All Forum Posts by: Chad Tate

As a newbie with limited capital from which to begin investing, and a Dave Ramsey fan, I'm struggling with how to justify REI knowing he teaches to do everything with cash, including REI. In fact, it would seem that any strategy I'd have to consider to get started would be 180 degrees from what he teaches (I'm liking BRRRR). He went from millions to bankrupt with REI so it's hard to disregard his experience and concerns.

Any help with thinking this through is greatly appreciated!

@Matt Vogt thank you for the quick reply information.  I'm still reading a lot and trying to determine what specific niche interests me the most, so I really haven't started researching my immediate area.  The opportunity I was asking about in my previous post just seemed to fall in my lap.  I'm a bit concerned that I'm in a fairly affluent area and the market continues to be hot around the Dallas/Ft. Worth area.  With limited capital to start with, I'm just not sure what strategy would work best to stay closer.  Any suggestions on good strategies in such a good RE market?

@Lenzy Ruffin, thanks again for the links.  I've been reading through them all evening and all were filled with great information!  I really appreciate the input both of you have provided.  I look forward to getting my feet wet and finding that first deal!

Thanks for the reply and links to the useful information. I'm still figuring out how to navigate the plethora of information available to minimize wasting people's time with questions that might already be addressed in other areas of the site! 

 The gentleman I met with is intimately familiar with his market (about 2 hrs away from me, however) and is convincing me with his wealth of knowledge and access to fantastic contacts (local banker familiar with the area, property mgmt. company that he has used for years, etc). Being a friend of a friend, I really get the feeling he's really wanting to help a newbie out with my first deal. He's telling me that with the right property mgmt. company, I have nothing to worry about regarding location and keeping it rented wit $300-$400 cash flow. 

I'll read all the links and may follow up with more questions.

I'm trying to wrap my head around the "70% rule" when buying from a wholesaler. Can someone tell me what expenses the rule includes? For example, if I take an ARV of $100,000 * 70% that equals $70,000. I then turn around and subtract rehab costs (let's say $15,000). But do I also subtract things such as expected holding expenses while rehabbing, my expected profit, what the wholesalers profit would be, etc?

Thanks!

As a newbie, I'm soaking up as much info as possible, but most of the wholesale topics I've seen are in regards to selling. Though I'm just starting the education phase, I have an acquaintance who knows I'm very interested in REI and is putting me in touch with someone who seems to be a wholesaler, as he's told him he "may have a deal for me". I may meet with him as early as tomorrow to hear what he has to say/offer, but he definitely knows more than I do. I'm wondering what questions are a MUST ASK to protect myself from any newbie mistakes? Again, sounds like he has a house he'd be wholesaling to me to flip or rehab to rent. I think I'm too green to be considering any deals just yet, but also don't want to pass up a good deal from someone who may very well be trying to legitimately help a newbie get started. I can give more details after we meet but would like to know some good questions to ask him. For what its worth, this guy has a wide range of REI experience over many years (not just wholesale). Also, sounds like this oppprtunity would likely be close to 2 hours from my home.

Any and all guidance is appreciated!

Chad

@Alfredo O.

Hello Alfredo. 7 deals in 5 months.....that's great! Thanks for the encouragement!  Hope I can jump in soon.

Thanks, @Chris Gates!  I'll keep you in mind, especially since you're relatively close.  I'm a sponge right now soaking up as much info as I can.  Once I know enough to know what I don't know then maybe I can start asking some pertinent questions ;-)

Good luck to you guys, and thanks for the welcome!

Thanks, Jaren!  I'm eager to learn more and jump in with the right strategy for the current market.  Good luck with your investments!

Greetings everyone! I'm a pilot currently living in Grapevine, TX and am new to REI. I've always had an interest in real estate but never took the time to learn more about it. I've recently gotten a renewed excitement for investing with hopes to supplement my income while learning more and more every day. For now, my initial interests are in flipping and wholesaling. I likely don't have the resources to buy and hold at this early date, but that's a future interest as well. Regardless, I'm excited, eager and committed to become successful.

I've started with BP's free course, which is fantastic!  I've also started reading as much as I can and becoming more and more familiar with the plethora of information on BP.  Seems like a great community and I'm looking forward to meeting and working with others in similar situations.

My first concern is with how hot the market continues to be all around my local area, along with the coming election and turmoil in the EU with Brexit, etc. Doesn't exactly seem like the best time for a newbie to be jumping into REI, but I'll continue to read, question and learn before jumping to conclusions.

Thanks for taking the time to welcome another newbie!