All Forum Posts by: Tom Hacku

@Account Closed Great points. I think as someone who's new to real estate the shiny object syndrome is real and contributes to analysis paralysis. Right now I've been focusing on building the foundation of my business and getting my team/contacts established. Practicing running numbers has been critical in learning what a good deal looks like. But all of this in preparation for finding a single family home 3/2 900-1300 sq ft in the greater Richmond area at around 70%ARV minus rehab.

While I'm trying to network with as many wholesalers and investors as I can, the dilemma is that the way to find the best deals is often to start going directly to the seller myself via direct mail, door knocking, etc especially in this market. But I recognize this isn't where my strong point is right now and I'm spending my time continuing to build relationships and making sure I can execute the rehab and flip/rental end of the deal. Will this change in the future? Probably as I continue to grow and look to take lead generation to the next level. But I figure I don't necessarily need to start approaching deals like a wholesaler right now otherwise I'd be spreading myself too thin and contributing to the shiny object syndrome. I just wonder if this is pretty common for people starting out

Hi @Margo Fairchild good to see you're taking the leap! I'm also new to investing in Richmond and I'm finding that attending local meetups/REIAs whether in person or via zoom have been a huge help. Check out meetup.com for some events and if me and a few other newbies in RVA get together in the near future to talk real estate we can let you know

@Arun K. Check out Biggerpockets.com/calc. Choose whichever one fits your strategy and if you're not sure on the strategy, work to figure that out. Then read the How to Invest in Real Estate: The Ultimate Beginner's Guide to Getting Started by @Brandon Turner which should have the rules of thumb in there (free pdf download if you google it. Or just google 1% rule). Listen to all the podcasts. Invest your time into education and mindset. Read Rich Dad Poor Dad. 

@Arun K. South Richmond can be very block by block so unless you are familiar with the area or have boots on the ground I recommend looking elsewhere, as others have mentioned. But I will say you're on the right track asking questions and networking. It's an area that has growth potential down the line. If you're not familiar with the 1% rule or some of the other rules of thumb definitely look those up because knowing your numbers and budgeting for them will be very important (use the BP calculator!)

@Tara A Riggins Hey Travis, definitely comb through the forums because there's a lot of great information from people doing deals in these areas, two on this thread already for RVA. Attend as many meetups as you can and dedicate your time to learning numbers on financing, rehab, and ARV as best you can. As a fellow newbie, I've found that a lot of experienced investors are more than willing to help out which is amazing but it'll be hard for someone else to say what numbers will work for you. Hope to cross paths in the future!

@Jordan Thompson My thoughts are to first look at getting a good real estate agent that can help you find a property that is priced under value, whether on market or off market. It sounds like single family is the easier to find option in your area, which is perfectly fine. From there you can see if your realtor knows a good lender that can give you some good options on financing. For example, when I bought my first home in TX we did 3.5% down conventional. On our new house in VA, we're doing 5% down. But see if there's any first time homebuyer programs in WV. While I have not done FHA, from what I hear is that there is a lot more red tape involved especially with the 203k but you can definitely make it work like some of the others on this thread. Keep in mind any eviction challenges with an FHA loan though. Once you get the property, add value (bathrooms, kitchens - new paint can go a long way) and do the live in flip after a year or feel out the house hacking strategy along the way. The lessons I learned from my live in flip were invaluable. Just remember that your first deal isn't going to be what makes or breaks you, but the ability to take action is

Hey @Parker Chrisman! I'm also new to investing in the Richmond area, looking to acquire my first single family rental in the Nov/Dec time frame. I definitely recommend checking out meetups in the area on meetup.com. Also if ever interested, me and a few other new investors have gotten together to basically talk real estate and work through some of the newbie questions we have. I'm currently out of state but when I get back if we meet up, I can let you know

My thoughts are to start with what your vision looks like then work backwards. I think a lot of it is goal dependent and based on what you want to accomplish long term. If you want high cash flow then put it all toward one rental and take advantage of 0% down. If you want to lower your monthly payment on your home then maybe spread it out a little bit. If you want to acquire a bunch of properties see if you have enough for a 20-25% down payment and some left over for another one. There's no wrong answer just a bunch of different paths you can take. For the FSBO, when we sold our first home I learned a ton from our agent, specifically how important a quality photographer is and how the price point can land you multiple offers quickly. A good agent is definitely worth the price of commission and you can still learn a lot if you keep asking questions

Hi @Genevieve Mcgroarty, Richmond has a great real estate community. I'm still new to the area and new to investing, but everyone has been very supportive and a ton of help as I build my foundation. Definitely get involved with as many groups as you can and attend meetups (search meetup.com). Chesterfield REIA is meeting tomorrow actually, some great people there. I'm out of state and temporarily doing things remotely but we've been doing some small newbie get togethers too. Hope to see you at meetups down the line!

@Janetta C. I talked to Pete DeWorken recently and he seems super knowledgable and a great person to have in your back pocket for rehab cost estimates and scope of work. While he said he does not provide a contractor, once you get an accurate and fair estimate you can use those numbers as you are searching for one. Definitely reach out to him (fixeruppercoach.com) and obviously there is a fee for service, but I can imagine way less than 10k and 10%