Hey guys, this is my first real post, but I figured it's time that I start putting some content on here because now I know enough to give some decent advice, probably not the best, but I will help anyone out as best as I can.
Some background: I am a 19 year old math major at University of Delaware, and I have been involved in real estate for about 6 months now. I decided right from the get go that I would jump head first into the Real estate Investing scene and not get stuck in the "analysis paralysis" stage that always gets mentioned at any REIA meeting, and in every podcast I have ever listened to
The first step I took was to connect with my local real estate experts, so I became an ACTIVE (keyword active) member of my REIA and I also reached out to a local wholesaler and became his "apprentice" if you will.
So for the past 6 months I have been completely immersed in the real estate investing world, and I learned enough to make my first purchase. Now, Let me make a distinction. I did not "feel" confident enough to make this first purchase, but I knew I was almost there. As any good mentor will tell you, when you're almost confident enough is when you need to step out of your comfort zone and just get it done. So I did.
Flash forward 2 months and I own my first flip. From my six months of working with my wholesaler (He's a mentor of mine now), I knew how to evaluate a deal, write up contracts, and everything else needed for a property to change hands (notifying the water, electricity, and gas provider... etc.). My father was willing to invest in me, so I had the money taken care of, but I am confident that I could've gotten a hard money loan to buy the property because my numbers were rock solid. So All I needed was a contractor and I was ready.
I had managed 2 flips before I bought my first flip (I was basically the GC for both those jobs). For those two jobs I used my REIA connections to get contractor recommendations, and I used those recommendations for all the subs I needed. One of the subs was a General Contractor himself, and he came with a glowing recommendation from an investor friend of mine, so I hired him for my own flip.
The reason I hired a GC instead of doing it myself was for 2 reasons. 1.) School was starting, and with a full schedule it would be almost impossible to manage a flip effectively. 2.) I plan on owning a real estate company and have no interest in GCing any more jobs than I have to.
Presently the flip is almost done, we are on schedule and on budget, and I couldn't be more impressed with the work my contractor has done. Every day I learn something new, so I will be sharing everything I learn on posts. I plan on updating this thread at least once a week, or maybe I'll create a new post for every update.
Today, I had the contractor ask for his draw about 4 days earlier than the draw schedule said it was due. This was interesting for me because on one hand I'm here to make money, not be his best friend, and giving out money early is a bad business decision. But the more I thought about it i figured, if I scratch his back he'll scratch mine. So I gave him the draw early, it was only 4 days anyway, and the flip should be done in about 4 weeks. Maybe this will come back to bite me, but every failure is an opportunity to learn something valuable, so I won't lose any sleep over it.
If anyone has any questions just ask, I am happy to help in any way possible!
