@Saravanan Saravanan thanks for that advice. Do you know of any local meet ups that I could attend? I’ve been doing some research and weighing the pros and cons of different strategies. I’m feeling like a rental property is where I should start.
Seems like you are in michigan and I am not sure which part. When you google for real estate meet ups in michigan; you can find few. Also, search in meetup (dot) com website too.
Tomorrow, thursday, may 9; I will be at the brighton reia networking meet up group
@Saravanan Saravanan yea, I am in Michigan. Southeastern Michigan/Wayne county area. Today will be hard to attend the meet up group due to my work schedule. What time will you be in the Brighton area?
@Ryan Smith Welcome aboard, man! There is a TON of information and resources throughout the site that will most definitely help you get on your way. You'll read a bunch, listen to podcasts, absorb, absorb, then learn some more!
You'll make mistakes early on... but you'll glean valuable lessons from each mistake and do better and better as time goes on. :)
@Bryan Blankenship thanks man. I just finished listening to the audio book on rental property investing by Bryan Turner. It opened my eyes up to the possibility of starting off with a rental property instead of a fixer upper property. I’m now working my way through the bigger pockets podcasts. How long have you been investing in real estate?
@Ryan Smith I've been involved since 2004. I started out small and worked my way up. I actually retired in 2015 and let my team continue on without me, but after 3 months of sitting around at age 35, I got SUPER bored and couldn't stand NOT doing real estate. It's truly my passion! I came back with a vengeance :)
We've flipped over 1500 properties now, and have about 200 rentals. We go through 15-20 a month, depending on the season. We're in the busiest season now, so everything is firing on all cylinders!
If you're not experienced in construction and codes, it might be better to start with a rental. I've been a licensed GC for years in multiple states, so I know everything about a house inside and out. Without that knowledge, it's very easy to miss some major, costly issues! There are a lot of things to consider when choosing which path to take, and most of them are obvious and straightforward, like taxes, financing vs cash, timelines, and overall long-term vs short-term strategies.
If you do decide to go the route of a rental, make sure you have an AMAZING property manager or your investment can easily go upside-down. You MUST have someone reliable that treats your investment like a priority and doesn't just stick any tenant they can get in there, or who upcharges a ton for repairs, or who does anything else shady. As with everything, do your due diligence and never be afraid to ask questions!
@Bryan Blankenship thanks for the advice! It’s appreciated and well received.
That’s awesome! Did you start your journey by yourself or did you have a team? I’m not familiar with construction or codes, but I am willing to learn all things necessary to help further my knowledge in this business. Do you have any leads you can point towards in Southeastern Michigan for a GC?
@Ryan Smith You're welcome, sir! I started my journey with my wife, and we built out from there. We had a small team of 4-5 for many years, then expanded when I came back in 2015. We're still growing. :)
Let me check and see what connections I have up your way and I'll send you a PM. If you have a passion for real estate like I do, you'll soak everything up like a sponge and go very well!
@Bryan Blankenship the team aspect of this is what I’m still trying to sort out. I’m not sure if I need a team right now or if it’s better to go at it solo for the time being. I don’t want to wait for others if I’m ready.
Thank you for any connections you are able to send my way. Yes, I have been absorbing the information I have been reading and listening to and I look forward to learning more. Did you start off with an LLC already in hand for your investments or did you get one along the journey?
@Ryan Smith Go it solo if you're ready for it! There is a LOT that becomes more complicated if you have a team, or even just a partner. I love it, so it's worth it for me, but it's not for everyone LOL.
I started with my own LLCs from the time I was a teenager running a lawncare business and expanding from there.
@Bryan Blankenship how much money would you recommend a newbie put into rehabbing a property? I know that answer can vary depending on a few different aspects of that particular individual, but what would be a reasonable number to start with?
@Ryan Smith Like you said, that depends on how large of a project you're trying to get into, where you're at, what margins you're looking to hit, etc.
Try to keep it simple on your first few. Don't take on enormous risks, especially in a changing economic environment. A nice easy $10-25K project is plenty to get your feet wet while avoiding the big hassles..... Asbestos, foundation, major mold, lead paint, etc if possible. In the future, when your RE knowledge has matured, those can be very good deals but I never recommend them to a beginner!