Hello BP community. My name is Jermaine J Joseph. I am currently the General Manager of a family owned plumbing company in Beaumont, TX but I live in Cypress, TX (a suburb of Houston). The extent of my real estate experience began 20 years ago when I became a real estate agent under a Re/Max broker but I was quickly taken under by the desk fees so my agent career ended not long after it began.
After doing some research into real estate investing and partnering with someone, I have 100k cash to get started investing. I'm looking for direction on what would be the best route for purchasing real estate with the capital and or credit. I have attended a foreclosure auction but didn't bid on anything since I hadn't done any due diligence on any of the properties. My goal is to produce growing positive cash flow so I'm wondering should I go the commercial property route and look to acquire an apartment complex or purchase single-family homes at auction. I'm sure there are other options which I haven't considered which is why I am on BP to increase my knowledge.
Any advice would be greatly appreciated!
@Jermaine J Joseph welcome to BiggerPockets!
As someone starting out and examining options, I would, if I were you, take some time and gain knowledge on the options you have available considering your resources. Do you want to landlord? Flip property? Buy and hold for long term? How about seller financing a deal?
These are all viable options that have their pros and cons, but only you can determine that based on your resources you have at your disposal.
I do not know much about you to simply say, "go into apartment complex investing", "buy an SFR at auction", so it would be a disservice as a member of the BP community to advise you to choose one of those options.
My only advice to you starting out:
1. Find a niche in real estate investing.
2. Utilize the free resources available here to learn more about that niche.
3. Then, network with other investors on here who are experienced in that niche.
4. Once you have enough knowledge, go out and seek a property. Bring the deal back here and let the experienced investors help you run the numbers to see if the deal fits or not.
5. Finally, join a local REI club in your area to "rub elbows" with other investors and other professionals in the real estate arena who may be of service to you (attorneys, appraisers, title company professionals, escrow officers, lenders, etc.)
Other than that, congratulations and I wish you the best in your real estate investing career. We are here to help in any way we can on BiggerPockets.
Thanks, @JackButala! Very solid advice and I agree I have so much to learn. I have been staying up late reading on the site and listening to the podcast when I'm on the road. At times it seems like there is so much to learn but I am so grateful for this site and the community.
With the connections I have with the plumbing company, I am leaning towards flipping property, but I feel like buy and hold would be a great long-term strategy. Our plumbing company works with several property management companies so I would probably outsource to one of them. As far as seller financing, I would have to do more research into what all would be involved so I'm not sure.
Lots to learn! :)
@Jermaine J Joseph - sounds like you have a good background to be successful. Have you thought about how you are going to find the properties to buy? A lot of investors use mail campaigns to find off-market deals. The key is to get a list that's different from what every other investor is mailing to. (absentee owners)
Work with a list broker for suggestion like Seniors with 15+ year ownership. Or Homeowners with Low Financial Stability Scores.
Always ask if the list has been put through the National Change of Address (NCOA) so you don't waste postage mailing to the wrong address.
@Chrissy Arnold - Thanks for the reply! I honestly haven't given it much thought yet since I'm still undecided on which niche I will focus on. I wasn't even aware of these types of lists so this is much appreciated!
Houston is a hot market for flipping and wholesaling. I flip and wholesale in both Houston and Beaumont-Port Arthur on top of my 9-5 job but am actively looking for multifamily. My friends in Houston that flip or wholesale full time are making a killing.
@Adriel Hsu -Thanks for the info!
If you are ever free in the Beaumont, Texas area, let me know. I would like to talk to you about your goals and investment strategies when you determine your direction. Also, we have local BP meetups and REIA meetings that are fun to go to if you have the free time. Feel free to pm me if you need anything or just want to pick brains.
Thank @Taylor Schooley That would be awesome. I am sending a pm now.
Ok, great. Happy to help.
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