Newbie Getting Started

[Chase Hayden]

OK... I am 2 weeks into my real estate investing adventure. At this time, my goal is to rehab/flip 2 homes this year. I enjoy my current career, and do not want to leave it. Rather than investing in stocks/mutual funds/etc I would like to go a different route.

I have listened to 15 or so podcasts, read a bunch on the forums, and have attended 1 expo for REI. From everything that I have come across, it would seem that the basic template would be:

1.) Find home (distressed, foreclosed, short sale, etc)

2.) Rehab

3.) Sell

4.) Sit on beach with good looking girl sipping your favorite fruity drink. (just kidding)

I have a few close friends that are general contractors, floor layers, painters, etc. So I do not see the rehab part as being a big roadblock. I am more stuck on the house finding aspect. Would a newbie without real estate knowledge be better off going right to a wholesaler and taking the wholesaler cost into account with the 70% rule, or are they better suited finding a real estate agent to help them? I know there is also the option to go through the MLS, but without back-end access and not having experience I question my effectiveness of finding a "good" deal. I welcome your thoughts and council. Thanks.

[Joe Stafford]

First, inform everybody you know exactly what you do. I have had multiple deals come to me just knowing what it is I do.

2nd, A real estate agent can help (I am one) The downside is finding one that is willing to put in lots of offers until one sticks (my market typically has me making 50-100 offers before one sticks if it is through the mls)

3rd, Wholesalers are great options, make sure to account for that in the rehab as well.

4th, Buying non-performing notes

There are countless ways, persistence will win every time.

Side note, you mentioned only Buy, Rehab Sell. Make sure you know all the costs that come with buying, rehabbing and selling. Taxes, Closing Costs, Insurance, Wholesalers Cut, Cost to borrow money (if needed) Rehab, Realtor Fee's, Income Taxes, Taxes to sell, Closing Costs again, Permits, Holding Costs Etc. (Many people dont do this)

Hope this helps some.