Just here to learn from the best!

[Rachel Redman]

Hello BP members,

My name is Rachel Redman, I'm a single mom of two (17,18) and have been working as a Registered Nurse for 14 1/2 years! Long hours and changes in healthcare has left me burnt out and ready for something different. I will be graduating next month with my MBA in General Management! Although this is not necessary for REI, I think that I can use some of what I've learned toward this adventure because I always come back to real estate when I think of what's next. I spend my mornings and trips back and forth from work listening to BP podcasts as well a reading lots of books to learn as much as I can. I have connected with a couple realtors, one of which has connections to contractors. My next step will be to talk with lenders and a CPA. At what point to do you recommend that I get an LLC? Should I have this to put my first investment under, or should I gain the experience with my first few flips? I plan to start with local flips first to gain capital and then move on to rentals and multi-family investments to create passive income. Is it better to wait until the beginning of the year to purchase rather than right now? I look forward to connecting with you all and learning as much as I can! I'm hoping to use business credit rather than my savings to make my first purchase to keep my savings as backup, but any advice would be appreciated! Thanks in advance!

[Nicholas L.]

@Rachel Redman

hello.  i don't mean the following to come off as discouraging, but getting started in flipping is going to be tough, as you're going up against professional flippers and businesses in your area that do nothing but flip.  they typically get access to the best inventory, the best contractors, etc.

the hardest part is going to be sourcing the right kind of property that is distressed enough but not too distressed. and, contrary to the hype, flipping takes capital - no one is going to loan you 100% of purchase, rehab, closing costs, holding costs, etc.

are you able to devote some time to networking, getting access to inventory, going to visit properties in person, calling lenders, and calling contractors and trying to get a sense of their availability?  

hope this helps