First time investor wanting to start flipping

[Daniel Wrentz]

Hey Everybody!

I am a total newbie to real estate and investing but am quite motivated to get into the game. I’ve spent many hours reading, listening, watching, and practicing analysis of potential property investments. I have a realtor/investor friend who shares his knowledge also. I have contractor contacts through him as well. Needless to say, I’m ready to get going.

I was looking for advice in general on how to get started and am willing to take any criticism on my strategy. So let me lay it out.

My goal is to not have to depend on my 9-5 job as soon as possible. I have a respectable savings and my first thought was that I would buy a few rentals on a mortgage. This is passive but would obviously take decades to become financially free as I saved and bought more.

So now I am considering flipping. I can keep my job to make a living and flip on the side, saving all I can to buy rentals for passive income, all the while gaining experience. And if the house flipping takes off, then I can do that full time, buy rentals, and quit when I want.

Trouble is I am as fresh as they come and could REALLY use some direction. Is this a feasible strategy? Is this more difficult than I realize? Is there a better option? I have a ton of other questions on financing, networking, etc., but I’ll save those for another post. I am very open to all advice. Help me out BP!

-Daniel (Houston, TX)

[Joe Homs]

@Daniel Wrentz flipping is a numbers game, but don't get me wrong its not as easy as they show on T.V.  Here are the first things you need to get ready.

1. Know your area and the numbers. BP says 70% ARV to MAO, but here in California if you don't offer at 80% or above you do not get any properties.

2.  Financing is a big concern.  You can partner with someone else or use hard money.  Traditional financing may not work?

3.  Is Texas a mortgage state or Trust Deed State?

4.  Get your team in place.  RE Agent, Contractor, Escrow, Insurance, etc. well before you buy your first property.

Lot's to learn, but you can do it!

Good Investing...