Rental Property Investor · Baltimore, MD · Member since 2020 · 54 posts · 19 votes
Hi!
I’m 21 i want to start flipping houses in my area (Baltimore) but don’t know where to start I’m in school for psychology to be a doctor but i really want to invest in real estate too.
I watch videos about it all day and read articles, and probably will get my real estate license soon just to learn more and have more connections.
I’ve asked a least 5 people i would run a business with if they would like to start flipping houses with me and they’re all procrastinating, saying it’s too much, or whatever excuse is out there.
At this point i just want to dive in by myself, but i need a plan and a mentor. I know i need a hard money loan, a contractor, probably a house inspector, and many more things. A decent budget, etc. !
It’s a huge risk doing it, and even more if you’re doing it by yourself but I’m really eager to learn so I’m really open to advice.
Investor/Developer · Salt Lake City, UT · Member since 2015 · 207 posts · 106 votes
5y
@Tyana Blackledge, Your prospective business partners not working out will probably be one of the best things to happen to you. Sometimes we feel like we need business partners when we are a little lost, because nobody likes to be lost alone. It's much more comforting to be lost with someone else. I did the same thing when I first started, and nobody was as amped about it as I was. Looking back I'm glad I decided to fly solo.
How much capital do you have, if any? Your answer to my question will have an impact on the direction I'd suggest you go.
Real Estate Consultant · Washington, DC · Member since 2016 · 39 posts · 17 votes
5y
@Tyana Blackledge hey!
I think we’re in similar boats when it comes to asking others for some partnership and hearing crickets on their end.
Well, I’m also looking in the Baltimore market since inventory is relatively cheap. Now, my only question to the BP community would be your best options to get started. Would that be house-hacking, flipping or going with wholesaling.
Personally, I’ve found “wholesaling” as a good starter point to get your feet wet in the investor industry without any capitol although others may beg to differ. You’re able to source out property and there’s so many ways on doing so. I’m confused on whether you purchase the property outright, or just provide the seller with a contract stating you will “eventually” have someone take ownership of the property or out of that original owners hands.
Definitely, continue to read as much as a possible and take advantage of the “Rookie” podcasts. They’ve been helping me with understanding a bit more on being an investor instead of a PM. I’ll go through this journey with you, so feel free to reach out.
Real Estate Consultant · Washington, DC · Member since 2016 · 39 posts · 17 votes
5y
@Zachary Ray I like this idea. You'd have to refinance obviously and sell with new appraisal value or ARV? Please, explain steps on selling after two years..
Real Estate Agent · Chicagoland · Member since 2018 · 314 posts · 199 votes
5y
@Tyana Blackledge@Nate Pena I'm a big fan of the live in flip/house hack. I'm currently doing my 4th in the Chicago area. Several reasons why I think everyone should do a house hack: It teaches you repair skills you don't have. I could spend $200-300 on a plumber to install a bathroom faucet, or I can spend an hour learning how to do it via youtube, buying the parts, and doing it myself. Now I know how to change a faucet next time I need to, and I saved money.
It's a cheaper point of entry. Instead of getting a hard money loan or having to save up 20% for a down payment, you can get a house for between 3.5 and 5%. Get a dated one that needs a few improvements. While you live in it, you can fix up or upgrade items when you get the funds. Speaking of-
You can fill the house with roommates and start making money from the start. If you have a couple friends, great! If not, craigslist, Airbnb, Zillow, and Facebook marketplace are all great ways to find roommates. Just make sure they know you'll be doing some upgrades.
If you buy a house and it's your primary residence, you have to live there for one year. If you want to sell it and avoid capital gains tax, you have to live in it two years. So don't feel like you need to rush your repairs for a three month turn around. When you're done with it, you can keep it and rent it out or sell it, hopefully for a profit. Either way, I think house hacking is the best possible way to start your career. Why pay someone to mentor you when you can be your own mentor? That being said, feel free to reach out if you want any tips or to talk about experiences. Good luck!
I’m 21 i want to start flipping houses in my area (Baltimore) but don’t know where to start I’m in school for psychology to be a doctor but i really want to invest in real estate too.
I watch videos about it all day and read articles, and probably will get my real estate license soon just to learn more and have more connections.
I’ve asked a least 5 people i would run a business with if they would like to start flipping houses with me and they’re all procrastinating, saying it’s too much, or whatever excuse is out there.
At this point i just want to dive in by myself, but i need a plan and a mentor. I know i need a hard money loan, a contractor, probably a house inspector, and many more things. A decent budget, etc. !
It’s a huge risk doing it, and even more if you’re doing it by yourself but I’m really eager to learn so I’m really open to advice.
1. Join as many REI groups as possible within 100 mile radius & start attending their meetings. Even the virtual ones.
2. Find a group that plays Robert Kiyosaki's cash flow game in the area and start playing with them. If you can't find a group create one.
3. Network w/ investor-friendly realtors and become an assistant to a realtor prior to pursuing your license
4. Items 1-3 are all intended to get you around like-minded people and building your network. From these people, you'll find contractors, lawyers, money, partners, deals.
5. Your going to school to get a degree in psychology. Start treating the real estate business the same way you're treating your psychology business. Take items 1-4 and combine it with continuous education & before you know it you'll be flipping houses
Rental Property Investor · Baltimore, MD · Member since 2020 · 54 posts · 19 votes
5y
@Zachary Ray the houses in Baltimore aren’t the kind i would share with someone cause i have to keep in mind the people in the area (can’t trust a lot of people)
Insurance Agent · Pittsburgh, PA · Member since 2020 · 54 posts · 22 votes
5y
Best of luck Tyana.
For more understand regarding the insurance I would google independent insurance agents around you to start. They would be able to give you an understanding about what they will need from you regarding insuring your flips.
New to Real Estate · Morristown, NJ · Member since 2020 · 17 posts · 26 votes
5y
@Tyana Blackledge attend a local meetup and find someone that is doing what you want to do. Bring a deal to them that meets their criteria and tag along to learn. Don’t focus on making money for yourself at first, just try and learn the process
Investor · Baltimore, MD · Member since 2009 · 23 posts · 10 votes
5y
@Tyana Blackledge Hello Tyana, I'm an investor, realtor and contractor investing in your area. I have been flipping houses all over MD especially Baltimore. Get connected with the local REIAs and Meetup groups in the Baltimore area. It's an excellent place to build your team and find people who will support you. If you need more specific information and a list of groups in your area just send me a message and I would be happy to provide you with more information and assist you with getting started.