I have a private lender lined up...

[Gabriel Stabile]

***Newbie alert***

PROS

- Have listened to nearly 50 podcasts over the last 3 months

- Registered with local REIA group and began networking/building team of contractors/agents/RE attorney

- I have a private lender lined up that has PLENTY of capital and solely wants to diversify their investments

- Have analyzed some deals, though probably not as thoroughly as I should have, hence me signing up for BP plus membership before the deadline to access calculators to hopefully show I am taking the right steps

CONS

- I have never done a deal before 

- Recently relocated to this area (only lived here 3 months and moved over 600 miles away from all friends and family)

- Currently in the process of purchasing primary residence with wife (this isn't necessarily a bad thing, but just trying to balance life/new job/closing on home/launching RE business all at the same time is new and somewhat intimidating

- I think I may be having some paralysis by analysis set in. Not 100% exactly which route in RE to take.....

So, I pose the question to you BP community. If you knew you had a private money lender that has said they would be happy to partner with you, what niche would you focus on being a newbie to the industry? Wholesaling? Flipping? Ideally, I love the BRRRR method but wonder, from a private lender standpoint, what's most appealing to them.

My area seems to have a need for affordable starter homes (less than 200k). There is a ton of development going on in our area, however much of it is new single family builds beginning in the $250k range and going up. It seems to be attracting many empty nesters with deeper pockets compared to younger generations with smaller bank accounts. 

There are, however, a ton of homes near the downtown area (I would say a C class area at it's worst) that I have ran numbers on and seem to make sense approaching in regards to flipping. 

I appreciate any and all feedback. I am really looking forward to being more involved on BP, networking, and being able to provide ANY help that I can! 

[John Leavelle]

Howdy @Gabriel Stabile

I would also add you need to know why you are getting into REI. What are your long term goals and what strategy will help you get there. Do you want to build passive income for retirement? Buy and Hold or BRRRR is the way to go. Do you want to do quick turns and build cash reserves? Then Flips are your preferred strategy. You may want to do a little of both since they are very similar animals. Both can use Private Money lending and both use the same basic analysis. BRRRR just has an additional element (Rent) that has to be considered.

Has far as analysis paralysis - why don’t you post a few of your analysis so we confirm if you are doing it correctly.

I do strictly BRRRR strategy for now. I also use a Private Money Lender. Figure out your goals. Find out your Private Lenders desires. Work out a plan to meet both.