It was a bank auction. Basically a foreclosure.
Well since I got burned with the plumbing, I would definitely pay for a video inspection before moving forward with a purchase. That wasn't a option since it was a foreclosure.
In the beginning I wanted to do alot of upgrades thinking that would yield me more profit. That didn't last.
I put in ceiling fans and light fixtures in all the rooms.
Painted the cabinets and replaced faucets and lights in the bathrooms
Every room got a fresh coat of paint on walls and trim.
Kitchen got new appliances and I added a backsplash and kitchen faucets, garbage disposal.
Curb appeal is a must. Absolutely spend money on a good yard guy. Nothing extravagant just nice and clean. That goes for most of the upgrades yo ui lol make to the property.
Dont go cheap on work that has to be done the right way the first time. Like AC repair and plumbing.
Not passing a buyer's inspection is a time killer and can be costly. Make sure your work is done correctly and up to code.
This house didn't need much work. I would highly recommend looking for a property that's in good shape on your first flip. The profit might be smaller but you learn the process and get comfortable with working your budget.
How hard is it to get your real estate license?
Also if you get one you can practice your trade anywhere right?
I did a lot of research on this about a year and half ago
Read bigger pockets for a while (and the podcast)
Did all of the analysis excel spread sheets they have on there
Then I met Ken Weinstein (Welcome | Philadelphia Magazine) and did a mentor thing with him for while and another guy who had 50+ properties spent some time with me going to homes and evaluating them as properties
Ultimately I fell back and never put any skin into the game for the following reasons:
-It's ALOT of dumb money in the market right now. Every body and their grandma is trying to flip houses or develop real estate right now in my area, feels very 2008ish.
Now a lot of dudes who were successful from 2009-til now mostly on off the rebound of prices are starting to "sell shovels to the gold miners". With hard money loans and selling real estate courses. To me that a sure sign that most of the gains may be gone in this market
-I needed to learn more about contractors, and I found difficulty finding trust worthy ones to work with
-Tons of shady ass "wholesalers" who promise you xyz and it's some bullshyt when you look into it further
-Can't trust nobody: The one mentor I had with the 50+ properties went with me to a spot that was $45k so we can peep it. A day or two later that shyt was sold and I think the mentor bought it cash (the house wasn't even listed, it was a property we had an inside track on...which is another issue. Most of the good deals never even get to the stage of going public)
-A lot of cash buyers you just can't compete with, see above, this is especially a problem at the sheriff sale where dudes like ken weinstien go and spend $300K like it's nothing
There is obviously money to be made, just do your research, find mentors with the realization they will still be your competition, and hope you are in an area where there is still room for going returns
StraightcashhomeyThanks for the drop. One more thing...how did you finance this investment? I have been trying to find a hard money lender.
bet they were making 10-15K monthly
I found a partner, not a friend, we were talking one day, nikka hit me up like” I got 50k right now wassup?”
We made a Llc, put the agreement on paper and went looking for a property.
Flipped our first property and now we’re waiting to close on another property.
All repair cost and and profit split down the middle. We agreed to keep 50 k in the business account after each flip we’ll contribute a little more to the base 50 k.
Yea breh, as I understand it it’s just a REIT. A vehicle to invest in real estate and the investors get dividend checks. I forget the avg returns but IMO you’d be better off investing in stocks. If I was going to put some money into that fund it would be for actual change in the communities they’re investing in. You can get higher returns in other investments. I still support Jay though.speaking about jay morrison, he seems to be a smart dude. has anyone heard of that crowdfund venture, Tulsa Real Estate Fund?
Only if your property is in a popularity traveled to city/placeThis is a lot of good information.
A couple of you mentioned it as suggestions, so how do yall feel about renting-out (Airbnb) instead of outright flipping?
For those who have, can you share your experiences? I've been thinking of doing so for a while now and i know there's an overarching strategy of finding locations where people would actually want to rent out a house (like in tourist attraction spots or near downtown/beach areas) but i'm curious about all the nuances that go into it.
I'm also weary about the housing market and some of the shady ish you guys pointed out in your experiences, so that's why i'm wondering if renting out is a better, even if less lucrative means?
I use it. Had it for a couple of months now; chose long term growth so I won’t see any ROI for a while. I like them because they add diversification to my portfolio plus their UI is cool.I just came across something the other day called Fundrise.com which focuses on real estate/investing , seems to be getting good reviews, but I want to know if any people in here have used it? Thanks in advance.
I use it. Had it for a couple of months now; chose long term growth so I won’t see any ROI for a while. I like them because they add diversification to my portfolio plus their UI is cool.