Trying to get my real estate investing started.

Trying to get my real estate investing started.

Investor · Lansing, MI · Member since 2021 · 5 posts · 5 votes

I'm sure this has been asked/posted a million times, but I'm struggling to figure out the best route to begin my investing/portfolio. I feel like I have a few options and none of them are necessarily wrong, just don't know which to start, and I feel if I try starting multiple different routes at once, may lead to failure.

Flipping is what I believe to be the best place for me to start, build up some capital so I can aggressively go into rentals once I do. I have a decent amount of equity in my house, as well as family members interested in flipping with me, with a very large amount of equity they would be willing to use.

I also am interested in rentals, whether single family or multi family, interested in both STR/MTR, as well as regular rentals. With my equity I could easily get the down payment for a rental, as well as I qualify for the VA loan, and would like to take advantage of that.

I guess my question is should I focus on just one strategy, or should I just do whatever the market throws my way, whether its a rental or a flip. I don't want to end up having analysis paralysis, but also don't want to start off on the wrong foot.

Any advice is greatly appreciated, trying to learn all that I can!

Thank you,

Nathan Morrison





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  • Member since 2024 · 53 posts · 11 votes
    2y
    Quote from @Nathaniel Dean Morrison:

    I'm sure this has been asked/posted a million times, but I'm struggling to figure out the best route to begin my investing/portfolio. I feel like I have a few options and none of them are necessarily wrong, just don't know which to start, and I feel if I try starting multiple different routes at once, may lead to failure.

    Flipping is what I believe to be the best place for me to start, build up some capital so I can aggressively go into rentals once I do. I have a decent amount of equity in my house, as well as family members interested in flipping with me, with a very large amount of equity they would be willing to use.

    I also am interested in rentals, whether single family or multi family, interested in both STR/MTR, as well as regular rentals. With my equity I could easily get the down payment for a rental, as well as I qualify for the VA loan, and would like to take advantage of that.

    I guess my question is should I focus on just one strategy, or should I just do whatever the market throws my way, whether its a rental or a flip. I don't want to end up having analysis paralysis, but also don't want to start off on the wrong foot.

    Any advice is greatly appreciated, trying to learn all that I can!

    Thank you,

    Nathan Morrison






    Hi Nathan,

    I would suggest utilizing the VA loan first then looking into fix and flips. There aren't many options out there for cheaper financing than a VA loan. For flipping, I would suggest partnering with someone that fills a gap in your current plan. For example, since this would be your first flip, partnering with someone with a lot of flip experience in the last three years would get you much higher leverage than if you tried to take down the deal yourself. Same goes for if they are the liquidity component or have better credit. Flips may offer you a little more flexibility because you can have as many open at one time as you want. You can also deploy the profit from the one deal into your next which will definitely help you scale faster. All depends on your goals and how fast your looking to scale. Hope this helps!

    Best,

  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    2y

    @Nathaniel Dean Morrison

    unfortunately "flipping to build capital" isn't really a thing.  if it were we'd all just be effortlessly flipping.  the best flippers are people who are in the business of flipping.

    it takes capital to buy and hold while you rehab, and then you might be waiting 6-12 months for the payout.

    so i never recommend that investors start with a flip

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