Like the post says, I’m looking to get started in this biz. I’m nervous about it since it represents a career change but, what the heck, it’s time to take a shot at doing something I really enjoy.
Basically, I’ve helped build two houses, one office, and completely remodeled my own house, so I’ve got experience acting as my own general contractor (and carpenter, sheetrocker, painter, plumber, electrician, head cook and bottle washer). So my qualifications are that of an advanced DIY’er/ newbie contractor and I’ve got some capital and good credit. I’m looking to rehab and flip.
I would like to find a junker house in the Crestview area, but from driving around that area, it looks like I’m a little late :-\ What areas of town (Austin) do y’all think offer a moderate risk/ moderate reward suitable for a first timer?
Investing in real estate and rehabbing houses are two distinct and completely different businesses. They do not, in fact, go together.
Many people mistakenly believe that investing means fixing up houses. Forget that notion entirely.
If you’re a fix up guy, that’s great and it’s a great business in and of itself. Sounds like you’ve already got much of that stuff in place.
Now, it’s time to learn to become an investor. That means being able to purchase homes at deep discounts so as to maximize your efforts every step of the way thereafter.
Remember, fixer houses are expensive to bring to market and people new to the business almost never buy at a discount sufficient enough to make a profit. Fixers must be bought at deep discounts, period.
So, I’d say first learn what makes a deal a deal. Look at a lot of houses to better understand your marketplace, and then get in there and start making heads spin.
Today I offerered a guy $77k for his $200k contract. He wasn’t at all happy about it but hey, he said “make an offer,” so I did. Now, had he said “yes,” we’d be in fat city. Saying “no” only means he ain’t my guy and between you and me, there’s lots of guys out there waiting for me to show up and make their problems go away. And you’d better believe, I’m on my way over to their place next.
Close in East side seems to be HOT now. Maybe too hot. Prices have doubled in some areas. I have two under contract but the appraiser did not see the values I thought were there. I may have to punt. If appraisal is on the number I may not want to buy these two anyway. Should know Mon if the deals will work.
I have seen other deals and keep asking myself who would pay that for that property and then I see a sold sign. No matter where you go, do your homework first. Check comps and look at several deals first. Get a super deal or you will be just trading dollars. Check out my deal break down posting to get an idea of a deal I am doing next week. It will not set the world on fire but it may make up for the last one I did.
Good luck and thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
512-301-9171 home
512-587-6177 mobile
Joe,
I noticed your response to this question about getting started and I like what you said.
A question I have for you is that you stated that you offered 77k for a property that was listed for 200k. How did you come to that price to offer? Did you research the public records to find out how much equity was in the property? Or was some other type of research done? Thanks, Joe.
Thanks for the info everyone, it’s nice to get feedback from those with experience.
Ted, I drove East 12th area last friday… there is a lot going on over there and, judging by the asking prices on the retail homes, it looks like the time to buy was about a year ago. That said, I’ll keep looking, there’s got to be a deal there somewhere.