Good afternoon everyone,
Ever since I was little I have thought about investing in real estate. Why? Because I grew up poor living in a variety of apartment buildings and I have always done the basic math of what one could earn if they owned said buildings. Well now I am thirty with a second kid on the way (due in a month) and I need to stop messing around and start acting upon my goals. I just bought our first home in march, looking to pay off some credit card debt and save for our first investment. I am thinking a flip is going to be the most attainable solution to start but I don't know what financing I could get when I have the down payment. Its gonna take me some time to save the money to acquire the property so I don't want to tie it up to for a few hundred dollars in passive income.... But i'm taking on some freelance work to get to my goals faster. I'm tired of being a office drone... and i plan to do something about it.
I've listened to a lot of BP podcast in the last year and am ready to get serious!!!
Thanks for reading and I look forward to networking and picking every one's brain!!
Welcome @Rob Grove , BP will surely aid you in your success. Best of luck.
Welcome to Bigger Pockets. Take advantage of the resources here. Ask a lot of questions we are here to help you grow. Wish you well.
Welcome to the community! Lots of great people on here as well as in the Twin Cities. Look at possibly joining local REI groups which can help build connections. Good luck with your investing endeavors!
Congrats on taking the first steps toward your real estate goals! You picked the right place to pick brains, and be sure to dig into the Learn tab up top to get your bearings. Keep working, keep learning, stay hungry and you'll surprise yourself.
Best of luck!
Welcome to BP @Rob Grove . Lot's of information on this site and there are a few good REI groups in town. Lot's of Twin Cities members here as well.
Thank you for all the replies. I'm definitely interested in learning. One common denominator I keep hearing on the podcasts is stop waiting and just do it. So I will be focusing my energy there. I wish there were easy guidelines or directions to get the first deal with little money haha. It can be done, just need to figure out how. Thanks again for the warm welcome!
@Chris Christianson what groups are you talking about and where can I find them? thanks in advance.
@Rob Grove start with a look at these clubs.
MNREIA is a pay to play outfit so although they are good, I haven't chosen that route myself. Minnesota Association of Real Estate Investors is run by Jeremy Rupp who is a very active local investor I like. A sort of spinoff of his is Twin Cities Real Estate Investors which is run by Pine Financial. Lots of great info at there events.
You will need some of your own money to get started regardless of what the hard money lenders tell you, but the good news is even on flips, if you find the right deals, you can get by with little money. My problem was the inefficient contractors is what cost me the money. If you wholesale and it is not a bank-owned property, you can just assign it and use little to no money.
so you can't whole sale a bank owned home? I suppose that makes sense. Any tips on finding deals to wholesale? I didn't think of wholesaling as an option but it id rather make some money than no money starting out
You can't assign a contract you have for a bank-owned home. But you can sell the LLC you used to get it under contract.
If I had no money but a lot of time and serious motivation, I would walk around neighborhoods where flippers and construction activity is active and where there seems to be growing price appreciation in the neighborhood. There are lots if areas like this in Minneapolis and inner ring burbs. Look for the ugliest and smallest houses on the block and find out who owns it on the county website. Then go knock on doors and make phone calls to the owners. Get them talking. I bet you will find a motivated seller if you do this 100 times and if you have great helpful personality.
Once you find a really good deal and have a good connection with the owner, I bet you can turn the lead into $5K for you at least.
I know I would happily pay $5k finders fee or a larger wholesale fee if there was a decent deal that could be flipped or held as a cashflowing rental.
I bet there are 10 guys reading this forum who would pay the wholesale fee for every one guy willing to do the work that I just described.
Welcome to bp, mnreia will be a good bet to teach you the basics on wholesaling and how to get started.
Welcome to BP @Rob Grove .
Good People and info to be found here,,,
Best of Luck!
thanks again everyone. What kind of paperwork/contract would I need for a lead like that? And would that be considered a lead or wholesaling? Not that it matters if it's putting money in my pocket.
@Ruth Bayang Selling an LLC? Can your provide me with more details? Seems like you would have to start a llc before you secure the property under contract, and then get it under contract and sell it to an investor before the contract expires... is that how it works?
Yes Rob, that is correct. In my opinion, you should buy all RE investments in an LLC or other corporation and not in your own name. So get one set up ASAP
Originally posted by @Rob Grove :
What kind of paperwork/contract would I need for a lead like that?
Just a standard purchase and sale agreement is fine, whatever your state uses. If you plan on assigning or wholesaling, write your name or LLC and/or assigns on the buyer line.
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