Flipper/Rehabber · Tulsa, OK · Member since 2020 · 7 posts · 2 votes
I’m in the Tulsa, OK area. I have no idea where to start. I’m from a low income background and have no one to reach out to for information on real estate. I’m a seasoned remodeler, licensed HVAC, business owner, and a LEO.
I’ve worked since I was 15 trying to make something of myself and have just now got an opportunity to obtain a lump sum of money. I need to use this opportunity to start into real estate but not for long term investments quite yet. I need to make money first, and slowly build a rental portfolio over time.
I need information on the most efficient way to invest and capitalize within 6 months to a year at a time.
I appreciate any and all information and I’m grateful to finally have an opportunity to be on this side of the fence.
Are you bankable? Do you have a full-time job with job history and can get a loan?
I think you have some options but a lot depends on how much risk you can take on and how much savings you have to live off of in the meantime (if you don't have another job).
I'd be happy to get together and brainstorm options with you. I've got a long path ahead myself but nothing sounds more interesting to me than helping someone like yourself chart a path towards your dreams and financial victories.
Start out by playing defense and reduce your expenses. I would look into house hacking. Buy and move into a multi family and rent out the other units. Then buy David Greene's book on BRRRR investing and start there. Feel free to reach out anytime
@Zackary Shephard That is sound advice for sure but Ben specifically says not for long term investments. I agree though that house hacking is a great first move and he could definitely do that with $50k. Even a fixer upper duplex,triplex, quad could be a great move as he has some experience with remodeling and could really force some appreciation along with getting his expenses down
@Ben Randall it sounds like you have your sites set on flipping/rehabbing as your title says next to your name and it also sounds like you want to be a very active investor vs a passive one. Bigger Pockets has a great rental property calculator as well as a fix and flipper calculator and book. Education is a big part and would zone in on the book/podcasts you want to focus on and go from there. Talk to some brokers in your area and let them know your search criteria. If you live in the house you could put less down as low as 3.5% or could put 20% down. If you are doing the work yourself you will save on the labor and just materials. Make sure you are being conservative with all your estimates. Good luck!
@Brian Wagers thank you so much for your reply. I chose flipping / rehab because it’s about all know how to do. I will be extremely involved for the next 10 years or so and hopefully begin getting into rentals.
As of now I know it’s incredibly hard to get financing for purchases other than your main home and I’ve heard you can only utilize 30% of rental income after you’ve had it for 2 years for loan purposes.. they sure make it difficult to break out of socioeconomic barriers. As of now I’ve got the cash to do something, just not sure which would be the most effective considering I don’t have room for error on my first go.
Read Brandon turners book investing in real estate with no and low money down. Save your money for reserves. Find a partner. Find an owner finance deal. I agree, the bank financing part can become difficult. Find a way to acquire the property without a bank - owner finance, sub2, line of credit, partner, etc. take the bank out of the equation, do your rehab, and then refinance that into a long term loan.
I have a few thoughts on my 2 cents on the subject...
I’m also wanting to do some cash-grab focused stuff right now. It makes sense to be ready if the supposed drop in prices and massive forecasts for foreclosures are true.
If you’re familiar with it, “wholetail” could be a great way to go, it’s a hybrid of a flip and wholesale. Not an all out flip but not just an assignment of a contract. I’m wanting to do a lot of those myself and have tried to get on every buyers list I can to look at everything including some opportunities I come across besides that.
On the financing.... finding lenders is like dating, don’t settle with someone you don’t like on the first date and don’t jump into bed and get married on the first date either... that’s my analogy to say talk to many. Build a spreadsheet for it. Keep track of what everyone is offering. Look into asset based lending, and business credit / business based lending on the EIN not the SSN. I’m saying this because you had a comment where you send some lenders don’t want to make it easy on certain socio economic classes. I disagree, here’s why: they always want to “sell their money.” Think about it. Banks / lenders don’t sell candy or coffee or tshirts or even houses.... they sell money. And like my dating analogy they play hard to get at first but the good ones learn how to communicate when you ask enough of the right questions (like some of what I suggested ^ about EIN etc) Also sometimes if you aren’t speaking to the sales person at a bank or lending institution you aren’t getting the full pitch... the salesman is always hungry for the sale.... there’s a $hit load of private and hard money out there, too.... the trick is, having the right conversation with as many as possible, and becoming loyal to those loyal to you - but make them earn that crap. “Break up” with the bad eggs.
I hope this helps and pumps you up. I’m preaching stuff I need to do too, and am developing within my own mindset. Have a rad day.
@Ben RandallI am so excited for you! I totally get where you are coming from since just started flipping a year ago (took a few months off in between to move to a lake house we renovated). Now we are on our 8th and 9th flip. Our process in the beginning....have our money in hand to put down on the first property/properties. (sounds like you have that!). Get recommendations for local hard money lenders (talk to other flippers there on who they use and why). Figure out their terms and qualifications they require of you. For the most part, it is about the deal. Get a list of qualified contractors/subs you want to work with. Then find the deal...network with wholesalers in the area, network at local real estate investment groups, network online like with facebook investment groups locally. Here on bigger pockets they have great resources including calculators to be able to look at your purchase price, rehab costs, holding costs, etc. to determine what your profit would be at the end of the project once you sell. Put on your list getting a good realtor to sell the house if you are not a realtor yourself.
Basically, get ready to be ready! We absolutely love it! An important part for it is having a passion for it. And yes, we like the money as well. We are always learning how to do it better and that is exciting too! And now that is all we do!
@Dutch Langley Awesome information!! I most certainly need to get out and meet people. It’s scary for me to think about bringing other people in considering the boundless reports of less than ethical business dealings some are exposed to. I do not have legal resources if something went south. Was there something you did to help you feel more confident in entrusting others in this venture? Also, I most certainly have a passion for this and it’s pretty cool when I read that, I knew exactly what you meant.
When I tell others I enjoy real estate and remodeling they think I’m crazy. Can’t wait to do something I enjoy and to have it make money. (I wish fishing did the same lol.)
Are you bankable? Do you have a full-time job with job history and can get a loan?
I think you have some options but a lot depends on how much risk you can take on and how much savings you have to live off of in the meantime (if you don't have another job).
I'd be happy to get together and brainstorm options with you. I've got a long path ahead myself but nothing sounds more interesting to me than helping someone like yourself chart a path towards your dreams and financial victories.
Profit First - Learn how to keep the money you will make in real estate investing now. Reading this book will literally add zeros to your bank account if you start out with this system.
I'd also recommend Gary Keller's The Millionaire Real Estate Investor because of the practical tips offered in the book.
Then get started!
The best experience will be doing a deal and actually getting your feet wet. You want to be educated but make sure to dive in as soon as you can.
Make offers, talk to people, tell everyone you know you're looking to take a problem property off of their hands.