A contractor will easily make or break your investment. On my very first investment property I learned that the contracting is where the biggest margin is in a deal, so I decided to learn as much as I could about construction. Few years later and now I am a builder, building brand new homes for 20-30% off market value. Turns out there was even more value in the construction than I imagined, and never would have known that if I just kept hiring contractors trying to find a good one rather than gain the knowledge for myself so I wasnt relying on their supposed expertise.
@@brady_morgan any tips on making contractor connections? how would you go about getting your GC license? under what sub contract field? roofing? drywall? 🤔 Trying to build a home in the next few years!
@@marcialabrahantes3369 I would start by talking to the building inspector in the area you want to build and see if they have any recommendations. I am the inspector for my town and see every new build or remodel that happens here, and I can definitely tell you who not to use at the very least. Also, driving around and talking to sub contractors working on builds in the area works well too. I have people come up and talk to me all the time while I am working, its a little annoying but I like meeting these people because they are usually either investors, or homeowners looking for someone to build their house, either way I am happy to talk to them. For the GC license, most areas do not require a license for an owner-builder. Check with the planning and zoning in your area but some areas like mine (Wyoming) dont even require GC licensing at all. Typically you need a few builds under your belt to get licensed. As far as a trade, that is personal preference. I started out as a framing carpenter, because thats what I enjoy most. Best of luck! Its a big undertaking, but very rewarding and you will pick up a lot of life skills along the way.
This was an amazing episode! A great summary of the team you have to build to be a success in real estate investing. I have been investing for a little less than a year now and have acquired nine SFHs as long term rentals. I have to say picking the right agent with an investor mindset is the absolute key. They will be the hingepin on your team that can help overcome shortfalls from all other members of the team. Great show!!
I agree! When hiring contractors, clear communication and detailed contracts are vital to avoid misunderstandings and ensure quality workmanship; establish trust to foster long-term partnerships.
My wife is an independent agent (no brokerage) she does the negotiation, contract and closing, I run the financial due diligence. One tactic we use is to put her commission towards the cost of the property so it isn’t counted as income and we save a little bit more on the cost of borrowing. My buddy is a property manager and he’s always sharing pocket listings with me.
Would appreciate a separate session for guidance on selection of the property management who only take care of the building management and not responsible for finding the renters for different units of the property. I am asking this as we are struggling to find a good property management company who can manage our building related issues effectively and efficiently. TIA! BTW great points you covered for the selection criteria
I’ve been investing for over 20 years and own properties in 3 states. For remote markets I identify an investor friendly agent and only work with them. But locally, I reach out to seller agents directly and that allows me to reduce fees and increase connections.
I would never ever ever work with an RE Agent that hasn’t flipped or has long term rentals they just don’t understand the investor mindset. If you don’t have any properties it only means you can’t identify a good deal or you are so dumb that you can’t scoop it up yourself It blows my mind 90% of agents are only in it for a commission check. Realtors should own 90% rentals but they don’t
Frankly, you guys are incredibly self centered. There is way more training from the agent to the investor. I can’t tell you all the bologna I heard from investors. You’re not an investor you’re a guy with loan like everyone else 😂😂😂😂
A contractor will easily make or break your investment. On my very first investment property I learned that the contracting is where the biggest margin is in a deal, so I decided to learn as much as I could about construction. Few years later and now I am a builder, building brand new homes for 20-30% off market value. Turns out there was even more value in the construction than I imagined, and never would have known that if I just kept hiring contractors trying to find a good one rather than gain the knowledge for myself so I wasnt relying on their supposed expertise.
@@brady_morgan any tips on making contractor connections?
how would you go about getting your GC license? under what sub contract field? roofing? drywall? 🤔
Trying to build a home in the next few years!
@@marcialabrahantes3369 I would start by talking to the building inspector in the area you want to build and see if they have any recommendations. I am the inspector for my town and see every new build or remodel that happens here, and I can definitely tell you who not to use at the very least. Also, driving around and talking to sub contractors working on builds in the area works well too. I have people come up and talk to me all the time while I am working, its a little annoying but I like meeting these people because they are usually either investors, or homeowners looking for someone to build their house, either way I am happy to talk to them.
For the GC license, most areas do not require a license for an owner-builder. Check with the planning and zoning in your area but some areas like mine (Wyoming) dont even require GC licensing at all. Typically you need a few builds under your belt to get licensed. As far as a trade, that is personal preference. I started out as a framing carpenter, because thats what I enjoy most.
Best of luck! Its a big undertaking, but very rewarding and you will pick up a lot of life skills along the way.
This was an amazing episode! A great summary of the team you have to build to be a success in real estate investing. I have been investing for a little less than a year now and have acquired nine SFHs as long term rentals. I have to say picking the right agent with an investor mindset is the absolute key. They will be the hingepin on your team that can help overcome shortfalls from all other members of the team. Great show!!
***contractor advice was exrremely helpful***
I agree! When hiring contractors, clear communication and detailed contracts are vital to avoid misunderstandings and ensure quality workmanship; establish trust to foster long-term partnerships.
Henry, your advice is GOLD! Thank you for sharing! Definitely picking up your book! 😎
My wife is an independent agent (no brokerage) she does the negotiation, contract and closing, I run the financial due diligence. One tactic we use is to put her commission towards the cost of the property so it isn’t counted as income and we save a little bit more on the cost of borrowing. My buddy is a property manager and he’s always sharing pocket listings with me.
GREAT video, I learned so much! Thank you.
Such great points. I'm always looking to add contingencies to my team. Like David Greene said, "Rockstars know Rockstars".
Would appreciate a separate session for guidance on selection of the property management who only take care of the building management and not responsible for finding the renters for different units of the property. I am asking this as we are struggling to find a good property management company who can manage our building related issues effectively and efficiently. TIA! BTW great points you covered for the selection criteria
I’ve been investing for over 20 years and own properties in 3 states. For remote markets I identify an investor friendly agent and only work with them. But locally, I reach out to seller agents directly and that allows me to reduce fees and increase connections.
Türkiye temsilciliğine adayım🍀
My portfolio has strong companies but it has been stalled this year. I have about $50k sitting in my reserve that needs to be raised.
I would never ever ever work with an RE Agent that hasn’t flipped or has long term rentals they just don’t understand the investor mindset. If you don’t have any properties it only means you can’t identify a good deal or you are so dumb that you can’t scoop it up yourself It blows my mind 90% of agents are only in it for a commission check. Realtors should own 90% rentals but they don’t
Not everyone wants to be a landlord, that includes agents. They can still be a good agent helping people find primary residences
Frankly, you guys are incredibly self centered. There is way more training from the agent to the investor. I can’t tell you all the bologna I heard from investors. You’re not an investor you’re a guy with loan like everyone else 😂😂😂😂