Brittany and her husband have closed four deals within the past six months.
Their big goal is to get more rental properties for long-term real estate equity and retirement savings.
They devised a plan that helped them move from being full-time employees to employers within two years.
Brittany does not agree with the option of going to the bank for money, so she gave us some tips on how to find and work with private lenders.
Listen to our conversation with Brittany and her husband to hear more about their investing experiences, the deal they found on MyHouseDeals and their tips for new investors plus…
- How to find and work with mentors
- How rehab budgets can make or break your deal
- The best approach to find great deals and investors
NOTE: Brittany and her husband are premium members. They received FULL refunds of their upfront membership fees for simply doing a deal! Find out more about our premium membership here.
Tell me a little about yourself…
What got you and your husband interested in real estate investing?
My husband and I sold our first flip about two years ago. It has been a lot of work and time, but it is paying off now.
There are huge possibilities in real estate investing. Our goal is to get more rental properties for long-term equity and retirement savings.
Was it difficult to take your first step in real estate investing?
Yes. It was a little scary.
In the beginning, we looked at a ton of houses before we eventually landed a deal. But, our first house was a good deal. We paid off my husband’s student loan from the proceeds of that deal.
He quit his full-time corporate job, and now works full-time as a real estate investor.
Do you have a team that you work with?
We have three employees.
How did you educate yourself?
Well last spring, we went to a real estate seminar in Philadelphia, close to where we live. It was a three-day course. After that, we signed up for coaching and mentoring.
We got a private one-on-one business coach.
Are there any benefits of having employees?
Sure. We have more people on the team to get projects done quicker.
The downside to it is the payroll. We also make sure we have enough money for all types of costs.
What are the plans?
Right now, we want to build up our cash reserve.
We have a property that is in the concluding stage: we are debating whether to list it for sale or to keep it for rent.
Did you start out wholesaling?
We went right into the fix and flips. Our first one was in May 2016.
What got you interested in MyHouseDeals?
Our business coach suggested the MyHouseDeals website. He gave some suggestions and asked us to pay attention to the information on the website. We upgraded our account to have priority access to properties.
The deal we saw on the website is about two miles from where we live. The numbers and location are great.
How was your communication with the seller?
He was an older man who lived by himself for 40 years.
His daughter posted it online for him because he doesn’t use the computer. All the communication was done via email after our first meeting.
It was a straightforward deal.
How long did it take to close the deal?
We found the deal in September and closed in December.
The financing logistics dragged it to three months. Otherwise, we would have closed it sooner.
What were some surprises you encountered?
We were surprised to observe how much money people would want to pay for a house.
Right now, the market is saturated with so many flippers. People overpay for properties and in turn, make less money than they deserve.
What advice would you give to people in situations like that?
Within the past six months, we have closed on four deals. At the time, we could have taken a loan for a property, but we just kept looking…fortunately, we found good deals.
What financing strategy did you start with?
Initially, we started with one private lender. We handled the deposit while we took care of the renovation.
Things have changed now because we use different private lenders to fund both the purchase and renovation.
What advice do you have for raising private funds?
I would say, go through someone who is already established. It will be a much easier process.
If the deal is good, they will be willing to work with you. But, you must compare interest rates and how easy they make the process.
Sometimes it is better to take a higher interest rate and work with someone who is easy to deal with than to take a lower rate to deal with someone who is difficult.
Do you have any advice for new investors?
Do not ever feel discouraged. There are massive financing opportunities for you! Keep looking for lenders and properties.
I will also advise to get the cost and ARV numbers right. Your deal can easily be thrown off if the numbers are wrong.
You also want to have a budget established and make sure you have your contractors ready.
Brittany and her husband started flipping in May 2016. Within the past six months, they have closed four deals.
Their big goal is to get more rental properties for long-term equity and retirement savings.
Brittany and her husband have quit their full-time jobs, which means they have more time to themselves.
They paid off student loan debt with their first flip.
The advice they are giving to new investors is to never give up in their search for better financing opportunities.
Brittany said “You don’t have to go through banks. You can find a private lender. Even hard lending lenders.”
They educated themselves by attending seminars and finding a mentor who guided them through the process.