Hey @Raheem Mcmillan, welcome to the real estate journey! It’s fantastic that you and your wife are diving into this together—especially with her passing the real estate exam. You’re already taking significant steps by building your credit and getting creative with financing options like wholesaling. I’d love to share some insights that might help guide you as you build your business and investment strategy.
Step 1: Focus on Building Relationships
Since you're new to the game, leverage your wife's new license and start networking with local investors and realtors. In the Bloomington-Indianapolis market, establishing these connections can provide you with off-market opportunities, mentoring, and invaluable advice from seasoned pros. Attend local REI (Real Estate Investor) meetups and consider joining online communities like Bigger Pockets for continuous learning.
Step 2: Be Strategic About Wholesaling
Wholesaling can be a great way to generate capital, but it’s essential to fully understand the legal and logistical intricacies. You’re building a brand around education and ownership, so transparency and compliance should be top priorities. Make sure you have your contracts reviewed by a real estate attorney to avoid any pitfalls.
Step 3: Utilize Business Credit
While building personal credit is a must, consider establishing business credit simultaneously. Open a business checking account, obtain a DUNS number, and look into setting up accounts with companies that report to business credit agencies (e.g., net 30 vendor accounts). Strong business credit can sometimes offer more flexible financing options when starting a real estate business.
Step 4: Leverage Your Knowledge
As a business management major, you have a unique perspective and skill set that can add value in a competitive market. I suggest creating content (blogs, short videos, etc.) around financial literacy, credit-building, and real estate investing aimed at first-time buyers. This can help establish your presence as a thought leader while you’re getting your feet wet in the industry.
Step 5: Don’t Rush Into Deals
It’s tempting to jump in and snag your first property, but take the time to do your due diligence and market research. The Bloomington-Indianapolis area has diverse submarkets, and identifying the right neighborhoods with growth potential is crucial. Make use of tools like PropStream or Zillow’s market analysis feature to assess property values and rental potential.
PS: Did you know that Indiana has one of the lowest property tax rates in the country, making it a relatively cash-flow-friendly market for new investors? Definitely worth leveraging as you start building your portfolio!
