Chicago, IL · Member since 2015 · 11 posts · 0 votes
Hello everybody.
I am from Chicago, I have a construction company which 90% of our work is for investors so its still into the flipping and rental business. But I want to make the next step and start doing my own flipping,
I am looking for some advice in order to start on the right way, but I think the main question is how and where to buy the right property???
I have a Construction company as well (General Contractor), and like you I work with many investors; but I also do my own flips.
Just by you being on BP, your moving in the right direction to increase your Financial I.Q.
I recommend a great book by @J Scott, The Book on Flipping Houses. This will definitely lay a sound foundation for understanding investment side of flipping.
Being a Contractor you will be able to very accurately account for all the renovation costs, which is where most investors in my experience do there due diligence wrong. No need worry fellow non contractors, J Scott also has a great book for estimating rehab costs.
To answer your question on where to buy. I would buy where your investors are buying, I often do. That is if your familiar with the area, and your doing enough work there. Whats great about this, is that your comps become your own comps. And you keep your overhead down on the company side, because your already traveling in the area which makes it easier to manage.
As a Genearl Contractor I look to buy and rehab houses on southside of Chicago, because I understand the area and I'm already traveling there for work I'm doing for other investors.
So stick to areas you know and understand, first. Than you can plan later to move to areas that seem more lucrative, provided you have done your due diligence.
I have a Construction company as well (General Contractor), and like you I work with many investors; but I also do my own flips.
Just by you being on BP, your moving in the right direction to increase your Financial I.Q.
I recommend a great book by @J Scott, The Book on Flipping Houses. This will definitely lay a sound foundation for understanding investment side of flipping.
Being a Contractor you will be able to very accurately account for all the renovation costs, which is where most investors in my experience do there due diligence wrong. No need worry fellow non contractors, J Scott also has a great book for estimating rehab costs.
To answer your question on where to buy. I would buy where your investors are buying, I often do. That is if your familiar with the area, and your doing enough work there. Whats great about this, is that your comps become your own comps. And you keep your overhead down on the company side, because your already traveling in the area which makes it easier to manage.
As a Genearl Contractor I look to buy and rehab houses on southside of Chicago, because I understand the area and I'm already traveling there for work I'm doing for other investors.
So stick to areas you know and understand, first. Than you can plan later to move to areas that seem more lucrative, provided you have done your due diligence.
I have a Construction company as well (General Contractor), and like you I work with many investors; but I also do my own flips.
Just by you being on BP, your moving in the right direction to increase your Financial I.Q.
I recommend a great book by @J Scott, The Book on Flipping Houses. This will definitely lay a sound foundation for understanding investment side of flipping.
Being a Contractor you will be able to very accurately account for all the renovation costs, which is where most investors in my experience do there due diligence wrong. No need worry fellow non contractors, J Scott also has a great book for estimating rehab costs.
To answer your question on where to buy. I would buy where your investors are buying, I often do. That is if your familiar with the area, and your doing enough work there. Whats great about this, is that your comps become your own comps. And you keep your overhead down on the company side, because your already traveling in the area which makes it easier to manage.
As a Genearl Contractor I look to buy and rehab houses on southside of Chicago, because I understand the area and I'm already traveling there for work I'm doing for other investors.
So stick to areas you know and understand, first. Than you can plan later to move to areas that seem more lucrative, provided you have done your due diligence.
Hope this helps
Hello Tony.
Very wise advices, thank you very much. Make sense what your saying, regarding the areas its a good idea. For sure the issue is not the rehab for me, but to make the right choices. hope you hear from you again Tony.
Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes
10y
Get your Proof of Funds and/or Pre-approval ready so you can start making offers on properties. The $ amount available to you may define and/or limit where you can look for properties.
Hard money lenders love funding contractors so consider getting pre-approved for a HML type loan
Establish a relationship w/ a realtor that focuses on working w/ investors. The realtor will provide you w/ data to help determine where to buy property. They will also provide you w/ information to evaluate a property (Comparables)
Establish multiple relationships w/ wholesalers
Establish a minimum profit criteria- The right property is the one that meets or exceeds your profit criteria
Get your Proof of Funds and/or Pre-approval ready so you can start making offers on properties. The $ amount available to you may define and/or limit where you can look for properties.
Hard money lenders love funding contractors so consider getting pre-approved for a HML type loan
Establish a relationship w/ a realtor that focuses on working w/ investors. The realtor will provide you w/ data to help determine where to buy property. They will also provide you w/ information to evaluate a property (Comparables)
Establish multiple relationships w/ wholesalers
Establish a minimum profit criteria- The right property is the one that meets or exceeds your profit criteria
Thank you for the advice. I will keep this steps in my mind.