I am doing the work but I need some help...

[Tyler Piciullo]

So I am currently a Realtor but want to transition into being an investor. I hired a coach with a stellar track record and we have been working together for a few months. My goal is to make my everyday income off of being a real estate investor while I acquire rental properties. I currently rent and a 3.5% down payment on a 450K fix up house at 6.5% interest sounds daunting. Flipping sounds capital intensive to start (some people say i can raise a lot of private funds for the fix and flip and others say I need most of my own capital to start)

My question is, what should be a very rough business plan or somewhere I can aim my sights on. I feel very spread thin at the moment looking at owner financing, putting my own money 20% down on a rental, BRRRRR, fix and flip etc...

[Ash Hegde]

Hey Tyler - with no rehab experience, a hard money loan will need 15-20% down of the purchase price (not after-repair value) to get into a distressed property that you can flip or BRRRR. With a few rehabs under your belt, that can drop to 10%, and at around 10 rehabs of experience there are 0% down programs.

[Bob Stevens]

Quote from @Tyler Piciullo:

So I am currently a Realtor but want to transition into being an investor. I hired a coach with a stellar track record and we have been working together for a few months. My goal is to make my everyday income off of being a real estate investor while I acquire rental properties. I currently rent and a 3.5% down payment on a 450K fix up house at 6.5% interest sounds daunting. Flipping sounds capital intensive to start (some people say i can raise a lot of private funds for the fix and flip and others say I need most of my own capital to start)

My question is, what should be a very rough business plan or somewhere I can aim my sights on. I feel very spread thin at the moment looking at owner financing, putting my own money 20% down on a rental, BRRRRR, fix and flip etc...

 You need to get out of the FL market, its all way overpriced ( I live in Jenson and know both coasts very well ) and the net caps are under 4% why bother. There are other markets you can get much higher,,,,,,, All my personals are about 20% net caps, based on cash purchases.

All the best  

All the best 

[Tyler Piciullo]

Quote from @Bob Stevens:

Quote from @Tyler Piciullo:

So I am currently a Realtor but want to transition into being an investor. I hired a coach with a stellar track record and we have been working together for a few months. My goal is to make my everyday income off of being a real estate investor while I acquire rental properties. I currently rent and a 3.5% down payment on a 450K fix up house at 6.5% interest sounds daunting. Flipping sounds capital intensive to start (some people say i can raise a lot of private funds for the fix and flip and others say I need most of my own capital to start)

My question is, what should be a very rough business plan or somewhere I can aim my sights on. I feel very spread thin at the moment looking at owner financing, putting my own money 20% down on a rental, BRRRRR, fix and flip etc...

 You need to get out of the FL market, its all way overpriced ( I live in Jenson and know both coasts very well ) and the net caps are under 4% why bother. There are other markets you can get much higher,,,,,,, All my personals are about 20% net caps, based on cash purchases.

All the best  

All the best 

Where are you hitting 20%? I come from Long Island and now in South Florida so all just seems intimidating 

[Bob Stevens]

Quote from @Tyler Piciullo:

Quote from @Bob Stevens:

Quote from @Tyler Piciullo:

So I am currently a Realtor but want to transition into being an investor. I hired a coach with a stellar track record and we have been working together for a few months. My goal is to make my everyday income off of being a real estate investor while I acquire rental properties. I currently rent and a 3.5% down payment on a 450K fix up house at 6.5% interest sounds daunting. Flipping sounds capital intensive to start (some people say i can raise a lot of private funds for the fix and flip and others say I need most of my own capital to start)

My question is, what should be a very rough business plan or somewhere I can aim my sights on. I feel very spread thin at the moment looking at owner financing, putting my own money 20% down on a rental, BRRRRR, fix and flip etc...

 You need to get out of the FL market, its all way overpriced ( I live in Jenson and know both coasts very well ) and the net caps are under 4% why bother. There are other markets you can get much higher,,,,,,, All my personals are about 20% net caps, based on cash purchases.

All the best  

All the best 

Where are you hitting 20%? I come from Long Island and now in South Florida so all just seems intimidating 

 I was born and raised in LI, move full time to FL back in 2019,,,,,,, Midwest, I live on the beach and do all business in the Midwest, yes I have a full team there, 

[Adam Schooley]

@Tyler Piciullo I’m an agent investor here in Ft Lauderdale. I’ve been investing since 2008 and an agent since 2015. If I were you I would start making commissions as an agent an use that money to buy investment properties. You’re commissions are earned by only using your time and not a lot of money.  Along the way you will come across good deals. Find local investors that will team up with you once you find a deal and learn from them. Like they say. If you have a deal the money will follow. 

[Amir Khan]

Agree with Adam that you should continue working as an agent and see if you can start working with investors. You'll understand the investment side quickly meanwhile making connections. Plus, when you do close on investment properties later on, you can earn commissions as well. 

[Sam McCormack]

@Tyler Piciullo

Hi Tyler, have you looked OOS? Or were you just interested in househacking? If not, Cincinnati may be a good area for you to look! Lower PP so easy to start off. Especially for LTR! Let me know!

[Tim Delaney]

@Tyler Piciullo great that you are taking steps towards passive income. But a couple things jump out at me 1) flipping is not passive and not really investing, it is an active business. 2) what exactly is your coach doing for you and why are you listening to "some people" saying different things when you paid someone to guide you? 3) using your FHA loan to househack is a great way to get started in investing. If you can find a double, triple or quad the bank will let you use 75% of the potential rental income towards your DTI. Even if the rents don't cover all your living expenses if your monthly costs are around the same or less than your current rent then you are coming out ahead. 4) (take this with a grain of salt because I don't really know you) if you are having a hard time getting comfortable with a $450k purchase at 6.5% on a primary home then you may want to focus on some mindset podcasts or coaching - if you want to invest in more real estate you are going to need to be comfortable with numbers like that as long as the rent covers the expenses.

[Tyler Piciullo]

Quote from @Tim Delaney:

@Tyler Piciullo great that you are taking steps towards passive income. But a couple things jump out at me 1) flipping is not passive and not really investing, it is an active business. 2) what exactly is your coach doing for you and why are you listening to "some people" saying different things when you paid someone to guide you? 3) using your FHA loan to househack is a great way to get started in investing. If you can find a double, triple or quad the bank will let you use 75% of the potential rental income towards your DTI. Even if the rents don't cover all your living expenses if your monthly costs are around the same or less than your current rent then you are coming out ahead. 4) (take this with a grain of salt because I don't really know you) if you are having a hard time getting comfortable with a $450k purchase at 6.5% on a primary home then you may want to focus on some mindset podcasts or coaching - if you want to invest in more real estate you are going to need to be comfortable with numbers like that as long as the rent covers the expenses.

1. Me and coach just started 
2. Good idea with the house hack and the DTI
3. Covering rents I am not worried about, when I am personally paying I am! lol

[Zach Oehlman]

Great question @Tyler Piciullo!

I think we all have to go through this realization as I know I personally had to.

Here is the realization I came to: 

Real Estate Investing is actually sales and marketing of a product called real estate.

What I mean by this is if you don't have leads to talk to you don't have a business. I don't care what industry it is you need to understand how to "make money" and the only way to make money is by investing what you have already or by selling something.

When I refer to selling something in real estate investing I am referring to deal acquisition and dispostion / cash flow. 

You need to become a master at marketing and deal structuring so you can learn how to put deals together where others can't. This will allow you to maximize every opportunity in front of you to create active income that will allow you to invest in cash flowing properties to create passive income.

BP has a great resource to help you become a pro at running numbers: https://store.biggerpockets.co...

I created a free 10 step training on my BiggerPockets blog to help you understand how to best create a plan: https://www.biggerpockets.com/...

I think this will be a great start and get you pointed in the right direction.

[Tyler Piciullo]

Quote from @Zach Oehlman:

Great question @Tyler Piciullo!

I think we all have to go through this realization as I know I personally had to.

Here is the realization I came to: 

Real Estate Investing is actually sales and marketing of a product called real estate.

What I mean by this is if you don't have leads to talk to you don't have a business. I don't care what industry it is you need to understand how to "make money" and the only way to make money is by investing what you have already or by selling something.

When I refer to selling something in real estate investing I am referring to deal acquisition and dispostion / cash flow. 

You need to become a master at marketing and deal structuring so you can learn how to put deals together where others can't. This will allow you to maximize every opportunity in front of you to create active income that will allow you to invest in cash flowing properties to create passive income.

BP has a great resource to help you become a pro at running numbers: https://store.biggerpockets.co...

I created a free 10 step training on my BiggerPockets blog to help you understand how to best create a plan: https://www.biggerpockets.com/...

I think this will be a great start and get you pointed in the right direction.

 Zach that was very very helpful and very well put and opened my eyes

[Zach Oehlman]

Quote from @Tyler Piciullo:

Quote from @Zach Oehlman:

Great question @Tyler Piciullo!

I think we all have to go through this realization as I know I personally had to.

Here is the realization I came to: 

Real Estate Investing is actually sales and marketing of a product called real estate.

What I mean by this is if you don't have leads to talk to you don't have a business. I don't care what industry it is you need to understand how to "make money" and the only way to make money is by investing what you have already or by selling something.

When I refer to selling something in real estate investing I am referring to deal acquisition and dispostion / cash flow. 

You need to become a master at marketing and deal structuring so you can learn how to put deals together where others can't. This will allow you to maximize every opportunity in front of you to create active income that will allow you to invest in cash flowing properties to create passive income.

BP has a great resource to help you become a pro at running numbers: https://store.biggerpockets.co...

I created a free 10 step training on my BiggerPockets blog to help you understand how to best create a plan: https://www.biggerpockets.com/...

I think this will be a great start and get you pointed in the right direction.

 Zach that was very very helpful and very well put and opened my eyes

 I love to here that my friend! It only took me 15 years to discover it for myself :) 

[Nicholas L.]

@Tyler Piciullo

if your immediate area is too expensive, find a lower cost market you can drive to - 1 or 2 or 3 hours away.  there is no substitute for being hands on.  and there is no substitute for being in a strong financial position.

starting with a house hack is a great way to go.  if 450K is too much - find one for less.

[Ray Hage]

Quote from @Tyler Piciullo:

So I am currently a Realtor but want to transition into being an investor. I hired a coach with a stellar track record and we have been working together for a few months. My goal is to make my everyday income off of being a real estate investor while I acquire rental properties. I currently rent and a 3.5% down payment on a 450K fix up house at 6.5% interest sounds daunting. Flipping sounds capital intensive to start (some people say i can raise a lot of private funds for the fix and flip and others say I need most of my own capital to start)

My question is, what should be a very rough business plan or somewhere I can aim my sights on. I feel very spread thin at the moment looking at owner financing, putting my own money 20% down on a rental, BRRRRR, fix and flip etc...

 If you plan on staying in Fort Lauderdale long term, you may want to find a house you can house-hack or that has a mother in law quarter. Unless you have a really well-below market rent that you are paying right now, it makes no sense to rent. If you can deal with a room mate situation, even better. 

Regarding other investment properties, I think the only thing with a decent ROI and cashflow in the Fort Lauderdale market is STR and that can be risky but I know a few people doing amazingly well at it. LTR is dead here. I have been considering other markets since it feels impossible here. I have RE investments already and have been investing in other things as RE here is not worth it at the moment. Fix and flips is another thing to consider to make money but I don't consider it an investment really.

[Steve Vaughan]

Quote from @Tyler Piciullo:

So I am currently a Realtor but want to transition into being an investor. What would be a rough plan or somewhere I can aim my sights on. 

No reason to not invest while being an agent I can see, unless your broker is very rigid with quotas and encumbrances. 

A rough plan might be one rental the first year, 2 the next, then 2-3 each year in years 3-5. Then evaluate.   

At listing appointments,  also propose your buying it if it would make a decent rental. 

Deal sourcing is our main hang up. You can comb the MLS for old or expired or poor/inaccurate listings as an agent which I would think is a huge bonus.

[Najma Osman]

Hi @Tyler Piciullo

If the numbers are not working where you live look at investing in other markets. A good place to start would be markets in the Midwest with lots of population growth and job opportunities. I would recommend checking out Columbus OH and Cleveland OH. Columbus has seen great appreciation with many new jobs being created from large expansions by companies such as Intel, Honda, Amazon, Nationwide Children's hospital and Wexner Medical Center. It is also home to Ohio State which has 60,000+ students. Cleveland is another great option here as it is consistently known as a top market for cash flow with opportunities to get in at a low PP.

[Anthony L Amos Jr]

Quote from @Tyler Piciullo:

So I am currently a Realtor but want to transition into being an investor. I hired a coach with a stellar track record and we have been working together for a few months. My goal is to make my everyday income off of being a real estate investor while I acquire rental properties. I currently rent and a 3.5% down payment on a 450K fix up house at 6.5% interest sounds daunting. Flipping sounds capital intensive to start (some people say i can raise a lot of private funds for the fix and flip and others say I need most of my own capital to start)

My question is, what should be a very rough business plan or somewhere I can aim my sights on. I feel very spread thin at the moment looking at owner financing, putting my own money 20% down on a rental, BRRRRR, fix and flip etc...

 Your strategy will be unique to your personality and goals. Think with your end goal in mind, add a realistic timeline, and work backwards using the strategy that your comfortable with. 

You can definetly raise private funds if you have a good deal. The money is actually the easy part, finding a deal is what will separate you. 

[Simon Ashbaugh]

Quote from @Tyler Piciullo:

So I am currently a Realtor but want to transition into being an investor. I hired a coach with a stellar track record and we have been working together for a few months. My goal is to make my everyday income off of being a real estate investor while I acquire rental properties. I currently rent and a 3.5% down payment on a 450K fix up house at 6.5% interest sounds daunting. Flipping sounds capital intensive to start (some people say i can raise a lot of private funds for the fix and flip and others say I need most of my own capital to start)

My question is, what should be a very rough business plan or somewhere I can aim my sights on. I feel very spread thin at the moment looking at owner financing, putting my own money 20% down on a rental, BRRRRR, fix and flip etc...

 I would recommend house hacking if you have a low down loan available to you. Otherwise youre probably better off finding a midwest market like cleveland and using hard money to brrrr.

[Account Closed]

You need to develop a strategy- start with long-term and then work backwards to figure out how your immediate actions can get you to those goals. To be less intimidated by the financials, get pre-approved so you have clarity as to what your options are. Also, if you're currently a renter, (assuming this would be your first home) explore an FHA loan, which eliminates the intimidation of a 20% down payment.

[Enrique Enrique]

Quote from @Tyler Piciullo:

So I am currently a Realtor but want to transition into being an investor. I hired a coach with a stellar track record and we have been working together for a few months. My goal is to make my everyday income off of being a real estate investor while I acquire rental properties. I currently rent and a 3.5% down payment on a 450K fix up house at 6.5% interest sounds daunting. Flipping sounds capital intensive to start (some people say i can raise a lot of private funds for the fix and flip and others say I need most of my own capital to start)

Hello Tyler, look into asset base private lenders as the use FMV verse purchase price. Finding deal were 30-35% equity is acquired at purchase that is you best bet to limit your cash infusion.

My question is, what should be a very rough business plan or somewhere I can aim my sights on. I feel very spread thin at the moment looking at owner financing, putting my own money 20% down on a rental, BRRRRR, fix and flip etc...