:-\ I bought a house in Austin, fixed it up and sold it for 20,000 profit some years ago. Now, I would like to do that for a living here in Washington State, but want to locate an investor so I can do all the labor and they can put the money into it. I figured if they put the money down and each month for payment and supplies to fix the houses, I would put the labor into it full time and after the sale, when all taxes and everything the investor put into it was paid off, we could split the profit, but I don’t know how to find such an investor. How would you suggest finding someone like this?
Find and attend local REI clubs in your area, hang out at auctions, cruise the forums, talk to local banks and mortgage folks, check the papers for ads…its all about networking.
hth
3custp,
Welcome to the board.
If you really want to become a full time investor you’ll have to start thinking like one. The majority of full time investors do not do their own renovations. They hire that out to contactors and handymen.
The reason is simple, where’s your time best spent, looking for more deals and making offers or driving nails? If you want to earn the wages of a handyman, then drive nails. If you want to earn the wages of an investor then find deals and make offers and let someone else drive the nails.
As far as the money goes, if you find a great deal the money will find you. You don’t need to split the deal 50/50 with a partner. Learn as much about hard money as you can. It’s a great source of money for your deals. There are lots of articles about hard money under the articles section of this site.
Excellent point on rehabs, Stacy.
Wish I had thought to make it, and I should have as I just finished pointing someone else to a great rehab article posted by a fellow named Dan here: http://www.neodemesne.com/forum/viewtopic.php?t=11
Dan has made quite a few good posts (he may well be a contributor right here at REIClub, not sure) This one is about the 10 Day Rehab and is the third post down the page, I believe.
hth
I will stray a little and add a different perspective. I honestly think if you have a good idea on how to do some repairs, it benefits you, especially stating out on doing these. You learn what it REALLY takes… and can see things from a contractors eye. Plus some are like me, and enjoy both the actual rehabbing aspect AND the investment. To say that someone should not work on a rehab, but only hire it out… to me is a personal preference. I am fairly new mind you, little less than a year and a half in the Biz, but I have done a few things on the rehabs I have done, and even a little on my flip.
Painting, I can do that in 2 days and I enjoy it, and I also save 4K or so. Demo work I just love 
… on the otherhand, sheetrock I could care less about and actually hate!
It all depends on what you WANT to do. And how good you are at repairs. I know a couple different investors that do the whole rehabs themselves, they enjoy it, and they also can get almost any deal out there, sonce they aren’t paying a GC and can beat others bids…
It’s all in WHAT You enjoy, and how you invest. If you were very experienced and working a few deals at a time, it would pay to delegate most of the work… but until then, if it’s something you like to do, and can do, it would give you insite into working with contractors later on… and might make the difference in having a higher offer.
Just my ideas and experiences,
Heather Zaal
Although, I agree with the “do what you love part of your post”
Get Rich first and then see if you still love it…
Then you can do it till your hearts content… Lol…
Save 4k or find another deal and make 20k…
The most aggravating experience I can remember many years ago…
Was we had a townhome for sale in plano… Set to close Tuesday of the next week… for 116k… We were in it for 82k… Got a call from the realtor… that said we needed to have it cleaned… this was the Thursday before… We called and called to get someone out… everyone was booked and to get omeone out would cost $275 to clean the 1800 sq. ft. townhome… normal price… a $130…
We decided we could do it in a couple hours… That saturday we went and cleaned… everything… including the fireplace mess we created…
7 hours later… we were done…
I don’t think of driving neighborhoods looking for deals as a very productive endeavor… But, that saturday… I would have been better off chasing houses… Not dust and ashes… I probably would have made another 20k… even chasisng deals… Was a comnplete waste of time… If you don’t manage your time… it’ll never be worth anything…
There is No money in Fix up… when you can make your money on the buy side… too many people out of work… that will work for next to nothing…
Your job as an investor is to maximize your time… which will maximize your dollars…
So, if you arent making money you should be doing what you love… If that’s truly painting houses… then cool… I’d rather be catching a movie… spending time with daughter…
David Alexander
David,
I’m just one of those “TLC” (The learning channel… design and do it yourself shows) Junkies!! I’ve even dragged my kids into it (oldest wants to be an interior designer) So on weekends, I spend time at my personal house finding anything to redo, decorate, paint a room… you get the drift, and we have a great time doing that together. Now if I had a deal I was chasing… that would have to wait. And I hope to get to a point one day where I have no free time to do any of that except on my own house ( well… I’m addicted I’d probably go fix my moms house when I ran out of things on mine)
I will say though… it drives my poor hubby crazy He is getting to the point on Saturdays of asking what color of paint I need this weekend from home depot. It’s my favorite store, I hate shopping ANYWHERE except there…
His second favorite comment is… “What room are you going to destroy today…” and 3rd “You know when we decide to move, and we paint everything neutral… I’m going to have to undo all this you have been doing, RIGHT?”
HAH
At least I’m low maintence, $12 in paint will keep me busy all day.
Heather Zaal
The concept of “Highest and best use of your time” is a good one. Get to know it.
I’m with Stacy and David. If it’s a task that’s worth less than $200 an hour… then it’s a task that SOMEBODY ELSE should be doing.
I’m hoping to get that to the $400 an hour point. ;D
Do you really do that?
I cast my vote with the other folks…work smarter…not harder.
Been there, done that, have the t-shirt.
On the other hand, you can’t buy happiness and if you are happy, I’m happy for you.
Best of success.
Hey, it sounds like a passion…
If your at a place where your enjoying your life on your terms… there ain’t nothing wrong with that…
To me that’s what it’s about… the journey… as we travel and learn…
David
I hate painting…But I can paint the outside of a home in 4hrs. and make 2,000…I love making 500 an hr. Now if Heather could show me her way of getting my kids to do the work I love that more. (I think if digging ditch’s makes you happy well …dig. Life is to short to only worry about $$$$ I am with Heather.)
J.B.
Life’s a garden.
Dig it.
You can do this yourself without an investor. Get a hardmoney lender to fund your deals.
David Garcia
www.classifiedclub.com/mall2/realestatecoaching.html