Rental Property Investor · Wilmington, NC · Member since 2017 · 27 posts · 13 votes
Hi everyone,
My goal is to get an idea of what some of you more seasoned investors would do if you were in my shoes. I currently have around 50k cash to invest in a project and I am located in Virginia Beach, VA. I also have a partner in California who has 50k to invest. Our plan is to seek properties in the 70k range that need 30k or less in rehab. The areas I am looking right now have comps selling for 140k-160k. We are both newbies and would like our first deal to be a flip requiring mainly cosmetic repairs.
We want to do flips to build more capital so we can get into some rentals to hold, and eventually new construction. I don't have any interest in wholesaling, but the properties I'm looking at are being sold by a wholesaler.
If you guys were in my shoes, would this be the approach you would take? How would you go about tackling it? We don't have a team built yet. Do I need a to pay a contractor each time to do a walk-thru on a potential property with me to get a quote? How did you you build your team?
It's great to be here with the wheels turning and the ability to take action! Thank you all!
Investor · Chicago , IL · Member since 2014 · 159 posts · 68 votes
9y
Hey Byron, these metrics are about the same as my bread and butter properties. Since you guys don't have too much experience, I would spend more time on finding the right contractors.
The math is pretty simple but your challenge will be dealing with contractors and ensuring they do quality work at a competitive price. I'm sure you can find contractors to bid on your project without having to pay them for a quote.
I would spend time interviewing a few and listening very intently when doing the walk through. My guess is that each contractor will address some different items. You should put together a scope of work and make sure each contractor are bidding the same items as well.
@jscott has a great blog at 123flip.com which will answer virtually all of your questions on how to correctly run a flip. Of course you can find everything you need on BP as well.
Hopefully this helps and best of luck. Good to hear you're jumping right in and taking action!
Investor · Pittsburgh, PA · Member since 2015 · 1k+ posts · 1k+ votes
9y
@Byron Bailey thats a good start with the amount of capital you have. go slow and be selective and most importantly be PATIENT. if you find a deal in the first week of searching you probably are making a mistake. Get to know the market, build your team, put in the months of time needed to be successful. limit your first deal to something thats a slam dunk. even if you only make $5000 the learning will be priceless.
My goal is to get an idea of what some of you more seasoned investors would do if you were in my shoes. I currently have around 50k cash to invest in a project and I am located in Virginia Beach, VA. I also have a partner in California who has 50k to invest. Our plan is to seek properties in the 70k range that need 30k or less in rehab. The areas I am looking right now have comps selling for 140k-160k. We are both newbies and would like our first deal to be a flip requiring mainly cosmetic repairs.
We want to do flips to build more capital so we can get into some rentals to hold, and eventually new construction. I don't have any interest in wholesaling, but the properties I'm looking at are being sold by a wholesaler.
If you guys were in my shoes, would this be the approach you would take? How would you go about tackling it? We don't have a team built yet. Do I need a to pay a contractor each time to do a walk-thru on a potential property with me to get a quote? How did you you build your team?
It's great to be here with the wheels turning and the ability to take action! Thank you all!
Investor · Chicago , IL · Member since 2014 · 159 posts · 68 votes
9y
Hey Byron, these metrics are about the same as my bread and butter properties. Since you guys don't have too much experience, I would spend more time on finding the right contractors.
The math is pretty simple but your challenge will be dealing with contractors and ensuring they do quality work at a competitive price. I'm sure you can find contractors to bid on your project without having to pay them for a quote.
I would spend time interviewing a few and listening very intently when doing the walk through. My guess is that each contractor will address some different items. You should put together a scope of work and make sure each contractor are bidding the same items as well.
@jscott has a great blog at 123flip.com which will answer virtually all of your questions on how to correctly run a flip. Of course you can find everything you need on BP as well.
Hopefully this helps and best of luck. Good to hear you're jumping right in and taking action!
Rental Property Investor · Wilmington, NC · Member since 2017 · 27 posts · 13 votes
9y
@Alex Deacon Great advice! I'm being very methodical and meticulous about my first project, as the majority of my liquid assets will be wrapped up in it!
Rental Property Investor · Wilmington, NC · Member since 2017 · 27 posts · 13 votes
9y
@Christopher Salazar Great advice, I have been connected with a few contractors already this week! I'm reading The Book on Flipping Houses and then want to finish The Book on Estimating Rehab Costs so I can put together an effective SOW and budget. Then I can get more serious with putting in offers. Thanks for the reply!
Investor · Austin, TX · Member since 2017 · 46 posts · 19 votes
9y
What's up Byron, are you interested in a partnership in Texas? I've been looking for a partner for a few weeks and have had to pass up on a few deals ( after doing all the work) because of lack of initials funds ( locked up on another deal)
If you are interested in flips or buy and holds... I can send you what I got. I just had to put a lower offer than I wanted today which means I'm probably going to lose 27% return on a 2 week flip because of lower initial funds.
Hit me up if you are interested and we can chat.
Wholesaler · Newport News, VA · Member since 2014 · 89 posts · 9 votes
9y
Why don't you want any deals from wholesalers. I actually have a project I'm looking to buy in Newport news. Purchase 38k rehab 15k to 20k ARV. 112k. Looking for partner in deal. Quick in and out 30 to 45 days.
You do need to build a team because it makes business easier and more efficient so you can constantly generate deals.
Smithfield, VA · Member since 2012 · 90 posts · 27 votes
9y
You might consider the BRRRR strategy, not sure if that's fast enough for you with the typical six month seasoning period or maybe a 1031 exchange when you sell. Realtors and taxes will eat up your profits.
Financial Advisor · Boynton Beach, FL · Member since 2015 · 833 posts · 798 votes
9y
If you are new to real estate investing, you might want to think about staying on the sidelines until the market is a lot more attractive. Experienced investors are having a hard time finding deals that make sense. How do you know that the deal some wholesaler gives you hasn't been passed over by dozens of more experience investors?
The real estate market has been really hot for a really long time. I've put all of my own money on the sidelines in safer financial alternatives. These are mostly private lending opportunities that give me a really good return and are secured by real estate or other assets with a low loan to value. The end borrower is taking the risk, not me. I'll make interest or take the asset serving as collateral.
Get back to basics. Why are you investing in real estate? Returns? Safety? Financial Freedom?
Entrepreneur · Elizabeth City, NC · Member since 2017 · 15 posts · 4 votes
9y
Hey Byron,
You sound like me. My partner and I are in the same boat looking for the same kind of properties in the Hampton Roads area. I feel the same way you do about doing a few flips to get off the ground then move to buy and holds. I am not really interested in doing the wholesaling side myself either but I don't want to say that I won't ever do it if the opportunity presents itself! Good luck out there man, maybe we can partner on a deal in the future.
Entrepreneur · Elizabeth City, NC · Member since 2017 · 15 posts · 4 votes
9y
@Danielle Jones I am still forming my team and would like to connect with some wholesalers. I lived on the peninsula for 12 years and know that there are some deals to be had there too! I'd like to talk to you about sending some deals my way.