Starting Out

1. You should check with you local accountant as to which business entity would be best for you and your situation

2. If you do chose an LLC you can set one up with your tax professional, attorney or go to sites like www.legalzoom.com

3. There are several people that you should use on your power team, a good realtor (buyers agent), mortgage professional, accountant, title company, and an attorney would be a great start.

4. The types of properties that you will want to hold long term is a tricky question. I would recommend when starting out single family residences, 3 bed 1 bath, ranch style homes perferrably on a slab foundation, that will cash flow on a 15 year note. They must also be able to resell if you get in a jam.

5. As for finding trustworthy tenants place ads that state a credit check will go along with the application. Also state that you will need first and last months rent with a security deposit. When they fill out the application find out as much as you can from their previous landlord - how they were paid, what condition they left their property in. This will help you narrow down who will be a better renter but there is no exact science!

I hope that this information helps!

The comments that were posted in the above response are good ones and right on track. If you find yourself still having questions about things I would suggest doing 2 things. 1) you could sit and play the videos of success stories because they will give you little tid bits in each one on how to do what they did. You can put them all together and make a real time actual picture of what this looks like in action. 2) you can go back to the book "be a real estate millionaire" that Dean wrote. Look carefully in the sections that discuss this information. You will find more the second time through it or if you have not read the book, spend the $28 on it and you will not be sorry about it at any point in the rest of your life.

Another thought before I go, look at cable shows like the do it yourself network. They have shows on RE and flipping. You can see examples of what the real deal looks like and also see why you should not do certains things that others did, ie. learn from their mistakes!

Good luck!

Failure to plan, is planning to fail

Go get em!

FOMAC

As for key people on your team, Bill Fitzpatrick wrote...

Make a list of the people you'll need to form your Mastermind Alliance. This is the team you're going to put together to help you reach your goal. You need a good real estate office and an expert agent. You need a lawyer and an accountant who know real estate. You need good reliable contractors: a carpenter, plumber and electrician. You need a good part-time handyman. You need banking connections. You need mentors.

How does the business world work? Connections, networks, alliances.

The Mastermind Alliance

Real Estate Office:
Expert Agent:
Lawyer:
Accountant:
Architect:
Carpenter:
Plumber:
Electrician:
Landscaper:
Handyman:
Banker:
Home Inspector:
Other Investors:

Start your list with people you already know. Your brother's a carpenter. Your next-door neighbor is a lawyer. You have Jones for an office and Nardo for an agent. If you want the best, ask for it! Research. Ask the people you know to recommend others. Well, the carpenter can recommend a plumber and an electrician. The lawyer knows the accountant. Jones has the banking connection. Nardo has other banking connections and also knows a great electrician, his son. Nardo's son knows a retired builder who would love a little extra work as a part-time handyman. You get the idea. You make connections. You get recommended names and phone numbers. You may need a landscaper, carpet layer or roofer. Get recommendations from your Mastermind Alliance.