Greener Than Green
Hi everyone,
I'm 23. New to the real estate biz. I was hoping to start out with something that earns money but is still relatively easy with a little less obligation, (locating property or attending foreclosure auctions, or perhaps something I could buy and sell off quickly).
Ok, here's the scenario: I am supposed to be purchasing a (section 
house in Ga. I was offered $9000 out-of-pocket from my partner upon closing the deal (in which I'd be flown up there, sign the papers, look at the property and whatnot). My understanding of my obligations: pay the mortagage every month, which the govt provides a check for.
So... all I need right now is my w-2 and I'll be set. But I'm a bit hesitant because
#1. It's in GA. I'm in FL.
#2. I will be somebody's landlord.
#3. I don't think you can resolve all issues over the phone. Because of this I worry about the upkeep of the property. It's not like I can just pop up anytime I want to. I would like to make more money, but I don't want be a slum-lord, you know what I mean?
#4. My 'partner' is knowledgeable, but he's just not a good teacher. He's more of a 'do what I say' type of person. Plus he acts completely inpatient at times. So, I'm supposed to close on the 23rd of this month. Problem is I want to go over everything with someone more knowledgeable before I do this. He says it will be $40/day (to hold onto the property, I'm assuming). So I tell him he can deduct whatever he pays out of my profit or he can just forget the whole thing, because I'm not going to be fly down to Ga without making sure I'm completely knowledgeable about EVERYTHING I'm agreeing to.
Also, I'm speaking with another prospective partner who owns a mortgage company who'd also like to work with me. He told me I shouldn't try to sell the property because the house would produce money.
I dunno...
My gut is telling me, if i choose to go through with this, to take the money (the $9000, the left over difference from the mortgage ) and get out of the deal & on to something else as quickly as possible(which I read wouldn't be possible until 6 months have passed unless I have a problem with my tenants)
I guess, in this situation I feel like I'm biting off more than I can chew. I am reading a lot of books about this. Doing a lotta researching on-line. But i guess it's just difficult to feel confident about something when there's so much you just don't know. I suppose I could learn as I go, but I happen to be one of those people who has to know every minor detail before they get started.
So I'm wondering what do you guys think? Am i just freaking out for no reason? Concerning section 8 houses and being a landlord, what are some things I should watch out for? The best and worst case scenarios?
How is your partner involved in this deal? Did he find it for you? How is he going to pay you $9k, and why? Are you purchasing the home with your own funds? Where does the seller fit in?
There are so many questions from your post, that is just a beginning. It is not clear how you and your partner are related, or why you even need them. If they found you the property, that is called bird dogging, and you could pay them $500-$1000 if you don't know them from Adam. All they did was find a lead for you, yet somehow they are giving you $9k...it doesn't add up.
Best of luck, Dave
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