Would you invest?

Question

If you had a Realtor come to you with a property that needs rehabbed, a plan and estimate for rehab, and a report on how much the property would be worth after flip, would you invest?

Matthew Kwan · Answer

If the number makes sense sure why not? The question is what is your strategy of acquiring this project? Fix and Flip or holding it as a rental property by acquiring it at a low cost then maximize your profit return?

@Carlos Valencia @Albert Bui

Chris Seveney · Answer

@Alycia Calderin

Only if I had the experience to take it on

Renovating a property is not as easy as hgtv shows it. It is very challenging and a few mistakes can cost tens of thousands.

I would tell anyone to start small and do not bite off more than you can chew

Parker Townsend · Answer

Hey Alycia, I think I would invest. Growing up, my mother always said it is best to invest in property. We know that overtime in almost every scenario, land will appreciate. As this world becomes more and more crowded, I feel that the need for housing will only increase! With that, I feel that now is a better time than ever to get into real estate investing. Although you might find some bumps along the way, alongside the importance of doing thorough research, I feel that with time you will appreciate your decision to begin this journey!

Walter Correia · Answer

@Alycia Calderin

I would if the number works

David F. · Answer

I would run your numbers conservatively. Losing money sucks, I have lost $ before in REI by trusting a realtor whose #s were not necessarily accurate… a lesson learned. General consensus is rehab will cost more than you think, take longer than you think, and ARV might not be as high than you think.

All that to say, you eventually have to take a leap of faith. If your realtor has REI experience, I think that makes his suggestions more reputable. If he’s not an investor, then take it with a grain of salt.

I am very glad that I have gotten into REI (4 years now). I have had a couple go well, and one big loser. I've heard it said "you either win or you learn". I've done a little of both.

You make your money when you buy. Buy well. Best of luck!

Alecia Loveless · Answer

@Alycia Calderin If the numbers make sense and you have a team in place to do the renovations or can do them yourself then I would say go for it.

I wouldn’t be so concerned with why the Realtor isn’t buying it himself because my Realtor isn’t an investor he’s been a Realtor for almost 30 years now and this is his retirement job and he doesn’t want the headaches of tenants. He does want me to succeed however and brings me great deals!

Carlos Ptriawan · Answer

i can do all of that without realtor. but i need to live local to project the cost. this is not some rocket science. so yes, i will invest if it does match with my ability.

Travis Timmons · Answer

Only consider it if it is a property that you would be fine owning for 10 years.

Every property has a story, and you typically don't learn all of the details until you already own it. There will be surprises.

Proceed with caution, do your own underwriting, and make sure that it pencils if you end up getting stuck with it.

Taz Zettergren · Answer

@Alycia Calderin if that's what you've been asking for and the numbers make sense then yes! If I were in your shoes I may ask them why aren't they buying it just so there's full transparency.

V.G Jason · Answer

You seem like a rookie and easy bait. Do that math yourself, before you take anyone's word. Then take into the account the stress of managing people to do it, and how you want to protect yourself.

If it's in Savannah, good luck. I'm in that city, too, but one of the hardest to get quality people to work. I had to get on people's ass, they saw new ways they can be held accountable.

Would you invest?

Would you invest?

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