All Forum Posts by: Mike Garland

I am a new member to BP and have not done any real estate investment deals.  I have experience financing them at the Bank I work at, but that is it.  

So I was visiting with a real estate investor acquaintance over lunch a week ago about wanting to become an investor.  We talked about the ins and outs and she informed me that she was going to wholesale a deal that came her way because she did not have the time to rehab the property.  

I told her I was interested in looking at the deal.  We met at the house which had been vacant for about 4 years.  It is a 3/1 and it needed work.  She was estimating about $15k-$20k in repair costs.  We walked the house and she explained that she was going to prehab it over the weekend (this coming one).

The property is not near my work or home, but in the same city.  It is lower middle class but the area is experiencing growth.  

I decided to meet with a real estate agent a few days later to discuss my plans for starting real estate investing.  I had already convinced myself to not do the deal on the vacant 3/1.  My agent recommended that I not discard it yet.  He said he would run comps in the area as well as introduce me to a good general contractor.  He recommended that because of the location, that a flip would probably be the best course.   The GC called me later that evening and we spoke for about 30 minutes discussing his experience, the project and other items.   

So now the plan is to meet at the property next Thursday with the GC and the agent and look at what needs to be done as well as various options.

I am definitely feeling the butterflies but in a good way.

I am still trying to decide whether to use my own cash (I have just enough) or to use other financing. I know I need to lock down the financing decision soon.

I am also in the process of reading "FLIP" and it is giving me a good base understanding of the process.

Will keep you guys posted.

Jeff,

Subscribe to the BiggerPockets Podcasts and start listening to them.  They are a wealth of information.  I have been absorbing them and have heard numerous episodes that address your very question.   

Check it out.

https://www.biggerpockets.com/renewsblog/category/...

I agree with what Leland said.  Be careful, especially if you have other siblings.  I would visit with an attorney first and discuss your options.  I think it can be done.  

Dan,

Depends also on why you want one. If you plan on doing any type of conventional borrowing, I would suggest that you prepare your evaluation based on what the FDIC expects from the banks concerning real estate evaluations (loans $250k or less can forgo the expensive real estate appraisal and get a commercial real estate evaluation instead - assuming one can be constructed). While one that you do yourself will not be able to be used by the Bank, it will at least allow you to evaluation the property based on those guidelines the FDIC expects. https://www.fdic.gov/news/news/financial/2010/fil1...

@JP Gips talk to Rich, but also, reach out to owners of RV Parks.  I may be able to refer you to someone.  

@rich 

@Rich Ferradino good to see you on here.

@Stephen Shaw - USAA insures it because it was your former residence, yes?  I ask because I have USAA and have not checked to see if they provide insurance on any rentals I may own.   I think the answer is no, but not sure.

@Thomas Franklin - great post above - thank you for sharing your formula, helped me think of a few items I had not considered!

Welcome @Denise Mayen!  I am a newb here as well and have experienced good reception for the little time I have been on.  Also went to my first small investor meetup as well and met some BP peeps, including @Tim Macy above.   

From one real estate newb to another (I have been on BP for less than a month):

• listen to podcasts
• Go to local investor meetups
• Work on getting that first deal - what I am doing at this time!