Rental Property Investor · Houston, TX · Member since 2019 · 10 posts · 2 votes
Hello BP community! My name is Zac, I am a new investor living in the Houston, TX area. I am looking to get going and think that a great starting point is to develop a team before hand as suggested by Brandon Turner. What is the best way to go about building that team? I also have found that my largest gaps are in finding a deal, estimating repair costs, and estimating expenses. I've read books and listened to podcasts but was looking for a more involved way to fill these knowledge gaps. Any tips? Please chime in. Thanks!
I'd be interested in getting in on your quest. I'm a newbie as only have 1 deal so far and don't understand the payouts to date nothing in 5 months. I need to know after reading the investment package how to read into the potential passive income. I have funds to do a few deals but don't want to be burned again and have my funds tied up for 3-5 years without any income.
@Zac Mokua@Theresa Velazquez how would y'all feel about partnering with a team that does all that for you, has a team of local market experts to help you out, sends you deals on a daily basis, provides help finding financing, and assists you with formulating an exit strategy so that you can quickly get started on your next deal?
I am in the process of acquiring my first deal. What sort of analysis did you do before your first deal? I'd be interested in seeing how your estimates for repair cost, expenses etc panned out with actual numbers. That could give insight on where/how you can improve on your next deal. Did you work with an agent or mortgage broker?
@Faraad Mohamed Thanks for the opportunity! For me personally, I am more interested in being more involved in the process for at least my first deals. This is because I'm trying to build a baseline understanding and knowledge of REI. After learning some lessons, good or bad, I would entertain more the idea of services you have described.
You're welcome! To directly answer your question regarding building a team, help finding a deal, estimating rehab costs, holding costs, and other expenses:
1) Building a team: Attend REIA events, RICH Club, Lifestyles Unlimited, Right Path, etc. network with other people there and ask around. And if you really want to grow your team fast then pay the $20,000-$50,000 or whatever they are asking for now for access to their contacts. OR Hire a really experienced Realtor that specializes in Investment Real Estate that has gained valuable contacts over the years that could provide you with access to their resources for free OR Work directly with a Real Estate Investing company with decades of experience that can provide you with access to their contacts for free
2) Finding a deal: Here's a few ways to go about that - You or your agent can search the MLS and crunch numbers on property advertised on the retail market and hope to find a deal that all of the other real estate investors in Texas may have missed OR You can attend auctions and try to outbid all the other seasoned investors there only to realize if you win then that means you paid too much OR Have random wholesalers send you the one off deals they get under contract OR spend the time, money, and energy in trying to become a wholesaler yourself OR Work directly with a Real Estate Investing company that can send you the largest source of deeply discounted property sent directly to your inbox in the form of a daily spreadsheet.
3) Estimating Rehab, Holding and other Costs: Read FLIP by Rick Villani and Clay Davis and The Book on Estimating Rehab Costs by J Scott. Other good reads include The Millionaire Real Estate Investor by Gary Keller, Dave Jenks, and Jay Papasan and The Book on Flipping Houses by J Scott. After reading, then you can try to rely on what you've learned to estimate costs yourself OR Have a really good contractor on your team that is willing to check out property with you and provide you with competitive estimates OR Work with a Investment Real Estate Company that has decades of experience that estimates rehab costs on a daily basis and has gotten really good at it through real world experience
I hope this helps! Let me know when you're ready to talk some more!