All Forum Posts by: Ryan Verbist

Hello Bigger Pockets, 

It has been a while since I posted in here. I am posting to see if anyone has any tips / guidance with this particular situation. I just got my real estate license and have been working for a luxury home builder in Manhattan Beach, CA doing construction for the last year. 

I am looking to leverage my real estate agent commission along with an FHA loan to get into a multi unit residential building for the least amount of money down so that I can use my available cash to remove tenants and fix/flip the property. (BRRRR)

I am currently fixing my credit which might be an issue for additional constructions loans, etc. 

The area of Los Angeles I am looking to buy is: Venice, Mar Vista, Culver City, Del Rey, and Playa del Rey.

Other notes: My current brokerage only takes a 5% fee from my RE commissions, I have access to extra money through friends and family if I really need it, I also have taken on a lot of risks in other businesses not RE related so I don't mind being very under leveraged temporarily when most people might think this is crazy. My mentor at my brokerage is also on vacation for the month which is why I am posting here for some immediate advice because I am very eager to jump in while a lot of people are scared.

Lastly, some people might say I won't be able to get this done, however, I can be very resourceful in finding ways to make things happen. I am also really excited to dive into the Real Estate business despite the current market conditions / future predictions.

Thanks again. Any tips or comments would be greatly appreciated. 

Ryan

@Kenneth McKeown

Hey Kenneth,

So I just graduated college in December and have been doing business in Dallas for about 6 months now. I see that Dallas in next few years is going to be hot spot based off my research and experiences there. I usually spend about 4-5 days each month in Dallas meeting with clients and have a very flexible schedule that is leading me into real estate. 

I have a phenomenal lender and ability to close fast. I have a great source at the bank sending me cheap bank owned deals daily. And my best friend from childhood just expanded his commercial construction company from Los Angeles to Dallas. On the construction side we have 2 divisions for single family residences and small multifamily. Division 1 makes the bones nice and healthy. Division 2 make the house pretty and authentic. 

I understand the complexities of flipping and what I'm getting into. I have project managed 2 luxury beach-front flips in Manhattan Beach, CA.  I come from a very problematic space outside of the Real Estate world that makes single family residence construction quite appealing given the problems associated with it. 

Whether I sell or hold onto properties will depend on my calculations, but I am set on the Dallas market. I have a great system in place to make some good money in real estate out there.

The main thing I am looking to do right now is connect with some agents in Dallas to look for really good deals and also learn more about the different suburbs of Dallas to start analyzing trends and flow. One thing I do not have is a phenomenal property management company..

I hope this provides a bit more clarity! Thanks for writing me Kenneth.

Warm regards,

Ryan

@Eamonn McElroy

Hey Eamonn,

Thank you for taking the time to respond to my post. I appreciate the advice and feedback! 

I think that the Atlanta market could be a fun and interesting market. I will have to look at some deals over there.

Ryan

@Matt M. Hey Matt,

How is the fix and flip market in the Northern Dallas region? I am analyzing deals around the Plano area.

Do you see any increase in home sales in this region?

I am looking at 3bed 2bath deals for $75k to $150k and trying to gauge a solid ARV using recently sold new construction. So far I have found ARV on new construction to be 200k-250k for 3bed 2bath and about 300k+ for 4 bedroom 3bath, which would be a 1bed 1bath addition for what I am looking to purchase.

I have seen big interest in Dallas coming from where I live in Los Angeles because of the 90% reduction in home prices compared to where I live. I have multiple friends that have also relocated their businesses to Dallas, Texas specifically for tax purposes. On top of that, a distant friend of mine is raising 9 figures for shopping center downtown Dallas. 

Combine all this with Uber and Toyota have already relocated their headquarters there.. As you can see I am extremely interested in the residential market whether it be fix and flips or Brrrrrs. 

Any input on the residential market in and around Dallas would be extremely helpful!

Thank you,

Ryan

Hello BP!

I am a young business student that has just graduated college. I currently live in Venice, CA and am going to commit to my first real estate project. I have a good make here in LA however the barrier to entry is quite expensive. I come from door to door home improvement sales background followed by a 2 year internship for a VP at Lee & Associates going door to door finding industrial real estate buyers and sellers. I am familiar with the brokerage side of things which got my in the door with real estate, but have always enjoyed building and getting my hands dirty leading to a fix and flip. 

With some money saved up along with some private money help, I am looking to find a profitable market to enter where I can get my feet wet with 3 bedroom 2 bathrooms remodels and eventually work my way into some bigger deals. I thoroughly enjoy my life in Los Angeles since I surf each day and spend a lot of time in the mountains, but feel my 100K budget would yield me a higher return in the DFW market where I am already doing other business.  

Does anyone have any solid advice on entering this DFW market versus finding a way to get into the Los Angeles market with high financial entry barriers?  Furthermore, does anyone suggest any other markets that would be profitable yet still fun for young person in their 20s?

I have been so thankful to come across this Bigger Pockets community and have already learned so much. Thank you to everyone!!

Warm regards,

Ryan

Love it! Thanks again Will. And I appreciate the bit on emotional intelligence. Wise words.

Ryan

@Tj Hines

Thank you for taking time to write me. I really appreciate that and will make sure to educate myself thoroughly on the market I choose to enter. I also like what you aid about the team playing a huge roll and being key. I am eager to jump into a deal and challenge myself. I appreciate the advice.

Thank you!!!

Ryan

@Will Barnard

Thank you again for that last piece of advice. Looking back that was not the brightest idea. Just really excited about the subject matter. Will make sure to remember that in the future.

Ryan

@Will Barnard

Thank you for the informational post! Much appreciated and definitely need to figure out what type of real estate investor I will want to be given the pros and cons of different strategies and markets. 

Thanks again,

Ryan

@Michael Ealy

Thank you Michael for such a comprehensive plan of action. I really want to hit this Dallas, Tx market because my best friend from childhood's father has just expanded his industrial construction company from Los Angeles to Dallas, Tx. I feel that with a hands-on approach and tenacious work ethic that I will be able to BRRRR that market well. I also have access to some of the best residential and commercial agents in the area. I have two champions between construction and agents, however, I will need to find my lending champion and property management champion hopefully through my agent.

One thing that worries me is high income tax in California combined with high property tax in Texas! It sounds like a lot of money, but I am fortunate enough to move their and be the boots on the ground if that means more money.

Thanks again for such an informative post. Congratulations on your real estate empire! It is incredibly motivating and comforting to be able to interact with players on your level and learn from people like you that have really done it!

Thanks again. Time to assemble the team and break down some deals !

Warm regards,

Ryan