New business venture

[Daniel A. Abreu]

I have been working in the real estate world for about two years. I live in the greater Tampa Bay Area, which appears to be a hot market overall and no signs of slowing down. My wife and I have been observing and researching the possibility of doing our own real estate investments. We aren’t looking for any get rich quick ideas, but more for the ability to add significant stability to our lives within the next several years, including rehab/flips and buy and holds. My wife and I both have high level education and, have the time and desire to work at the industry. Right now I have both an attorney and CPA that I can depend on, but my connections end there. I would love some guidance from some experienced folks on how to really get the ball rolling. 1) I seem to be in a spot where I am just not sure where to find deals. I’ve made a couple of calls to realtors and inquired about a couple of properties I have found on my own, but I seem to be hitting a bit of a roadblock. How do I get out from behind the computer? Aside from REI meetings, anywhere else to look? And on that note, working with a realtor - pros/cons (aside from commission cutting into profits). 2) I would love to meet with an experienced contractor about rehabs. Again, my wife and I have done some of our own independent research on this to give us broad ideas about cost of materials, and guesstimates as to labor. I’d love to speak with someone one on one in the area, find out if I’m in the ballpark, learn a bit more about that side of the deal, and possibly establish the business relationship with someone to do our rehab work. 3) I have so many questions about financing. Any guidance on this subject would be greatly appreciated. My wife and I have been working under the idea of starting ourselves out with hard money, as we a) don’t have the best credit, and b) don’t have much of our own money to go traditional routes. If this is the route to go, how do I start out? Do I need to be under contract before I approach the lender? What else is needed? Do I need a plan of the rehab or do I just call and give a blanket number and pray for the best? If I were to find someone to partner with who would be willing to put the money down, what would be a good initial approach? I’ve worked in sales a long time and always had a great success rate. I’m more asking, what’s a good approach for someone with little to know experience on this side of the transaction? I was thinking this is why I need to round out my group with an experienced contractor. I can give hard numbers upfront and what to expect on return. Any and all advice is sincerely appreciated.