Frustrated in Houston

Frustrated in Houston

Investor · Houston, TX · Member since 2015 · 17 posts · 3 votes

Hello everyone. I'm a new full time investor in Houston. I've made connections with a team of people so that I can start doing single family flip deals. The problem is I'm having a lot of difficulty finding that first property to do. I don't have the money yet to do a marketing campaign myself, so my only option is to talk to wholesaler companies. Each deal they've sent me so far, once I run the numbers through a spreadsheet, there isn't enough profit available after paying their markup, my hard money costs, etc. I've read the books on investing with no money, but in reality that seems impossible to do. I don't have a proven track record so no private money lenders will consider me. And with hard money lenders only loaning 70% LTV, each deal I've looked at so far would have me bringing $20-50k in cash to closing! Anyway, just curious if anyone has advice for a newbie to get started, maybe I'm missing something. Thanks!

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Investor/Landlord · Farmington Hills, MI · Member since 2011 · 1k+ posts · 1k+ votes
11y

How can someone who has not yet done a deal be a full time investor? The way you represent yourself is important if you wish people to take you seriously.

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  • Investor · Dallas, TX · Member since 2014 · 12 posts · 5 votes
    11y

    Hi @Chris Johnson I think I might have a solution for you if you're interested. My husband and I are real estate investors as well and we are apart of a great team for new and experienced investors. Would you like to be considered to be a apprentice?

  • Investor/Landlord · Farmington Hills, MI · Member since 2011 · 1k+ posts · 1k+ votes
    11y

    How can someone who has not yet done a deal be a full time investor? The way you represent yourself is important if you wish people to take you seriously.

  • Investor · Houston, TX · Member since 2015 · 17 posts · 3 votes
    11y

    I lost my job and started my company a couple of weeks ago. Before then I'd been researching and reading and networking for the last several months. So what I mean is this is my career now, I am working full time for myself and am committed to succeeding in real estate investing. 

  • Katy, TX · Member since 2014 · 134 posts · 18 votes
    11y

    I think you need to find the deal yourself, no middleman. I would look for motivated sellers that cannot sell the normal way. Non financable properties that are in a good location. Beat the streets in your farm yourself in an area that is close to you. Focus…..follow one course until success.

  • Investor · Dallas, TX · Member since 2015 · 446 posts · 197 votes
    11y
    Chris Johnson it's gonna take you more then a few weeks man! I'm no flipper but my last deal took 8 months!
  • Real Estate Broker · Mount Olive, IL · Member since 2013 · 1k+ posts · 310 votes
    11y

    Agreed with @Sandra Gibson

    You need to find the property on your own. Wholesale companies would take their steak first, therefore, in order to make a decent profit, you gotta do the leg work.

    Hope it helps.

  • Investor · Houston, TX · Member since 2015 · 17 posts · 3 votes
    11y

    Thanks everyone. I appreciate the good advice. 

  • Lynnwood, WA · Member since 2015 · 221 posts · 157 votes
    11y

    Got $$135.27? 

    Buy 501 '90-days-late' names in your area.

    Make GPS routes with android/IOS app, 100 stops per route.

    Drop off your marketing piece(s). Chat. Listen. Learn.

    Repeat 5x over 180 days. 

    Profit.

    Keep us posted if you do this! Best of luck!

  • Investor · Phoenix, AZ · Member since 2013 · 193 posts · 37 votes
    11y

    I would keep networking with other investors on Bigger Pockets, since you don't have the cash let the other investors know that you could bring the deals to the table. You don't need money to market if your networking with people on a daily basis, calling craigslist ads, calling other wholesalers etc. And if you are a wholesaling sometimes you don't need any money to assign a property, I've never used a lender to flip any deal. 

  • Rental Property Investor · Boston · Member since 2014 · 103 posts · 21 votes
    11y

    Starting a real estate company after being laid off, with no experience or money seems a little crazy to me... If I could give advice, it would be to try house hacking after finding full time employment. I know that's how I started and I learned a TON about the business. It's also a relatively low risk option. 

  • Rental Property Investor · Indianapolis, IN · Member since 2014 · 105 posts · 43 votes
    11y

    @Chris Johnson I feel your pain, I have funds and I am searching for that first deal and have been for many months now.  I live in a really high cost market, one thing that I did that I hope will yield a deal is I went to the County office for code violation and put in a freedom of information act request for all the code violation properties.  I focused on the blighted (vacant) properties and then I drove for dollars to check out the areas.  I found some really great one's in very desirable markets but again in my area even the blighted properties are $200k to $300k, but they will retail for $400k to $600k.  

    The code violation list is huge, I had to pay $110 for it and they could only give me a paper copy so I have to manually input everything to run the numbers.  Ask the team in your Code office and they will tell you how to look up the owners if they offer it on-line.   This website will also help https://www.findtheseller.com, haven't used it yet but I believe you only pay if they locate the seller. 

    I know it's repeated often but you have time and I'm sure a talent that an experienced investor needs and would be willing to trade for teaching you the ropes. You can network with your local real estate broker and offer to become an unpaid assistance in exchange for access to MLS, building relationships with local lender network, other realtors for deal feed, etc. Read Brandon's article on what Realtors need to know when working with investors and be that guy for your local broker...bring in enough investor money buying deals you'll be his new best friend.

    I just signed up to get my real estate license for few very specific reasons:

    1. Access to MLS and control of all my deals (Because I will have deals)

    2. Actively learning my markets, I found a broker who understands that I will not be showing houses or selling to retail customers, that all my deals will be my deals and he is offering a 80/20 split on commissions which I'm good with to have access to his lender network and building relationships with the other realtors who I'll gladly give the commission to if they find me deals. 

    I have to give myself pep talks all the time to stay motivated, you are in a great market and there are lots of folks here on BP who are glad to work with you.

    Good luck

  • Professional · Carlsbad, CA · Member since 2012 · 12k+ posts · 1k+ votes
    11y

    @Chris Johnson

    Welcome to Bigger Pockets. BP is full of resources. You will find resources here from blogs to pod casts and forums. You can also send messages to members. This is one of my favorite features of Bigger Pockets especially for asking specific questions.

  • Investor · Sugar Land, TX · Member since 2012 · 554 posts · 232 votes
    11y

    @Chris Johnson, like others have said, to get the best deals you gotta find them first.  Then if you don't have a great buyers list it can take time to wholesale it.  Of course, closing on it will likely require some funds or at least access to it (line of credit).

    Teaming up with someone that can pay for marketing may be a good option for you. You can provide the leg work in exchange for education and time (in the trenches).

  • Investor · Houston, TX · Member since 2015 · 17 posts · 3 votes
    11y

    Thanks folks!

    Chris, see you in a couple of weeks at Titans. 

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