It seems to me that there are generally two "camps" of investors. Equity market investors and real estate investors. I am the former and am hoping to recreate at age 54 and develop into a home "flipper" and build a reputation as a realtor with a strong knowledge of home renovation. I purchased the BP Podcast from Denver and am trying to figure out the best way to get started in purchasing a property either on Chicago's north side or the best suburbs for flipping , rehab it and sell it hopefully at a profit. I am considering some of the programs that offer coaching at prices ranging from 10-30K but offer experienced people to help a newbie navigate the territory as well as evaluate the best communities and properties for success. I have started attending some investor meetings but am experiencing anxiety committing as I have no experience in this arena and not sure who to trust. I would welcome suggestions from folks who have experience and or success on best ways to move forward and get something going! Thanks!
Welcome to BP! There are a lot of great resources and education on this site and you have a great group in Chicago. @Brie Schmidt is very knowledgable of the area and she runs a great meetup in Chicago. I would reach out to her and see if she can direct you in the right direction.
Good luck with your new adventure!
@Patrick O'Donnell save your $10K-$30K and use your knowledge to buy your own rehab and put the money aside as your contingency. In the end you will have far more usable knowledge and if you are careful you will even make some money.
@Patrick O'Donnell It sounds like you've started down the right track already. I would agree with @Bill S. Skip the guru/coaches and save your money. You can learn far more on BP than most of the people that require your money to help you and nobody on BP will charge you for their advice. I'd suggest listening to as many of the podcasts as you can and read as much information as you can. When you're ready to move forward, there are plenty of people on BP that will help you decide if the property you're looking at is really a deal or not.
Ugh, Not sure what happened above...
What I meant to say is that @Mark Ainley is a good person to talk to about Chicago and the suburbs.
Thanks everyone I really appreciate the perspectives!
I will strike a different chord than many here on BP. While there is tons of free information available, having someone right there, in person, to help you with the nerves and anxiety is huge. Note I said "IN PERSON", not a phone call from another state.
Is it worth say even $2k maybe $5k to pay someone that has contacts? Saves you a mistake that could cost you holding costs, renovation costs. What if they have contacts to speed up permits? Inspections? Can get you in with a lender that can save you even 1/4 point on your interest rate?
To me, that is insanely worth it. I wish i had done that. I have lost money and made money on deals. I also have seen deals where I did make money, but the choices I made were incorrect and I could have made even more.
Keep getting out and networking. Yes there will be anxiety. As to 'Coaching', when you talk to someone PERSONALLY and they help you feel better and more confident. GO WITH IT. If they leave you more worried and anxious. That is not the choice for you. This is about you, and your future. So make sure it works for you.
Here is a story. A friend of mine recently sold their personal condo. They did receive two offers on the property. One for just below asking price and another for about 10% below asking. The realtor told them to reject the low one, and just counter the higher one. Instead, they took the advice of another individual that has done real estate for years and they just hired as a coach. That "coach" told them to ask their realtor to tell both parties there were multiple offers and submit their best offers.
The low offer didn't bother to re-submit. HOWEVER, the higher offer was so worried about losing it, so they came back and offered 15k over asking price. A full 20k swing. While, I am not sure how much they paid the coach guy, but if it was 5k they just quadrupled that return. The realtor would have gotten them something close to maybe 98% of list, the coach got them 15k OVER list. (This was in Chicago and just happened maybe a month ago).
To me, their investment in the coach, whatever it was, was worth every penny, as I am sure they will learn more. I will be sitting down with my friends next week to get more details.
Whoa Appreciate the perspective
@Patrick O'Donnell welcome to the site. Like others have said, save the money on a guru or coach and start networking and learning as much as you can. Go to the meetups and develop a network of resources. You shouldn't be feeling anxiety just yet as it sounds like you have more research (and reflection) to do before you start really looking at deals.
- What's your "why"? Meaning why are you looking to invest in RE? What purpose will this serve in your life?
- Why flipping specifically and not some other strategy?
- What's your criteria for target neighborhoods?
- Who's on your team?
- Who can you meet that has done/is doing what you want to do?
I'd be all for a coach if you were more seasoned and knew exactly what you were seeking from a coach to explode your business and personal development. However, as a beginner most of the info you'll need is readily available for free and there are other investors who would happily share their thoughts when specific questions come up.
Hi Patrick, I would like to speak with you about our investment club in Chicago. We have coaching available with experienced people who are actively investing & can provide funding for your deals. Please give me your contact info to talk further. Thank you in advance, Alvin May.
I have been getting a great response from the BP community recently I had meetings with Matthew Rolnick and his wife great people with a lot connection. Networking is the best way to learn about this game in my experience within 8 months we have went from looking at potential project to purchasing,gutting and rehabbing. Networking helped find the funding, contractors, and etc. Hughes Brothers Investment Group LLC, is a great starting point to learn they have the experience, knowledge, and connections to make a smooth transition into real estate investing..
Originally posted by @Patrick O'Donnell :
It seems to me that there are generally two "camps" of investors. Equity market investors and real estate investors. I am the former and am hoping to recreate at age 54 and develop into a home "flipper" and build a reputation as a realtor with a strong knowledge of home renovation. I have started attending some investor meetings but am experiencing anxiety committing as I have no experience in this arena and not sure who to trust. I would welcome suggestions from folks who have experience and or success on best ways to move forward and get something going! Thanks!
We've had colleagues that have paid for coaching & succeeded. Other's who haven't. Whether it's for coaching or not we say set aside a portion of your budget each year for learning. Simple as that. Don't however put your last $ into learning then have nothing to invest.
Welcome To Bp community! All the best!
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing