So I just inherited a good chunk of change...

5 Replies

So I just inherited a good chunk of change and I want to get into real estate. My brothers (who got the same amount) are going the Index Fund / Stock Market route. I will do some of that but after listening to some BP podcasts and doing some general Googling I feel that I can supplement my income nicely in the flip or rental game. I am 24, fresh out of college, working as an architect with a pretty solid income, so I am comfortable taking a little risk. They are always pushing people to use the forums so I just wanted to get some feed back / advice and maybe get the temperature of local markets.

A few more deets:

  • I live in the San Antonio, Tx area and would like to invest locally
  • I would also like to use as little of my own cash as possible IF IT MAKES THE MOST SENSE
  • I've worked in construction all my life and I know how/what to do to get things done. Construction-wise at least...

I wish I had some more specific questions but I really just want to get a feel for things and maybe get the compass pointed the right way.

Thanks guys!

Account Closed welcome to BP! Glad to hear about your interest in Real Estate Investing, especially here in SA. I would try and learn as much as possible through books, podcasts, and other seasoned investors in the SA area. I would suggest to go to some Real Estate Investor meet up here in town to get a better insight into the current market and to gain a wealth of knowledge as well. If you're looking to use as little of your money as possible I would say to use Hard Money to leverage your money. Just make sure you have your system somewhat set before you get a HML as the interest can kill newer investors if things start going south. Thats why having the support of other investors is very important to your growth in RE in my opinion. Good thing you already have some knowledge coming into the game. Hope to hear good things from you. Good Luck!

Hey Account Closed,

There are lots of things to do in the real estate world. You can wholesale, flip, buy and hold(rentals), buy notes, lend to others so that they can wholesale, flip, buy and hold. Real estate is not a BIG risk when you know what is going on and you know what you are doing. It is just like any other business. 

There are plenty of people on here who can answer questions for you. There is also a great wealth of information from the podcasts, articles, etc. Get all the free information that you can!!!

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Thanks guys!

How's the market right now for y'all? What are rent vs. overhead cost like in SA these days? What about flip margins?

I work for an architectural firm that does very large commercial construction. So I am somewhat involved with commercial brokerage firms and owners and they seem to be doing well these days. I am wondering if its the same for small residential...

If you ever find yourself in West Texas, the returns in Lubbock are great. We manage a ton of student rentals and are getting great returns. I work for a property management company here in Lubbock and would love to offer any advice you need! 

Given your experience, I would recommend partnering on a couple of deals with people more experienced. Use all your money (either directly or leveraged), but give your "experience" partner 20% or something like that. Heck - you hear all the time that 50% of something is better than 100% of nothing. 

Too many people pay $30k for a guru to tell them everything, but if you can "sacrifice" $10-$20k of potential profit, you will have real-world experience, relationships AND the ability to go to private money or bank financing with and actual track record. And if you have "given up" $20k in profit, that means you might have made $50-$80k in your own profit while getting the education. 

Make sure you get a well respected partner/mentor as there are sharks out there... good luck!