3 Rice University Freshmen Starting a Real Estate Portfolio

Nicholas L.Pro Member

Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes

2y

@Account Closed

house hack separately, and form a mini mastermind to share your experiences

flipping to raise capital is difficult because it actually takes quite a bit of capital to do a flip

1 Reply

Alan F.

Flipper/Rehabber · CA · Member since 2023 · 1k+ posts · 1k+ votes

2y

Quote from @Account Closed:

Hey everybody,

My name is Kevin Sun and I am writing this post on behalf of myself and my 2 partners, Brandon Riedy and Lucca Cristiano. We are 3 freshmen at Rice University looking to build a real estate portfolio in Houston.

As of right now, we are setting up our holding company, learning about local markets, and doing lots of research into general real estate. We have limited experience personally in commercial and residential real estate through previous job experience, but want to learn as much as possible and build connections with agents and community members in order to develop our portfolio.

Our current business plan is to buy and flip for a year until we have enough capital and experience to employ the BRRRR method after multifamily prices (hopefully) drop within the next year or two. We would love to meet investors who may have been in a similar spot as us before, or to receive advice about our current business plan. Feel free to reach out!

Thank you very much for reading!

Since I only have your post to base my assumptions, I cant endorse Nicholas' recommendation enough. "Flipping" (which is merely a trendy term for fixing up dilapidated structures) is far more relative to the construction industry. I don't see anything in your post that has an inclination for that industry. Partnerships in flipping are extremely challenging. There's a multitude of investing strategies that may be useful for your & your friends core competencies. Understand that I'm not trying to demotivate you guys. My perspective is from over 4 decades of construction experience.

The 3 states of learning...what you know, what you know that you don't know and what you dont know what you dont know. Flipping is the 3rd. Lurk the forum, engage & learn. This forum & tools are the best free knowledge you'll ever get.

I put 3 kids through college & it was VERY expensive. I wish you guys the very best.

1 Reply

Basit SiddiqiBusiness Member

Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes

2y

My advice would be to all invest separately in the start and then join forces when you all have some experience.

Partnership's work because someone beings one of the following three to the group - Experience, Money and/or time.

It appears that none of you have experience at the moment.

It is also easier to get financing(IMO) on your own instead of with others.

[email protected]917-280-8544

Basit Siddiqi CPA4.979 Reviews

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1 Reply

Bob S.

Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes

2y

Quote from @Account Closed:

Hey everybody,

My name is Kevin Sun and I am writing this post on behalf of myself and my 2 partners, Brandon Riedy and Lucca Cristiano. We are 3 freshmen at Rice University looking to build a real estate portfolio in Houston.

As of right now, we are setting up our holding company, learning about local markets, and doing lots of research into general real estate. We have limited experience personally in commercial and residential real estate through previous job experience, but want to learn as much as possible and build connections with agents and community members in order to develop our portfolio.

Our current business plan is to buy and flip for a year until we have enough capital and experience to employ the BRRRR method after multifamily prices (hopefully) drop within the next year or two. We would love to meet investors who may have been in a similar spot as us before, or to receive advice about our current business plan. Feel free to reach out!

Thank you very much for reading!

How much cash do you have ?

0 Reply

Scott Mac

Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes

2y

Quote from @Account Closed:

Hey everybody,

My name is Kevin Sun and I am writing this post on behalf of myself and my 2 partners, Brandon Riedy and Lucca Cristiano. We are 3 freshmen at Rice University looking to build a real estate portfolio in Houston.

As of right now, we are setting up our holding company, learning about local markets, and doing lots of research into general real estate. We have limited experience personally in commercial and residential real estate through previous job experience, but want to learn as much as possible and build connections with agents and community members in order to develop our portfolio.

Our current business plan is to buy and flip for a year until we have enough capital and experience to employ the BRRRR method after multifamily prices (hopefully) drop within the next year or two. We would love to meet investors who may have been in a similar spot as us before, or to receive advice about our current business plan. Feel free to reach out!

Thank you very much for reading!

And how much is Rice clipping you/your families/student loan debt for, for the next four years--housing, food, books, classes, insurance, entertainment, etc...

And you struggle with a down payment(s)?

Just my 2 cents.

1 Reply

Jose JacobPro Member

Investor · 11040 · Member since 2019 · 188 posts · 111 votes

2y

Kevin,

Fix and flipping is not an easy way to become financially free. It is one of the hardest type of investing which need a ton of experience and contacts.

You need to know your market

You need to know the numbers and ARV

You have to have a excellent contractor.

You need to have good capital

Moreover, Partnership will not work initially in flip business especially when you dont have any experience.

My suggestion is to pick an area where you want to do fix and flips, get a good realtor in that area as your friend and study the market. Help some investors in that market so that you can learn from them. You have to be on your foot to learn fix and flip.

Try house hacking first. then you go into other parts like, fix & flip, BRRRR, LTR, MTR, STR so on...

Good Luck

718-200-6100

1 Reply

Daniel TanasaBusiness Member

Realtor · Houston, TX · Member since 2019 · 351 posts · 174 votes

2y

Hey Kevin,

First of all kudos for taking the first step and getting in the game early.

As it was mentioned before flipping is a pretty hard game and it can get very costly if you make a mistake, which is a higher likelihood since none of you have experience.

I think a good option since you're in collage is each of you to buy a house as your primary with a 3.5% downpayment and rent it out by the room to other students. Like that you'll double the rent you can make with that property and you can easily manage it since you live in it. This will be a great learning experience, and will allow you to save some money because you'll be living for free. With the money you all save you can either do a BRRRR or do a flip. Personally I preffer BRRRR's.

Good luck and feel free to rech out if you need any guidance.

1 Reply

3 Rice University Freshmen Starting a Real Estate Portfolio - Advice Wanted

3 Rice University Freshmen Starting a Real Estate Portfolio - Advice Wanted

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