All Forum Posts by: Kaitlyn Aragon

@Kaitlyn Aragon Hi Kaitlyn! I’m a luxury realtor in San Diego who also specialize in flips and work with investors. I recommend increasing your current salary, pay off all of your debts, open few more CCs to have access to credit lines, and save a bit more so you can either flip or house hack your first property. Buy something you can afford and rent out the other rooms to college students. Once you can secure the first property for a year, you can start thinking of another one and so on!

Quote from @Kaitlyn Aragon:

Hi there! 
I’m trying to work on being vulnerable about being new and my situation. I always tell myself - “I’ll start connecting when I’m more experience” when in reality, reaching out and laying my cards out might be just what I need. 
- I’d love to get some thoughts on my situation. I am 27, payed for a flipping mentorship back in 2021. I feel like I know so much but nothing at all at the same time. I have access to a lot of investors, contractors, and real estate agents but no relationships built with them. 
- my financial situation: in a W2 job making about 40k a year (been here about a year). About 40k in a mutual fund. Only debt I have is cc (5k), car loan(abt 4k left). Credit score is about 740. 
- I’d like to start off with a brr and get some experience with contractors before going into flipping. I want to get at least one passive income generator under my belt and then do a few flips for some active income. 
- my questions are: where do I start? Talking to a real estate agent to find the property? Look for funding first? Talk to HML? See what different lending institutions have to say about my situation? Make connections with contractors? Find the property on my own? Learn more and wait? Save more?
- any thoughts and opinions are greatly appreciated!!!! 

Hi Kaitlyn! I couldn't agree more that while intimidating, laying your cards out is always the best option - it opens you up to making connections that are actually right for you. 

I chose to reply to your post because I feel like I was in exactly the same situation not that long ago. I had a ton of knowledge in my head from books, podcasts, masterclasses, but no hands on experience. Similarly, I knew plenty of investors and contractors but had no actual working relationships with people who are already doing what I wanted to do. I wanted to get started so badly, but didn't have the experience to get the trust of investors, and didn't have the full amount of funds needed to buy a deal all on my own.

My wife and I realized there are so many people in this exact situation. We created our company, Rise Up capital, for this exact reason. What we do is recruit people in this exact situation, like we were in, to act as private investors to one of our upcoming deals. What we do different from anyone else we've been able to find, is actually provide complete transparency into the process from the purchase of the deal, the entire rehab including costs, renting out the property, and the refinance process (most of our deals are BRRRRS). You can be as involved as you wanted to be, so we actually show how we execute our deals with your money. Apart from making a nice 10%+ return on your investment, you get that first-hand experience that's so difficult to get. 

For us, our first deal opened up so many doors - I personally found it so much more valuable actually working the process than just reading, thinking, and talking about it. After that, it was like a ball over a hill and we just kept rolling forward. Our investors are living proof of this as well - 85% of them have gone on to fund their own successful deals after working with us, and 100% of the investors we've worked with have chosen to invest with us a 2nd time.

My point overall, is that there's this weird gap of having the knowledge, wanting to get started, and having the experience necessary to move forward with the appropriate amount of risk. It's just a matter of finding the right vehicle to move forward in. Because of my corporate background, I liken it to applying for an entry level job that requires 5 years experience.. and it's frustrating! Happy to chat if you're interested in learning more.

Wish you all the best!

James

Have you considered purchasing a multifamily property using a NACA or FHA loan? NACA is a 0 down loan with great benefits. They've been around for decades. Owner occupied might be the best option for you.

I wish you all the best.

Hey @Kaitlyn Aragon - go girl, go!

I started off with a simple, cosmetic rehab BRRR, and most recently financed a rehab property via a 203k loan. I would definitely speak with a real estate agent / investor + lender to get a better idea of your financing and like @Mackenzie Grate mentioned, work backwards. I don't usually recommend a full gut to my newbie investors because its a ton of work + time + can be a headache but something minor shouldn't be too hard! 💪🏽

Many people tackle this in different ways, but I always start with the money. I go to a lender (whichever type you prefer or have access to) and find out how much I can get. Then I work backwards from there. 

Once I have an idea for how much I can get, then I look for the property. My first few investments I used a real estate agent. Over time, you learn how to source them yourself because you are more confident in your skill set.

Then once you find the property, don't over think it. Put in an offer where your numbers work and just keep doing that until you get something. Don't give up. But also, get started now. 

You have more than enough preparation under your belt and when new stuff comes up that you are unsure about (which it always will), you will be able to figure it out as you go. 

You have this. Trust me. Good luck!