Prospective Real Estate Investor Seeking Advice!

Prospective Real Estate Investor Seeking Advice!

Investor · Highland Park, IL · Member since 2022 · 38 posts · 26 votes

Hey BiggerPockets fans! I am a 19 year old college student and have been learning about real estate for the last 5 months and am finally starting to place offers on properties! I am posting this in hopes of finding someone who can help me along the journey. Some struggles I have been dealing with are approaching off market deals and trying to come up with a rehab budget without having a GC walk the property. Currently, I have raised a good amount of capital and am looking to learn from people's past success! Just as I am asking for help, I am also looking to help others with anything and everything! I will do anything from handwriting letters for potential leads, underwriting deals, craigslist marketing, etc (whatever you need assistance with). Just as I would love to learn from the best, I want to do my part in giving back. I can confidently say that I have a very strong work ethic when it comes to turning my intangible desires into a tangible reality. With that being said, I would love for anybody to reach out and share me some of your wisdom as you've journeyed through your investing career!!!!

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  • Rental Property Investor · Russellville, AR · Member since 2014 · 684 posts · 509 votes
    4y

    You're going to have to get some contractors to walk the properties.  There are way too many variables to consider for an online forum to provide much help.  When you go under contract, you will have a set amount of days to inspect the property and gather your quotes (in Arkansas its 10 business days).  Always add 10% to any estimate you get from a contractor.  There are always things hidden behind walls/floors/ceilings.

    If you're buying rehabs, check with a local bank about a commercial loan. They allow you to finance up to 80% of the ARV for repairs.

  • Taylor DaschBusiness Member
    Real Estate Agent · Temple, TX · Member since 2022 · 1k+ posts · 700 votes
    4y

    If you are raising capital without having knowledge of rehab costs, you are going to be insanely successful. I would just dive in on something that makes sense, even if you just break even and pay your investors back, you will get a great feel for what the rehab costs will be as well as how to work with contractors.  

    I am a beginner as well and my only advice would be to just start taking action, keep putting offers in and keep learning. The best way to learn in my opinion is hands on experience. I didnt know exactly how to use hard money or get a hard money loan, but when I got a decent deal, I tried it and that alone has opened up my mind up to so much more, its something about taking the action that gives you the confidence and knowledge to continue to find great deals and take action on them. Handwriting letters is great idea, I would also send post cards, door knock, cold call, and email them to be sure you are getting ahold of the actual owner. 

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