“Zero Down” by Monica Main is a book about buying residential-commercial real estate, anyway that you can. I know that I have always wondered how people got into buying apartment buildings and commercial real estate. It seems like an impossible task. However, after reading this book, I truly feel as though there is a clear path for me to get into the bigger real estate game. As an owner of 3 residential single-family homes, I know that this is not where the money is. It is good to know that our kids have homes for the future, but the truly passive income is in apartment buildings. In the book, she goes over how to build personal credit. Then using your good personal credit, build business credit. That was the part that I was missing. Then she also goes over how to secure money in case you don’t have enough for a down payment. I came away from this book hungry to get into the game. With that, let’s get into my 5 takeaways.
1) Improve your personal credit- Your personal credit needs to be above 700 in order to get business credit. Once you have good personal credit, open an S corporation.
2) Build your business credit- Once you get your S corporation, open a business credit card. Then another. Keep doing this until you finally open a business line of credit. That is how you start to build your business credit.
3) Apartments with 2-4 units go on your personal credit, anything over 5 units goes on your business credit- So that is why you want to obtain business credit. If everything is going on your personal credit, eventually you will cap out. That is why building your business credit is so important, eventually, you will use it to obtain these larger properties.
4) Create an LLC (limited liability corporation) for each real estate property- Once you start buying real estate, start an LLC for each property. This will protect you in case of a lawsuit and also create a business for each property.
5) Get started now- There is never a better time to get started than now. The book made it seem very reasonable to get started in the bigger real estate game. Obviously, there is more research to be done, but I feel as though more dots have been connected for me.
This book is exactly what I needed. As a homeowner (x3) I felt as though single-family homes were not the way to go. The money just isn’t there for, unless you buy like 100 of them. I do enjoy having multiple homes because of our children. Now I feel as though I can really sink into my next venture. This book is a step-by-step guide to getting started in the bigger real estate game. And eventually, into creating huge passive income streams.
This link is to a physical product. The link above is to the digital book. Sorry. I get no credit for digital product links.
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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
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