Starting out with only 15k

10 Replies

About two weeks ago I asked for advice on how to begin in the Real Estate business with only 15k.

Thank you for your great advice. I have taken to heart all of this information provided here in BP along with all of the advice given here by all of you.   

I decided to go into rehabbing homes because that fits more my style plus I like the challenge of taking an ugly house and making it better for everyone involved

I want to tell you that I have known  a Real Estate agent and he is like a faraway friend, (you know a friend of a friends but he's also your friend but not close) So anyway, to my surprise he has been finding homes and assisting some rehabbers in my neck of the woods. I have partnered up with him and we have placed an offer on a single family home. 

I am anxious and excited, I hope that our offer is accepted. I am probably going to drive my partner crazy just waiting for a response.

I will let you know as soon as I get an update..

Congrats on taking action! That's the first step. 

Hopefully, you've put down your partnership agreement on paper. That's got to be stressed. If you start working with them and find you can't manage their business style 2 months down the road on a 3 month rehab that last month can feel quite long while the weeks go by quickly.

You'll get over your anxiety and excitement after some time. You'll very likely put in many offers before you get a yes so hang in there. I've trained myself somewhat to not get too excited for a deal before its all done. Things pop up for what ever reason and can make a deal fall through. 

Best of luck!

Originally posted by @Steven Johnson:

Congrats on taking action! That's the first step. 

Hopefully, you've put down your partnership agreement on paper. That's got to be stressed. If you start working with them and find you can't manage their business style 2 months down the road on a 3 month rehab that last month can feel quite long while the weeks go by quickly.

You'll get over your anxiety and excitement after some time. You'll very likely put in many offers before you get a yes so hang in there. I've trained myself somewhat to not get too excited for a deal before its all done. Things pop up for what ever reason and can make a deal fall through. 

Best of luck!

Thanks Steven,

I will just have to wait and see how it all falls in place. No, we did not form a partnership on paper, I think that you are correct on this and when this deal finalizes I will definitely speak with my partner and make it all legal. 

This way everything is on the up and up and we both will know what to expect if something goes stray. This will also create a better working environment for the both of us and maybe we can make a long term partnership.

Also with my anxiety, I guess experience takes care of that issue especially since a lot of these offers will not be accepted.

@Rick Fonseca  - Can you post the link where you started the thread "Starting out with 15K" . 

Also What are the things you look at when you say its a good deal ?

That's great Rick!  It is all about taking that action.  There will be a lot you will learn but until you take those first steps you will never really learn those things that can only be learned from hands on experience.  Nice job and good luck on your journey!  

Congratulations and good luck with your first flip!

Originally posted by @Nilesh Makhija:

@Rick Fonseca - Can you post the link where you started the thread "Starting out with 15K" .

Also What are the things you look at when you say its a good deal ?

I don't know how to find the link that it is on but I can tell that it was posted on this date

Jul 16, 04:26 PM.

Well due to lack of experience, I can only tell you what I have read here in BP since this is where the majority of the education that I have plus also reading the book on Flipping Houses by J Scott.

Walk the house, calculate all expenses that it will take to renovate. Stick as close as you can to the 70% rule including all costs to repair so you will be at 70% of the ARV.

From everything that I have read, it is becoming real hard to buy a home at those figures due to heavy competition in this business. So with that in mind I think that this is a good deal.

Us newbies really have to try to stay as close to that rule for the reason that we are inexperienced and anything can come and smack us right in the face.

Completely Agree. Use the rule and then build from there 

@Nilesh Makhija  

Link to the other thread in case you didn't find it

http://www.biggerpockets.com/forums/12/topics/137935-starting-out-with-only-15k

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