I’m new to the real estate investing business and would like to get started ASAP but not foolishly. I have about 40k in business credit that I can leverage to potentially partner with a wholesaler or flipper to cover repair costs.
Any thoughts on my initial idea or other advice on ways to get started with what I have? Thanks!
Hi @Gerald A. Bridges . I am both an investor and a licensed realtor in New Orleans. What type of investing are you looking to get into? Do you want to learn to wholesale, or are you looking to flip?
Hey @Braden Smith thanks for responding. I’m looking to do fix and flips and flips and hold. I also plan to do both with multi families as well.
@Braden Smith ***fix and holds
Gotcha. You will need to begin by choosing a farm area. This is the area you will farm for leads. You will want to choose an area that is convenient for you to begin with, maybe even your own neighborhood where you live, or at least somewhere that is not too far for you to get to. Do not go by zip code. You can't really go by zip codes in our city. As you may have noticed, things can change drastically from block to block in New Orleans, and much of the surrounding cities and towns tend to be the same. So in any given zip code there will be good areas and bad areas. We have a very unique, and challenging real estate market in the New Orleans area. We have the lake to the north and the river to the south, so there is only so much land in between. This creates some scarcity and with high demand comes high prices. It has become very difficult to find deals where the numbers make sense these days, especially in better areas. We have a massive amount of competition in our market. There are many buyers and not enough properties for sale.
If your strategy is for your farm area is flipping and/or buy and hold you will need to ensure that your farm area supports that. You may not be able to find an area that works for both, so you may need to choose a different farm area for each goal. For example, if you are looking to wholesale or flip you will want to target an area that has a good bit of activity, and by activity I mean properties are being bought and sold. You can look online at some of the real estate sites to see how many properties have been sold in the last 6 months and also take notice of the days on market... how long did these properties take to sell? The quicker the better! Driving the neighborhood is another way to get a feel for a farm area. If you see a bunch of dumpsters in driveways and on the street where renovations and new builds are happening it is pretty safe to say that area is hot.
This area may or may or may not work for the buy and hold.. you need to check rent stats and comps in the area to determine that. Is the area predominantly homeowners or renters? What type of renters are in the area? What type of renters do you want? These are all questions you will need to answer for yourself...
Hope that helps some. If you have any questions, let me know. Good luck!