All Forum Posts by: Arif Sheikh

Quote from @David Simons:

What are the best tools to help estimate the potential rent of a property in a given location? 

 @David Simons 

Estimating potential rent for a property in a specific location is essential for real estate investors. Several tools and methods can help you determine rental rates:

1. Online Rental Listing Platforms: Websites like Zillow, Realtor.com, and Apartments.com display current rental listings in various locations. You can search for properties similar to yours to get an idea of market rents.
2. Local Property Management Companies: Contacting property management companies in your target area can provide valuable insights into local rental rates. They often have data on market trends and can share their expertise.
3. Rentometer: Rentometer is an online tool that allows you to compare your property's potential rent with nearby rentals. It provides quick analysis and helps ensure your asking rent is competitive.
4. Craigslist: While not as reliable as other sources, Craigslist can provide a snapshot of current rental listings and rates in your area.
5. Zillow's Rent Zestimate: Zillow offers a Rent Zestimate tool that estimates a property's monthly rent based on its features and location. While it's not always perfectly accurate, it can provide a ballpark figure.
6. Rent Range: Rent Range is a paid service that provides rental rate estimates, market trends, and other rental-related data. It's often used by real estate professionals and investors.

Rental rates can vary not only by location but also by property type, condition, and features. It's crucial to use multiple sources and methods to cross-reference your estimates and obtain a more accurate picture of potential rental income. Additionally, staying up-to-date with market trends is essential for making informed decisions as a real estate investor. I hope above information helps!

Quote from @Aaron Toczylowski:

Hello, I am looking for any advice I can get on investing out of state, purchasing a fix and flip ( between my father and I we  know a lot of contractors) , or even finding deals in an expensive market near where I live ( Annapolis MD area) My Plan would be to get a loan for a down payment. I’m really interested in investing out of state, but also apprehensive at the same time. I haven’t settled on a market yet. I’ve looked through Indiana, Alabama, Tennessee, the Carolina’s, and it seems I can get two properties out of state for the price of one in the market where I live (Maryland). Can anyone provide guidance on markets, any referrals, what steps to take first, or general investing tips?

I’ve already talked to a realtor in my area who wasn’t much help at all. I told him I was thinking about getting a loan to buy another property and his response was “ You don’t want to do that”, “you’ll have another loan to pay off”, “Why do you want to have 2 mortgages”, “your best bet is to save up your money to put 20% down”… That realtor obviously doesn’t have the investor mind set I’m looking for.

I know I haven’t fully narrowed down my investing plan but any thoughts or guidance would help me create an investing plan and would also be much appreciated. 

I admire your interest in real estate investing, and you're asking the right questions. When it comes to investing out of state or in a high-priced local market like Annapolis, there are several steps to consider.

Continue your research on markets that match your investment goals, focusing on areas with job and population growth.

Build a network of real estate professionals and fellow investors in your chosen market.

Explore your financing options and get pre-approved to understand your budget.

Consider hiring a property management company for out-of-state investments.

Be thorough in your property assessments, neighborhood research, and understanding local laws.

Decide on your investment strategy, whether it's fix and flips, long-term rentals, or a mix.

Keep educating yourself about real estate investing through books, podcasts, and courses.

Find a realtor who specializes in working with investors and understands your goals.

Remember, investing is a journey, and you don't need to have all the answers right away. Keep learning, stay persistent, and seek advice from experienced investors.

You're on the right path to real estate success!

Quote from @Dante Barnes:

Hey everyone! My name is Dante Barnes and I am from Texarkana, TX. I am 22 years old, and just got married 3 months ago. I have been studying real estate through podcasts, books, and networking for the last 6 months and am dying to get my feet wet. A family member of mine received a large sum of money and is allocating to me $100k to start in real estate. I want to establish a portfolio of buy and hold properties and some possible BRRR's.

I currently run an Airbnb through rental arbitrage, and it has made $2k almost every month for the last 6 months(rent is $800/month). My target customer in my area is construction workers and hospital workers. I love the idea of short term rentals and would love to build my portfolio on medium and short term rentals.

My city is currently building a new hospital, which is set to bring in 6k new hospital workers. I’ve heard that this could be a great opportunity to hop into the medium term rental space. We also have a few colleges within a mile or so from the property so I could possibly rent by the room.

Anyways, for the last couple months I have been looking for a creative deal where I could buy a quad plex and house hack in it. I haven’t been able to find an actual quadplex, but I would like if y’all could analyze this deal I found and tell me what you think:

The property is listed as a “single family residential;” however, there are 3(potentially 4) units on the property. The owners thought they would live there forever so they built the other two houses as basically mother in law suites so that taxes would be lower.

The main house is a 5/3, 3100 sq/ft house with a large above ground pool with a deck around it.

The second house is a 2 story, 3/2, with a double garage(2200 sq/ft. The bottom portion has 1 bed 1 bath and a full size kitchen. The second story has 2 bedrooms 1 bath and a theatre room with a kitchenette/bar in the back of the theater room. They built the house in a way where someone could live in the bottom portion and then close off the inside stairway and split the bottom and top to turn the house into a duplex(there is outside stairs to lead up to the 2nd story).

The 3rd house is a 2/1 with a carport and 838 sq/ft.

All 3 of the houses are turnkey, they took great care of all the houses.

They are wanting 548k for the property. I have been told they are open to owner financing; however, I need help on how to set up the payment structure.

I was thinking 20-50k down, 30 year fixed, with a 3.5% interest rate. That would make my monthly payments $3400/month(with tax and insurance included).

I believe the main residence(5/3) to bring in on the low end $3k/month through short term rentals. I think the house will rent out $225/night; however, this number is based on it renting out at $150/night X 30 days = $4500 divided by 70% = $3150.

The top portion of duplex to bring in $1500/month on the low end. Me house hacking the bottom.

The 2/1 should bring in 1200/month long term and 1500-1800 month through medium term(furnish finder).

I believe this property to bring in $5,850 which makes it cashflow $2450/month.

I will put in 30-50k down payment—— 25k furnishings/updates(were good at staying on a budget)—— 25k in reserves which is about 7 months of cushion for vacancies.

Thank you for reading all that. Your opinions are greatly appreciated!

Hi Dante,

Welcome to the world of real estate investing, and congratulations on your recent marriage! It's fantastic to see your enthusiasm and your proactive approach to learning about real estate through podcasts, books, and networking.

The deal you've come across sounds intriguing, and it seems like you've put a lot of thought into it. Here are some thoughts and considerations:

1. Creative Financing: It's great that you're exploring owner financing as an option. Given your $100k budget from a family member, it's worth discussing various owner financing structures with the seller. Your proposed structure with a 30-year fixed loan at 3.5% interest and a down payment of 20-50k sounds reasonable, but it ultimately depends on what the seller is comfortable with.
2. Property Analysis: You've provided a detailed breakdown of the potential rental income from each unit, which is essential. However, it's also crucial to consider expenses like property management, maintenance, property taxes, insurance, and vacancy rates. Running a thorough analysis will give you a more accurate picture of your potential cash flow.
3. Short-Term Rentals: With your experience in Airbnb and the new hospital development, short-term rentals could be a lucrative option. However, consider the increased management and turnover costs associated with short-term rentals. Make sure your numbers account for these factors.
4. Medium-Term Rentals: Targeting hospital workers and college students for medium-term rentals is a smart move, given your location. This strategy can provide more stable cash flow compared to short-term rentals.
5. Reserves: Setting aside $25k for reserves is prudent. Having a financial cushion for unexpected expenses and vacancies is essential for long-term success in real estate.
6. Due Diligence: Ensure that you thoroughly inspect the property, review all leases, and have a clear understanding of any local regulations or zoning restrictions that may affect your plans.
7. Exit Strategy: Consider your long-term goals. Are you planning to hold this property indefinitely, or do you have an exit strategy in mind, such as selling after a few years? Understanding your goals will help you make informed decisions.
8. Professional Guidance: It might be beneficial to consult with a real estate attorney and a financial advisor to help structure the owner financing deal and ensure it aligns with your financial objectives.

In summary, your deal has potential, but conducting thorough due diligence and seeking professional guidance are crucial steps before proceeding. Real estate can be a powerful wealth-building tool when approached with careful planning and a clear strategy. 

Best of luck!

Quote from @Ned Carey:

@Charles Sanchis  let me giveyou a specific risk in my state. In baltimore city water bills are not included in the tax sale however if you forclose on a property you are responsible for paying the water bills in order to record your tax sale deed. 

Now that might not be a big deal in many areas however in Baltimore they do not turn off the water. Water bills can be in the thousands of dollars. We just foreclosed on a property that has a $40,000 (yes that is no a typo,  forty thouisand dollars) So we basically have to walk away from the property and we will lose our entirel investment as well as additional legal fees to foreclose on the property.  I can guarantee you that no coach or guru will tell you about sucha risk but things like kthis are real and can cause losses. 

I don't say these things to be negative or scare you away but to prepare you and make you understand that it is not near as easy or risk free as those promoting it would make you think. 

and I both dirve by any property we bid on. That rules out, out fo state investing. My partner and I look at as many as 7,000 propoerties bedfore the Baltimore tax sale. It is actually driving by a property that kept me from bidding on a property that had been demolished but Google street view showed as a boarded up but sound looking building. 

@Ned and @John

I want to express my sincere gratitude for sharing your valuable insights and experiences, even when people highlight some of the less commonly discussed risks in real estate investing. Your post serves as a vital reminder that while real estate can be a lucrative venture, it's not without its challenges and potential pitfalls.

The specific example you provided regarding water bills in Baltimore City sheds light on the importance of thoroughly understanding the local regulations and nuances that can significantly impact your investment. Your willingness to share such experiences helps fellow investors like me become more informed and better prepared.

Your dedication to due diligence, like driving by every property you bid on, is a commendable practice that emphasizes the need for hands-on research, especially in unfamiliar territories.

It's crucial to have a well-rounded understanding of the risks involved in real estate, and your candid insights are invaluable in this regard. They serve as a reality check and a source of knowledge for those of us looking to navigate the complexities of this industry.

Thank you again for your willingness to share, and I look forward to learning more from your experiences and insights in the future.

Quote from @Shankar Sridhar:

Hi, I have been talking to a seller who has hinted about selling this property via owner financing because he wants to avoid capital gains as much and does not work to further handle this property. It's a 4-unit property(4*2/1) with under market rents and needs lot of work acc.to Seller. 

The property with current rents might give about 5600. 

Seller wants about 4500$ in monthly payments. Even if I structure it somehow to initially pay him only 2000$ a month(until rehab), adding property taxes, insurance and reserves(25%), I am not cash flowing in current state.

On top of it, in seller's words, it needs lot of rehab, which I don't have lot of experience nor money. Plus he needs about 20% in down.

Is this a good deal? Or am I missing something to make it work?
Of course , bringing in a partner with some more money and expertise would help, but I don't have anyone currently.

Hello Shankar,

Thank you for sharing your situation. It's essential to thoroughly evaluate owner financing deals, especially when they involve properties that require significant rehabilitation. Here are some points to consider:

Pros:

1. Owner Financing: The fact that the seller is open to owner financing can be a great advantage, as it allows you to acquire the property with potentially less stringent loan requirements compared to traditional lenders.
2. Under Market Rents: The property's current under-market rents present an opportunity for future income growth, which can positively impact your cash flow once the property is rehabbed and rents are increased.
3. Tax Benefits: Owner financing can provide tax benefits for both you and the seller, which can be advantageous when structuring the deal.

Cons:

1. Property Condition: Based on the seller's description, it appears the property requires extensive rehabilitation. If you lack experience and the funds necessary for these renovations, it can pose a significant challenge.
2. Negative Cash Flow: As you mentioned, the current financials indicate negative cash flow, even with a reduced initial payment to the seller. This can strain your finances and affect the feasibility of the deal.
3. Down Payment: The seller's requirement of a 20% down payment can be a substantial initial investment, and if you're also facing rehabilitation costs, this may stretch your financial resources.

Considerations:

1. Rehabilitation Costs: Before proceeding, you should conduct a thorough inspection and get accurate estimates for the needed rehab work. This will help you understand the full extent of the project and the associated costs.
2. Cash Flow Analysis: Reevaluate the potential cash flow after the property is rehabbed and rents are increased. Ensure that the property can generate positive cash flow and cover all expenses, including debt service.
3. Financing Partners: As you mentioned, bringing in a partner with experience and financial resources can be beneficial. Consider networking within your local real estate community or seeking out potential partners on platforms like BiggerPockets.
4. Creative Financing: Explore creative financing options, such as finding contractors willing to work on deferred payment arrangements or seeking private money lenders who specialize in rehab projects.
5. Negotiation: Continue discussions with the seller to see if there's flexibility in the terms, such as a lower down payment or extended financing terms, which may improve the deal's feasibility.

In conclusion, while owner financing can be a valuable tool, this particular deal appears challenging due to the property's condition, negative cash flow, and the required down payment. Before proceeding, conduct thorough due diligence, seek expert advice, and consider creative financing options. Always ensure that the deal aligns with your long-term investment goals and risk tolerance.

Quote from @Tim Nethers:

I have a decent relationship with the owner of a 5-plex in a small town in Indiana. The 5-plex is fully occupied, and professionally managed, pulling in $657/unit. The owner is willing to sell it to me with seller finance with $12k down, 5.75% for 3 years (22 mo amort.), $1000 in closing costs; but the price is higher than what I'd like to pay. I'd like to be at $185k (7.25% capex), the seller is asking $203k - non-negotiable. 

Expenses are $1,987/mo, including $475/mo in utilities, before P&I. When accounting for vacancy, management, capex, utilities, repair expenses and the financing, its cash flow would be roughly -$100-140/mo at that asking price (not factoring depreciation, appreciation and debt pay down).

I love the idea of adding a 5-unit, but I wanted some other eyes on the deal with more experience to assist in whether its a good idea to take it on for the appreciation/long term hold strategy - with such little skin in the game and with it being potentially negative cash flowing. I've historically bought single family and small multifamily, and never bought anything that isn't cash flowing. 

Knowing that I'd probably be subject to higher rates after the 3 year seller financing, and the asking price leaves it cash-flow slightly negative, I'm wondering if I still go-in knowing that it appraised at $250k last year, and when you consider the debt paydown, depreciation and appreciation factors are a huge upside versus the amount of funds I'd have in the deal. Would you buy or pass?

Hello Tim,

It's great to see you considering this 5-plex opportunity and reaching out for advice. Let's break down some key aspects of the deal:

Positive Aspects:

1. Seller Financing: The fact that the owner is willing to provide seller financing with a relatively low down payment is a significant advantage. It allows you to acquire the property with limited initial capital.
2. Fully Occupied: The 5-plex is fully occupied and professionally managed. This means you have immediate rental income without the stress of finding and screening tenants.
3. Appreciation Potential: The property appraised at $250k last year, indicating potential for appreciation. Considering this, along with debt paydown and depreciation benefits, could provide significant long-term value.

Concerns:

1. Negative Cash Flow: It's essential to consider the negative cash flow aspect of the deal. While negative cash flow can be manageable if you have a strong long-term strategy, it's crucial to have a clear plan for covering these short-term losses, especially as the seller financing terms change.
2. Future Financing: As you've mentioned, higher rates after the 3-year seller financing term could impact your cash flow further. Be prepared for potential adjustments in your financial plan.
3. Price Negotiation: The seller's non-negotiable asking price is higher than your preferred price. While this can be a challenge, consider the local market conditions and recent comparable sales to determine if the asking price is reasonable.

Strategies to Consider:

1. Seller Negotiation: Although the seller states the price is non-negotiable, it's worth having a conversation to see if there's any flexibility. Be prepared to present your case for why your offer aligns with market conditions.
2. Cash Flow Management: Develop a clear strategy to address the negative cash flow. Explore options like rent increases, expense reductions, or leveraging other income sources to cover the shortfall.
3. Long-Term Vision: Consider your long-term investment goals carefully. If the property offers strong appreciation potential and aligns with your portfolio objectives, it might still be a worthwhile investment despite the initial negative cash flow.
4. Exit Strategy: Think about your exit strategy. Are you planning to hold the property for a certain period, then sell for potential profit? Or are you looking for a long-term hold? Clarifying your strategy can help you determine if this deal aligns with your goals.

In summary, while the negative cash flow is a concern, it's not necessarily a deal-breaker if you have a solid long-term plan and are prepared to address the challenges. Engaging in open communication with the seller and conducting thorough due diligence on the property and local market conditions are critical steps. Ultimately, the decision should align with your investment objectives and risk tolerance.

Quote from @Fong Xiong:

First off my name is Fong, I'm 29 years old, I'm very new here. I have been listening to David and Rob for weeks on end on their podcast on my commute to work and have read through a few books from Brandon Turner and it has given me hopes on eventually being able to escape my 9-5 job. Have bought many other books in preparations from other successful investor such as David and Rob but in the saying of Brandon, "it doesn't matter how many books I read but if I don't take any actions it's all doesn't lead anywhere." So here's me taking my first big step to financial freedom. I also apologize in advance but I'm really "green" in regards to real estate and not 100% confidence yet in my capabilities but I have chance upon a opportunity on this property that I'm looking to give it a shot.

Long story short, I chanced upon a 4plex multifamily home with 16bds 8ba near where i went to college and it's a few block from the University. The avg rent around the surrounding areas are about 1700-2200 for a 4bed 2ba apartment.

PP asking is $620,000 at 4% IR

Using the Rental Property tool I would cash flow about $1600 monthly after all expenses and with a CoC ROI of 9%.
I would need about $20-30K rehab: new carpets, new paints inside, new tiles.

My inquiries is, what are some creative finance idea could I pitch to the seller and his agent in regards to his equity of the property which is about $70k if they are willing to do a subject to deal for the property?

In what ways can I structure a deal that would still make a profitable cash flow if I have the owner seller finance me the $70K? Or should I just outsource for a private money loan for the 70K?

Thanks in advance for any tips and advice!

Hello Fong,

Welcome to the world of real estate investing! It's great to see your enthusiasm and determination to take the first steps towards financial freedom. Your interest in creative financing is a smart approach, and it's important to explore various options to make your real estate investments profitable.

Regarding your potential 4plex multifamily deal, here are some creative financing ideas you can consider:

1. Seller Financing: You mentioned the possibility of the owner providing seller financing for the $70,000. This can be an excellent option if the seller is open to it. You could propose a seller carry-back mortgage where you make regular payments to the seller instead of a traditional lender. Negotiate favorable terms, such as a lower interest rate or longer repayment period, to improve cash flow.
2. Subject-To: Subject-to deals involve taking over the existing financing on the property "subject to" the existing mortgage. If the seller has a low-interest rate loan, you might consider taking over their mortgage payments and assuming the loan. Be sure to consult with a real estate attorney or expert to navigate subject-to transactions effectively.
3. Private Money Loan: If seller financing doesn't work out or isn't available, you can explore private money lenders for the $70,000 rehab and any down payment required. Private lenders might offer more flexible terms compared to traditional banks.
4. Hard Money Loan: Another option for financing the rehab portion is a hard money loan. These loans are typically short-term and come with higher interest rates, but they can be a quick way to secure funds for renovations.
5. Partnership: Consider partnering with an experienced investor who can provide the necessary capital in exchange for a share of the profits. This can be an effective way to tap into someone else's resources and knowledge while sharing the risks and rewards.
6. Lease Option: You could propose a lease option agreement with the seller, where you lease the property with the option to purchase it at an agreed-upon price in the future. This can give you time to build equity and secure financing.
7. Seller's Second Mortgage: In addition to seller financing, you can negotiate a second mortgage with the seller for a portion of the purchase price. This can help bridge the financing gap and reduce the amount you need to borrow elsewhere.

Remember to conduct thorough due diligence on the property, including a detailed inspection and analysis of the local market conditions. It's also crucial to consult with legal and financial professionals to ensure any creative financing strategies comply with local laws and regulations.

Lastly, continue educating yourself through resources like BiggerPockets and networking with experienced investors in your area. Your willingness to take action and explore creative financing options is a promising start to your real estate investing journey. Best of luck with your deal!

Quote from @Abednego Kashindi:

Hello, everyone! I've got a question for you. In June, I purchased a house, and we closed the deal in July using a conventional loan. Since then, I've been hard at work fixing it up, and our goal is to complete the rehab by mid-September. Now, my plan is to go for a cash-out refinance with this mortgage. I've been talking to a few folks about it, and opinions vary. Some say it's not possible, while others suggest that credit unions might be able to help with a cash-out refinance without worrying about a seasoning period. Does anyone here have any insights on this? Thanks in advance!. For the numbers, I bought it for $80k and the ARV around the area is $155K

Hi Abednego,

Congratulations on your purchase and your rehab efforts! A cash-out refinance can be a smart strategy to leverage the equity you've built in your property. Here are some insights and steps to consider:

Seasoning Period: Traditional lenders often require a seasoning period, typically six months to a year, before allowing a cash-out refinance. During this time, they want to see that you've made mortgage payments consistently and that the property value has increased.

Credit Unions: It's true that some credit unions and local banks might be more flexible with seasoning requirements. They often have more lenient lending criteria compared to larger national banks. It's worth reaching out to credit unions in your area to inquire about their cash-out refinance options.

Current Property Value: You mentioned that the ARV in your area is around $155K. This is a crucial factor because lenders will assess your loan-to-value (LTV) ratio based on the property's appraised value. The lower the LTV, the better your chances of approval.

Credit Score and Financials: Make sure your credit score and financials are in good shape. Lenders will evaluate your creditworthiness, debt-to-income ratio, and income stability.

Documentation: Prepare all necessary documentation, including proof of income, tax returns, bank statements, and details about the improvements you've made to the property. A well-documented file can help your case.

Lender Selection: Shop around and talk to different lenders, including credit unions, local banks, and mortgage brokers. Each may have slightly different requirements and offerings.

Loan Terms: Be clear about the loan terms you're seeking. Understand the interest rate, loan amount, and repayment period you're comfortable with.

Appraisal: Once you find a lender willing to work with your timeline and circumstances, they'll likely order an appraisal to determine the property's current value. Ensure that your renovations are complete before this step to maximize the appraised value.

Timing: While you're aiming to complete the rehab by mid-September, keep in mind that the cash-out refinance process can take some time. Be prepared for potential delays and align your plans accordingly.

Consult a Professional: If you're unsure about the best approach, consider consulting with a local mortgage broker or real estate attorney who specializes in investment properties. They can provide tailored advice based on your specific situation.

Remember that every lender may have different requirements and guidelines, so your success with a cash-out refinance may vary depending on who you work with. It's crucial to be patient, persistent, and prepared as you navigate this process. 

Good luck with your cash-out refinance journey!

Quote from @Travis Andres:

I'm guessing the 70% rule is to determine if you'd be able to pull all/most of your money back out on the refi (70% LTV max)?

If so, now I'm seeing lenders willing to do DSCR loans of 75% LTV, so then would I switch to say 75% Rule for analysis?

Thanks!

 Hi Travis,

You're on the right track with your BRRRR analysis, and it's great to see you adapting to changes in lending options. The 70% rule is indeed a common guideline used to evaluate BRRRR deals, ensuring that you can potentially pull most of your money out on refinance.

When lenders offer DSCR (Debt Service Coverage Ratio) loans at 75% LTV (Loan-to-Value), it can change your analysis slightly. In this case, you might consider using a 75% rule for your analysis to align with the new lending option.

However, remember that rules of thumb like the 70% or 75% rule are guidelines and not set in stone. It's essential to evaluate each deal individually, considering factors like your specific market, property condition, and your own risk tolerance.

Here's a quick summary of what you might do:

70% Rule: Use this as your initial benchmark to assess deals, especially if you're looking at traditional financing with 70% LTV as a goal.

75% Rule: When you have access to lenders offering DSCR loans at 75% LTV, adjust your analysis to match this new lending option. It might mean you can consider slightly higher purchase prices or invest in properties that require more rehab.

Custom Analysis: Regardless of the rule you use, always perform a custom analysis for each property. Run the numbers specific to that deal, including rehab costs, ARV (After Repair Value), and rent potential. This will provide you with a more accurate picture of your potential ROI (Return on Investment).

Talk to Lenders: Don't hesitate to consult with lenders directly to understand their specific terms and requirements. They can provide valuable insights into what works best for their loan products.

In real estate investing, flexibility and adaptability are essential. As lending options change, your analysis should evolve accordingly. Keep learning and refining your approach, and you'll increase your chances of successful BRRRR deals.

Good luck!

Quote from @Dan Kim:

Hello BP,

For the past 4 years, I've been listening/reading a lot about real estate, especially the BRRRR method, and want to commit to put it into practice. Every time I felt that this is the time, I would always press the pause button thinking that I have to learn more and be confident with every single step before going in. Whether it is trying to line all my ducks in a row, or being tempted to pay for courses I see on social media, I'm finding that time is flying by and I'm just spinning my wheels. From questions about how to find the right deal, to who is going to lend to me (private money lenders and refi's through banks), it can get overwhelming for a newbie.

Any advice would be greatly appreciated in terms of where I can start. Currently, I'm looking for wholesalers, private money lenders, banks, contractors, etc. to get started. Thank you!

Hi Dan,

I am on the boat as you are and I have been learning also. I completely understand where you're coming from, and it's common for aspiring real estate investors to feel overwhelmed by the initial steps. The BRRRR method is a fantastic strategy, but it can indeed seem daunting when you're just getting started. I started to take actions on the following steps and making incremental progress. 

Here are some steps to help you kickstart your real estate journey (in my opinion):

1. Education: While it's great that you've been learning about real estate, sometimes, too much information can be overwhelming. Focus on the basics first. Understand how the BRRRR method works inside out. There are excellent free resources online, and books like "The Book on Rental Property Investing" by Brandon Turner can be very helpful.

2. Local Networking: Start attending local real estate meetups, seminars, or join online forums like BiggerPockets. Networking is a powerful tool. You can find wholesalers, private money lenders, contractors, and mentors through these channels.

3. Start Small: Don't feel pressured to take on a massive project right away. Start with a single-family home or a duplex. The experience you gain will be invaluable, even if it's a small deal.

4. Financing: Understand your financing options thoroughly. Look into local banks or credit unions for traditional financing. Build relationships with private money lenders or hard money lenders. Having a clear financial strategy is essential.

5. Team Building: Building a reliable team is crucial. Find a good real estate agent who understands your investment goals. Connect with contractors who have a good track record. A strong team will help ease your worries.

6. Due Diligence: When you come across a potential deal, do your due diligence meticulously. Run the numbers, understand the local market, and ensure the property aligns with your investment goals.

7. Take Action: The most important step is to take action. Overanalyzing or waiting for the perfect moment can lead to inaction. Even if it's a small step like attending a local meetup or calling a potential lender, it gets you moving in the right direction.

8. Be Patient: Real estate investing is a long game. Don't expect instant results. It takes time to find the right deals and build a profitable portfolio.

Remember, every successful real estate investor started as a beginner. The key is to keep learning and taking action. As you gain experience, you'll become more confident in your abilities. Don't hesitate to ask more questions as you go along; the real estate community is usually very supportive. 

Best of luck with your real estate journey!