How Jan Trisler Built a Family Fix-and-Flip Business | Real Estate Rookie Podcast 145

TL;DR

Jan Trisler built a family fix-and-flip business by buying discounted properties through auctions and the MLS, completing much of the rehabilitation work herself, and partnering with her daughter through an LLC. Her first auction purchase was her primary residence, which she later sold for a profit. Her experience reveals how financing, fair profit-sharing, hands-on renovations, and overcoming fear can support a transition from a 9-to-5 job. Read on for the practical details.

Transcript

this is the real estate rookie podcast 145. fear holds a lot of us back it's like what if it doesn't work out yeah does that mean i can never get a job anywhere else ever again yes you can you know so what do you what have you got to lose it's not like no one's gonna hire you because oh you tried real estate investing you cannot work in the w-2 job... Read More

Key Insights

• Jan Trisler accidentally entered real estate investing by purchasing her primary residence through an auction, later realizing she could flip properties for profit.
• Despite the challenges, Jan found auctions to be a viable way to acquire properties at discounted rates, often competing with seasoned investors and wholesalers.
• Jan's transition from a traditional 9-5 job to real estate investing allowed her to live life on her terms, providing flexibility and financial independence.
• She formed an LLC with her daughter, creating a system where work and wages are fairly distributed, highlighting the potential benefits of partnering with family.
• Jan's strategy involves purchasing properties from auctions and the MLS, demonstrating that good deals can still be found in traditional listings.
• Her approach includes doing much of the rehab work herself, which helps manage costs and increase profits, showcasing a hands-on investment strategy.
• Jan's story emphasizes the importance of overcoming fear and taking calculated risks to achieve financial freedom through real estate.
• The podcast episode underscores the mindset shift required to leave a traditional job and pursue real estate investing as a full-time career.

Questions & Answers

Q: How did Jan Trisler build a family fix-and-flip business?

Jan began by purchasing her primary residence at an auction and later flipping it for a profit. She continued acquiring properties through auctions and the MLS, then formed an LLC with her daughter to share investment, work, and profits.

Q: Why did Jan Trisler leave her 9-to-5 job for real estate investing?

While preparing to move from Nebraska to Arizona, Jan calculated that flipping a few houses each year could generate what she would otherwise earn hourly under a boss with two weeks of vacation. Real estate offered her greater flexibility and the opportunity to live on her own terms.

Q: What challenges come with buying properties at real estate auctions?

Auction buyers may have to purchase properties without seeing them first and compete against seasoned investors and wholesalers. Deposits can be non-refundable, and properties may disappear from the auction list at any time.

Q: How did Jan structure the LLC partnership with her daughter?

Jan and her daughter initially contributed funds and divided profits on a 75/25 basis. They also paid themselves hourly wages for their work, helping account for differences in both labor and financial investment.

Q: How did Jan finance her fix-and-flip properties?

Jan initially funded flips with personal savings from her divorce settlement. As property prices rose and her cash became tied up in active projects, she used private money and considered hard money loans for future purchases.

Q: How does Jan find properties to flip?

Jan searches both real estate auctions and the MLS rather than relying on a single source. On the MLS, she examines properties listed for more than 30 days because motivated sellers may be willing to negotiate below the asking price.

Q: How does Jan control renovation costs on her flips?

Jan performs much of the rehabilitation work herself, including painting and tiling, to reduce expenses and protect potential profits. She hires professionals for more complex roofing and electrical work.

Q: What advice does Jan's experience offer new real estate investors?

Her experience emphasizes researching auction procedures, understanding the risks, and preparing for properties that require more work than expected. She also encourages investors not to let fear of leaving a W-2 job stop them, since trying real estate does not prevent them from seeking another job later.

Summary & Key Takeaways

• Jan Trisler transitioned from a 9-5 job to real estate investing by purchasing properties at auctions. Her first purchase was her primary residence, which she later flipped for profit. This success motivated her to continue flipping properties.

• Despite the challenges of buying at auctions, such as not seeing the property beforehand, Jan found it to be a viable way to acquire discounted properties. She formed an LLC with her daughter, ensuring fair work distribution and financial investment.

• Jan's story highlights the benefits of overcoming fear and taking risks in real estate investing. Her strategy involves purchasing properties from auctions and the MLS, doing much of the rehab work herself to manage costs and increase profits.