Clayton, CA · Member since 2017 · 6 posts · 1 vote
6y
@Joe Homs, thanks for reaching out to me. We live in the Bay Area, my wife is a nurse and I work in the software industry. Our kids are headed to college over the next 3 years so we want to plan for our empty nest years. We don't have any experience in REI except for the purchasing of our primary residences over the years. Our short term plan is to invest in a SFR to fix/flip or a MFR and hold for passive income. Long term, we would like to become a lender. Out of state is an option for us.
I have been reading on BP for a while and paused last year for personal reasons. Now, I know what our timeline is but I’m not sure how to prepare for 2021. The market is a concern due to the COVID-19 impact on our economy.
Should we partner with others to start? Should we wait until the market gets better?
Along with my software background, I have a back ground in cost estimating, project management and operational processes...I just don’t want to get caught in analysis paralysis or go in unprepared. Thoughts?
Flipper · Mission Viejo, CA · Member since 2014 · 2k+ posts · 1k+ votes
6y
@Michael Broome while your "waiting for the market to get better" I would suggest educating yourself on what you would like to do. If you want to flip properties its a numbers game. Learn how to evaluate the numbers and your half way there. How to figure out what the ARV (After Repair Value) on a property is the most important number. Then your rehab cost and finally your closing/commission costs. Once you have these numbers you can determine your profit. What is the average sales price in your area? I am in Orange County, so my average is $600K.
You can partner with others if that makes you feel more comfortable. Make sure you have a partnership agreement in place and know how to title your property to protect all parties involved. Seek out education and experts in the field your interested in and start the process.