All Forum Posts by: Dylan Bennett

Hey Jessica,

I would say to avoid flipping, at least for now. My recommendation to you is to try and purchase a duplex, triplex, or quadplex in your area. Get a decent job and use that 80k for down payment on an FHA loan (3.5% down). You can live in one unit of the property buy and rent out the others. While doing this, work on finding contractors, agents, lenders, etc in your area and work on building up a team to help you in the future with possible flips.

Unless there is a reason you and your mother in law don't work, I would recommend you two finding jobs (respectfully) so y'all can get approved for loans with a bank. Once you buy your first property, wait a year and then do it again. Move into another duplex, rent out one side, and all of a sudden you are up to 4-8 doors.

Finding a great deal depends on what kind of real estate investing you are wanting to do. Once you narrow down a strategy that fits best with your financial situation, it will be easier to find a "great deal". I don't agree that the only way to get a great deal is buying under list price. There are many different aspects of real estate than can allow you to have a great deal.

As far as markets go, you just need to spend time researching different markets. How far do you want to invest from where you live? Do you have enough capital to buy into more expensive markets? Again, I recommend you narrow down your criteria to help you find the best deals for your situation.

Wholesaling in it's simplest form is someone who finds properties that owners want to sell for less than market value, for whatever reason. They then come to an agreement with the sellers to purchase the property, and then the wholesaler will find a new buyer (typically an investor). If this happens before the wholesaler buys the property, it is called "assignment of contract" where the buyer will pay a finders fee to the wholesaler. 

To you initial question, it is assigning contracts to purchase a property to a new buyer and collecting a fee for the sale of the contract. I hope this makes sense!

Awesome programs Matthew! I'll keep y'all in mind!

I am a big fan of the BRRRR method (Buy, Rehab, Rent, Refinance, Repeat). The biggest obstacle you'll face is finding a market where this is viable, and finding a good, reliable contractor. If you deploy your cash to buy a cheap property and rehab it you'll be able to refinance out and hopefully get most, if not all, of your cash back.

I recommend trying to find good wholesalers in your area that you can buy properties from. They typically have properties that need some work available for sale, or assigning. If you have any questions, feel free to reach out!

If you're going to allow pets in the property I think the laminate vinyl is the best direction to go. You get good bang for your buck as far as durability goes. Make sure to keep a pet deposit on file and a quality security deposit as well!

Hey @Scott Bidwell

In my experience, a good way to get your ball rolling with cash is to use that cash to secure a Line of Credit (LoC).

I have found this to work very well and gives me the ability for multiple strategies without having to use your own cash. Buy a couple properties with the LoC and Refi after. With this method, you'll more than likely have to leave some cash in the property, but you can start receiving rents to pay off the refi. I would recommend when you're looking to buy, look for a property to add some value and use the BRRRR strategy. If done correctly you can pull out enough money to pay off LoC and still have equity in the property.

I used this exact method to go from 0 to 4 properties in one year without being approved by a bank the typical way using income. Reach out to me if you have any questions, I'd love to talk you through it. The area you buy in will 100% matter. If you are currently looking in a more expensive area, I recommend looking in smaller, less expensive areas so you can expand quicker and grow that passive income.

Hey Jim,

I hope things are going well with the flipping side of your business! I'd love to connect with you if you are still in the Lubbock area!

Hey Devonne,

I would love to get on your buyer's list if you are still wholesaling. I am an investor/agent in the Lubbock area and would also love to connect.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $48,000
Cash invested: $90,000

A BRRRR opportunity which I found doing wholesale activities (cold calling and post cards)

What made you interested in investing in this type of deal?

I have been looking for an opportunity to do my first renovation/BRRR. Found this property by sending out post cards and decided to purchase the property.

How did you find this deal and how did you negotiate it?

Found this property by sending out direct mail. Negotiated the deal with 48,000 in cash (really a line of credit) and I'll pay the seller's typical closing costs.

How did you finance this deal?

I used a line of credit to purchase property

How did you add value to the deal?

I am remodeling the property. I am expecting to have around 35-40k in rehab costs putting me all in around 90k. I expect the ARV to be worth around 110-115k. Even if not, I will refinance out of the property afterwards to pay the line of credit off and whatever is left is what I'll pay cash to get off line of credit.

Lessons learned? Challenges?

I had a lot of learning for this property. The seller was a son of deceased parents that did not leave a will. It was a process trying to get to the finish line. I am also doing my first renovation thru this property so I am learning alot about what that side of things looks like.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with Emily Herring at True Title in Lubbock. All of True Title was great in answering what I needed and helping me cross the finish line.