All Forum Posts by: Brian Wilson

@Michael Conway

While David is right, I think that there are some good starting points that can be used to provide you with a learning curve in developing your marketing campaign. There are several podcasts that cover this topic, I would check those out. They often tend to be associated with "wholesaling" as given the nature of that particular niche, marketing is crucial. 

Absentee owner, code violations, etc. Building a specific list will require you to do a good bit of research and then trial and error, as what works in one part of town won't necessarily work in the other. 

Best of luck!

@Aljawaun Golden

Welcome to BP!

As a fellow new investor all I can say is learn, learn, and learn some more. Networking is crucial for you to be successful in REI, therefore join a local REIA, or find a mentor/partner with experience. Like you I'm starting off under capitalized (15-20k). It was recommended to me that I go into a property with 25k of capital to work with. This is coming from my mentor and those here on BP who have a wealth of knowledge. I know it's hard to sit back and "just save money". However what you do with your time during this period is going to be your first true investment into real estate (your education), that way once you're ready you already know who you need to go to and what you need to do. Be weary of over analyzing everything though, as there will come a time when you have to take that first step and won't feel entirely ready.

Podcasts are your best friend, become acquainted with them and never stop learning!

Best of luck to you.

I grasp why many wholesalers get a bad wrap, I do. But what I can't wrap my head around is why the moment someone states they are one, it's a feeding frenzy? Granted, many of the more educated and seasoned individuals in this thread have a more moderate approach to this method of RE. Speculations of "college kids thinking they deserve something" "willing to do anything to make more money" as being a general method of describing wholesalers. That's quite an arrogant stance to just assume that someone enters a job with nothing but greed on their mind.

I know plenty of upstanding individuals leaving very respectable and well paying careers to get into RE. Some choose the wholesale method to build up more capital to work with, with the intent of transitioning into flipping. This is the category I fall into. However while you were busy generalizing us as dirt bags you didn't bother to ask about my military background, or my time as a defense contractor, or that I am taking a giant pay cut to have more flexibility to spend time with family. Circumstances are often overlooked by those who have preconceived notions about individuals they have never met. 

Just my perspective.

@Jonathan Schneider

I'll definitely be at the first one after I move back in August!

Brian M. Wilson

@Jay Hinrichs

What would you recommend I do? I keep hearing the mention of private investors, which sounds great in theory, but all of the people I know with capital don't go anywhere near real-estate. How did you search for your private lenders? Did you have a project in hand when you approached them? 

Brian M. Wilson

@Rich Kniss

Thank you for your in-depth post! It helped shed a lot of light on the subject for me. I have a few additional question though. Firstly you mentioned a 203k loan, so after looking into the specifics of that method of financing I don't think it will workout for me. It's very strict on guidelines and handicaps people who want to DIY. I'm looking for financing that doesn't cripple my ability to do the work myself.  

I should mention that I'm not a licensed GC. However I have family and friends that have all worked for professionals in various aspects of the industry that I can consult for instruction and advice on each aspect of the project. 

As a follow up if we forget about private financing for a second how would you recommend I go about financing a deal? I'm still fairly new and financing is definitely an area in my education that is lacking.  

Also I would like to discuss the HML POC information with you further. I'm trying to weigh all my options and figure out the best route to going about this whole process.

Brian M. Wilson

Michael,

Thanks for the response! 

I want to move to KC because I grew up there and that's where all my family is! Plus my mentor lives there. 

Wholesaling is definitely something I am going to explore. However out here I don't know the area AT ALL. It would take me at least a year to learn enough about the local market. Basically everything that helps lessen the risk and provides me with a better chance of success is in KC. 

If you have any reading material you recommend to help me better grasp  Wholesaling properties I'd love to know! 

Brian M. Wilson 

Good Morning BP!

I've recently decided to make that jump after several months of deliberation, self education, networking, etc. I will be leaving my current job (government analyst) to start a flipping business in the local Kansas City market. I'm sure this has been touched upon before, but after searching I just couldn't find the dynamics I was looking for.

What I'm working with:

1. 15k in capital to work with (Hoping to utilize only 5-10k as a down payment)
2. A mentor with 30 years experience in REI in the local market (family friend)
3. An investment partner (for certain flips, primarily those that will be for investing in rentals)
4. A real-estate agent (investment partner listed above)
5. A part time job that will cover my basic operating costs such as gas, food, etc. But not much else
6. A place to live rent free
7. I will be doing 95% of all rehab labor myself

I know short of sitting down with a bank or applying with an HML I wont get the exact answer to my situation. However I would like to know, is it possible for me to get a loan on a property without the standard work history or experience flipping to support my application? I'm hoping to finance the purchase of the property and the cost of rehabbing it. 

Keep in mind by the time I make this jump (late August 2017) I will be only 22 years old, and my credit is only currently sitting at about the 680 range (as I just started building it a little over a year ago). Considering banks usually want proof of income, down payment, good credit, experience with flipping, etc. Would I still be able to get a loan? 

Before anyone says "don't quit your job..", it is impossible for me to start flipping in KC while keeping my current job. The industry I work in is exclusively in bigger cities (primarily DC, where I currently live) and I don't want to be here a minute more than I have to. 

*I'm aware I could ask my mentor, but considering how helpful he has been with everything else and how much I've asked him already, I wanted to turn to my second group of mentors for insight! 

Thank you for your time,

Brian M. Wilson

Thank you all for the warm welcome!

@Matt Pritchard My investment partner and I sat down this weekend while I was in town and we went over our plans. My partner has an established relationship with a small local bank, who said they would be willing to give loans in their portfolio. He explained the specifics to me, and I will be sitting down with the bank next time I'm in town. But the gist of it is, just about everything you said as far as the 80% on project cost. But it sounded like the more deals we do with them, the more of a % return we will be able to refinance over time. We plan to land our first deal by the end of May (of this year) with a goal of 4 rental properties for the year. We decided to go with a 5 year buy and hold strategy for the majority of our properties. And after the 5 year period, Either sell them or hold them if we really like them. Additionally we are going to use separate funding for our short term flips. And reinvest a large portion of the the profits from the flips back into buying more rental properties.