All Forum Posts by: Matthew Nixon

@Daniel Townsend

That's a very good idea as well. One thing I considered doing was beginning a apprenticeship in electrician at the local JATC. I still have to pass the aptitude test and then an interview. The test will be in August some time. Pro and con of that move:

Pros:

• I can get paid to learn vs. paying to learn
• Financial stability and good benefits
• Learn a trade that could possibly help me do my own rehabs
• It's a mobile job that I can take with me anywhere in the country

Cons:

• it's a 5 year commitment in the apprenticeship
• Doesn't leave a bunch of time to look for deals

I also really wanted to get my real estate license. I don't know if I can be a realtor, electrician, investor. Does that seem feasible? The way I look at it is being an electrician can carry while my realtor circle expands and basically forces me to go full time realtor. As my realtor business takes off I can hone in on investing to supplement my retirement. 

Thoughts?

@Michael A.

Thank you for that brother. You have inspired me today to keep my head up and stay positive. Just because now isnt a good time doesn't mean my time won't come. I love this forum.

@Michael A.

You speak wisdom there as well sir. You are right. I don't have any cash reserves. I think I may have drank a little too much of "other people's money" kool aid. I need ti focus on getting my finances in order so that a mistake isnt crippling.

In the mean time I will still keep my eye out for abandoned homes. Maybe a wholesale or 2 is possible with less risk?

Thanks for your response.

@Jonathan Bombaci

This is true. That 105k is a HUGE reno. I want to get out of the starter blocks so bad but I really need a more sound approach. You're right if something were to go wrong on that project I'd be in a really bad hurt lock.

I haven't even invested yet and my head hurts lol. So much to consider. But I do want to be successful. So back to the drawing board I go.

@Chris Szepessy

Good advice. There is an investor meetup group here that meets 2 times a month. I think I will try to link up with a few. Thanks again.

@Mike McCarthy

I have wanted to be a realtor since we first bought a house. We had a really good realtor, she was professional, she listened, and in our opinion she was what we needed. I have always wanted to help veterans and families, especially first time home buyers the same way she helped us. So for me the RE license was always a forgone conclusion. 

At the end of the day I see myself investing as well as being a realtor.

@Mike McCarthy

The BRRR formula always sounds great. I need to read the book completely. I think i may just need to pump my brakes a little bit and focus on one thing at a time. I want to get my real estate license and up where I live a lot of realtors invest on the side.

Maybe that is the best win win scenario for me. If I can be out in the field more learning from other agents that I trustmaybe that will lead me to learning how to invest safely.

Do you guys think that is a smart way to approach investing?

@Jonathan Bombaci

There is a property about 20 mins from where I live. I feel like I'm running solid numbers however, the project feels big and risky. The numbers look good but I don't have the lender portikn yet i.e. how much interest and or points I will be charged. I know its about 105k on repairs and renovations including a 20% buffer for something to go wrong. But still I feel its a big project and may be out of my leagues. Foundation issues and all. Definitely not a 90 day project in my opiniion.

I want to be successful so bad. I feel like I'm about to the point of information overload and ready to get my feet wet, but I need to avoid as many mistakes as I can especially for my marriage sake.

Typically are the quicker fixer uppers more expensive to get into?

Thanks for your response and your time.

@Chris Szepessy

Thank youd for your response. I can definitely see the wisdom in working with an experienced flipper. I guess I just worry that no one will want to work with the newb. Plus maybe they will only see me as the competition.

What are some ways to track down flippers? Thanks again for your response.

So my wife and I engaged in a pretty heated conversation. My wife is amazing, but we are simply wired differently. My wife is totally ok with punching a clock Monday through Friday, the slow grow of a 401k, and possibly being miserable at a job if it means security. I have the same goal of security, however, a different approach towards it. To a person like me, investing in real estate makes great sense and is a calculated risk. To a person like her, all she can see is the risk. 

Please advise... I understand that taking on rehab investments comes with risk. I have no cash flow yet thus any project I take on will be on loaned money. I imagine that a few of the obvious risks with doing fix and flips is:

• There is a delay in the rehab and it starts to eat into profit margin, or possibly even into the negative
• The house doesn't sell as soon as expected or in the allotted amount of time
• The rehab is finished and the appraiser low balls you upon the house being purchased thus effecting your end profit 

Here are my questions:

1. What are other, if any, risks in fix and flipping?
2. Let's say everything goes to hell and all the cushion you left/calculated for yourself for holding costs etc. is exhausts? Like, let's say you calculated 6 months, but after 8 months the house still doesn't sell and you can no longer make the payments to hold the property, what happens then?
3. Will the lender put a lean on the now renovated house?
4. And last, I want to ease my wife's mind, in order to do that I need to know and understand how to protect my personal finances and assets from being involved? Will an LLC protect my family and our home? Do I need to put our home and finances in a trust? I guess I'm asking how do I protect us from a failed project?

Thank you anyone who takes time to read and respond to this.