All Forum Posts by: John Mathew

Hello there Jason! Would love to connect with you. 

Hello Michael! 

One key factor that differentiates a good real estate investment from a bad one is its location. As a first-time investor, you must take the time to check out several sites before settling into one. Although opting for a place close to the metro is convenient, try not to limit yourself to just the options in your area. Branch out to neighboring cities or even go out-of-town to scout for properties that best suit your budget and goals.

Hope this helps you!

Hello there Tramaine! Since flipping homes isn’t something you can get into overnight, You must know the essential steps before you start flipping houses. This will increase your odds of success and reduce your financial risk. Here are seven steps you can take to start flipping houses:

1. Know Your Neighborhood

Before getting started, you need to spend some time researching the real estate market and choosing the right location to invest in. It’s a good idea to work with a real estate agent who can advise you throughout this home buying process.

2. Use The 70% Rule To Plan Your Budget

The 70% rule is commonly cited among real estate investors in regards to the purchase price. This rule states that an investor should only pay 70% of the after-repair value (ARV) of a property minus the necessary repairs. The ARV is what the home is worth after it has been fully renovated.

3. Assess Your Skill Set

Certain skill sets will make you more successful as a house flipper. For instance, knowledge of construction, real estate and design are good skills to have. It’s okay if you don’t have those skill sets yourself but that means you need to know how to find the professionals who do.

4. Finance Your Project

The next step is to figure out how you’ll finance your project. If you don’t have cash on hand to put toward the project, then you’ll want to get preapproved for a loan.

5. Decide On And Buy Your House

Finding the right property is one of the most challenging aspects of flipping a house. That’s because you can’t just think about how much the house costs right now – you have to consider the potential resale value to ensure the highest profit margin

6. Build Sweat Equity

If you’re new to house flipping and have a low budget, you can save yourself some money buying building sweat equity. This refers to the unpaid labor you’ll put into the project, either in terms of physical labor or mental effort.

7. Flip The House

Once the repairs have been completed, it’s time to resell the house. At this point, time is of the essence because the longer that home sits on the market, the less of a profit you’ll make. So, your goal should be to make improvements quickly and sell the house as fast as you can.

Great move Bryce!  If you are thinking about buying a property, you should ask yourself several questions to determine if it is the right time to do so. Whether you are a first-time homebuyer or a seasoned investor, here are some of the most important things to consider when buying your first property:

• Debt-To-Income Ratio
• Duration of stay
• Job security
• Down payment
• Emotional state
• Local market indicators
• Mortgage rates
• Supply and demand
• Monthly Budget
  
  Hope this helps you! 

Try to attend local real estate investor networking groups and connect with as many real estate mentors as you can. At real estate investor meetups and when speaking with other real estate investors, you can ask them how to find a mentor and if they have any recommendations. You will start tapping into resources and new connections that can grow into future real estate mentors.

You can also look up local real estate investors via social media and attend the same networking events. Try to talk to them. There is no need to wait for someone you think would be a good mentor to offer their help — ask them for advice and have your questions ready. Many mentor-mentee relationships grow naturally like this.

I can also give you advices and a lot more, just connect with me! Happy to be of service Tre!

Hey there Leandro! 

Here are some basic principles that you need to understand in order to succeed in real estate investing to help you started out!

• Keep your mind open to new ideas. The most successful real estate investors see profit opportunities everywhere. The ability to see creative financing is critical, even more so in today's market.
• It's important to know all of your options. By definition, real estate investing is a high-stakes game. Never make an investment that you are unsure of. It is critical to understand what you are doing in order to succeed.
• Investing in your education will pay off in the long run. It is common for real estate investors to invest in properties that generate multiples of their initial investment. Consider your own education in this light as well. The ability to employ a strategy correctly can result in substantial returns. Naturally, if you do not utilize critical resources, you risk experiencing loss.

Hello Lucia! Congratulations and welcome to the real estate industry. I've jotted some principles that hopefully would help you. 

Here are some basic principles that you need to understand in order to succeed in real estate investing:

• Keep your mind open to new ideas. The most successful real estate investors see profit opportunities everywhere. The ability to see creative financing is critical, even more so in today's market.
• It's important to know all of your options. By definition, real estate investing is a high-stakes game. Never make an investment that you are unsure of. It is critical to understand what you are doing in order to succeed.
• Investing in your education will pay off in the long run. It is common for real estate investors to invest in properties that generate multiples of their initial investment. Consider your own education in this light as well. The ability to employ a strategy correctly can result in substantial returns. Naturally, if you do not utilize critical resources, you risk experiencing loss.

The record level of home appreciation in 2021 is expected to continue throughout 2022, although maybe not quite as much. But since demand is expected to remain high, interest rates low, and supply not yet caught up with demand, it seems to be a pretty good bet to predict a house bought today will be worth more at this time next year. With home appreciation comes equity, and with equity can come your refi strategy and next investment opportunity.

BRRRR works just as well now as it always has, despite the increase in housing and renovation costs. Just remember to run your numbers on any potential investment, such as cash flow and cap rate.

1. Lean on connections that you have. If you're coming out of college, lean on your friends from high school, lean on your friends for college, lean on your you know fraternity, sorority brothers and sisters, lean on people that you've worked with in the past, that's your initial database that you're going to start with, get all those people into that CRM that we just talked about and let them know "hey what's going on man, it's been a little while "I wanted to connect with you, how have you been? "what's new?" And what are then going to ask? "Yo, what's new with you?" "Hey I'm in the real estate industry, funny you should ask" And then you know, you establish that relationship with them, now they know you're a realtor, stay in touch with them. That's where a large percentage of your business is going to come from, is those connections that you start out with.
2. Treat every client like they're your only client. And what's beautiful when your newer, you might only have one client. This is a great thing, this is where you establish really good habits, every single client you work with, you want to make them feel extremely special, make them feel like they're the only client you're working with. And so really take the time and sit down, get as much face time with them as you can, build that relationship because those clients that you work with in the early years are going to often become some of your best referral partners for your entire career, they're also going to become your future sellers. So when I first started out I sold a lot of little $200,000 and $300,000 condos, to friends from school, to people that I worked with in the past, those connections that I mentioned and they all bought little condos, well three, four, five years later guess what they're doing? They're now selling those condos and they're buying houses or they're selling their little house and they're buying a big house. So really treat every client like they're your only client, establish that early on in your career and stick with that throughout your career, I don't care if you're doing 200 deals a year, all 200 of those clients should feel like they're your only client.
3. Start on a team. This is the most important step - there's nearly a 90% failure rate of real estate agents as they get into this industry and I personally believe that it's because a lot of people try to do everything on their own, this is a very complex and can often be complicated industry, there's so many different things from lead generation to lead conversion to appointments to writing and negotiating contracts and managing escrows and all of this stuff, it could be extremely overwhelming, trying to do all of that stuff on your own is a huge mistake, find a great team in your area, interview two or three teams, pick the one that you feel is the best fit for you and you're in alignment with the culture and the goals that they have established.

Welcome to the community Brian ! Happy to connect with you. :)