All Forum Posts by: Wane Tango

I love reading stories like this with the business savvy youth, I was similar when I was a kid selling snacks and trading cards. Having a plan is absolutely the best way to get anything done. Stick with you plan to have a down payment because that will never go wrong as place to start. Even when a younger person shows up, you may not be taken seriously as quickly as when you show up with the plan and the money to back it up. Dont change that! With that being said, there is a lot of unknown info that will have to be squared away at some point. If the question is if that is a good plan then yes, if the question is if the down payment amount and a hard money is a good fit, well that gets a lot harder to answer. So lets just say that you plan on doing your first deal when you are legally eligible to take out a mortage (18). That means you have the next 5 years to get some cash built up and to get a plan that works for you. Is the amount enough? Maybe, depending on your area and what the market does over the next 5 years. In todays money, if you are in New York City, San Fransico, LA, or other similar priced markets you may not be able to do much with that money. There is plenty of places where that would be just enough and other places where that would be more than enough to get going and even have some left over. I would say spend time filling your head with as much knowledge possible (you are already in a good place for that). I would try to make contact with a local investor, contractor, realtor, and loan officer. See if you can get some part time work with any of them, and remember that if you bring value you to them, they will always want to do more with you/for you. I was out of college and broke, but when I got some extra money I would take out local investors to a steak dinner (on me) so I could ask them questions for about an hour. I was always out of pocket and eating ramen noodles for weeks afterwards but those dinners has paid in dividends 100 times over. You become a staple around those people, be nice/respectful, and by the time you are ready to make your first deal you will have such a resource pool that you will instantly know who to goto for just about anything. Good luck and keep with it, im rooting for you! 

I will always try to preach what I practice. With that being said, I have not done any deals since Covid started. My market is currently is a similar situation. We are one of the overflow cities catching waves from the overly priced Nashville area and it has completely drained the local inventory. You cannot hire a (worthwhile and vetted) contractor as they are all now building out subdivisions and are not willing to be hired out currently. Last contractor I talked with said he was minimum two years out. As it has been stated above, there is always a deal to be found with enough work. I cannot express how important due diligence is in a very hot market. If more seasoned investors are passing then there is usually a reason for it. I agree with your concern of flipping at a distance as this complicates the whole process (especially when you are a new investor). Myy advice for you is the best advice I got when I started. Find someone (or several people) that are doing what you want to be doing, find something that is a value add to them and try to suck up as much knowledge as possible. There is a few ways to gain more practical knowledge when investing but I have learned none of it is free. It either comes with doing work for someone who knows more (usually for free) at a cost of time, or by just jumping into the deep end and learning through your check book. If this is something that you are dedicated to you definitely will find a way to make it work. Look at your skill sets and think of what your strong suits are lean on them, also try to understand what your weakness is and try to minimize your time/energy spent there. Dont think you need to rush into anything, real estate moves a bit slower than other markets so its safer in predictability. With all that said, practical advice... Look at maybe the surrounding areas that are in the path of progress that is a reasonable drive (you could make a round trip there on any given day). All larger cities that a low inventory will always have smaller outlier cities  that will catch the over flow. I would look there, see what has a commutable distance and amenities that would be attractive. Good schools, low crime, lower taxes, ect. Good luck and stick with it. It took me over a year to get my first deal put together that made sense to me. I know there are ppl here that have done more deals in the first 6 months than I have in the last 6 years but im moving at a pace that I am comfortable with, I would suggest moving at a pace that makes sense to you. I know at 12 weeks after listing to hundreds of podcasts, and similar amounts of blog posts and articles I still was so green that I didnt know what I didnt know. Stay positive and keep a steady pace, you got this! 

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $84,000
Cash invested: $25,000
Sale price: $125,000

This was my first investment property. I purchased this from a friend that was a tired landlord and the tenants really did a lot of damage to the property while they was living there. This was the classic, stinky, gross house that took a lot of time to get right but ended being a very nice house that was brought back up to the quality of the neighborhood. The new owner even sold the house a year later at a profit.

What made you interested in investing in this type of deal?

This was my first deal and had a long term interest in real estate investing. After spending months listing to the podcast I had the confidence to take my first step.

How did you find this deal and how did you negotiate it?

I bought this from a friend that was in the process of a divorce and was a tired landlord.

How did you finance this deal?

Traditional FHA loan that I paid the down payment from tax return I had filed earlier that year. The rehab was done almost completely on credit cards.

How did you add value to the deal?

It was a complete remodel with finishing out the basement.

What was the outcome?

All and all it went well, a profit was made and a new family got a nice, safe home at a fair price.

Lessons learned? Challenges?

I learned a lot on this flip, most of which is what I dont know and even more about my personal rehab skill sets. I learned I pretty good at laying down flooring and fixing drywall but I really have no business doing plumbing. I learned after having to redo the bathroom twice in the basement that I could have hired a professional and had a nice space if I had done that to begin with but it still turned out pretty nice in the end. I got full asking price cash offer with it being on the market 3

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with Elijah Castelli at Crye-Like and he done a wonderfull job. He has became my goto agent in the years that has followed.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $84,000
Cash invested: $25,000
Sale price: $125,000

This was my first investment property. I purchased this from a friend that was a tired landlord and the tenants really did a lot of damage to the property while they was living there. This was the classic, stinky, gross house that took a lot of time to get right but ended being a very nice house that was brought back up to the quality of the neighborhood. I learned a lot on this flip, most of which is what I dont know and even more about my personal rehab skill sets. I learned I pretty good at laying down flooring and fixing drywall but I really have no business doing plumbing. I learned after having to redo the bathroom twice in the basement that I could have hired a professional and had a nice space if I had done that to begin with but it still turned out pretty nice in the end. Took me 6 month to finish the rehab as it had a framed out basement but the previous owner did not have it finished out. I got to enjoy living here for the last 6 months in the finished product before listing with a local relator. We got a full asking price cash offer with it being on the market 3 days. I learned later this was mostly a symptom of the house being underpriced in the market but I was still very happy as I was expecting a lower sales price. The new owner even sold the house a year later at a profit.

What made you interested in investing in this type of deal?

This was my first deal and had a long term interest in real estate investing. After spending months listing to the podcast I had the confidence to take my first step.

How did you find this deal and how did you negotiate it?

I bought this from a friend that was in the process of a divorce and was a tired landlord.

How did you finance this deal?

Traditional FHA loan that I paid the down payment from tax return I had filed earlier that year. The rehab was done almost completely on credit cards.

How did you add value to the deal?

It was a complete remodel with finishing out the basement.

What was the outcome?

All and all it went well, a profit was made and a new family got a nice, safe home at a fair price.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with Elijah Castelli at Crye-Like and he done a wonderfull job. He has became my goto agent in the years that has followed.

@nicole 

@Nicole Wylie undefined

The real question is which career path are you more interested in being a part time investor that uses skills learned from being a realtor/appraiser full time or vice versa. If you are thinking about investing full time and the others are used to support then I would highly recommend waiting to become a realtor/appraiser until you can clearly see how you and your business model would directly benefit from you having one of those licenses.  

You can learn alot from the people that are already in the field doing that kind of work over a few blog posts and taking a few local people in those positions to lunch/coffee a couple of times. 

Just make sure that what ever you choose to do that it makes sense in the bigger picture and not just in the narrow or short scope. You may find that after attaining either license that you would have been better off focusing your time and money on other interests that have a greater benefit.  

I know this is more philosophical than actual advice but I hope it helps either way. I had this dropped on me about 6 months ago and it saved me a lot of time and energy that I could have used to do something with a better result. 

So my first wave of mailers mailed out today and I am very excited, and also very nervous. I am totally jumping in head first here and hope Im not headed for shallow waters. 

My question, I have a purchase and sales agreement, but I do not understand the verbage in it very well. I really need some help with the breakdown of this agreement so I can explain it to a prospective client. I really do not want to possibly loose a deal because I dont understand the contract that I am bringing to the table. 

Is anyone on here willing to have a skype session or a phone call with me that understands these agreements fairly well?

@Brandon Turner I hope this recorded. I could not make it but this was one that I felt like I should not miss. I just sent out mailers to start my wholesaling business today. 

Great Thread. I just mailed out 100 today, and I have another hundred going out next week. 

@Carey Edmund Absolutely, I still have not sent any mailers out yet. I am stuffing envelopes while I am tracking this thread actually. I plan drop off my first wave of letters in the morning on my way to work. So I am a bit anxious and nervous because I still do not feel prepared but I have faith that I will figure it out as I go. I will report anything new that happens here. 

@Carey Edmund Thanks for the kind words. I am using list source and my criteria is listed at the top. I did not come up with that on my own. It actually came directly from @Michael Quarles who is a genius marketer. In no way am I trying to reinvent the wheel here, just looking to see what smarter people did to make it roll. :)