Interested Investor in Chicago

[Patrick O'Donnell]

It seems to me that there are generally two "camps" of investors. Equity market investors and real estate investors. I am the former and am hoping to recreate at age 54 and develop into a home "flipper" and build a reputation as a realtor with a strong knowledge of home renovation. I purchased the BP Podcast from Denver and am trying to figure out the best way to get started in purchasing a property either on Chicago's north side or the best suburbs for flipping , rehab it and sell it hopefully at a profit. I am considering some of the programs that offer coaching at prices ranging from 10-30K but offer experienced people to help a newbie navigate the territory as well as evaluate the best communities and properties for success. I have started attending some investor meetings but am experiencing anxiety committing as I have no experience in this arena and not sure who to trust. I would welcome suggestions from folks who have experience and or success on best ways to move forward and get something going! Thanks!

Patrick O'Donnell

[Dale Stevens]

I will strike a different chord than many here on BP. While there is tons of free information available, having someone right there, in person, to help you with the nerves and anxiety is huge. Note I said "IN PERSON", not a phone call from another state.

Is it worth say even $2k maybe $5k to pay someone that has contacts? Saves you a mistake that could cost you holding costs, renovation costs. What if they have contacts to speed up permits? Inspections? Can get you in with a lender that can save you even 1/4 point on your interest rate? 

To me, that is insanely worth it. I wish i had done that. I have lost money and made money on deals. I also have seen deals where I did make money, but the choices I made were incorrect and I could have made even more.

Keep getting out and networking. Yes there will be anxiety. As to 'Coaching', when you talk to someone PERSONALLY and they help you feel better and more confident. GO WITH IT. If they leave you more worried and anxious. That is not the choice for you. This is about you, and your future. So make sure it works for you.

Here is a story. A friend of mine recently sold their personal condo. They did receive two offers on the property. One for just below asking price and another for about 10% below asking. The realtor told them to reject the low one, and just counter the higher one. Instead, they took the advice of another individual that has done real estate for years and they just hired as a coach. That "coach" told them to ask their realtor to tell both parties there were multiple offers and submit their best offers.

The low offer didn't bother to re-submit. HOWEVER, the higher offer was so worried about losing it, so they came back and offered 15k over asking price. A full 20k swing. While, I am not sure how much they paid the coach guy, but if it was 5k they just quadrupled that return. The realtor would have gotten them something close to maybe 98% of list, the coach got them 15k OVER list.  (This was in Chicago and just happened maybe a month ago).

To me, their investment in the coach, whatever it was, was worth every penny, as I am sure they will learn more. I will be sitting down with my friends next week to get more details.