Sources to Use When Getting Started?

5 Replies

Hello BiggerPockets Community! - I am looking to get started in real estate but am having some trouble finding what I believe to be "good deals". I want to eventually get into renting properties for long-term CS though I figure starting with a flip may be beneficial as I believe it will be easier to work with hard money.

So now I am stuck attempting to find properties that would return a decent enough profit and am coming up short. Right now I am mainly searching the "fixer upper" section in Redfin. My question is what other sources I can use as a beginner to help find potential deals. A real estate agent might be a good idea but would they be willing to work with someone with no previous experience? All comments on the matter will help greatly! 

Truman.

Working with HML is not easy at all. They're very hard to work with and charge a lot of points and interest.

I'd recommend sticking to your goal and get into the rental property space now. Do not do a flip just to do a flip. 

It is hard to find good deals because people buy them and buy them quickly, if you keep looking you should be able to find something as long as your expectations are realistic.  I also agree with previous posters that you shouldn't do a flip just for the sake of doing a flip, make sure you have done your research and know what you're getting into.

I appreciate the reply. I agree that rental property is the way to go for long term weath and I hope to reach that point. The issue I currently face is that I have only a couple thousand in savings and fear that I will not be able to get a loan for rental. My plan was to search until I am able to find a good flip and then use the profit to invest in a rental property. If there are any suggestions on how I could get a rental property now besides flipping that would be great!

Truman getting hard money lending will be hard when you first start out. I would recommend buying a "fixer upper" for you to live in until you fix it up. This will allow you to get much better interest rates and it will allow you to use an FHA loan which only requires you to put down 3.5%. You can even do a 203K loan to get money to fix it up wrapped into you FHA loan. Once you fix it up and add value to it, you can sell it if you want the money to invest in other properties or keep it as a rental. The only problem with the FHA loans is that you have to pay PMI which is an insurance payment that the banks require in case you default on the loan, but if you have no money to get started this is a compromise.

Best of luck!

@Truman Meecham

You will not be able to get hard money with a couple thousand in savings.  They'll want to see that you have 20-30% of the total costs of the project sitting in the bank, especially if you're doing it for the first time.

Hard money can be hard to navigate, but maybe consider going through a loan broker who can present your deal better to a lender and guide you through the process.

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