New In Real Estate and have a lot of doubts.

1 Reply

Hi All!

I am new to BP and Real Estate in general. I have multiple questions some of this may be dumb questions but it doesn't hurt to ask.

1- I have a Line of Credit with my Bank. Would it be a good idea to start a flipping house with that line of credit?

2- SHould i do new constructions, using my line of credit to buy and prepared the land and find a private lender to finance the vertical construction?

3- What exactly is buying from a wholesale?

4- What's the diffrent between flipping and rehab?

5- If i do a BRRRR what is the expected gross income % that i should aim (after paying the mortgage)

6- Is a good idea to start in this business with a partner? sharing 50% of the company?

I have multiples more questions but don't want to get this Discussion to big but i will appreciate any feedacks you can give me.

Originally posted by @Flavio Espinal :

Hi All!

I am new to BP and Real Estate in general. I have multiple questions some of this may be dumb questions but it doesn't hurt to ask.

1- I have a Line of Credit with my Bank. Would it be a good idea to start a flipping house with that line of credit?

2- SHould i do new constructions, using my line of credit to buy and prepared the land and find a private lender to finance the vertical construction?

3- What exactly is buying from a wholesale?

4- What's the diffrent between flipping and rehab?

5- If i do a BRRRR what is the expected gross income % that i should aim (after paying the mortgage)

6- Is a good idea to start in this business with a partner? sharing 50% of the company?

I have multiples more questions but don't want to get this Discussion to big but i will appreciate any feedacks you can give me.

 Flavio,

The answers to these questions will depend on YOU and your market for the most part.

In some markets, BRRR is good but not in other markets.

There are 7 things to consider as to which real estate strategy you should focus on first:

1) Your local market - is it easy to sell properties or is it more a rental market?
2) Your capital or access to capital
3) Your credit or access to bank financing
4) Your Goals
5) Your Risk tolerance
6) What Business Skills do you currently have that you can leverage for real estate investing?
7) How much time can you devote to this? Or do you want to be more passive?

For example, if you have a lot of cash and in your market, houses sell quickly, and you have a good eye for design and have experience in managing projects, and you can do it this actively, then being a rehabber and rehabbing houses is a perfect fit.

As to whether you should partner or not, it really depends on what you're trying to accomplish. If you lack capital but can be aggressive in finding deals, then finding a capital partner might make sense.

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