Contractor · Northern Virginia · Member since 2014 · 14 posts · 15 votes
I'm looking for seasoned investors' advise...
I have been trying to figure out a way to get started investing in real estate for a while but have been unsuccessful. I'm a licensed realtor in the state of Virginia , I have the state's contractors license (I can get all the work done myself) and I have been loaned $20,000 by a family member.
I have contacted every investor friendly lender that lends in my state and most require that I...
1) have done at least 1 previous deal (which I haven't)
2) have good credit and a steady income (which I don't have either)
and the last one that doesn't require either, require that I put up 20% of the deal.
Example: 290K purchase price + 60k renovations = 350k total. So in this case, I have to bring $70,000 PLUS closing costs (which I don't have).
I'm looking to flip a property and I feel I have exhausted all my options. I'd greatly appreciate your help!
Investor · San Diego CA · Member since 2014 · 341 posts · 139 votes
8y
You got to partner up bro. It’s the only way to get started. My suggestion would be to find a deal and present it to another investor. Tell him you will do all the work, and if he makes more than 10% you get to keep the gravy. Or some arrangement like that. Once you make money for him on the first deal he will tell all his wealthy friends and they will all be up for that action.
Btw you can make money on the contracting, and the real estate transaction without any liability. There’s lots of ways to make money in this business, just got to get creative. If your the realtor and the contractor you don’t need to make much on the actual flip, you just need to keep the deals flowing. I’ve done it a bunch of different ways. 50/50 isn’t a bad option either. And lots of people will take that if they see the potential. Use your track record as agent and contractor to create a track record as an investor.
Investor · San Diego CA · Member since 2014 · 341 posts · 139 votes
8y
You got to partner up bro. It’s the only way to get started. My suggestion would be to find a deal and present it to another investor. Tell him you will do all the work, and if he makes more than 10% you get to keep the gravy. Or some arrangement like that. Once you make money for him on the first deal he will tell all his wealthy friends and they will all be up for that action.
Btw you can make money on the contracting, and the real estate transaction without any liability. There’s lots of ways to make money in this business, just got to get creative. If your the realtor and the contractor you don’t need to make much on the actual flip, you just need to keep the deals flowing. I’ve done it a bunch of different ways. 50/50 isn’t a bad option either. And lots of people will take that if they see the potential. Use your track record as agent and contractor to create a track record as an investor.
Real Estate Agent · Alexandria, VA · Member since 2014 · 184 posts · 78 votes
8y
@Worth Styles...I agree with @Ben McMahon ...There are several local meetups in and around the Metro Area. Start going to meetings and find someone to partner up with. By the way, those numbers sound like Dale City. Tons of people making money on flips down there.
Can you do the construction on your own? Do you have a team of contractors?
Real Estate Broker · Northeast PA · Member since 2017 · 2k+ posts · 2k+ votes
8y
The money isn't the hard part--finding the right deal is the key. Steps: 1. Get a hot deal. 2. place and ad or go to meet-ups and speak to potential investors. 3. Be creative in making it pay for all involved. 4. Rinse and repeat.
Contractor · Northern Virginia · Member since 2014 · 14 posts · 15 votes
8y
@Dan Bernstein actually it was a deal in Silver Spring, MD. The hard money lender finds properties and lend the money. That was the property I was working on getting but couldn't make it work.
And yes, I can do the construction, I have the people. I'm a class A state licensed contractor. The person I work with has extensive experience in everything from new construction to simple repairs.
@Marc Winter That's what I feel like is my only option for now. Thanks for the advice!