New investors in Tampa Florida

New investors in Tampa Florida

Tampa, FL · Member since 2015 · 9 posts · 1 vote

I have been a property claims adjuster for over 25 years. My daughter, Kristen, after a few trips and falls her first year or two, is now graduating college with straight A's in one month and has taken a very serious interest into home flipping and has actually educated herself substantially. She is also in the process of looking for a home with her fiance.

I am tired of the constant stress of handling claims continuously without ever having a break and receiving little pay for my efforts and am ready to create my own future. My daughter is very intelligent and has a burning desire to move into this type of business and I am blown away with the time and effort she has invested and the amount of information she has already learned. She is now educating me quite a bit. We both  believe that with her ability to find, analyze and identify the good deals along with my ability to walk into a property and identify any potential problems as well as costs associated with repairing it, I believe we have a good combination to start on this track. Additionally, I have a home that is completely paid for in a very expensive part of town which we expect to sell very soon, which will give us the financial backing to make a good start. Now we just need to start. However, we intend to educate ourselves as much as we can in order to minimize the amount of mistakes new investors can make when first starting out. Therefore, before starting, we are performing substantial research to assist us with this endeavor. I believe that we both have the mindset and the desire that we need to do this and will be very successful.

We also believe that a site like this will be a valuable resource as we begin our journey into this new phase of our lives and we both look forward to learning from the experiences other members have had that will help us to avoid the common mistakes that others have made in the past and are excited about interacting with other individuals as we move forward with our new endeavor.

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  • Real Estate Agent · Tampa, FL · Member since 2015 · 129 posts · 44 votes
    10y

    Scott,

    Good luck, and if there is anything I can do to help, please contact me. 

    Regards,

    Jeff Kops

  • Lender · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes
    10y

    Welcome!  I love your attitude and your plan.  If I can be of service let me know.

    Congrats to Kristen for her Straight A's!  Also to you for your guidance and role-modeling for her.  As a father of 3 grown daughters, I know how hard it is to be a Father, Counselor, and Friend and still prepare them for the success that we hope and pray they will have.

    Sincerely,

  • Tampa, FL · Member since 2014 · 21 posts · 6 votes
    10y

    Hi everyone :) I'm the daughter! (Already a BP member.)

    I'm graduating with a 3.8 GPA and a Bachelor's Degree in Marketing from USF in fifty-something days and I am a former accounting major. I found that while I enjoyed accounting, I did not want to work for a big 4 company or make it my full-time job. That said, the education that provided launched me into wanting to pursue real estate investing, which I found more challenging and exciting. My fiance is a software engineer and also wanted to get into real estate investing. Since deciding this, we've saved around 30k for our first home and I've encouraged my father to sell his fully paid-off Hyde Park bungalow for capital so we could start flipping. We have not been leveraging our money or taking advantage of OPM. Very rarely does a $400k property make a good rental. For us, it made more sense to go into flipping OR -- if we stayed with rentals -- to leverage our money, buy cheaper properties, and gain a lot more cashflow with multiple properties than one paid-off expensive home.

    I know Tampa is a tight market for new flippers. I hope to focus in on Logan Gate (Citrus Park), Carrollwood Meadows, Lutz, and Plantation areas. I live in Northdale, my dad lives in South Tampa. I pick these areas because I live on this side of town and am very comfortable with the neighborhoods: they have decent schools in family neighborhoods and starter-size homes (3br/2ba) that are easy to sell. Most of my real estate education has been right here from Bigger Pockets. I follow the 70% rule, I analyze properties on a regular basis and feel comfortable pulling comps for the areas I focus on. I feel comfortable estimating reno costs and am not above pulling up old carpet and soaking underlayment (as I learned very recently!) and will soon be getting my real estate license so that I may gain access to the MLS and work in that area as well. Every few weeks my fiance and I are able to find a deal that passes all my tests but we're never able to get the financing (despite almost an 800 credit score) because most are REOs and need too much work OR someone beats us there! As many of you know, cash is king, so I'm really excited my dad is willing to start this up with me. He is great at the structural and damage side of houses, I'm great at the design and financial aspect.

    Anyway, looking forward to working in the same area as some of you all :) And looking forward to networking! Any tips for two newbies are always appreciated!

  • Developer · Philadelphia, PA · Member since 2015 · 2k+ posts · 904 votes
    10y

    First, congratulations on your upcoming graduation!

    While it seems like your Dad has experience in a certain space and you are quickly educating yourself, there is no substitute for hands-on knowledge. Thus, I would recommend you try a small/medium size flip and if needed use a JV partner to split your risk.

    If you would like to borrow for the flip, there are plenty of private capital sources who publicize in the Marketplace on BP who will offer you 90% LTC and rehab. Another option is to contact a local bank who does portfolio lending.

    Not familiar with your financial situation, but if I were just graduating college, I would perhaps keep one income stream still coming in.

    Good luck and best wishes!

  • Rental Property Investor · Plant City, FL · Member since 2015 · 1k+ posts · 379 votes
    10y

    I love the idea of a daughter father team, but I do think things should be put in writing.  Your relationship is more important than a work disagreement which will happen.  If things are addressed ahead of time there can't be hard feelings because the  decision was signed on beforehand.  I wish you both the best of luck and hope to see you around!  

  • Professional · Carlsbad, CA · Member since 2012 · 12k+ posts · 1k+ votes
    10y

    @Scott Brandt

    Welcome to Bigger Pockets. It is a good community to network and learn about all aspects of real-estate investing.

  • Lender · Tucson, AZ · Member since 2015 · 279 posts · 91 votes
    10y

    Scott:

    Good morning, and welcome to BP! Here's some food for thought:

    Before you make your first investment, meet with a mortgage/financial professional. They'll ask you to share your short- AND long-term goals, and then they'll help you construct a plan that will do two things:

    1. Achieve your short-term goals that will produce proceeds and resources that will,

    2. Give you the wherewithal to pursue and achieve your long-term goals

    Many investors start off "too hot", and they either overdevelop their first property or they spend their money too fast - either of these behavior will stop you dead in your tracks, and you probably won't even be able to achieve your short-term goals - and you certainly won't have the resources to pursue your long-term goals. Since you're not paying a mortgage pro for consulting, it's in their best interest to give you a solid plan so you're successful.

    I wish you the very best!

    Grant

  • Tampa, FL · Member since 2015 · 9 posts · 1 vote
    10y

    Thank you all for the comments.  You have provided some very good advice.  my daughter and I have actually discussed several of these topics already.  Especially getting everything in writing and speaking with other financial professionals prior to even purchasing our first home.

  • Jeff CopelandBusiness Member
    Real Estate Broker · Tampa Bay/St Petersburg, FL · Member since 2015 · 1k+ posts · 2k+ votes
    10y

    Greetings @Scott Brandt  and @Kristen B.!

    This sounds like an exciting time for you. Please let me know if I can help in any way.

    As you already know, BP is a great resource. Be sure to check out the Podcasts!

    Have you considered just pulling equity out of your Hyde Park home with a HELOC instead of selling it outright? Rates are very low right now, and the market is appreciating, so you might be able to have your cake and eat it too!

    Copeland Morgan LLC4.770 Reviews
  • Tampa, FL · Member since 2014 · 21 posts · 6 votes
    10y

    I just wanted to say thank-you to everyone who commented for all your kind words and advice. I'll look into some of the financing options that were mentioned. We look forward to working in the area. 

  • Rental Property Investor · Marianna Florida · Member since 2011 · 357 posts · 169 votes
    10y

    Looks like you're on the right track by narrowing down the neighborhoods you want to invest in. The Tampa market has so many "markets inside of markets" it can be hard to keep track of them. 

    The Tampa "markets" not "market" will not always comply with the 70% rule, due to competition from other investors and demand for properties. 

    South Tampa is a prime example. I've sold South Tampa REOs at 80% and investors fought for the properties, but only in specific South Tampa neighborhoods. 

    When it comes to Tampa and Tampa Bay real estate - remember - "markets inside of markets!"

    To Your Success...

  • Tampa, FL · Member since 2014 · 21 posts · 6 votes
    10y

    Thanks @Jeff Morelock! Very well put. That's a great way to look at it. I'll keep in mind that the 70% rule doesn't always apply when moving forward. Any advice (especially from REO agents -- you guys know your investor markets!) is always appreciated.

  • Bradenton, FL · Member since 2015 · 13 posts · 0 votes
    10y
    Originally posted by @Kristen B.:

    Hi everyone :) I'm the daughter! (Already a BP member.)

    I'm graduating with a 3.8 GPA and a Bachelor's Degree in Marketing from USF in fifty-something days and I am a former accounting major. I found that while I enjoyed accounting, I did not want to work for a big 4 company or make it my full-time job. That said, the education that provided launched me into wanting to pursue real estate investing, which I found more challenging and exciting. My fiance is a software engineer and also wanted to get into real estate investing. Since deciding this, we've saved around 30k for our first home and I've encouraged my father to sell his fully paid-off Hyde Park bungalow for capital so we could start flipping. We have not been leveraging our money or taking advantage of OPM. Very rarely does a $400k property make a good rental. For us, it made more sense to go into flipping OR -- if we stayed with rentals -- to leverage our money, buy cheaper properties, and gain a lot more cashflow with multiple properties than one paid-off expensive home.

    I know Tampa is a tight market for new flippers. I hope to focus in on Logan Gate (Citrus Park), Carrollwood Meadows, Lutz, and Plantation areas. I live in Northdale, my dad lives in South Tampa. I pick these areas because I live on this side of town and am very comfortable with the neighborhoods: they have decent schools in family neighborhoods and starter-size homes (3br/2ba) that are easy to sell. Most of my real estate education has been right here from Bigger Pockets. I follow the 70% rule, I analyze properties on a regular basis and feel comfortable pulling comps for the areas I focus on. I feel comfortable estimating reno costs and am not above pulling up old carpet and soaking underlayment (as I learned very recently!) and will soon be getting my real estate license so that I may gain access to the MLS and work in that area as well. Every few weeks my fiance and I are able to find a deal that passes all my tests but we're never able to get the financing (despite almost an 800 credit score) because most are REOs and need too much work OR someone beats us there! As many of you know, cash is king, so I'm really excited my dad is willing to start this up with me. He is great at the structural and damage side of houses, I'm great at the design and financial aspect.

    Anyway, looking forward to working in the same area as some of you all :) And looking forward to networking! Any tips for two newbies are always appreciated!

  • Wholesaler · Tampa, FL · Member since 2015 · 168 posts · 25 votes
    10y

    Hey @Scott Brandt welcome to the site. I love the plans for the future. I am glad to hear you and your Daughter are educating yourselves because that is the Key. I hope to see you at the local REIA meetings and also hope to work with you in the future. I am a local wholesaler and I always have properties coming in so please let me know if there is anything I can do to help you.

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