A good plan?

[Bryan P.]

So I've been racking my brain trying to figure out my "plan." (Currently I don't have enough cash to have ANY plan, therefore I need a future plan!)

I'm a teacher off for almost 3 months in the summer. I've been thinking the best plan is to do flips in the summer to acquire cash. Then I could use the cash to buy SFH rentals that meet the cash flow requirements that are fundamental (as you all talk about). I could do one flip and one rental per year. That would be FANTASTIC. (That's assuming lenders would keep allowing me to do so.)

It seems like a simple plan, but it might fit my situation.

If any of you know of something similar that worked, please comment and advise!

[James Vermillion]

It sounds like you have a very general (but good) idea. If I were you I would start by taking that idea and turning into a plan by doing several things.

#1: Get your financials in order and go to community/regional banks. Talk to them about what you want to do and find out how much you would be approved for, what type of loans they are offering, etc. Start saving as much money as you can!

#2: Start learning your market. Attend open houses, talk to local investors, attend investing club/association meetings, get on craigslist, read the newspaper classifieds, etc. You are going to need to know a lot about the area you intend to invest in if you want to make intelligent informed decisions.

#3. Learn everything you can bout real estate investing. Read through the flip/rehab and rental forums on Bigger Pockets, check out J Scotts flipping blog, go to your local library and rent material to study.

#4. Make a business plan. Once you know all of the above you will have enough knowledge to put your plan on paper. There are probably several people on here who will be willing to share business plans to help you out (J Scott gives his out for free if you sign up for his newsletter).

#5. Build a real estate team. You are going to need an accountant, contractors, a lawyer, etc. Make sure you thoroughly look into anyone you consider working with (ask questions, check references, etc). This team is going to be crucial to your success (or failure).

#6. Put the money and time you have invested to work! Remember be patient, double/triple check your numbers, do not overpay for a property, do not underestimate costs!

Real estate investing is not as simple as many people will lead you to believe. Please make sure you educate yourself and you will do well. Hopefully my very broad guidance helps!