new to the Columbus Ohio area
Any ideas/suggestions on how to get lenders to help invest in your first flip?
Hi Derrick, you have to create an easily digestible proposal that will walk an investor through several important points. (Who) you are, (What) they are investing in, (Why) they should invest with you and the property, (When) they can get their money returned and at what percentage, and (How) much investment is needed. In addition to the BP podcasts, check out the podcast "Best Real Estate Investing Advice Ever". Some of the podcasts will walk you through creating a proposal for investors.
Originally posted by @Derrick Locke:Any ideas/suggestions on how to get lenders to help invest in your first flip?
Great to see another Ohioan on here. It depends on what kind of loan you are looking for and if you will live there or not.
@Derrick Locke
Hi Derrick. I’m located in Columbus as well. I’m more of a buy and hold investor so I don’t know much about flipping, but the advice from the first comment is spot on in regards to approaching any investor.
I would suggest attending some local RE meetups, there’s a COIN meet up here this evening at 6pm, so send me a PM if you want the details.
Go to as many meetups as you can, network, stay active on the BP forum, listen to podcasts, read a ton, and make sure you’re confident enough in your knowledge to move forward. The last thing you want to do is burn a bridge with an investor you could do business with in the future. Also, establishing relationships with professional contractors that are familiar with an investors strategy is key. Best of luck to you!
@Tom Ott yes it is great to see another Ohioan especially when there from Cleveland ,where I’m originally from hahaha. But no sir I do not plan on living there just looking to buy and flip
@Joshua Biondi thank you for that ! I would love to attend the coin meeting and to hear stories from others who have walked in my shoes if I could get more info that’d be great
@John Manner thank you !
Hi Derrick,
What is your reasoning behind wanting to flip? There's plenty of people that do it but to be honest it's hard to wrap my head around why, right now.
The BRRR strategy would be similar to a flip but instead you just sit on the cashflows. I would suggest you look into that.
By the time you pay short term capital gains and how the market is do for a correction there seems to be a little bit too much risk for flipping to make sense to me.
Nonetheless, wish you the best!
@Austin Steed hey man thanks for the suggestion I really appreciate your honesty . I have done my research on brrrr and I would not be opposed to doing it but I was trying to gain capitol “faster” so I can use it for other properties that I plan to rent out. But for my first real estate investment I think buying and flipping is a good way to start.
@Derrick Locke are you trying to do a live-in flip and avoid the tax hit?
@Cody Barnes no just a flip for now although still doing my research on the tax hit
Hey Im also in Columbus, like Josh im a buy and hold investor. But i can say from several classes/books i've taken in business or entrepreneurship the best way to find investors is put together a business plan. Write out what you plan to accomplish, how your going to achieve those goals, and how an investors money would be spent. if you are able to clearly articulate your plan and show them how they will make money you will have documentation to show them a clear path to successful investment on their part.
also i see a few familiar faces in this thread who i know to be guys on the same path as yourself. I agree with Josh's view on networking and meeting people. I've been trying to reach out to people and get my core 4 together. Most people who have found their way to BP and are active on here are looking to find success in real estate. We are all serious and focused individuals so while we might not be the investors your looking for they are out there. put your plan together and if it makes sense the networking you do now will put you in contact with who you are looking for.
@Vincent Gable thank you for that if I may when you say write down your goals do you mean just for that specific flip right ?
well yes for that specific flip but also your in general plans for flipping house because if your going to go to the trouble to write a business plan for one house why not write a larger plan and see if you can get funding for all of it. if you ask for money for 5 flips and they say no but counter you with money for 2-3, then your already getting more then you asked for. this also allows you to not have to keep coming back each time you want to flip.
However, as i continue reading i keep seeing people in various books/articles say to write down your goals, make a plan. So even if its just informally you need to write down where you want to get to. this gives you an outline of what you need to do personally to achieve your goals.
again i'm no guru, ive only acquired a few doors but thats how i would handle this situation. i hope it helps
All these are great points, Flipping and the Brrrr are all good. If you are looking for a property whether its to Brrr or Flip let me know if you need help finding one! I work with some investors in town and help them find the properties they need!
Goodluck to you!
@Sara Elford thank you I think I pm’d you for more infor.