I've been listening to the BP podcast for over 3 years now and I'm finally jumping in and starting the pre-approval process in the Minneapolis, MN market!
My question is, did you guys find the team first or the deal first? (i.e contractor, handyman, property manager)
Thank you so much!
@Devin Danielson Great question, you need an investment-focused Realtor & Loan officer before a deal, but that's it. After finding those two, your efforts should be 100% on finding a deal before you worry about contractors and handymen. Your need for a PM will depend on if you plan to live in the property and your proximity to the property.
I agree with Tim. Getting the right team on the front end is most important when you are stating out. Lender and Real Estate agent who's expertise is investment properties. Our team has a list of contractors and handymen to work with when you get started. The more deals that you do, the bigger your team will become.
Find your contractors, your REA's, and as many lenders as you can find first. You can't build anything in life without the proper tools, so collect the tools first. What deals you can/can't do depend entirely on what your team can/can't do. Not all properties are deals for all REI that find them. One of the biggest differences from one deal to the next is if that REI can execute the deal...which comes right back to your team/tools, and what they can help you do.
@Devin Danielson Glad to see you taking the first steps! Getting your first property is the gateway to so many awesome relationships and accomplishments in life. I concur with @Tim Swierczek , a great investor-lender and investor-realtor are two key relationships to build, then the rest can fall into place fairly easily and quickly. Those two people likely have contacts for the rest of the people you'll need to round out your Rolodex and may have deals to expose you to that the MLS or zillow didn't have. House hacking is a great way to start, you can learn how to be a landlord and develop those relationships along the way. One thing I would not wait for is learning about what it takes to be a landlord in MN, you don't want to be surprised by that. If you buy a property with occupants, you inherit any existing leases on closing day. Good luck!
@Devin Danielson At the same time. Find the deal and then find out what is wrong with it through inspection. Then go find pros to help you out. Always get at least 2 bids to compare against. Over time you will find people that are fair and some that rip people off in time and or money. If you can't find the team to help you, maybe you pass on the deal.
It took me 3 deals to find a roofer that has a price that on average is 60% of everyone else. He is usually booked out for months and does zero advertising - all word of mouth. But on my 3rd deal I was a desperate for a roofer, so I called every local contractor I could find. He just happened to have an opening for the time I needed. Over the last 5 years, I have probably referred him out 10 times, still the best deal in town.
@Tim Swierczek , @Eric Janson , @Joe Villeneuve , @Jeff Schemmel , @Steve Milford
Thank you, thank you, thank you so much! This is amazing advice all around. It's also so awesome to see the support for the newbies here. It adds a whole bunch of confidence going into this.
My first property ironically enough is going to be for my mother. I quick my corporate job a year ago and just trade stocks now so I can't get a traditional mortgage and I have a bunch of free time so I figured now is the time to jump in.
The plan is to buy a single-family under my mom's name (I just showed her how to do a cash-out refi on her current house) then in the next few months, I get a job and buy a duplex!
Trying to give me financial freedom and my mom to retire!
Thank you all so much! This support is really motivating and I appreciate everyone for taking the time to answer my question!
I'll see y'all out there,
@Devin Danielson feel free to reach out if you want to talk investing.