First purchase towards a career in flipping/rentals.

First purchase towards a career in flipping/rentals.

Real Estate Agent · Littleton, CO · Member since 2017 · 3 posts · 2 votes

My question takes a little prefacing here so bear with me. I am a 25 year old South Denver native and have worked as a carpenter for my fathers residential remodeling company on and off for the last 10 years (throughout High School and College), since graduating college I have become increasingly interested in the business side of residential homes and have therefore been a licensed Realtor for 18 months now. I have my father's 30 year old contracting company at my disposal, I work directly with an in house mortgage lender at my office as well as a property management company (which I would primarily use on a consulting only basis to begin with) and I have 2-3 options for creatively financing my first few deals. I have been listening to the Bigger Pockets podcasts ad nauseum for several months now while I work for my father (when I'm not working with clients I keep the money flowing by doing so) and one of the main things that I have taken away from all of the guests is the majorities' response to the question of "what do you think separates successful investors from those who give up, fail, or never get started with investing?" which I have noticed primarily involves something along the lines of "fear of the unknowns" or basically just to "jump in with both feet and quit making excuses". This is something that I have grown increasingly aware of and believe in; that there will always be unknowns for your first deal, there will always be reasons why you "shouldn't yet", and I just feel as though I've almost gotten myself to a tipping point of just pulling the trigger (obviously once I've run the numbers and believe I've found a good deal).

So my question is should I try and link up with and shadow/work on a sweat equity basis/offer to help out in any capacity with other investors in my area before I purchase my first deal on my own, or is that route more advised for people with little to no construction and or Real Estate background? I certainly don't want to be the kind of person that waits and waits and therefore increasingly grows hesitant to ever get started. I am absolutely 100% committed to pursuing Real Estate in some capacity or another for a very long time, I am incredibly intrigued by the "no ceiling" aspect of how far you can take this business and I thoroughly enjoy every facet of residential homes from construction to sales to ownership. So based on my brief description of my background, would you all say I'm ready to take the risk on my own, or would it still be highly advised to work directly with someone who is currently successful at doing so? Any insight, advice, or ideas would be greatly appreciated, I love Bigger Pockets and am excited to have joined this community of incredibly resourceful and creative people!!

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Chris LopezPro Member
Real Estate Agent · Denver, CO · Member since 2015 · 1k+ posts · 858 votes
9y

Jump in. With the resources you have, there is no reason to shadow anyone. Put together a list of properties from the MLS and then take your dad and spend the afternoon looking at them.

With his experience, I'm sure he can walk through a property and know what needs to be fixed, how much, how long, etc. Plus you know you can trust him.

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  • Chris LopezPro Member
    Real Estate Agent · Denver, CO · Member since 2015 · 1k+ posts · 858 votes
    9y

    Jump in. With the resources you have, there is no reason to shadow anyone. Put together a list of properties from the MLS and then take your dad and spend the afternoon looking at them.

    With his experience, I'm sure he can walk through a property and know what needs to be fixed, how much, how long, etc. Plus you know you can trust him.

  • Realtor · Denver, CO · Member since 2013 · 2k+ posts · 1k+ votes
    9y

    RE & Construction background? What are you waiting for? I did my first deal when I was a marketing assistant for another agent. 

    You can use the MLS for "practice." if you feel you need it, but I wouldnt waste time trying to find a deal there. I stopped looking on there a few years ago.

    If you are a local, then you should have a decent sphere to tap into if you haven't already as an agent. Find something off market and go for it!

  • Real Estate Agent · Littleton, CO · Member since 2017 · 3 posts · 2 votes
    9y

    Chris and Matt, thank you for your replies. Both replies support the direction I am leaning, but it just helps to have others' opinion of my background and therefore how I am going to proceed. 

  • Investor · Front Royal, VA · Member since 2013 · 586 posts · 418 votes
    9y

    @Daniel Hansen you are set up to succeed. You have a lot at your disposal and you are better positioned than I was starting out! Feel free to bounce ideas off me if you'd like. 

  • Real Estate Agent · Littleton, CO · Member since 2017 · 3 posts · 2 votes
    9y

    @Luke Miller thank you, I am starting to plan/run numbers on potential deals for practice and I think I will be purchasing first of next year (given my finances/current lease). It would be great to bounce some questions off of you as they come up, so I appreciate the offer. I will hold on to your contact through BP. 

  • Specialist · Englewood, CO · Member since 2017 · 329 posts · 88 votes
    9y

    @Daniel Hansen You're on the right track. The MLS has a lot of deals on it and you have access to some good people. Take advantage of them. Talk to your managing broker or other agents in your office that are investors. You could also put your agent powers to work and start finding clients that do fix and flips. I know at least 16 of them. Learning your numbers is the key to fix and flips. Learn Fix up Costs (Which sounds like you already have) and ARV (After Repair Value), what will the house sell for when I'm done. Figure out how much your cost of money is and put them all on paper. The numbers never lie.

    Find some good meetups to go to. Check my profile for details on a couple.

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