The First Deal.. Looking for Advice!

[Damion Anderson]

Hello everyone!

I am a United States Marine and am separating this June for college. I recently networked with an established investor in the area and he has agreed to teach me how to become a successful REI with my first deal (not financially on my first deal, but the knowledge he's sharing is phenomenal). It's been a crazy couple of weeks thus far! Today I have officially received my Articles of Organization for my LLC in the state of North Carolina. I have also filed for my EIN!

Right now, I am focused predominately on finances. My mentor has introduced me with a local real estate agent / broker; however, she wants to see a proof of financing before she shows me properties and helps get me started. So far, I have spoken with Carolina Hard Money, LendersHome, and RealtyShares. Carolina Hard Money wants me to bring 8% to the table for 5 points and 13.5%. I must also be able to pay the contractors and being reimbursed. All in all, I would need about $22k for a $140k loan. Right now on Marine Corps pay, that'll take a while to get to that point. I am contemplating taking a personal loan, but it honestly just depends on the deal. I would rather not have to take a personal loan (6% APR, which isn't bad). I know the seasoned investors are saying to wholesale, which is an extremely valid argument. I don't mind wholesaling, however, my biggest constraint is time. I would like to do a deal with my mentor before I EAS (separate) for the invaluable education, therefore I am looking at more creative ways to finance.

I have an extremely high credit score. I also have a Navy Federal and USAA bank account. I am now focused on building the real estate investing business plan and seeing what a bank will offer before I make my decision as to how I will finance the deal. What would you include in the business plan? I have read the BP post on REI Business Plans, but is there anything else you would include/exclude? Also, what do you recommend looking into for financing? Also, do you prefer finding the deal first and then financing, or vice versa?

Goals:

For the first couple of deals, I am looking to fix and flip to build capital. Instead of looking at this as just an investor, I would like to continue building a real estate business and use this as my secondary job while in college until it can be my sole focus. Once I have capital built up, I would like to get into commercial real estate and use the buy, rehab, rent technique. I would like to explore various aspects of real estate before I say for sure this is my business' niche, but will focus on fix and flip for my first few deals. 

I am really looking forward to everyone's input. I appreciate your time and can't wait to learn more from you all! If you have any further questions, please let me know!

- Damion