New Newbie from Colorado Springs, CO.

[Erik Dominguez]

      So this is my “I’m new here introduction” My name is Erik Dominguez and am a military service member currently deployed to Afghanistan and stationed out of Colorado Springs, CO. and quickly coming up on my retirement (late 2020). I am originally from Riverside CA. but am not planning on moving back to California since I have already purchased a house and love the Colorado area. I do not have any background or knowledge in real estate besides the few articles I have read here and there and of course the “Guru” limited information webinars/podcast/YouTubes. However, I do have lots of family and friends in the real estate profession. I have recently been more and more focused and interested in the benefits, process and deals that can be made in real estate and how it all works.

I see this as the best direction moving forward as my family and I leave military behind. My direction is after I get the process and footing under me, to work for myself and never have a boss again (besides the customer / tenant / investor or purchaser) eventually want to work with a great team and more so with friends and family to build each other. As far as personal real estate goals, I want to open my own LLC (Which in just the LLC I have a lot to learn) and have a broad portfolio with a few rental properties (commercial and resident) and produce some really great real estate deals. As far as the areas of real estate, I really am trying to figure that out. Right now I am getting ready to start the Colorado course requirement to get my license. I will start this May so I can test once I return from Afghanistan later this year. But, I see so many other avenues to go that don't require a license. Being so new I am trying to figure out what will best fit me and my personality. I have to be sure it will assist me to be the most successful first for myself but also to work with friends, and family on deals.

      I don’t have a great mentor that will show me the ropes and explain the process of things. I have talked to a few real estate agents in the Colorado Springs area but most contacts aren’t really knowledgeable or willing to take on a mentorship role or helping others. I myself am a hands on learner so the only way is to do it, either by watching or executing it through guidance and over watch. I have recently started reading up on wholesaling and Fix and Flip since that seems to be a faster route to getting hands on and making money without a license. I am still trying to figure out the actual no bull step by steps to starting with investors/OPM to produce some decent cash return on deals. I am still trying to crack the knowledge nut and learn the whole what I call the Find, Fix and Finish, i.e. Find the deals, Fix the contract, and Finish the deal with a buyer/seller. What forms and just the how it works. Again this is where a good mentor comes in. The other drawback at the moment is being deployed and having to wait till I redeploy to put action in motion. Thanks for reading. PROST!!!

V/R (Dom)

Erik G.  Dominguez 

[JD Gunter]

Erik,

Welcome to BP! That's a good word from @Andrew Angerer. I agree with everything he said and I, too, thank you for your service. 

As far as conflicting information and a lack of a step-by-step process, you're certainly not the first to voice that frustration. One problem is strategies that work well in one part of the country simply won't work in another area. In addition to that, one individual might be perfectly situated for one strategy, like flipping, while another is better positioned for something else, and both will find success doing very different things. For someone just learning, it can be confusing and frustrating. 

As far as getting your license, it CAN be a good idea, but it can also be a complicating factor that makes growing an investment portfolio more of a challenge. On this side of getting my license and working in the industry, I can tell you it's not a clear black-and-white decision where having your license is obviously better. There are many disadvantages to having your license that I wish I had better understood. 

Some of it depends on what you want to do and the long-term route you want to take. Colorado Springs has about 4,000 licensed real estate agents and 94% of first-year licensees will not renew their license (per the local MLS).

As an example, I was recently invited to partner on an off-market wholesale deal that I had to decline because being a broker was a complicating factor that would unnecessarily hinder the deal. It was already under contract and we would have had to do additional disclosures that would necessitate us amending or re-writing the contract. 

I've also heard of several agents getting in trouble for buying off-market properties at a discount because the seller later felt taken advantage of and complained to the Realtor association. The Realtor association feels that licensees have an unfair advantage in the marketplace and buying homes off-market at a discount is often construed as taking advantage of the public. One way I prevent this is by having customers sign even more disclosures telling them what their house is worth on the open market and what I plan to do to it, which sometimes creates opportunities for the sellers to object. 

On the other hand, someone who is flipping lots of properties every year can significantly reduce their transaction costs by flipping. They cannot, however, contact homeowners directly who are listing with another agent, which is something un-licensed flippers often do. 

Whether you get licensed or not, the information you are learning is valuable. 

I'd be happy to discuss real estate investing in greater deal with you sometime and show you the exact steps I and others in Colorado Springs have taken. I have experience in every strategy you mentioned, including commercial. I don't know everything there is to know, but I'm happy to show you what I've done.