All Forum Posts by: Carl Dispoto

After reading multiple investing strategies via BP books and blog posts, it feels like house flipping might be the best entry for me for a number of reasons.

It won’t conflict with any work I may do as a realtor with my brokerage, it’ll combine my interests in investing and building, and I won’t have to be a landlord, which at the moment I have no interest in being.

I have a number of questions though on how to start on this journey so any feedback would be helpful.

1. Where do I get the money?

I’m currently collecting NY unemployment while doing freelance work and starting my career as a realtor. I have a savings account and a somewhat substantial 401k. I was intending on taking a 401k withdrawal to pay off a little debt and cover some living expenses so I can focus on my new career. Do I take out a little more to start investing?

2. Do I start myself or join someone else?

Is a better idea to start looking for properties and acquire them myself or find/team up with an experienced house flipper and invest the money with them, assist in the process to learn how it’s done, and collect a return on my investment?

3. Do I use separate funds?

When house flipping, would I keep the funds in a separate account from the joint checking I share with my wife for bills, expenses an regular paychecks?

4. Can I use my realtor skills to help flippers find houses?

It seems as if it would be beneficial as a realtor to connect with house flippers to find good opportunities in the market early. Call the flipper, show them the property, make the sale. You earn the commission, they get an investment to flip ….. everybody wins.

Does anyone have experience doing this?

I’m sure I’ll have tons more questions as I keep learning so thanks for bearing with me

From what I've read about wholesaling I have little interest in it. Flipping seems the most attractive for me because it combines aspects I am interested in, which are finding good property and renovations.

Elaborating on my OP, if I'm working as an agent for a relator but also on the side buying/flipping houses or the BRRRR method, is that in any way a conflict of interests that my broker would not allow?

Again, I am just starting. I'm going to work for the broker to learn the business but I'm wondering at some point I am going to face a fork in the road where I will have to choose between working as an agent or being an investor.

I passed my real estate exam about a month ago and am just waiting for my license to arrive from NJ. I have already started the process of working as an IC with a nearby brokerage that does residential, commercial, property management, investment, etc.

In starting my BiggerPockets reading, I notice of their guidance revolves around getting into real estate independently or with a partner, perhaps forming an LLC. It does not mention whether having an IC relationship with a brokerage is beneficial or detrimental.

So, what are the thoughts on this. I feel like working with successful, multi-facted brokerage would be a great learning experience to prepare for perhaps doing it on my own in the future. Is it allowable to work with a brokerage while also handling some real estate investment deals independently? Os is that a conflict of interests?

Any feedback would be appreciated.

@Collin WIlkinson

I know that the CARES act, which expires at the end of the year, allows for the 10 percent penalty to be waived AND you can defer the tax penalty over three years.

However, whether or not you qualify for those provisions depends on certain factors. Definitely ask you accountant.

I am currently awaiting a response from my own accountant on this question.

About 18 months ago, a childhood friend of mine became business manager at a real estate brokerage one town over from me. His brokerage runs a real estate school and he told me he could waive my cost of admission for the classes to get my license and work with him. I had been in the same thankless job for a decade and a half and it was getting me nowhere.

Shortly thereafter, my mom got sick and passed away, and I decided to take the leap. Started my classes in November of 2019 and was scheduled to take my test in March 2020 when the pandemic hit. All tests were cancelled/postponed, I started working the thankless job from home and my daughter's school shut down.

Finally, I was able to take my exam online in October and passed! Ten days later, the thankless job fired me after 16-plus years, graciously giving me a severance of four whole days.

So, I sat there staring at an uncertain future. No job, wife working part time, too much debt to handle, health insurance set to expire at the end of November. While I wait for my license to arrive, I decided to devote all my non-job hunting time to reading real estate books and the first one that came from the library was "How to Invest in Real Estate" by BiggerPockets.

I ignored their plea to sign up for this site in the intro. But then I got to chapter two, which tells of a "horror story" that sounded familiar. "Nice family ... money drains out faster than it should ... If only I could get that raise ... husband and father loses his job ... inside, they are dead."

My blood ran cold. This chapter intro summarized my past, my present, my potential future and chilled me to the bone.

So now I am here because I refuse to go gently into that good night. I am ready, willing and able to make this happen. I worked hard, overnights, for years at a company that underpaid and underused me. 

I have my license. I have my purpose (my "why"). Now I just need my strategy. So ... I'll keep reading.