Phone call yesterday… He is 31 years old, works as an employee, he has one investment in the country
Phone call yesterday ...
He is 31, works as an employee, has one investment in the country and has some spare capital and wants to enter the field and his uncle will invest another 50K with him.
"I heard you guys do a lot of flips and multifamily"
I want to start and do my first deal. What do you think?
Well, what do you know? Do you have any experience? Did you learn? you tried?
He answers - I realized I need to find a property below market price, surely a realtor will help me with that…
I will find some good contractor that will price and run for the project.
Wait a minute… what is already running for the project… Do you know the field.
Do you know what kind of deal you are looking for?
Flip can be in dozens if not hundreds of different types of projects.
for example:
Family Singles - What size? Up to 1000 SQF to 2000? Maybe estates of 5000 or higher.
What is the value of the houses you want to focus on? 50-100K 100-200K Millions of Millions of D?
In which area? West or East Coast? What exactly are you going to look for before deciding on an area?
Do you want to search big cities, or Suburbs?
You can also do multi-family flip deals: And then how many units?
2-4
Up to 10, 20-60 units? Over 100?
Maybe buy a commercial property maybe an office.
Building space can also be a flip deal. A seller who needs cash and fast, buy and sell right away.
Flip is a very sexy word, let's face it kind of a dream. Take Something to Invest Come on a little and sell for a profit in a short, amazing time.
But you have to admit it is a profession like any profession.
The amount of data and knowledge to consider for each transaction is very large.
Preparation work in choosing a market, the type of deal we want to do, building a team, a business plan, legal understanding of the deal on all sides, assessing Plan B if something is not working well and much more….
This whole list and more should be made before buying and before we spend money.
I told in one of my posts how I got started in real estate and about the slap I got.
Whoever didn't read, in 2014 I hooked up with an Israeli attorney who worked in Michigan, she was the "brain" and I had to invest.
You will bring in the money I will renovate and sell and divide by profit.
We bought some houses in the Ocean that were a complete failure. The houses were not worth the investment at all and I sold a loss, a big loss. what about her? She disappeared very quickly after realizing she didn't understand and I didn't check ...
I can only blame myself.
But I see the same fire in my eyes with some of those who turn to me and are confident that real estate can be done "on the road" from the computer at home.
So I want to say, it doesn't work that way….
This is possible but there is a way to go.
With permission from Lior - I will write in the next few posts what the first steps to do to build our system and readiness for the first deal.
In pictures (redevelopment in the Jefferson chalmers neighborhood of Detroit. With all our experience, here was a contractor who ran away in the middle of the job. It could happen all the time.
The original responses to the post can be read at the bottom of the current post page on the site or in the link to a post on Facebook and of course you are invited to join the discussion
- Thanks. I'd love to read these posts, just starting out and exploring the first steps
- I'd love to read, Timing is great for me. Indeed the first step is to understand what you do not understand. Knowledge is power, and in my opinion, half way to the desired result. The other half is
sweat equity
Footwork, check, get to know vendors and professionals, collaborate, examine and analyze data, plan, etc.
I'd love to read, Timing is great for me. Indeed the first step is to understand what you do not understand. Knowledge is power, and in my opinion, half way to the desired result. The other half is
sweat equity
Footwork, check, get to know vendors and professionals, collaborate, examine and analyze data, plan, etc.
I'd love to read, Timing is great for me. Indeed the first step is to understand what you do not understand. Knowledge is power, and in my opinion, half way to the desired result. The other half is
sweat equity
Footwork, check, get to know vendors and professionals, collaborate, examine and analyze data, plan, etc.
Thanks. I'd love to read these posts, just starting out and exploring the first steps
Thanks. I'd love to read these posts, just starting out and exploring the first steps