Dying to Flip, but Scared to make 1st Purchase on Long Island

Hey, My names Billy… Im 24 and i’ve been remodeling homes since I could swing a hammer. Every man in my family are House Framers… yes EVERY SINGLE ONE. It’s in my blood to build houses. My problem is for the past 2 years I’ve been looking at houses and actually made 2 different offers on 2 houses and then backed out. The first house i was not crazy about and I believed the cesspools were collapsing in the backyard due to the 2 foot deep sinkholes. The 2nd was just about 2 weeks ago. It was a foreclosure for 299k (Long Island).... It was appraised at 360K, and the houses next door were worth 465k. Im scared because I worry that I will get into this, fix it up and it wont sell and lose all my money. I feel like I need a mentor for my first flip n’ fix! I heard the first time is the most nerve wracking time but thats understandable. I can build anything and have a very good eye for designing, I just dont know if Im picking the right homes. I’m mostly nervous about the whole “buying” process. Making an offer, the loan, good/bad interest rates?, closing costs, how much to put down if any at all?.... these are the things that really hold me back because I really dont know much about it. ANY ADVICE FROM ANYONE WOULD BE GREATLY APPRECIATED. Hope to hear from you all soon!!

The new guy, Billy

read as much as you can and ask a lot of questions, but in the end you won’t really learn until you get started… i’d focus on on the least expensive project you can find to start, and set a reasonable investment goal with an exit strategy

Billy: I am right there with you. I am scared to even make an offer at least you wanted to!!! I have attended seminar after seminar—read book after book- searched the internet-- still scared!!!

That first deal is the hardest- but we will be ok Yeah, it really looks like you could have made a good penny on that foreclosure. I am going to do my best to find them and then find hard money to buy them with. Keep the faith. I’ll check in with ya often.

Khemani—the new girl Oh by the way—did I mention that I am a property manager and was in real estate sales for ten years? So don’t worry about being scared.. all that is is getting out of your comfort zone.

Whats up bro!! Fellow long island investor here. I feel your concerns and Michael pretty much sums it all up. I’ve flipped over 12 homes in the past 12 months. I read and learned techniques in and out for over 4 months before even looking at my first property. Luckily I come from the mortgage industry which is definitely a plus but targeted eduction is key. Make friends with a few good real estate attorneys, title companies, and local wholesalers. If your buying cash then you’re ahead of teh game. If you’re financing, locate a good local mortgage broker or loan officer and always have a trustworthy hard money lender in your back pocket for those rush deals.

I recommend doing what I did and start wholesaling properties. You learn the business with nearly no risk whatsoever! All I can say is read, read, read and network, network network. You should be fine.

BTW, the exple of the deal you were looking into mentioned in your post, ditch it! Not nearly enough spread to make a profit and have a safe cushion if you are forced to hold the property. I know the 5 borough and Long Island market like the back of my hand and there are FAR better deals to be had. I bought a house in partnership in Lindenhurst for $330k and after renovation appraised $510k… and these deals are available in every town on the island. Locate some local investor groups and get working… now is the best time.

“Shameful plug” ... check Myshortsaledeals.com in January. I will be listing available deals for sale around the US including our market of course!! Keep in touch! Good Luck!