place is vacant. We call these the carrying costs. Make sure those costs, plus the mortgage are something you can afford on your income (in case you had to move in), and something you can afford for up to 3 months if a renter moves out. After you buy the place, put it on Craigslist or another website and get it rented. Most of the forms you need are avaiable online. A good book on getting into real estate should also explain the legal risks involved and how to protect yourself. Now, you're an investor. Keep an eye on the property, collect your rent promptly, and make sure you plan ahead for taxes, maintenance, and turnover expenses. If you find the right property, you should be able to make a little money each month in rent after all expenses if you put money down. The goal is to have the property pay for itself for a few years until appreciation and amortization can take place. Then, you can refinance out your equity or sell and move on!
6. You got a good idea, just need to implement that.
7. Well get a good loan officer to help you in your desision making on your investments or a financial addvisor thats why they are here. Then you could ask all the questions and cordinate a good plan talk to some one perfesional. Im pritty good at handling my clients with there investment properties.