Flip This House: Getting Started


Once or twice a week I get asked the same question: Danny, how I get started investing in real estate?

My answer is always the same: Dive right in!

No, not really. Investing in real estate involves time, money, and a little bit of risk. In my opinion, real estate is one of the safest investments you can make, due to the item being tangible.

Other benefits of real estate is that prices will float with inflation, and if you can’t afford it – you can always lease the house, and let someone pay it off for you!

I’ve been studying real estate for years now, and I’ve learned a lot of information. I’ve read many books on real estate investing. I’ve been to real estate seminars, auctions, and events.

Let me relay the best piece of advice I ever got: In Real Estate, You Make Money On The Buy.

Its true! If you buy right, you should always be able to turn a (gross) profit. Sometimes, Uncle Sam takes his cut and your net profit is smaller. We’ll get into ways on how to defer that in later opportunity posts though.

I am a real estate investor. I buy distressed houses, renovate them, and sell them to families who want a good house to live in, at market value.

“Flippers” have a bad reputation in the real estate world right now due to shotty work and taking advantage of others – both things I do not partake in. I try not to refer to my business as “flipping”, but its a catch phrase that everyone knows from TV shows.

Let me break down another misconecption: It Is Possible To Make Money This Market.

It boggles my mind that so many people discourage investing right now. This is an opportunity of a lifetime, to invest in real estate. No other time in history have we had home prices so low, with interest rates so low. To put it short, Its a gold mine for real estate investors.

So how do you get started? Thats the most common question I’ve been asked. When ever I explain what I do, everyone asks questions. Thats good though! I like answering questions.

My first reccomendation: get your team together, get your area, and get your market knowledge.

Get your team together:
There is no single person in real estate investing. It takes a team of people to make the process work. You’re going to need (at the least) a savvy real estate agent, a lender, title company, inspector, and contractor(s). As you grow your career in real estate investing, you’ll need add on people to your team. Always make sure you find the best people on your team, who you can rely on.

Get your area:
Focus on a niche market area. I recommend somewhere thats less than 15 minutes from your home. I spend a lot of time driving back and forth to my rehabs. I don’t have the time (or the patience) to sit in Houston traffic or go across town. Get the area you know, that is close to you, that has everything you’re looking for – and become the expert.

Get your market knowledge:
This is where your realtor will be a key player in your journey through real estate investing. They have the in depth information on market areas, and can tell you whats moving – and whats not. In my business, I would rely on relators before to tell me things about the market, run comparables, and get me facts and statistics on the market. I got my license now, so I can do all this on my own – as well as assist others in the process.

This is the start of a multi-part blog. I will go over, from start to finish, how to successfully “FLIP” a house in this market. Those who say it can not be done, please read along and learn how I show others how to make money in any real estate market.

Until next time,

Danny

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About redannyday
Danny Day is a local Houstonian who has worked in many different areas of real estate. He blogs about real estate investing, trends, and data that relate to micro and macro markets in the United States, and Houston.

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