Hi! My name is Jessie and I and a newbie to real estate and investing. I would like to get my feet wet in the business and learn the in's and outs from the pros. I do not know where to begin. I have funds to invest and had originally thought about trying to flip a house. I look for homes al the time but it doesn't seem like there is that much of a profit margin. I also would like to learn how people buy homes for so cheap. I live in St. John's county and do not look for anything here. Usually look in the 32256, 32258 and other zips. Please any advice would be amazing. Just trying to start out and connect with those who have been in the business. Thank you in advance.
Hi @Jessie Hillard ,
Welcome to the BiggerPockets community! The best advice I can give you, which is the same advice that @Brandon Turner , @David Greene , and countless podcast guest preach each week is this... you need to make a deal. That means you need to identify a few key strategies in order to find the property owners that are highly motivated or need to sell. Finding these deals isn't always easy, however, when you do land a deal that makes financial sense you need to be ready to act. The simple truth is that you need to analyze 100 deals in order to have the chance of purchasing 1. If you use the right tools like the BiggerPockets calculators, especially the BRRRR calculator, you will be able to process deals faster. I'm a local investor and Realtor in Jacksonville/St. Augustine Florida who is more than happy to answer any questions and help you along your real estate journey. Feel free to send me a direct message.
Also, if you haven't read Brandon's book (biggerpockets.com/store/no-money-down-ultimate) I highly recommend it.
All the best,
@Jessie Hillard - I sent you the note on Facebook, Katie's amazing isn't she? Anyway, back to real estate. I'm happy to share what I know over the last 10 years of investing in rentals in Jacksonville. I only invest in 32205, 5 minutes away from my house. I don't want to have to go fix something on the Southside or at the beach or the northside. Sure, there are great deals everywhere, but frequently, the best deals are those in your own backyard.
I'm looking at Foreclosures and pre-foreclosures as the easiest ways to find properties, now and in the future. With int rates rising there are going to be more and more people who cannot afford to live in their homes. This could be where you buy the note from the bank at a short sale or take it over, if a good enough deal. You say you have the cash, that's good, but as @Evan Greenfield says, you must be ready and I mean ready THAT day you find the deal. The auctions and banks are taking the highest and best offer, so analyze and see what makes sense. Decide if you want to be a fix and flip or a wholesaler or a rent to own or long term rent and hold investor.
Always remember to factor in insurance, closing costs (2-3%), and taxes for any deal (which will change after you buy). Always have some cash set aside for the what-if and make sure you have your financing available quick to cash out and get the cash back to your account so you can be ready for the next deal. Happy to help too!