Re: How Do I Purchase My 1st Investment Prop?? - Posted by John Corey
Posted by John Corey on March 14, 2006 at 24:55:32:
Based on this post, a second one just above and the ‘(CA)’ I take it you are buying out of state and you are new. In the other message you are asking about buying with an LLC and how to finance the property.
You have ample cash to do a deal with out a partner. Even if you have trashed credit you can use the LOC to get the LTV down to the point where a lender will not care about your credit. Such lenders will lend to an LLC.
My concern is I can not tell if you are ready to do a deal. What are you trying to accomplish with this deal? Why take on a partner at all? How are you going to hold title? What is the division of labour and the plan for the eventual exit?
Are you looking to hold this property as a rental? Will it cash flow when you blend in the LOC interest payments? If you are selling short term then there is no issue about cash flow.
Where in CA are you? If you invest outside the local area in which you live, how are you doing your homework to get a handle on what a good deal would look like?
There are a number of markets that an investor with a $100K LOC could be successful. Hence you have lots of choices so should not rush to do a deal. Focus on your objectives and expect to learn a lot on the first few deals. You want to make a profit. More important is to learn and to make sure you live to do more deals. Hence you can be a bit conservative in the early stages as you do not know what you do not know. When you have the cash it is easy to make mistakes.
BTW - This first deal could be great. You just have not said much about the deal so I can not offer any comments. Post more or send me an email.