Maybe just another new guy

10 Replies

Hey everyone. I’m Danny. 

I’m a dice dealer in Colorado. I’m married with a 2 year old son, and a 2 month old daughter. I’m a man of my word, very organized (it’s creepy), and very efficient. Not really one for small talk however, that’s one of my downfalls. 

My experience with real estate investment is minimal. I bought a duplex in st. Joseph Missouri about 3 years ago cash and just use it for cash flow for my first deal...oops. Recently I decided to make a move. I refinanced my house, pulled out $100k, tried to take my emotions out of the equation and had my agent find 2 houses to flip in the St. Louis area. Got those, rehabbed them and should close on the sell December 17th. Now I wanted to a try more full throttle balls to the wall technique 🤪🤑. I'm not shy about taking risks. Actually kind of prefer it. Problem is, my agent says in that area there are no flips that can produce and $40-$50k return on a SFR. She wants me to do a bunch of smaller flips with $8-$10k returns. The problem I see with that is all of the moving parts of potential replacement (water heaters, appliances etc.) I wanted to limit that because of how much they can take from the profits on those smaller flips.

Now come December 17th I’m going to have just over $100k cash to work with but don’t know where to go with it. What a stupid problem to have. Can’t wait to see what happens.

Originally posted by @Danny Erhardt :

Hey everyone. I’m Danny. 

I’m a dice dealer in Colorado. I’m married with a 2 year old son, and a 2 month old daughter. I’m a man of my word, very organized (it’s creepy), and very efficient. Not really one for small talk however, that’s one of my downfalls. 

My experience with real estate investment is minimal. I bought a duplex in st. Joseph Missouri about 3 years ago cash and just use it for cash flow for my first deal...oops. Recently I decided to make a move. I refinanced my house, pulled out $100k, tried to take my emotions out of the equation and had my agent find 2 houses to flip in the St. Louis area. Got those, rehabbed them and should close on the sell December 17th. Now I wanted to a try more full throttle balls to the wall technique 🤪🤑. I'm not shy about taking risks. Actually kind of prefer it. Problem is, my agent says in that area there are no flips that can produce and $40-$50k return on a SFR. She wants me to do a bunch of smaller flips with $8-$10k returns. The problem I see with that is all of the moving parts of potential replacement (water heaters, appliances etc.) I wanted to limit that because of how much they can take from the profits on those smaller flips.

Now come December 17th I’m going to have just over $100k cash to work with but don’t know where to go with it. What a stupid problem to have. Can’t wait to see what happens.

 Welcome to the site Danny.

Hello Danny congrats on your successes so far! Your agent might be right on the lack of options when it comes to huge margins. The midwest just doesn't have the prices like Texas, Colorado, California etc. so ARV is more or less capped for majority of houses when considering the average income. What's dangerous with the small flips is the small things adding up like you fear will happen, especially if you go older 1900s era. Just my .02. I've been looking at 1970+ 1-owner houses which are basically paint/carpet flips, which can be bought at good discount because many of them are estate sales. Population is VERY aged here so plenty of options. Biggest thing when buying remotely is getting the right agent who is investor minded IMO. Hope it helps and good luck!

Hey Danny! Nice to meet you! I too am a real estate agent in STL. The 8-10k sounds low, but 40-50k may be high. Have you considered expanding on your desired area? There are lots of areas across St. Louis that may "make sense" - just depends what you're looking for!

What would be reasonable? I thought a 20% profit was reasonable. But 20% is 20%. I just wanted the same kind of house in a better area basically. 

How can we get in touch and what zip codes did you have in mind?

Thanks everyone for the welcoming. I may have sounded like I know more than I do. If a great start is learning from my mistakes, I’ve got that going for me. 

Now how can I link up with somebody to show me the ropes. It can be online, over the phone, at a long distance...whatever. What I’d like to do is find some kind of win/win/win scenario where the product is we all make a bunch of money. 

Mostly what I bring to the table is a little bit of money (100k-ish) and a dump truck of hunger and work ethic. How do I give somebody access to the money while I can utilize their knowledge without breaking any rules on BP?

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