For some reason - I feel like I can't succeed at this...
Real Estate Agent · Charleston, SC · Member since 2013 · 424 posts · 99 votes
For some reason - I feel like I can't succeed at this...
Most Popular Reply
Seth McGatheyBusiness Member
Real Estate Agent · Milwaukee WI · Member since 2024 · 318 posts · 251 votes What are you stressed about? You listed all the things you know and have going for you, but for your stresses you just said that you feel stressed and doom and gloom and that was it. You didn't say what gave you that feeling. So maybe lay that out a bit more for us.
But more generically, everyone is scared for every deal, especially for their first. So you are going to have to take the leap at some point. I think you are on the right track with a BRRRR and/or house hack. I got started with a house hack, and it makes the leap so much easier because you are buying a house to live in, and then the renters just save you a bunch of money and make it easier. To me, house hacking is the gateway way drug of the real estate world. It eases you in, and allows you to prove to yourself in a relatively safe way, that you can be a landlord.
Finally, if it helps, show us your potential deals and let us give you feedback on if it makes sense.
Seth McGathey - Shorewest Realtor4.913 Reviews
38 Replies
- 1yTheresa HarrisPro MemberMember since 2019 · 15k+ posts · 11k+ votes
Flipping is super risky. Start with a turnkey home or something that only needs minor cosmetic work and do a STR (because that is what you seem interested in). Running a successful STR is a lot of work in itself. It will get you started and work in smaller steps.
- Real Estate Agent · Charleston, SC · Member since 2013 · 424 posts · 99 votes1y
Quote from @Theresa Harris:
Flipping is super risky. Start with a turnkey home or something that only needs minor cosmetic work and do a STR (because that is what you seem interested in). Running a successful STR is a lot of work in itself. It will get you started and work in smaller steps.
I have a home now, or rather will when probate is finished, with $200k in equity and another $40k in cash. I'll probably rent that out for $300-$400 a month in profit and probably FHA a small SFH for myself just so I can have some peace and quiet and I'm talking like under $200k. I have one apartment unit in Nashville that's going live on August 18th for an STR and hope to get a second with an investment loan somewhere TBD - probably eastern TN or Myrtle Beach, SC so it's close to me. Beyond that, I may start a second apartment but I like the cash flow and profits of flips and the BRRRR method. Buying LTRs turn key just isn't the move. However, I feel confident with the agents and lenders I've sources of accomplishing all of the above, sans flips. Even in my SFH my mortgage will (should) be paid with my profits elsewhere but I'll need to keep growing if I hope to be successful and flips are logically that next step. There is no shortage of properties available either and I know not from data but experience but the greater area of Charleston, SC is on the rise.
- 1ySeth McGatheyBusiness MemberReal Estate Agent · Milwaukee WI · Member since 2024 · 318 posts · 251 votes
What are you stressed about? You listed all the things you know and have going for you, but for your stresses you just said that you feel stressed and doom and gloom and that was it. You didn't say what gave you that feeling. So maybe lay that out a bit more for us.
But more generically, everyone is scared for every deal, especially for their first. So you are going to have to take the leap at some point. I think you are on the right track with a BRRRR and/or house hack. I got started with a house hack, and it makes the leap so much easier because you are buying a house to live in, and then the renters just save you a bunch of money and make it easier. To me, house hacking is the gateway way drug of the real estate world. It eases you in, and allows you to prove to yourself in a relatively safe way, that you can be a landlord.
Finally, if it helps, show us your potential deals and let us give you feedback on if it makes sense.
Seth McGathey - Shorewest Realtor4.913 Reviews- Real Estate Agent · Charleston, SC · Member since 2013 · 424 posts · 99 votes1y
Quote from @Seth McGathey:
What are you stressed about? You listed all the things you know and have going for you, but for your stresses you just said that you feel stressed and doom and gloom and that was it. You didn't say what gave you that feeling. So maybe lay that out a bit more for us.
But more generically, everyone is scared for every deal, especially for their first. So you are going to have to take the leap at some point. I think you are on the right track with a BRRRR and/or house hack. I got started with a house hack, and it makes the leap so much easier because you are buying a house to live in, and then the renters just save you a bunch of money and make it easier. To me, house hacking is the gateway way drug of the real estate world. It eases you in, and allows you to prove to yourself in a relatively safe way, that you can be a landlord.
Finally, if it helps, show us your potential deals and let us give you feedback on if it makes sense.
I guess the doom part isn't even convincing an owner to get under contract but getting ARVs and making a deal happen. I have a few months yet so maybe I'll learn more. I left BP a decade ago when I was originally a new agent because I had time but no money. Now I have both. I haven't found many duplexes in my area and I'm not privvy to living in an apartment again (and I need a nice yard) so quad units are kinda out the window. I feel like a small under 200k house with a $1300 mortgage and peace and quiet is more my speed, doing a few flips on top of the STRs I'm planning, and then maybe look at multifamilies with other loan products. I'm single, no kids, not married, so my monthly costs right now as I continue building credit (aging late payments from when my dad) are just my car payments, my cellphone, and whatever I put on credit that month and pay in full. Very minimal. It doesn't take a lot of cash flow to cover my expenses.
I guess I just don't feel confident going at it alone. Nobody I know is into this stuff or thinks I can make this a reality. No deals yet, but I've sent a few emails out just from redfin listings about getting things under contract with rough estimates. If I can't get a GC inside I'll wholesale them I suppose.
- 1ySeth McGatheyBusiness MemberReal Estate Agent · Milwaukee WI · Member since 2024 · 318 posts · 251 votes
@Jason Eyerly find a meetup near you. That will be a huge help. Most of my biggest moves came after joining a meetup where people encouraged me, challenged me, and motivated me.
Seth McGathey - Shorewest Realtor4.913 Reviews
- Real Estate Agent · Charleston, SC · Member since 2013 · 424 posts · 99 votes1y
This also has more permanence and good/bad implications than anything I've done before. Could ruin my finances, my credit, etc.
- Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes1y
Quote from @Jason Eyerly:
This also has more permanence and good/bad implications than anything I've done before. Could ruin my finances, my credit, etc.
It sure could , and you could end up homeless living in your car . Its up to you to create your own success . There are no hard and fast rules to walk you thru investing . If it were easy everybody would be doing it . If you go into it with a mindset that it wont work , thats whats going to happen . Its not as passive as people claim it is . Its work , the payoff takes time .
- 1yAaron ZimmermanBusiness MemberAccountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
I would recommend having a re-frame a bit. I'd encourage you to connect with other local real estate investors to hear their stories and learn from them. A lot of your early stress is going to be not having a robust network.
If your situation allows, I'd recommend house hacking. You need a place to live anyway and this allows you to learn the ropes in a lower risk way and you can put down a lower down payment than you otherwise would. This is also far less capital intensive than flipping as well.
Brick House CPAs53 Reviews - Investor · Pasadena, CA · Member since 2017 · 612 posts · 523 votes1y
A certain amount of that feeling is healthy and will keep you focused and sharp. But, too much of it will keep paralyzed and have the potential for regret on opportunities lost. So, there is probably a happy medium where you prepare yourself enough, but maybe also have some backup plans, and/or partner with someone to help spread the risk.
I will say that probably in most of my deals, I have had some level of trepidation. But, that also motivated me to look at those deals from multiple sides, until I felt there was very minimal ways of losing. Basically, I just couldn't find a reasonable reason for not doing them. And generally, that has served me well. So, some good advice would be, get to the point where you feel confident to "Feel the Fear, and Do It Anyway." That's also the title of a good book which I read decades ago.
**********************
Here's some insight from chat:
"
* Use fear as a prompt to stress-test your assumptions.
* Don’t wait for zero doubt — wait for no reasonable objection.
* Backup plans and partnerships can turn “maybe” into manageable.
" - Investor · Pasadena, CA · Member since 2017 · 612 posts · 523 votes1y
I'll also add that it may help to be clear on the difference avenues you are contemplating. You mentioned str's, reno houses, etc. Understand that an str is a hospitality business which may have real estate as part of it's assets, but it is not purely a RE investment. And reno (flipping) is a short-term business with inventory and other operating demands, requiring different sets of skills and knowledge. etc.
- Real Estate Agent · Charleston, SC · Member since 2013 · 424 posts · 99 votes1y
Thanks everyone! When I make it back home at the end of the wildfire season I definitely am going to try and find a meet up to help me out. Just having people to bounce ideas off or GC recommendations will help a ton. I also think hanging my license with a broker that helps traditional buyers/sellers but also has an investment arm will be significantly helpful. I'm hoping to get a HELOC to Kickstart some things in the hopes that successful flips and such will pay it back and I can just use it as a revolving door.
- Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes1y
If fixing sad houses and flipping them is what you are looking for, doing a live in flip may be perfect. You get owner occupant financing, there is no rush to finish the job, can do some of the work yourself to learn if desired but not required, can sell tax free after two years (or refinance), and then repeat. I was clueless when I first started and did two live in flips to gain experience and my seed capital.
- Real Estate Agent · Charleston, SC · Member since 2013 · 424 posts · 99 votes1y
Quote from @Mike Dymski:
If fixing sad houses and flipping them is what you are looking for, doing a live in flip may be perfect. You get owner occupant financing, there is no rush to finish the job, can do some of the work yourself to learn if desired but not required, can sell tax free after two years (or refinance), and then repeat. I was clueless when I first started and did two live in flips to gain experience and my seed capital.
What about not necessarily flips but value add? I found an adorable 2/1.5 at 1100 Sq ft for 190k. Very nice. But if I added a bedroom and bathroom, threw a deck on the pool, some landscaping, and built a garage I think I could add 75k to it. I'd confirm first with comps of course.
- Real Estate Agent · Charleston, SC · Member since 2013 · 424 posts · 99 votes1y
And I'd be in no rush to finish the building (because I have to learn how) since I'm living in it and the occupied portion isn't torn up.
- Flipper/Rehabber · Bloomfield CT · Member since 2020 · 1k+ posts · 408 votes1y
What you are missing is not technique but rather speed of execution. Nowadays the market requires a level of efficiency that was not the norm only a few years ago
- Real Estate Agent · Charleston, SC · Member since 2013 · 424 posts · 99 votes1y
Quote from @James McGovern:
What you are missing is not technique but rather speed of execution. Nowadays the market requires a level of efficiency that was not the norm only a few years ago
I'm determined to go big with this. To the level biggerpockets is asking me to write a book. I go above and beyond and reach out to these agents/brokers and seek their personal opinions. Between trading options again and REI I think my future is bright. And if RE can feed my trading and pay my tuition I'm not far from Nurse Practitioner and Nurse Anesthesist will be right after so my income to inject here is only continuing in an upward trend. I've recession and economy proofed my career(s).
- Member since 2022 · 186 posts · 192 votes1y
Man everyone is scared/nervous/excited/happy when they first start anything, let alone buying real estate. I am looking at getting my second place and I have all the same fears. What if I overpay, what if there are issues , what if I can’t find another great tenant like I have now, what if I can’t find anything g in my price range, what if I find out there is a lien/mold/water damage/squatters/pest/…………..
The what ifs will never stop. Do the best you can. Make an educated decision. That’s all you can do. You hear on this these podcast that someone got lucky/ skilled thier way to a house that they bought 50% off and while painting a small patch on wall they discovered that they had another duplex connected. These are the outliers. You probably won’t get this type of unicorn deal however you will be ok if you do the best you can. Set up parameters stick to them and you can do it.
- Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes1y🤣🤣🤣🤣🤣
Quote from @Jeremiah Dunakin:
You hear on this these podcast that someone got lucky/ skilled thier way to a house that they bought 50% off and while painting a small patch on wall they discovered that they had another duplex connected.
Skyline Properties
- Specialist · NJ · Member since 2022 · 1k+ posts · 649 votes1y
First off, most times it is no. Most projects are not a yes, they are a no. So your gut telling you this project will put you in financial ruin is spot on.
You are also right to question the process. I'm not sure what the books on "how to do this" say. One of the very key factors, whether you are flipping or BRRRRing, is your purchase needs to be under market, and as far under market as you can find. That usually means cash purchase in a secondary market where you can find 30% - 50% discounts. Starting a project way ahead of the game is essential. That's what will allow for the wiggle room you'll need at the exit. Can you find a good on market property to flip/BRRRR, sure, but if you see it so do thousands of others. You'll be put in so many best and final situations and not win the house and the person who does win probably overpaid and will never be able to flip it, they'll have to refi and leave their money in for a few years and see an exit down the road. The exit at the 6 month point is a loss, but the exit at the 6 year point is a win. That's why flipping is tough. You need the advantage buys, and you need to run the subs. Your the GC, so you need to know the order of operations of the rehab and build a labor list. Buying under market and cutting out the GC will put your project costs under 70%, sometimes under 60%. I saw a project last year, that one of my experts in a market I work in found, that had a 48% project cost to ARV.
Every Tom, Dick, and Harry wannabe investor is reading the books/podcasts, getting fired up and hoping they come across a project with a 75% project cost to ARV. They're hoping that when they plug the numbers into their little spreadsheet/calculator, the project cost is spit out at 75% so they can say yes. If it came out at 77.5%, they'd probably go back and reduce some costs they think they are high on to get to 75% so they can say yes.
I know that 75% is an industry benchmark, but you can and will lose on those projects. And the wins will not be phenomenal. You won't get out for the number you think, and the project will run longer and cost more than you thought.
To do flip right, you need to be 65% or less project cost. Margins just shrink up too quick. Markets go stale and fluctuate all the time in inventory and appreciation/depreciation. You can't flip at the 75% project cost and be a consistent winner. I know this from being a consultant on 40+ REI deals in the last 2.5 yrs.
Now, the BRRRR has an x factor that flipping does not. That is the time/value appreciative relationship that RE historically always has had. You can recover from a BRRRR, a flip can kill you unless you know what the hell you are doing.
- Real Estate Agent · Charleston, SC · Member since 2013 · 424 posts · 99 votes1y
Quote from @Mike Klarman:
First off, most times it is no. Most projects are not a yes, they are a no. So your gut telling you this project will put you in financial ruin is spot on.
You are also right to question the process. I'm not sure what the books on "how to do this" say. One of the very key factors, whether you are flipping or BRRRRing, is your purchase needs to be under market, and as far under market as you can find. That usually means cash purchase in a secondary market where you can find 30% - 50% discounts. Starting a project way ahead of the game is essential. That's what will allow for the wiggle room you'll need at the exit. Can you find a good on market property to flip/BRRRR, sure, but if you see it so do thousands of others. You'll be put in so many best and final situations and not win the house and the person who does win probably overpaid and will never be able to flip it, they'll have to refi and leave their money in for a few years and see an exit down the road. The exit at the 6 month point is a loss, but the exit at the 6 year point is a win. That's why flipping is tough. You need the advantage buys, and you need to run the subs. Your the GC, so you need to know the order of operations of the rehab and build a labor list. Buying under market and cutting out the GC will put your project costs under 70%, sometimes under 60%. I saw a project last year, that one of my experts in a market I work in found, that had a 48% project cost to ARV.
Every Tom, Dick, and Harry wannabe investor is reading the books/podcasts, getting fired up and hoping they come across a project with a 75% project cost to ARV. They're hoping that when they plug the numbers into their little spreadsheet/calculator, the project cost is spit out at 75% so they can say yes. If it came out at 77.5%, they'd probably go back and reduce some costs they think they are high on to get to 75% so they can say yes.
I know that 75% is an industry benchmark, but you can and will lose on those projects. And the wins will not be phenomenal. You won't get out for the number you think, and the project will run longer and cost more than you thought.
To do flip right, you need to be 65% or less project cost. Margins just shrink up too quick. Markets go stale and fluctuate all the time in inventory and appreciation/depreciation. You can't flip at the 75% project cost and be a consistent winner. I know this from being a consultant on 40+ REI deals in the last 2.5 yrs.
Now, the BRRRR has an x factor that flipping does not. That is the time/value appreciative relationship that RE historically always has had. You can recover from a BRRRR, a flip can kill you unless you know what the hell you are doing.
I'm not opposed to brrrr. If I can flip it and ti's too hard or sell or whatever but I can refi it to pay off the hard money and cash flow I'm happy. I went with a GC because I need to maintain my full time job to pay for this so I can't be available at all times for every single contractor.
- Realtor · McAllen, TX · Member since 2025 · 141 posts · 58 votes1y
Hey Jason, I'm in the same situation as you. I have listened to tons of podcast, watch youtube vidoes, and read books. Every time I hear other poeple's story how they started in REI, I get excited. Especially how much money they make in passive income. I want to start doing long term rentals and house hacks, but every time I see a property I like and crunch some numbers, I get overcomed by doom, gloom, and feel defeated before I even start.
However, these things take time you just got to keep you nose to the grindstone and keep working at it. Keep looking. Eventually you will find a good deal.
- Real Estate Agent · Charleston, SC · Member since 2013 · 424 posts · 99 votes1y
Quote from @Ezekiel Trevino:
Hey Jason, I'm in the same situation as you. I have listened to tons of podcast, watch youtube vidoes, and read books. Every time I hear other poeple's story how they started in REI, I get excited. Especially how much money they make in passive income. I want to start doing long term rentals and house hacks, but every time I see a property I like and crunch some numbers, I get overcomed by doom, gloom, and feel defeated before I even start.
However, these things take time you just got to keep you nose to the grindstone and keep working at it. Keep looking. Eventually you will find a good deal.
Thanks for the hype up, man. It's nice to hear others are in the same boat.
- Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes1y
@Jason Eyerly I personally think anyone who says they just came up with the notion of being a Landlord or REI and have no fears and nothing but certainty needs to get there head checks.
I had interest in REI for something like 7yrs, and did all but nothing.
Sure I read on it, did this meet up n that, but I never did a darn thing.
Because at the time I was wearing golden handcuffs. And reality is investing in real estate is and should be scary, it's generally speaking a heck of a lot of money one is playing with. Gambling however many hundreds of thousands should not feel easy, simple or risk free for a normal human being.
I overcame my fear when my industry burned to the ground on GFC. I called it the fck-it's, I just figured fck-it, how can it get any worse, so what if I fail and am drowning in debt, I'll just be like everyone else, lol.
Seriously, that was literally my mental state.
So I just went at everything with this "fck-it" mentality completely fearless of failing and, honestly, expecting I would fail a whole hell of a lot. I expected to do everything wrong at least once or twice.
That, unknown to me at the time, became my super power. Because I was fearless to do the dumb junk everybody frets over. I door knocked, yes literally door-2-door asking about dumps I could buy, fix up n sell at profit. Now picture that, some screw-ball randomly knocks at your door and strikes up a conversation asking such idiotic things.
But guess what, it was so crazy it worked. I actually got people helping direct me, tell me who had what going on, who i should talk to, and next thing ya know I fell right into a deal. I paid $100.00 and took over the mortgage, no joke. Mother had passed, kids inherited it, didn't know what to do, it was a hassle, and one of em accidentally froze out the pipes. I got it for 1/3 it's arv.
Ironically it was my embracing the probability of failure that made me work fearless of failure and that all resulted in success's.
Life is kinda funny some times huh.
So maybe your right and there is absolutely nothing profitable to get into out there...... Or maybe your just over thinking it...... Or maybe looking wrong....... Hell maybe all of the above, who knows. But I encourage to ask yourself, if you got infected with a case of the "fck-it's", what would you be doing? If you tried that and failed, would they take away your birthday for it? Well, maybe give it a shot, see what happens, what's the worst that can happen.
And have some fun with it, seriously. If it's worth doing it's worth doing with a smile. If it's misery give it up.
- Flipper/Rehabber · CA · Member since 2023 · 1k+ posts · 1k+ votes1y
Quote from @James Hamling:
@Jason Eyerly I personally think anyone who says they just came up with the notion of being a Landlord or REI and have no fears and nothing but certainty needs to get there head checks.
I had interest in REI for something like 7yrs, and did all but nothing.
Sure I read on it, did this meet up n that, but I never did a darn thing.
Because at the time I was wearing golden handcuffs. And reality is investing in real estate is and should be scary, it's generally speaking a heck of a lot of money one is playing with. Gambling however many hundreds of thousands should not feel easy, simple or risk free for a normal human being.
I overcame my fear when my industry burned to the ground on GFC. I called it the fck-it's, I just figured fck-it, how can it get any worse, so what if I fail and am drowning in debt, I'll just be like everyone else, lol.
Seriously, that was literally my mental state.
So I just went at everything with this "fck-it" mentality completely fearless of failing and, honestly, expecting I would fail a whole hell of a lot. I expected to do everything wrong at least once or twice.
That, unknown to me at the time, became my super power. Because I was fearless to do the dumb junk everybody frets over. I door knocked, yes literally door-2-door asking about dumps I could buy, fix up n sell at profit. Now picture that, some screw-ball randomly knocks at your door and strikes up a conversation asking such idiotic things.
But guess what, it was so crazy it worked. I actually got people helping direct me, tell me who had what going on, who i should talk to, and next thing ya know I fell right into a deal. I paid $100.00 and took over the mortgage, no joke. Mother had passed, kids inherited it, didn't know what to do, it was a hassle, and one of em accidentally froze out the pipes. I got it for 1/3 it's arv.
Ironically it was my embracing the probability of failure that made me work fearless of failure and that all resulted in success's.
Life is kinda funny some times huh.
So maybe your right and there is absolutely nothing profitable to get into out there...... Or maybe your just over thinking it...... Or maybe looking wrong....... Hell maybe all of the above, who knows. But I encourage to ask yourself, if you got infected with a case of the "fck-it's", what would you be doing? If you tried that and failed, would they take away your birthday for it? Well, maybe give it a shot, see what happens, what's the worst that can happen.
And have some fun with it, seriously. If it's worth doing it's worth doing with a smile. If it's misery give it up.
"100% of the shots you don't take, don't go in"
Yeah I know...Gretzky never payed for Minnesota lol
- 1yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Alan F.:
Quote from @James Hamling:
@Jason Eyerly I personally think anyone who says they just came up with the notion of being a Landlord or REI and have no fears and nothing but certainty needs to get there head checks.
I had interest in REI for something like 7yrs, and did all but nothing.
Sure I read on it, did this meet up n that, but I never did a darn thing.
Because at the time I was wearing golden handcuffs. And reality is investing in real estate is and should be scary, it's generally speaking a heck of a lot of money one is playing with. Gambling however many hundreds of thousands should not feel easy, simple or risk free for a normal human being.
I overcame my fear when my industry burned to the ground on GFC. I called it the fck-it's, I just figured fck-it, how can it get any worse, so what if I fail and am drowning in debt, I'll just be like everyone else, lol.
Seriously, that was literally my mental state.
So I just went at everything with this "fck-it" mentality completely fearless of failing and, honestly, expecting I would fail a whole hell of a lot. I expected to do everything wrong at least once or twice.
That, unknown to me at the time, became my super power. Because I was fearless to do the dumb junk everybody frets over. I door knocked, yes literally door-2-door asking about dumps I could buy, fix up n sell at profit. Now picture that, some screw-ball randomly knocks at your door and strikes up a conversation asking such idiotic things.
But guess what, it was so crazy it worked. I actually got people helping direct me, tell me who had what going on, who i should talk to, and next thing ya know I fell right into a deal. I paid $100.00 and took over the mortgage, no joke. Mother had passed, kids inherited it, didn't know what to do, it was a hassle, and one of em accidentally froze out the pipes. I got it for 1/3 it's arv.
Ironically it was my embracing the probability of failure that made me work fearless of failure and that all resulted in success's.
Life is kinda funny some times huh.
So maybe your right and there is absolutely nothing profitable to get into out there...... Or maybe your just over thinking it...... Or maybe looking wrong....... Hell maybe all of the above, who knows. But I encourage to ask yourself, if you got infected with a case of the "fck-it's", what would you be doing? If you tried that and failed, would they take away your birthday for it? Well, maybe give it a shot, see what happens, what's the worst that can happen.
And have some fun with it, seriously. If it's worth doing it's worth doing with a smile. If it's misery give it up.
"100% of the shots you don't take, don't go in"
Yeah I know...Gretzky never payed for Minnesota lol
cant catch fish if your line is not in the water.. Also if your talking Charleston peninsula thats a tough market with limited inventory that can realistically be bought and flipped.. I have a new build going now downtown. but it took me 2 years to find a lot that the numbers worked. prior to that the preceeding 8 years I built over 30 homes in that area. I started there with fix and flip but found ground up was easier than those OOOOLLLDDD homes. - Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes1y
Quote from @Alan F.:
Quote from @James Hamling:
@Jason Eyerly I personally think anyone who says they just came up with the notion of being a Landlord or REI and have no fears and nothing but certainty needs to get there head checks.
I had interest in REI for something like 7yrs, and did all but nothing.
Sure I read on it, did this meet up n that, but I never did a darn thing.
Because at the time I was wearing golden handcuffs. And reality is investing in real estate is and should be scary, it's generally speaking a heck of a lot of money one is playing with. Gambling however many hundreds of thousands should not feel easy, simple or risk free for a normal human being.
I overcame my fear when my industry burned to the ground on GFC. I called it the fck-it's, I just figured fck-it, how can it get any worse, so what if I fail and am drowning in debt, I'll just be like everyone else, lol.
Seriously, that was literally my mental state.
So I just went at everything with this "fck-it" mentality completely fearless of failing and, honestly, expecting I would fail a whole hell of a lot. I expected to do everything wrong at least once or twice.
That, unknown to me at the time, became my super power. Because I was fearless to do the dumb junk everybody frets over. I door knocked, yes literally door-2-door asking about dumps I could buy, fix up n sell at profit. Now picture that, some screw-ball randomly knocks at your door and strikes up a conversation asking such idiotic things.
But guess what, it was so crazy it worked. I actually got people helping direct me, tell me who had what going on, who i should talk to, and next thing ya know I fell right into a deal. I paid $100.00 and took over the mortgage, no joke. Mother had passed, kids inherited it, didn't know what to do, it was a hassle, and one of em accidentally froze out the pipes. I got it for 1/3 it's arv.
Ironically it was my embracing the probability of failure that made me work fearless of failure and that all resulted in success's.
Life is kinda funny some times huh.
So maybe your right and there is absolutely nothing profitable to get into out there...... Or maybe your just over thinking it...... Or maybe looking wrong....... Hell maybe all of the above, who knows. But I encourage to ask yourself, if you got infected with a case of the "fck-it's", what would you be doing? If you tried that and failed, would they take away your birthday for it? Well, maybe give it a shot, see what happens, what's the worst that can happen.
And have some fun with it, seriously. If it's worth doing it's worth doing with a smile. If it's misery give it up.
"100% of the shots you don't take, don't go in"
Yeah I know...Gretzky never payed for Minnesota lol
I love Gretzky.
Can't fault the guy because he was born wrong, lol.
Did you know Gretzky had one of the lowest accuracy ratings? Because he made more shots then anyone, his super-power is he goes for it, he takes the shot every chance possible. he doesn't wait for perfect, he just goes for it.
- Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes1y
Quote from @Jason Eyerly:
Okay, I'll admit I've only read "Real Estate Rookie" so far and I have ten other BP books to binge through. I understand a lot of the loan times, requirements, credit, down payments, etc. I am in a good spot finally to invest and work as a salesperson in RE. I get super excited looking at STRs, houses in need of reno and updates on the MLS, and I feel a surge of excitement. However, the more I start looking at determining values and rehab costs and such, for some reason I'm overcome with doom and gloom of "No, there's no way I can pull this off. I'm gonna end up in financial ruin". Aside from finishing these books over what's left of the wildfire season - probably a good two or three months, what's the solution here?
Househacks make fine sense, even STRs if they're turn key, I understand the BRRRR methodology, but fixing sad houses and flipping em is what I look forward to most (aside from just being a numbers and data nerd) and yet I feel defeated before I've even started. I've even talked to hard money lenders to see their down payment requirements and such but I just feel.....like this is impossible.
First you should understand that nerves and discomfort is normal and sometimes is your brain's way of putting a check on your emotions. So you shouldn't just ignore them.
That said: you're seriously overthinking this. You're also looking to more or less start out with harder, more expensive, riskier strategies. Don't believe anyone that says running a short-term rental is just eating bon-bons on the beach. I work harder with my STR than any of my long term rentals, by a long shot. It's not even really REI, it's more like running a hotel. Flipping is a job - I don't call that investing. There's a skill set and learning curve involved in it, and you often don't make much money until you eat a few turds and get a system and a team in place.
Start with a simple, small rental home. It doesn't have to set the earth on fire, just be able to pay its way and make you a few hundred bucks a month without being a money pit (meaning all the heavy capital expenses are done or accounted for and it's in a reasonable rentable area). If you want to value add, then buy one that you can live in while you add a bathroom or bedroom or improve the lot. If you're dead set on being a flipper, then buy a live-in flip. In any of these scenarios as long as you can manage the mortgage on the property and keep it habitable, if you hold it there's almost zero chance of losing money long-term. Don't think of RE as some get-rich-quick scheme. If you look at it that way, nothing is going to make sense to buy because the margins won't be there or you'll be overreaching.
Very few people on these forums are some kind of Savant geniuses. Pretty much all of them, myself included, started out buying stuff and making mistakes, learning, holding on to properties, and building more as the portfolios became more valuable and generated more money.
Skyline Properties - Shawnee Mission, KS · Member since 2016 · 716 posts · 313 votes1y
To make money on a flip it simple do the work as cheap as possible but don't make it a mess .Get in there do any thing you can to help if possible .The BIG fish here have a crew they pay by the hour that saves thousands .
- Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes1y
We all felt like this when we started.. and no amount of coaching or training will help. At some point you have to do it, but start with something that is manageable.
In my case I bought a duplex in 2009. It did not need much, but I spent the summer fixing it up as much as I could myself (cleaning, painting) and hired out what I had to. I learned a lot that way. Then I rented out the two units for $650 each and was super excited that I got $100 more than the previous owner. (Milwaukee prices and rents have moved on quite a bit since then..)
I made some mistakes. The biggest one was probably that the house was lacking square footage. I went too cheap, the bedrooms were tiny - only 750 sqft per unit. But also, my rehab work was a bit more like lipstick on a pig. A few years later we went back and gutted both kitchens and bathrooms and did it right.
But hey, it got me started. I was almost shocked when the rent checks showed up in my mailbox (yes, I had them mail it to my home address lol) and a year later I started thinking about a second one and eventually that turned into many more
- Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes1y
@Jason Eyerly I have a reading material suggestion for you.
Put down all the REI stuff for a time, this one is worth it and speaks to where your head is at. It's short, simple but very powerful.
"The Richest Man in Babylon".
This is a foundational read that everyone should have in there library and have read no less than 3 or 4 times.
- 1yTim SwierczekPro MemberLender · White Bear Township, MN · Member since 2016 · 1k+ posts · 1k+ votes
@Jason Eyerly You are not alone in your doubts. I've helped hundreds of house hackers and investors, and it's a common sentiment. I suspect it comes from thinking there is a trick to investing and that somehow there is a perfect investment, and that without those tricks and the perfect analysis you are doomed. And, while it's possible to make a big mistake, it rarely happens to informed buyers who use a professional and experienced team.
Remember, in the last 12 months in the US, there have been 4.03 homes purchased, which means there are 335,000 homes purchased per month. Not all of them go perfect, but most do just fine, and the overwhelming majority those homes do not have the added benefit of recieving rent to offset the owner's payment, which means they are at more risk on average than you would be if you house hack, using a professional and a reasonable amount of due diligence, inspections, and analysis. Provided you have a stable income and plan to live in your current market for more than just a couple of years.
There is a fallacy that your first deal will be a home run because of your spreadsheet. Your first deal, even if it's a good one, should never be your best deal. I have clients who win all the time with base hits. Gary Vee talks about the fallacy that we overrate our ability to make the perfect decision. You do not need to be perfect, you only need to be Good.
Find a good team, take a look around at all the other home owners you know, and realize that you are just as smart and knowledgeable as they if not more, and go for it.
Feel free to PM me if you ever want to meet on Zoom and discuss it. Good Luck - Member since 2025 · 3 posts · 0 votes1y
This is more of a self belief thing my friend. It's time to question those doubts and work thru the fears that tell you you won't be able to do it!
- Member since 2024 · 18 posts · 8 votes1y
I feel the same way even being surrounded by a few very successful people who do this as their full time "job." They've been at it for 10+ years and the one guy has about 60 doors and the other 240 or so. I find myself looking at where they are currently compared to where I am and think there is now way I could get there. Both of them reference when they started they cash flowed about $75/mo on the first deal and yet here they are with generational wealth and serious cash flow.
- Shawnee Mission, KS · Member since 2016 · 716 posts · 313 votes1y
You can be amazed 2 to 4 SFH in a A-B area paid off can do .It put both my kids through a State Division 1 university plus living debt free with cash flow .
- 1yCharles ClarkBusiness MemberReal Estate Broker · Milwaukee, WI · Member since 2020 · 306 posts · 209 votes
@Jason Eyerly
Totally get where you're coming from — that mix of excitement and fear is normal. You're doing the right thing by learning and asking questions. Start small, maybe partner on your first flip or househack to build confidence. Remember: Progress beats perfection. Every investor felt this way before their first deal — the key is to take that first step. You've got this!
Raise the Standard RE LLC54 Reviews - Wholesaler · Portsmouth NH · Member since 2019 · 204 posts · 94 votes1y
I felt overwhelmed as well when I jumped from reading books into live deals. Information overload as there are so many ways to make money into real estate and it's easy to get stuck in analysis paralysis when it comes to the deal itself and all the strategies. I've ended up choosing wholesaling first (no rehabs, just contracts and assignments). I've been doing it for 4+ years now and created a team around this. This led me to learn the marketing and sales side of things with real estate. And then from there we can pick and choose which ones we want to keep for our portfolio. Happy to help and share more on this and see what we can do to help. If you're interested in the wholesale game, I’ve got a wholesale group on Skool that will be happy to help you. If interested, shoot me a Dm!
- 1yLevi CartwrightPro MemberNew to Real Estate · Sumner, WA · Member since 2024 · 12 posts · 12 votes
@Izaiah Barba I am interested in your wholesale skool !
- Memphis, TN · Member since 2024 · 180 posts · 223 votes1y
You've never done this before so it seems daunting- which is perfectly normal! Are you investing in Charleston, SC?
Either the numbers you're seeing in the market you've chosen really don't make sense, or they do and you're just experiencing analysis paralysis. If you're looking at deals that make sense, but you doubt being able to meet ARVs and rent amounts, I would encourage you to connect with local property management and a good GC. Ask them about specific properties you're interested in. Connecting with your GC on what they think it would take to get your property from the condition its in to match the recently sold ARV comps will help. A good GC will be able to tell you what finishes the property will need to be in the same shape. Then, ask your property manger what a property in that condition will rent for. If you're a Realtor in the market you've chosen to invest in, you can find solid comps to base your ARV off of. If not, finding an investment focused Realtor in your target market that can provide you with solid comps is key. If you're questioning the numbers on these deals, then verify with each relevant professional so you're not " guessing " or " hoping ". This will ease your mind and you'll be ready to jump in! You've got this!
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