I want to start real estate investing as a business. I can start with wholesaling and then I would like to start flipping. Anyone with advice or mentoring will be greatly appreciated.
Answers
Hi Dayron,
Thank you for your service. Investing in real estate is a far more complex endeavor than people may lead you to believe. Television shows make it look so easy to buy a rundown property, "fix it up", and turn it around for a huge profit. They don't get into the details of the debt you must carry to do so, the importance of the properties location and inherent features, market timing, and the very real possibility that you won't be able to turn it over at all, or at a loss. Remember that there is zero income to you (but mounting debt) while involved in the process of reconstruction, and those who have taken it on without understanding all this sometimes find themselves ending in bankruptcy court. I'm not trying to discourage you, but successful "flipping" requires much experience and trusted relationships with real estate professionals and the trades, and familiarity with local regulations. Quick and easy money does not really exist, except sometimes by accident and luck.
If you are really interested in real estate investing and believe you want to pursue it, you could start by purchasing a rental property or two, and perhaps work an arrangement with the tenants that you would continue to improve the property. If you are fortunate enough to find a property with an existing tenant, this can help with your mortgage. The rentals would provide a steady source of income, you would own property that you could gradually improve and ultimately sell when the market was right. This would get you acquainted with the mechanics of real estate investing without the risk of flipping. Good luck!
Go to work for a real estate broker as an assistant.
That's the best way to learn how things are done.
Stay away from flipping until you understand how to properly value a property. Otherwise, you will end up paying more that you should and holding onto a property longer than you should. End result , net net loss.
Just because a property is selling for what appears to be a "deal" does not make it so.
In the mean time, aggressively save your money by socking away as much as you can each payday into a savings account.
Thank you very much for all the advise. I just invested in a Ron LeGrand real estate seminar and I have the knowledge to start investing but I do require some capital. Does anyone know of funding for veterans? If so please let me know. Thank you.
Hey, Dayron. When it comes to REI, you'll hear most of what you hear here, the "conventional wisdom." That's not to say it's "wrong," but you're looking to get involved in a rather non-conventional way of making money.
First off, if you REALLY want to learn, look up MeetUp.com, and look for real estate investing groups. I know there's a lot around NJ, but not your specific area. You'll have to be your own "boots on the ground." Many of them will love to work with, and teach, a vet.
Looking up your local REIA is also advisable. One of the biggest forums, where you can also find other local meets, in biggerpockets.com. There's a ton of information, so it can be hard to find what you want, specifically.
Keep in mind, wholesaling, and even "fix & flipping," requires more than passing knowledge. You need to know who you can go to (don't bother with HUDS, whereas REOs can hit or miss). You also need to know how to get the ARV, what are good comps, and the 70% rule is a good guide. Feel free to reach out, if you wish!
Hello Dayron --
First, all good advice below from these other 3 advisors.
That said, I'd like to hear more about the specifics of the real estate direction you're thinking of heading in. I'm a commercial real estate broker in the shopping center industry, and have owned income properties and held them over time for profit.
If you want to provide a phone number I'd be happy to call you. You can also reach me at:
860-928-7660, or jeremy@theserwercompany.com
Good luck,
JS
This is a very good market for flipping but like John said, if you go in cold you'll get hurt. Working at a broker's office is a great idea. You could also find a contractor that flips homes and work for him. Get dirty before you jump in. Best of luck.
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