I’m new to investing starting of with fix and flip

[Terrance Coleman]

I’m new to investing and I’m looking to learn and grow. This is the reason I decided to join bigger pockets. I’m hoping to connect with people and learn from them. I hope it helps me on my real estate investing journey.

[Jason Wray]

Terry,

Have you weighed out the pro's and con's doing a fix & flip and capital gains versus fix and hold long or short term rentals?

[Andrew Freed]

@Terrance Coleman - Nice, well if you're looking to do fix and flips in your market, I highly recommend you find someone doing fix and flips in your market and work to provide them as much value as possible / expect nothing in return. The goal is to get in their world, see how they operate deals and follow their formula. The easiest way to be successful in real estate is finding someone doing what you want to do at a larger scale and more of less, copying their recipe. It worked for me. Best of luck on your journey! 

[Nick Belsky]

@Terrance Coleman

Welcome to the community and be ready for a huge amount of information at your finger tips. Be sure to check out the free tools BP provides to help analyze deals you may have and also market insights. Great tools that get updated regularly.

I am on the lending side of things and would be happy to hop on a call with you anytime to discuss financial strategies and help answer any questions you may have about nearly any loan product available to help you on your journey, even if they are not products my capital partners offer.  We specialize with Fix and Flip and New Construction loans...

We are all here to help you learn and grow. Feel free to ask anything, anytime.

Cheers!

[Michael Diossa]

Highly recommend checking out a rehab tour/workshop.

[Savannah Holzer]

Hey Terrance, congrats on getting started in fix and flipping. Are you thinking of flipping in the Chicago market or are you open to other markets as well?

[Connor Hibbs]

Hi Terrance and welcome to Bigger Pockets!

Rehab projects are great and they give you the option to sell and move on after completing or to hold the property as long-term rental to generate some extra income. The more experience you get, the smoother your process, the more confident you'll get in your contacts, and the better the terms you'll get from lenders.

A few things to keep in mind for you as you go about your projects.

1. Don't get emotionally attached to a project. Do your best to only move on the properties where the numbers work well for you, even if that means passing on one that you may like a lot but isn't going to be profitable for you.

2. You're off to a great start by posting here but seek advice. Bigger Pockets has tons of tools and getting advice from investors local to your area could help you to mitigate or avoid a lot of potential issues down the line.

3. Always include a contingency in your rehab budget. If you need the extra funds then they're already factored into your numbers and if you don't need them then you're being even more profitable. 10% in contingency is typically a pretty safe number for this.

4. Leverage your liquidity. Keep yourself liquid and take advantage of lenders. If you can do 1 project 100% out of pocket or potentially 3 projects with liens from a lender then you're giving yourself a better chance with the three. You'll also be leaving liquidity available should a great deal come your way instead of being locked into just one project at a time.

[Riley Poppell]

Quote from @Terrance Coleman:

I’m new to investing and I’m looking to learn and grow. This is the reason I decided to join bigger pockets. I’m hoping to connect with people and learn from them. I hope it helps me on my real estate investing journey.

 Hey Terrance, I'm glad to connect with you and could be of benefit in any areas you may need assistance with. If you have any questions regarding the real estate purchase (negotiation) process, the loans you might be qualified for (low downpayment or low interest rate options), or the insurance you may need for the purchase I can answer any of your questions. When it comes to the fix and flip there are some solid areas in the northwest and west side of the city along with some nearby suburbs that have many good opportunities. You would ideally want to buy in the downmarket for below market price (around this time of the year since its more of a buyers market) and then sell in spring when values are going to be increased and also have a sellers market (you could sell for above market price).

[Jonathan Klemm]

What's up @Terrance Coleman - Welcome to the BiggerPockets Chicago Community brother!

Like me, I think you will love the people here if you jump in with both feet.  I suggest checking out some of the local Chicago meetups:  https://www.biggerpockets.com/forums/521-real-estate-events-...

I'd also recommend setting up some coffee meetings with some of the TOP TALENT in Chicago: agents like @Jake Fugman & @John Warren and property managers like @Mark Ainley & @Krystyna Schexnayder and lenders like @Jose Valdovinos & @Zack Karp.

[Mark Ainley]

@Terrance Coleman Welcome aboard...lets of great resources or others mistakes to learn from here!

[Jake Fugman]

@Terrance Coleman - If you are looking to start with a fix and flip I would recommend getting on a few solid wholesaler lists.  Feel free to contact me and Ill share our vetted contact list.