All Forum Posts by: Kaitlyn Aragon

I read a great story of a guy that was the mayor of a town in California. He left politics and moved to Austin where he had no family or friends, got his license, and started heavily marketing in a few communities he really liked. He was the top agent in that community within one year.

You can definitely make it work if you are willing to put in the effort.

Being an agent is Self employed and owning a business. With starting a business it will often be 6-12 months before it is consistent especially starting completely fresh. If you want to become an agent you will need to dive full in and not give up. It takes commitment but is well worth it. If you want to work with investors I would invest into cold calling to find deals and then sell them off market to investors. You will need to learn how to run comps, figure out what rents are in the area and build connections to PM's, GC's, etc. You can also look on market for deals but cold calling can accelerate your business. There is also plenty of other ways to get business, you can do open houses, use social media, door knock, etc. Options are endless, pick one and hit it hard. Best of luck!

Don't go chasing other licenses. 

This might sound harsh but not intended to be. 

You said you have 3 years of educating yourself in RE but no deals under your belt. What are you waiting for?

If it is capital for a downpayment that makes sense. But if not, it seems like youre really only holding yourself back and trying to fill in the gaps with licensing, mentorship, and other time consuming activities besides actually investing in RE.

If you qualify and can afford it, just get yourself a primary residence and househack. Trust me, you won't feel bad, especially because it is a home for yourself + an investment. 

Of course, buy in a good location, don't buy and absolute dump, and get in touch with a solid Realtor in the area that can guide you.

Stop putting it off, and take action. 

Best of luck!

I get a real Alice in Wonderland vibe from your situation:

Alice: “Would you tell me, please, which way I ought to go from here?”

The Cheshire Cat: “That depends a good deal on where you want to get to.”

Alice: “I don't much care where.”

The Cheshire Cat: “Then it doesn't much matter which way you go.”

The key is to define your end goal and work backward from there. Otherwise, you might find yourself going in circles, much like studying for the GA RE license course all over again.

Focus on where you want to be, and the path will become much clearer. Good luck!

 I know a year may seem like a long time, but remember real estate investing is a long game. When I got my first duplex using a 203k, especially it being a fixer upper, the renovation alone took almost 8 months to complete. I wasn't in the property very long until I had the ability to refinance and continue on my journey. 

Dollar for dollar its the best way to start and your money will go a lot longer in the long term. 

As far as finding properties off market, I wouldn't focus too much on wholesalsers if you're looking to do a 203k or homestyle reno loan. I'd focus on agent outreach. Go to zillow and sort by lowest prices in your market. Call every single listing agent (include pending sales) and let them know your criteria. Keep them on a list and follow up with them. If there are agents that are receptive, invite them to coffee or a lunch and build those relationships. 

My flipping business was entirely built on agent relationships. At the end of the day they're the ones that get the lowest hanging fruit. 

Other off-market strategies work, but you have to be willing to put the time, money, and effort into sticking with it long enough to see results. 

 Hi @Kaitlyn Aragon - what tools are you using to analyze deals? The BP pro tools? Others?

Hey Kaitlyn,

The first one is always the hardest. So it is easy to get stuck in the weeds on the financing so here is how I see it.

I think 40k would be enough to get started on the right deal. I would anticipate when you are starting out to look in the $120k or less purchase price with a lighter rehab and always a good healthy ARV if possible. Overall though, it is always easy to find a HML, but it might not always be the best fit.

As for the strategy post-rehab. You want to find lenders who work on a similar time-frame as you. Most lenders require that you wait about 6 month to refinance your property to get some of that initial funding back, but "seasoning" would be an element of your long-term (DSCR) time frame to consider.

Overall, I would recommend the strategy that works best for you and your lifestyle. If house-hacking isn't your thing, then maybe BRRRR is, or even just identifying buy-and-holds to just start getting some kind of cash flow is an alternative as well.

Happy to help where i can, good luck!

What recommendations do you have in putting a proper investor package together in order for other investors and lenders to be able to analyze a deal and make a decision?

@Kaitlyn Aragon

i think i posted in your other thread, but did you rule out house hacking, or a live in flip?  i can't remember.

a big flip is just a very risky way to get started... a house hack or a live in flip are lower risk (not no risk, but lower risk.)

miscellaneous reactions

-you don't buy a flip with a DSCR loan - if you converted it to a BRRRR, you would refi into a DSCR loan.  you'd use the DSCR loan to pay off the hard money loan.

-"if you find the deal the money will find you" - once you're an experienced operator, not on your first.  so yep, don't trust that.  

-no one is going to save you if you buy a bad deal.  you'll have to pay back whatever loan you take out.  say you think you can sell for 300K or whatever the case is, but comps are at 250K when you're done.  that hard money loan is still due.  period.  they couldn't care less that you misread the comps - you'll have to cover whatever the difference is with your own cash.

-the best flips generally are not on market. so if you're looking at on-market deals with an agent... you're probably wasting your time. once a while something will come along and go on the MLS but in general distressed properties are sold off market.

-it's not just about losing money, it's about time and effort.  say you budget for a 3 month rehab and it takes 7 and you break even after you sell.  great, you haven't lost money... but you wasted 7 months.

hope this helps