Looking to get started as a Real Estate Investor Advice Please..
Member since 2022 · 14 posts · 8 votes
Looking to get started as a Real Estate Investor Advice Please..
Most Popular Reply
Investor · Atlanta · Member since 2022 · 19 posts · 29 votes
4yThe best way to get started is to get into a deal. Not just any deal, but a deal that has a manageable rehab that provides an opportunity for profit as well as an opportunity for you to learn the ropes of what it takes to get a fixnflip in the books from A-Z. It seems like you more than likely have the experience that it takes to manage contractors and make sure the work gets done based on ownership of a paint company. Biggest downfalls I see are people thinking a deal is a deal when its not and going with the wrong contractors. A deal is different for all people based on their investor profile (Hard Money, licensed agent, Cash, Purchase only loan, Rehab size, ARV Upside) If you have anything specific that is stopping you I would be happy to answer any questions.
21 Replies
- Investor · Atlanta · Member since 2022 · 19 posts · 29 votes4y
The best way to get started is to get into a deal. Not just any deal, but a deal that has a manageable rehab that provides an opportunity for profit as well as an opportunity for you to learn the ropes of what it takes to get a fixnflip in the books from A-Z. It seems like you more than likely have the experience that it takes to manage contractors and make sure the work gets done based on ownership of a paint company. Biggest downfalls I see are people thinking a deal is a deal when its not and going with the wrong contractors. A deal is different for all people based on their investor profile (Hard Money, licensed agent, Cash, Purchase only loan, Rehab size, ARV Upside) If you have anything specific that is stopping you I would be happy to answer any questions.
- Lender · Alpharetta, GA · Member since 2021 · 34 posts · 36 votes4y
Hi Christian,
There are a few ways you could buy a investment property. The easiest way with no investors involved is a conventional loan. You can do as low as 5% down payment on conventional, but keep it in mind, that's contingent on your credit score. If you wanna buy a property using traditional ways, than I suggest you to talk to a lender first to see how much you would qualify for. Once you know much you qualify for, then you would connect with an agent and go on a property hunt. Feel free to send me a message if you have questions.
- 4yPeter MckernanBusiness MemberResidential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
Quote from @Christian Francois:
Hi,
I’m an Interior Designer and I own a residential and commercial paint company in Atlanta. I am truly passionate about becoming a real estate investor for short terms and fixer uppers. Any advice on how to start? Also, I’m looking for a great mentor in the Atlanta area.
I would dive into this website, BP podcast, and many other podcasts for as much time as possible and then read at the same time. All while you are doing this look for a mentor as you mentioned in your area by going to Meetups and secure a free internship or just something you can do with someone that has experience.
The McKernan Group4.954 Reviews - Member since 2022 · 14 posts · 8 votes4yThank you so much Peter! Definitely want to learn from the best and if I could secure a free mentorship, that would be even better!
Quote from @Peter Mckernan:
Quote from @Christian Francois:
Hi,
I’m an Interior Designer and I own a residential and commercial paint company in Atlanta. I am truly passionate about becoming a real estate investor for short terms and fixer uppers. Any advice on how to start? Also, I’m looking for a great mentor in the Atlanta area.
I would dive into this website, BP podcast, and many other podcasts for as much time as possible and then read at the same time. All while you are doing this look for a mentor as you mentioned in your area by going to Meetups and secure a free internship or just something you can do with someone that has experience.
- Real Estate Agent · Burbank, CA · Member since 2021 · 38 posts · 26 votes4y
Hi Christian,
One way to get started may be to leverage the relationships you have through your interior design and paint companies. Do you have anyone you've worked with through those that are investors or are interested in investing? You can ask them if you can get in on their next deal.
Even if it's a small percentage or you trade sweat equity for cash, you just want to get that first deal under your belt. If you started looking for deals in the area and went to one of them saying hey is this a good idea, you'll be able to to start a conversation and show that you can provide value, even with it being your first deal. And don't forget, you can provide value through the interior design and painting, staging and paint are HUGE factors in optimizing rents.
Good luck!
- Accountant · Lexington, KY · Member since 2019 · 100 posts · 66 votes4y
Quote from @Christian Francois:
Hi,
I’m an Interior Designer and I own a residential and commercial paint company in Atlanta. I am truly passionate about becoming a real estate investor for short terms and fixer uppers. Any advice on how to start? Also, I’m looking for a great mentor in the Atlanta area.
Hi Christian,
I'm excited that you are passionate about becoming a real estate investor! These are some of the things that helped me get into my first deal:
When looking for a mentor, seek to provide them with some value first. You'll definitely get a lot in return with this mindset.
A penny saved is two pennies earned, after taxes. Early in your investing career, keep your expenses low so you have more cash to put into your deals and grow your passive income.
Build your team! Real estate is a relationship business so while you are looking for your agent, contractor, lender, property manager, accountant, etc. just talk to people and let them know what you are doing. Local meetups have been one of the most efficient ways to do this for me.
Cheers!
- 4yBrenden MitchumBusiness MemberRental Property Investor · Atlanta, GA · Member since 2019 · 1k+ posts · 872 votes
Hey @Christian Francois, welcome to the BP community!
There is already some fantastic advice here, but I want to unpack a point that @Vinnie Da silva touched on. This low-down conventional loan requires you to occupy the property for at least a year. There are exceptions to the rule, such as selling the property or moving to a new area for work. However, the strategy is ideal for anyone who has some housing flexibility. As long as the property is safe and there are no major systems defects, it will likely pass a conventional appraisal. This means that you could find a property that needs a cosmetic rehab, live in it while you fix it up, then sell. We call this a live-in flip. You do want to be very conservative with your numbers right now though. Material cost is up and labor is hard to find in Atlanta. Also, with the U.S. economy edging into a recession, you want to be extra conservative with your ARV calculations. Don't assume you will be able to sell the home for the same price as your comps.
Another option with this low-down loan is to house hack. This is my preferred investment and housing strategy. You want to find a home that you can both live in and rent out at the same time. Maybe you live in one bedroom and rent out the rest. Or, maybe you live in one unit or mother-in-law suite and rent out the main house/other unit. You can even do this with small multifamily (2-4 units) with a slightly different loan product called FHA (as low as 3.5% down). However small MF is hard to come by in ATL and FHA rates are not as good as conventional rates if your credit is solid. Also, many sellers right now are heavily favoring cash and conventional loans over FHA. My advice would be to stick with single-family homes that have extra bedrooms or even an extra living area, like a mother-in-law suite. Then, you can stick with that more favorable conventional loan product and you have a much larger supply of homes to choose from. Plus, you can actually get as low as 3% down on conventional, last I checked (remember another 2-3% for closing costs though).
There's always the option to do a combination house hack/live-in flip too. Get creative but above all, understand and respect the numbers.
First step would be to speak with some lenders. As a self-employed individual, traditional financing can be tricky. So, you want to make sure all your financing ducks are in a row first.
And great advice above about cutting expenses but actually a penny saved is more like 1.2-1.5 pennies earned, depending on your tax bracket.
Hope this helps a bit. Please, feel free to reach out anytime if you have other questions or just want to chat!
- 4yWale LawalBusiness MemberReal Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
@Christian Francois
Welcome to BiggerPockets!You should get ample knowledge of real estate before you start your real estate career.
Join local real estate clubs, follow local real estate news regularly, connect with local agents and investors as they have experience and knowledge of working in the local market.
Also a local Investor-Agent can help shorten your learning curve and save you a lot of headaches as they tend to understand the local market better.
Read real estate books like “Rich Dad Poor Dad" by Robert T. Kiyosaki
Make sure to consume contents here as much as possible and feel free to ask any questions you may have.
We are here to help each other grow!
All the best!
NETWORTH BUILDERS5236 Reviews - 4yBruce WoodruffPro MemberContractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
Learn, learn, learn.....take every class and hands-on experience you can do. Anything Real Estate and Construction related. Even the Home Depot tile classes on Saturdays......
- Member since 2022 · 14 posts · 8 votes4y
Thank you so much Wale! I would truly like to connect with you if your open.
- Member since 2022 · 14 posts · 8 votes4y
Thank you so much for all of this great advice. I see your here in Atlanta. I would truly love to connect and build a great business relationship with you. Let’s chat if your open..
- Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes4y
Quote from @Christian Francois:
Hi,
I’m an Interior Designer and I own a residential and commercial paint company in Atlanta. I am truly passionate about becoming a real estate investor for short terms and fixer uppers. Any advice on how to start? Also, I’m looking for a great mentor in the Atlanta area.
I always recommend the book “Rich dad, Poor dad” by Robert T. Kiyosak to anyone who is starting out. Start listening to the BiggerPockets podcast starting at the very beginning. Start growing your network, look on Facebook/BiggerPockets for different events, find a mentor who is doing what you want to do, and get to know the local lenders/brokers. I would call/email anyone who is doing what you want to do and ask to meet with them.
These are great questions to ask https://www.johnmaxwell.com/bl.... He has a great book as well.
Start running numbers https://www.calculator.net/ren... I like to use this calculator. By running numbers it will teach you what a good deal is and when you see one it will help you act fast.
- Lender · Alpharetta, GA · Member since 2021 · 34 posts · 36 votes4y
Quote from @Brenden Mitchum:
Hey @Christian Francois, welcome to the BP community!
There is already some fantastic advice here, but I want to unpack a point that @Vinnie Da silva touched on. This low-down conventional loan requires you to occupy the property for at least a year. There are exceptions to the rule, such as selling the property or moving to a new area for work. However, the strategy is ideal for anyone who has some housing flexibility. As long as the property is safe and there are no major systems defects, it will likely pass a conventional appraisal. This means that you could find a property that needs a cosmetic rehab, live in it while you fix it up, then sell. We call this a live-in flip. You do want to be very conservative with your numbers right now though. Material cost is up and labor is hard to find in Atlanta. Also, with the U.S. economy edging into a recession, you want to be extra conservative with your ARV calculations. Don't assume you will be able to sell the home for the same price as your comps.
Another option with this low-down loan is to house hack. This is my preferred investment and housing strategy. You want to find a home that you can both live in and rent out at the same time. Maybe you live in one bedroom and rent out the rest. Or, maybe you live in one unit or mother-in-law suite and rent out the main house/other unit. You can even do this with small multifamily (2-4 units) with a slightly different loan product called FHA (as low as 3.5% down). However small MF is hard to come by in ATL and FHA rates are not as good as conventional rates if your credit is solid. Also, many sellers right now are heavily favoring cash and conventional loans over FHA. My advice would be to stick with single-family homes that have extra bedrooms or even an extra living area, like a mother-in-law suite. Then, you can stick with that more favorable conventional loan product and you have a much larger supply of homes to choose from. Plus, you can actually get as low as 3% down on conventional, last I checked (remember another 2-3% for closing costs though).
There's always the option to do a combination house hack/live-in flip too. Get creative but above all, understand and respect the numbers.
First step would be to speak with some lenders. As a self-employed individual, traditional financing can be tricky. So, you want to make sure all your financing ducks are in a row first.
And great advice above about cutting expenses but actually a penny saved is more like 1.2-1.5 pennies earned, depending on your tax bracket.
Hope this helps a bit. Please, feel free to reach out anytime if you have other questions or just want to chat!
Right on point
- Rental Property Investor · Los Angeles, CA · Member since 2018 · 49 posts · 46 votes4y
Hi Christian, I am also an Interior Designer turned investor & realtor. I leveraged my ID skills to provide value where ever I could to get mentorship. I didn't necessarily ask them to mentor them, I just offered to help when I know I could be of service and they would explain things along the way and share with me their thoughts on deals. I helped experienced investor friends redesign units, did floor plans and design renderings for their projects. I offered to run numbers for them. Sometimes even just drove them around to see what ever properties they wanted to see that day, it was valuable to just be around people who were doing what I wanted to do.
- 4yPatrick DruryBusiness MemberReal Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
@Christian Francois
I would recommend looking into getting an owner-occupant duplex. It's a great way to get started in real estate. You can buy a 2-4 unit for low money down depending on the loan product you are using and occupy one side while renting the other side out. I have seen products from as low as 0 to 5% down for an owner occupant 2-4 unit. Depending on the deal, you could have the tenant-occupied side cover your mortgage and have no living expenses, but that depends on the market you live in. - 4yBrenden MitchumBusiness MemberRental Property Investor · Atlanta, GA · Member since 2019 · 1k+ posts · 872 votes
@Christian Francois - Absolutely! Please feel free to reach out anytime. Best way to reach me is via text (see signature for my digits).
- Member since 2022 · 14 posts · 8 votes4y
Quote from @Kalim Kalla:
The best way to get started is to get into a deal. Not just any deal, but a deal that has a manageable rehab that provides an opportunity for profit as well as an opportunity for you to learn the ropes of what it takes to get a fixnflip in the books from A-Z. It seems like you more than likely have the experience that it takes to manage contractors and make sure the work gets done based on ownership of a paint company. Biggest downfalls I see are people thinking a deal is a deal when its not and going with the wrong contractors. A deal is different for all people based on their investor profile (Hard Money, licensed agent, Cash, Purchase only loan, Rehab size, ARV Upside) If you have anything specific that is stopping you I would be happy to answer any questions.
Hello Kalim,
Thank you for the great advice. I would love to connect with and speak with you. I have so many questions and I’m so eager to learn.Are you open to jumping on a call? If so please let me know!
- Member since 2022 · 14 posts · 8 votes4y
Hello @Steven Foster Wilson
Thank you for this great advice. Hello would love to connect with you and learn from you if your open. Can we jump on a call?
- Member since 2022 · 14 posts · 8 votes4y
Hello @Kalim Kalla
Thanks so much for the great advice. I would truly like to jump on a call with you if your open. I have so many questions and I’m so eager to learn the business! Please let me know if your open.
My contact is 469-490-9660
- Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes4y
Quote from @Christian Francois:
Hello @Steven Foster Wilson
Thank you for this great advice. Hello would love to connect with you and learn from you if your open. Can we jump on a call?
Hi Christian, I just sent you a message.
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