Newbie near Mansfield Ohio

8 Replies

Hi @Brandon Sturgill thank you! In a way you could say I'm investing local. My wife and I completely gutted and remodeled our home. So we will be using the equity from that to start. But, if the deal is good why not look a little farther away. My trouble is I don't know how to start the ball rolling. Should I start with a small flip and pay someone else to do it until there's enough money for me to quit my job and do the flips myself? I guess it's a trust issue. I know how to do the work myself so I feel I should do it. But I know the scaling is faster by letting someone else do the work.  

Long term goal is buy and hold. With a 10 year goal of a place in Maui with my wife's family.

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Good goals @Ben Skaggs the problem with flipping is that without taking other peoples money (strings attached) its impossible to scale...plus how many full-time flippers do you really know. The taxes are just too much...there are only a handful of people in the US that can actually make a flipping business work (and they don't flip for very long)...but its too much like a job...The real profits in flipping come from teaching other people how to flip...intellectual property. Why not save some time and start buying and holding properties now?...

The 2 most important things to learn are marketing and structuring a deal. Your construction background will be a real asset as you work to grow your buy-and-hold portfolio...

@Brandon Sturgill I agree with you. I'd love to buy and hold now. I just don't know how to be able to quit my job if I'm buying and holding. How do I have enough cash flow to pay myself to do the work? Or am I wanting to run before I walk?

@Ben Skaggs I am the 1% that believe investing for cash flow is a bad idea...you'll miss out on way too many deals. The secret to real estate is equity. The problem I see most often is investors get over-leveraged because the want to own as many cash-flowing properties as possible...in reality, 5-6 good properties owned free and clear is retirement...this is a long term game. 

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