All Forum Posts by: Will Dennis

@Will Dennis

no offense intended, but I think that while this is certainly possible, it is very unlikely, for exactly the reasons @Scott E. laid out.

you probably won't be able to get private money for your very first deal unless it's friends or family... and honestly, why would you want private money for it anyway?  private money isn't magic... you have to pay them back... which means you really need some kind of major value add play.

better approach: house hack.  refinance.  house hack again.

Your idea of finding a wholesaler, buying one of their deals, and finding a private lender to fund the deal is exactly how it's done. There are other ways to find deals and other ways to fund deals, but the approach you've picked will work great.

I'll just add 2 things to keep in mind as you get ready to get started...

1. At least 9 out of 10 deals that wholesalers are marketing are garbage. Wholesalers generally overprice the deal, they overestimate the ARV, and they lock up houses that are not always the most desirable (they sit on a busy street, back up to a commercial complex, etc). I still buy deals from wholesalers to this day, I actually just picked another one up a few weeks ago. But you need to do your own due diligence on their "deals"

2. Finding a private lender to fund the deal will be easier said than done, mainly because you're a beginner. Just keep that in mind as you go into this. Don't let it get you down if you have a hard time finding funding. It gets easier as you do more deals.

Go to NETWORK at the top of your screen and you can search for other investors and investment groups in your area. You can also check meetup.com or search facebook for real estate investment groups, clubs, or meetings in your area.

Hi Will!

Where to start is a very popular, yet personal questions, so I'm glad you are looking for advice about this.

I'm going to take a different approach than most and say you actually need to stop and do some work before you even start the real estate journey. Here are a few considerations you should be looking at even before you start.

1. What are your personal goals? (don't just answer financial freedom, everyone wants that. In reality they generally want something else that financial freedom allows them to do). I suggest asking yourself "why" 5 times to get to the root of the desire to invest. For example: I want to invest in real estate. Why? I want monthly cash flow so I can leave my job. Why? Because I want to spend more time with family? Why? My parents were always home and available to me as a kid, so I want my children to have that same experience. etc etc etc. When you can see a picture of your why, write that down!

2. Think about that real root goal. What does it look like? How much time will you have to spend on other endeavors if you hit that goal. Buying 20 single family homes to be rentals sounds amazing, but only if that is your goal. Personally I'll never own long term rentals, but that's just me. Tried it, hated it, got the tshirt, not going back. In this section you are really trying to think about WHAT you enjoy doing, WHEN do you enjoy doing it, what is your lifestyle going to be when you hit that goal. There is no point in trying to invest as a GP multifamily syndicator if you really don't like the multifamily space, and don't want to sit in on weekly GP calls for asset management updates.

3. Once you have the goal, your time commitments, think about what else you bring to the table rather than money. Believe it or not, money is the easy part. Commitment, consistency and follow through is the hard part. What do you bring to real estate investing? Do you have a construction background? Have you done project management? Are you a structural engineer? Are you good with people? Do you have a brokers license? Do you love working with Excel analyzing data and making graphs? There are a lot of things you COULD bring to the table, but also realize do you enjoy those things and how much time will those things take up in your life.

4. NOW you are ready to explore the options in real estate investing. You can narrow down the buffet of choices pretty easily by eliminating options that purely just don't fit your strengths, goals or time commitment. Don't focus on your limitations and what you can't do right now. Ask your brain how can I do this, instead of shutting down your thought process with a declarative statement of " I can't do this" and then you fill in all the reasons why. Come with an inquisitive open mind, and you will find a way. You will also attract other people that exhibit those qualities, and building that team of people that all have the same goals is amazing! You don't have to go it alone!

I bring this up because when you start out it is really easy to end up with shiny object syndrome where everything looks amazing! It is also very easy to just go with the flow and do what you know - so fix and flips or rentals. There are a lot of other ways to invest in real estate without doing those two things, if they don't suit your goals, lifestyle, strengths and personality.

I hope that helps!

It does not need to be more complicated than that. Meeting those people doesn't cost you anything except admission to the event & your time.

I'm not a lawyer or an accountant. How many hours are these guys putting in for you and how much are you paying them?