All Forum Posts by: Chad Carson

thanks @Tom V. That estimator was pretty close to my bid.

@George P. good point on 3x materials. I got another bid with a price at 17,500 but it turned out the guy had no insurance. So no go.

@Phil Z. I think you are right. I need one more bid and I will have a better idea locally.

I appreciate the fast responses!

Hey everyone,

I have a big vinyl/metal job on a long-term rental we bought. We want to install over old wood and asbestos siding and trim on two 2-story duplexes (one is 2302 sf, other 2428). We want low maintenance instead of dealing with repeat painting, scraping, etc over the next 20+ years.

I need help to see if my quote is reasonable (I know it's area-specific, but still).

Work to be done (combined for both buildings):

• Install 67 squares of vinyl siding
• Cover all fascia with aluminum
• Install vinyl soffitts
• Wrap windows and gable vents with aluminum
• Install 20 sets of shutters

We're also having 5" aluminum gutters and 3"x4" downspouts installed.

Total bid was $22,000.

We could use beaded vinyl siding (a little nicer) for $2,200 more.

Does that sound in-line?

Thanks for your input.

I'll also add to the free educational resources.

My favorite is Khan Academy. Outstanding 10-15 minute videos on many topics.

Here are links to areas @Bill Gulley suggested:

Core Finance/Money

Microeconomics

Macroeconomics (Inflation, Monetary policy, etc)

Bill Gulley

I couldn't agree more about recommending these fundamentals and building block educational components..

When I started 12 years ago I read and studied everything I could get my hands on, but I realize now that most of it was "guru" style education. I learned a lot, but it had so many holes in it - which I now know led to some of the bigger mistakes and bad deals I did along the way.

It's not talked about enough how important these fundamentals are. If you were to become a doctor, you'd study chemistry, biochemistry, physics, biology, etc before you ever got into the specific stuff.

So while still taking action, we should all aspire to be experts and professionals in our area of study, just like professionals in other areas. It doesn't happen over night.

But the best part, as this thread has shown, is that the most important, building block education is FREE online now. No excuses!

@Clayton J.

Just google upstate creia and you'll get their site.

From the beginning I have flipped houses to make money AND I invested for cash flow. But I've found that's rare.

Most veteran investors I know who are now very wealthy had regular jobs (professors, engineers, nurses, mechanics, HVAC techs, realtors, etc) to pay the bills and to build capital.

Capital comes into your life from spending a lot less than you earn. So since you have your spending taken care of, the next question is just where will you earn the money.

You've never flipped a house. Not saying you couldn't do great, but you're brand new. Building that business to the point where it makes money could take a couple of years at best.

I say choose one place for now to earn your income, do your best there, make yourself valuable, get raises, and save your money.

Then on the side in the first year, move into a house or better yet a multiunit like I did (see @Brandon Turner article on this) and use your steady job and a little bit of savings to get it bought.

You can then move into a new purchase every year or two until you have a nice little cash-flowing portfolio (WHILE you're still on the job). If you want to leave at that point, you'll have a much better foundation from which to make the leap.

Everyone has their own path, but that's a safe and steady one you could take. Or you could plunge into the full-time fray from the beginning like I did. It's a little chaotic in the cash flow department, but nothing different than college, right!:)

@Clayton J.

If you can get a well-paying job in the finance field, great. I always think about the REI business as two separate but parallel paths:

1. Cash generating businesses (wholesaling, flipping, managing)

2. Wealth/income generating investments (rentals, notes, etc)

If you have a solid job that you like, REI path #1 is less important and you can just focus on saving as much money as possible to put into REI path #2.

The "living frugally and saving money" game is as important as anything you'll learn on here, because you need that capital to invest. If you can get into that habit early and avoid all the stuff-chasing all your buddies are likely to do, you'll be a long-way towards your goals.

We have a REIA meeting in Greenville the 3rd Thursday of every month. I highly recommend coming if you can. Good people and networking.

Hey @Charles Burgess

Welcome to BP and welcome to REI. It is an exciting journey, and you're in the right place at BP.

I recommend setting some short-term goals, like learning something very specific, getting your real estate license, etc. The biggest thing you'll have to fight is overwhelm, so it's important to make baby-step progress towards something so that you can say "yeah, I'm moving forward."

I also attend the local REIA meetings on the 3rd Thursday of the month in Greenville. That's a good place to meet other local investors.

Best of luck!

@Stephen Murray

Small towns outside of the cities are harder. BUT, there are always buyers. It's up to you to find them.

Here are a few more ideas:

• Go to the foreclosure sale. Look for people ready to bid, and track them down after auction is over. They usually have cash.
• Make appointment with local real estate closing attorney. He/she will know EVERYONE who buys in town.
• Go to local Rotary/Lions club meetings. Lots of local business people work there.
• Talk to local bankers. They loan to local people (or know who has money).
• Look at property records and filter for lowest priced sales in last year. Look up owners and contact them.
• Talk to local real estate agents and property managers. They probably have some cash buyers (or may be one themselves)

I'm sure there are more, but the point is you have to hustle to find these people in a small town or anywhere.

I've invested in a small college town (Clemson, SC) for 11 years, and I've done the same things I've listed above. I don't always wholesale, but I know a lot of people with money in my town in case I do.

Best of luck!

Hi @Jacqueline Mims

I live in the Upstate too. Glad you're jumping out there and participating!

I think you've got a great foundation. You're already successfully studying neighborhoods and doing deals for your clients, so the transition to buying and holding should be fairly easy for you.

Best of luck! Like @Kevin H. said, I also attend Upstate CREIA meetings on 3rd Thursday of month so hope to see you there.

welcome @Clayton J. ,

I had similar goals when I graduated from Clemson in 2002, and I jumped right into full time REI from the beginning. It has been challenging but a lot of fun. I still invest full time in and around Clemson.

To address your questions:

1. Flip vs rental? A lot depends upon your skill set, resources, and temperament. I think rentals are easier as first deals than flips, but they eat (not provide) the cash you will need early. Maybe use a partner?

Here's a key question ... what are you planning to do to pay hills out of college? Will you do REI full time or on the side?

I started wholesaling right out of college to learn and to pay my bills, and after 12 months of that I started flipping to earn bigger chunks. But I will admit that it wasn't the easiest path.

An alternative is to work a job as a realtor, property manager, etc, where you can earn money while learning the biz with a lot less risk than buying right away. Look at it as an apprenticeship, but keep your eyes on the end goal.

2. I don't do any of my own repair work. But when you outsource you still need to know a lot or you will get ripped off by contractors (I know this well).

So DEFINITELY take every class you can and read books. The one I would recommend above any other is the Bigger Pockets' book on estimating by J Scott (http://get.biggerpockets.com/flippingbook/).

I also use YouTube and google daily to figure out how other people solve repair problems, so you can teach yourself as well.

3. I think courses on appraisals and inspections would be helpful. Unless you want to make those your career, I don't think it's necessary to become one of those and get your license. Instead you could get your real estate license and study a lot about how to value properties, do BPOs (Broker Price Opinions), etc.

4. I think your best mentor as a brand newbie is someone you work with. So if you're going to get your real estate license, find a broker who also does investment properties. You'll learn a lot WHILE adding value to him/her.

That's long-winded enough! Hope that helps Clayton, and hope to see you around in Greenville or Clemson.