need answers

[danny]

hows it going everybody, Im very excited in taking the first step into REI. Im 24 years old and and i dont have money saved up to by my first property.
My father lives in Norcross, Georgia and has a painting business and has money and resources to fix up houses the only bad thing is he has bad credit unlike me i have good credit except im broke. We have been talking about buying fixer uppers and fixing them under my credit. My wife says no because it will mess up are 1st time buyers opportunities. My question is what will i loose if i do decide to do this and how will i make money. Help :frown: :SM118:

Ps i live in california if it makes any difference

[Aldo]

Your dad was probably pre-teenage when I was a first-time buyer, so I don't know much about benefits for first time buyers except that they are beginning to disappear. Fast, rather than slow. I digress to where I may be able to offer suggestions.

It is always a bad idea to invest with anyone you know. (Did I say 'always'?......Good!) Those investments generally go south due to personal differences and, contrary to what you are thinking right now, it CAN happen to you just as it has for many thousands of people who thought they were the exception to the rule.

If you choose to proceed, consider buying a property that will get you out of the partnership ASAP. By whatever means, locate an underpriced property that needs a lot of work. Have dad do the work and flip it. Split the proceeds per your written agreement. (Did I say 'written agreement'?......Good!) I'm assuming your target area will be in GA and that's okay because prices are lower there. Take your share of the proceeds and use it to invest in property in CA if at all possible.

I realize that my reply probably created more questions for you, but before spending a lot of time addressing those issues, I'd need to know if this is how you'd want to proceed. Once you've decided, bring on every question you can think of. There's a lot of landlording/investing experience here and there's a bunch of seasoned investors waiting to help in whatever way they can.

[realestate]

Good advice my dads family company went under for the very reasons you spoke of.

[Aldo]

I'm saddened to hear that your dad lost his business. That kind of thing is never good to hear. I sincerely hope you took a lesson from that.

[realestate]

I'm saddened to hear that your dad lost his business. That kind of thing is never good to hear. I sincerely hope you took a lesson from that.

Actually Aldo it was the best thing for him. He ended up with the property the company owned as his stock share value 500,000 has office that was built as a house, two bay garage with the bays big enough to drive a two D7 bulldozers in plus two pumps on for gas the other one for diesel. They were in heavy road construction. Now dad went in to just paving and hydro seeding with a little grading if he has to.

The best thing is since he keeps his company small now he has fewer headaches.

But yeah it hurt him a lot at first because he worked to build what was his grandfathers business into one of the biggest road construction companies in are area. Just to lose it because of family greed. That’s why I area with your advice.

I would try one deal but I would watch out for potential problems. I know that sounds bad and you should trust family but if dad acts like your still the son and he knows what’s best that could lead to trouble later.

[Aldo]

It's often difficult to separate emotion and reality, especially when the emotion is a family thing. You obviously have that ability. It's not always easy, but it is always necessary.