All Forum Posts by: Spencer Cornelia

@Blaine Conley why not get your license in the market you're looking to invest in? If you're planning on flipping, the sales commission from the 3% on the back end should be $3k-$5k in addition to any profit you make. $5k should be your profit if the rehab goes over budget and takes longer than expected to exit.

@Alexander Felice Just imagine how many more units and properties you'd have if you spent time marketing for properties and less time at the barber shop

@Blaine Conley she bought those back at the bottom of the market IIRC.  That return probably exists today but takes a deep understanding of a market and the team setup to take the deal on and there is way less supply.

I'm in the middle of my first two flips, which happen to be 2,000 miles away from where I live.  I bought two good deals on paper but because of capital issues and really brutal Hard Money terms, I'll walk with much less profit than anticipated.  Thankfully, I'm going to take what I learn and improve my system.

You can absolutely do it.  The downside is much greater not being there since you can't keep YOUR EYES on it, which happen to be the only eyes that truly care about the progress, status, and quality of the work completed.

@Blaine Conley the risk is not being there and not being able to properly manage the rehab.  I would highly recommend building up a team of multiple people (investors, wholesalers, agents, lenders) first before considering rehabbing out of state.

You mention buying properties for $5k.  This is a recipe for disaster.  There's a reason they're only $5k.  And who do you think is going to go do the work?  It's going to be difficult finding contractors to go in the roughest areas in their city to rehab a $5k home for $20k amount of rehab for a person that's living out of state.

Save up your money and invest in a better housing market. 

@Brigham Lewis your head is already in the right place by looking into investing at the age of 17.  You're so far ahead of the curve.  Watch Gary Vee videos about patience.

I'd highly recommend going to college.  I've met too many beginners in this game who are desperate for deals and don't have money.  Why don't they have money?  Because they work a job/career that doesn't pay well and they don't have expendable income to invest.

How do you solve that problem and not be stuck in their shoes?  By getting a degree.  During your 4 years, learn about real estate.  At some point, buy a house using creative financing and rent the rooms to roommates.  Simple and easy.  And just like that you're in the game before you even graduate college.

And when you graduate, you'll be able to attain a job/career that pays decently well and the w2 will give you much easier access to loans.  Which if you know anything about real estate, loans are necessary to get started in this game.  You'll be way ahead of the curve.

@Isaac Johnson if you have limited capital, are a beginner, and don't have many options, there isn't much better than a small multi family.  I personally think a house hack with 4+ bedrooms is just as efficient and you may be able to get better tenants (roommates) by purchasing a single family home in a better neighborhood.

Here in Vegas, the small multi families are in areas even I wouldn't house hack.  And I can muster living in low income areas for cash flow.  So if you were in Vegas, I would argue that small multi families are not a good investment for someone starting out.  A 4+ bed house hack would be best option.

@Gary Barella that's a really good strategy however I'm exactly 2,000 miles away from my market.  So I have to rely on referrals.  This is partially why I'd like to lean more towards an official construction/rehab company with a legit place of business, website, social media page, etc.

Do people willingly give away their contractors?  I can't imagine letting a good contractor try to work for a competitor (assuming I'm giving him enough work)

@Wesley Davis would they take on $30k-$60k rehab projects?  I'm assuming there's at least one in my market that will.

IMO I'd rather pay more for guaranteed work, completion with few headaches, and very timely completion.  My first two flips are taking significantly longer than they should and costing me a lot each month so I'm thinking that a more professional company finishing a rehab in half the time is worth every penny.

@Brandon Carriere Yea I will be taking the side of 'stay-away' from the Vegas multi families moving forward.  I'm glad I got the experience when I did, because had I entered the game a year later and acted so desperately to get my first multi family, things would have turned out much worse.

To be fair, by the time I purchased this, I knew it was worth around $300k-$310k so I didn't really profit too much from the mania.  Had I ran it better, I would have.  First deal learning lessons.

I feel really bad for new investors looking for Vegas multi families. The only good ones I've seen are starting to reach $400k which is way out of price range for a lot of FHA Bigger Pockets house hackers.

I am in the process of finishing up my first two flips.  I used a general contractor for each of them.  Moving forward, I would like to connect with other contractors who can complete rehab projects for me.

Should I continue looking for GC referrals and use solo GC's?  Or should I start looking into Construction companies?

In Facebook groups, I see people referring legit sounding companies to do the GC work.  I'm talking about companies with real websites, what appears to be multiple employees, and facebook groups that look credible.