I want to get started, any suggestions?

Question

Hey

Everyone,

I just moved to the triangle in NC, I have read a lot of books on real estate and went to some seminars and I really want to get my feet wet in investing (i.e flipping houses, wholesale) but I do not have any money and my credit score is decent. I am just trying to figure out an entry point. Any suggestions?

Michael Lee · Answer

Hello and welcome to BP!  There are a few things you need to consider before starting besides learning and selecting a market to work in.  Oh, by the way, I am 60 years old and usually have a bunch to say.  One of those things you before you get started is to get your financing figured out and get a loan letter from a lender that has how long it will usually to close on the loan and the maximum amount you qualified for.

Another thing you can do is to locate an office with the fewest distractions.  You an locate an office in your house as long as you can close it off.  Another thing you should do, depending on the personal items you could use, is to form some type of corporation and/or a LLC.  You might ought to get an attorney and/or a CPA (or tax accountant to advise you well after you decide on your niche and market.

Pretty soon you have to get a local and experienced team to help you out.  The primary Team members are Attornies, real estate agents, CPA's (or accountants), Inspectors, General Contractors, and Handymen.  They can be worth every penny.  Do what you like.  Just do what is average in a particular neighberhood.  Concentrate on income production.

It is recommended that you have a website that gets you more leads/customers and has links on other sites.  Have a page that has your "for sales" that you are trying to sell.  Do not try to do everything yourself.  Do not cut any corners to make something look better.  You might want to hire a tax advisor that knows the laws and can do your taxes.

Allways do the math analysis and try to look at prospective properties or at least have a clause in the sales contact that allows you the time (usually 10 days) to inspect the property in detail and possibly back out of the deal without much of a penalty that will hurt you too much.

Good luck to you!

Account Closed · Answer

Do you work as an agent now? Maybe you can target investors as clients and learn the ropes that way.

I'm an agent and I work with a lot of investors. I invest myself but it's always good to work for like-minded individuals. Everyday I learn something new whether it's about flipping or buy and hold. My clients teach me stuff all the time.

And as their agent you have direct contact with them. When you are out showing them a property you can pick their brains about how they got started.

If you're not an agent I would recommend working in the field to get some money saved with still being as close to real estate as possible. This way you can build a network too. Networking is free :)

Realistically you need money to get started. Even with wholesaling you need a decent budget to do anything meaningful.

Ishaan Misra · Answer

@Deandre Price House hacking is essentially getting financing with primary residence terms for a rental property. The way this works is that you would purchase a multifamily property such that you occupy one of the units. Therefore, the property qualifies as a primary residence and so you can get financing under those terms, i.e. 3% down vs. 20% down; 3.35-4% vs. 5%+.

Please DM me directly if you have any further questions. I would be happy to help.

IM

Deandre Price · Answer

@Ishaan Misra what is house hacking? Never heard of that before in all the books I have lol.

Ishaan Misra · Answer

@Deandre Price Thanks for sharing your story.

Continue to engage in networking as you never know who you may meet. Also, it is critical to pursue every avenue by which you can educate yourself. Building up your own database of knowledge will be critical when you actual come to evaluating investment opportunities. Finally, and on that note, I would suggest looking into house-hacking as a potential strategy for your first investment. It is a great way to get favorable financing terms while still being cash-flow positive (in most cases) on a 4+plex or so.

Please feel free to reach out if you have any further questions.

IM

Rosston Smith · Answer

Get money. Live frugally. Network on BP and locally.Keep studying hard and your time will come.

Shawn Ackerman · Answer

@Deandre Price welcome to BP! your current position should not dictate your success.  Network with local members in your area who are in the position you are in and offer some way to assist him/her in exchange for being under their tutelage.

I want to get started, any suggestions?

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