Professional Wholesaler · San Antonio, TX · Member since 2015 · 85 posts · 37 votes
As an individual who works with a variety of investors at all different levels in the game... and sees multiple many investment opportunities a month. I started this thread to look more closely at what holds back first-time investors from beginning to invest.
Is it lack of connections? Lack of access to deals? Limiting self-beliefs or unrealistic expectations?
@Paul Rodriguez, what do you advise newcomers do once they have their first deal, out of capital for the next one (down payment). I know many have said, no down works, etc, but I was curious how people deal with the zero dollar issue on the second and third, etc.
@Peter Schuyler, I don't know if this is the right way of looking at it, since I am still working on landing my first deal. This is for fix and flip, buy and hold would be a little different. After analyzing about 20-30 deals (just using formulas others have created), I have determined that I want to make $20-$25K profit. So I am looking at houses that I can buy that fit the formula: OfferPrice= ARV- RehabCosts-HoldingCosts-PurchaseCosts-SellingCosts-Profit. I have determined that for the houses I am looking at (ARV $120K-$200K) and the financing I need that I will need between 15K-30K to buy and hold property; that includes down payment and holding costs.
I have about 40K to invest, so to start I can only do one deal. Once I finish that deal I will have 65K (my starting capital + my profit) if everything goes to plan. That should allow me to buy two deals, after those two sell I should have around 110K, that will allow me to buy 3 or 4, etc. My goal is to get to flipping 2 properties a month.
I hope that makes sense. Have a plan and stick to it. Don't chase the numbers, the first deal is critical to set the plan in motion. Take your time with that one!
As someone who is directly experiencing this now, I feel that I want to get a good feel for what niche I want to jump into and also do this with the proper plan and protections in place (set up as a business). Thanks for posting this. I'll look forward to the other responses.
starting capital. I have a couple private investors along with our money but it's not enough to purchase something here in Anchorage, AK. I have looked at other states to invest in but then crops in fear since we have never done this before and would have to do it long distance.
I know what is holding me back right now is funding. I need to get out and network more and work towards finding appropriate financing for deals I do find. I also need to discover the strategy I want to stick to.
I spent a lot of time in the financial markets were the barrier to entry is extremely low but the learning curve is a more of a cliff than a curve. I would say quality education may not be a barrier to entry but it was barrier to success. I think the same would be true here as well.