House Flipping with the help of a Real estate agent
Member since 2020 · 3 posts · 1 vote
Hi Community, I want to buy my first income property. My wife and I thought we would go the 'buy and rent' way. When we met with a potential real estate agent, he said he mostly does reno and flips with his dedicated team of lawyers, mortgage brokers and contractors. He was flexible and said he would be happy to help us buy for rent or if we are comfortable he could help us with house flipping where once we purchase, he will mobilize his team to reno and quickly put it back in the market for sale.
As my wife and I are not experienced in house flipping, how would you feel about riding on the experience of your real estate agent to help you do it?
Just wanted to know your thoughts?
Thanks
Adam
Adam,
I am a realtor in Reno Nevada who is a big advocate of self education, coupled with the right team, and possibly a mentor, you can succeed faster within this business. I don't believe you NEED a realtor, but a good realtor can keep you out of some sticky-wickets just by their knowledge. A realtor who invests in real estate, themselves, is always helpful. Those who don't invest in real estate and are recommending it for others, makes me take pause. Either they are not doing it because they don't believe in what they are selling, or they are too scared. Neither of these is good.
Reading, listening to podcasts, and asking questions on forums like this are key. I never go to my doctor, get a diagnosis, and just hope they know what they are doing. We have so many amazing resources out there to help us do our own due diligence.
Plug into a local investors Meetup or REI and talk to those who are using the same model you are using. Just by surrounding yourself with like-minded individuals and having great conversations, you can avoid pitfalls you may not have known about otherwise.
I teach a class on investing in real estate here in Reno, and run our local investors group who meets once per month. A lifetime of education never hurt anyone. Just make sure you are a doer who lines up financing, is ready to jump when opportunity arises and educates themselves about their market they are buying in by going to Builders meetings, Zoning meetings, and local economic development planning meetings.
If this guy is finding you great properties, that's awesome. Just buyer beware. A lot of those who flip properties have a different mindset than those who buy and hold. Hopefully he will help recommend the right inspections and know a little about the rental market to be able to help support your investment decisions. At least he won't be competing with you for those buy and hold properties.
Have you read the BRRRRR Book? (I think I may have put too many R's in there. LOL!)
Ginger
Adam,
I am a realtor in Reno Nevada who is a big advocate of self education, coupled with the right team, and possibly a mentor, you can succeed faster within this business. I don't believe you NEED a realtor, but a good realtor can keep you out of some sticky-wickets just by their knowledge. A realtor who invests in real estate, themselves, is always helpful. Those who don't invest in real estate and are recommending it for others, makes me take pause. Either they are not doing it because they don't believe in what they are selling, or they are too scared. Neither of these is good.
Reading, listening to podcasts, and asking questions on forums like this are key. I never go to my doctor, get a diagnosis, and just hope they know what they are doing. We have so many amazing resources out there to help us do our own due diligence.
Plug into a local investors Meetup or REI and talk to those who are using the same model you are using. Just by surrounding yourself with like-minded individuals and having great conversations, you can avoid pitfalls you may not have known about otherwise.
I teach a class on investing in real estate here in Reno, and run our local investors group who meets once per month. A lifetime of education never hurt anyone. Just make sure you are a doer who lines up financing, is ready to jump when opportunity arises and educates themselves about their market they are buying in by going to Builders meetings, Zoning meetings, and local economic development planning meetings.
If this guy is finding you great properties, that's awesome. Just buyer beware. A lot of those who flip properties have a different mindset than those who buy and hold. Hopefully he will help recommend the right inspections and know a little about the rental market to be able to help support your investment decisions. At least he won't be competing with you for those buy and hold properties.
Have you read the BRRRRR Book? (I think I may have put too many R's in there. LOL!)
Ginger
HI @Adam Vault, it's hard to say without knowing him but in general, I would be open to opportunities to work with others. Just be cautious and make sure that you are not fully relying on him and have a back-up plan. Sounds like he wants to help and it may be a mutually beneficial relationship. He is helping you renovate and flip with your money and you are helping him list the property and gain commission from that process. Best of luck!
Virginia and Eudith - thank you both for the tips and encouragement. We are studying and learning as much as we can about this process before we go in to do flips.
Having a realtor who wants to show you the ropes etc.. and has flip resources and experience could be amazing. Only issue here really is the conflict between your goal (buy hold rent) and his suggestion of flipping. totally different market, timelines, $, areas, target demo, everything. 1/10 props I look at for flips might be a brrrr or a keep... but its rare in my area. Stay in your lane. If you want to switch lanes now, with this offer on the table... do it!