Real Estate Auctions & Growing a Family Fix and Flip Business

TL;DR

Jan Trisler transitions from a 9-5 to successful real estate flipping.

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: What motivated Jan to start investing in real estate?

Jan was transitioning from a 9-5 job and moving from Nebraska to Arizona as a divorcee. She realized she could make a profit by flipping properties, starting with her primary residence, which she purchased at an auction. This success motivated her to continue investing in real estate.

Q: What are the challenges of buying properties at auctions?

Buying at auctions can be intimidating due to competition with seasoned investors and wholesalers. Properties are often bought sight unseen, and buyers must put down a non-refundable deposit. Additionally, properties can drop off the auction list at any time, adding uncertainty to the process.

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

Jan and her daughter formed an LLC, initially splitting the investment 75/25 based on available funds. They pay themselves an hourly wage for their work, and the remaining profits are split 75/25. This structure ensures fair work distribution and financial investment.

Q: What financing strategies does Jan use for her flips?

Jan initially used personal savings from a divorce settlement to finance her flips. As prices increased, she began using private money and is now considering hard money loans for future projects, as her cash is tied up in current flips.

Q: How does Jan find deals for her flips?

Jan finds deals through auctions and the MLS. She looks for properties that have been on the market for over 30 days, as these often present opportunities for negotiation. Her strategy includes identifying sellers who are motivated to sell below the asking price.

Q: What mindset shift did Jan experience in her transition to real estate?

Jan had to overcome the belief that a 9-5 job was the only way to earn a living. She embraced real estate investing as a legitimate career, allowing her to live life on her terms with flexibility and financial independence, a significant shift from her previous mindset.

Q: What advice does Jan give to rookie investors considering auctions?

Jan advises rookie investors to research auction processes thoroughly and understand the risks involved. She emphasizes the importance of having a clear strategy and being prepared for unexpected challenges, such as properties needing more work than initially anticipated.

Q: How does Jan manage rehab costs for her flips?

Jan manages rehab costs by doing much of the work herself, such as painting and tiling, which helps reduce expenses. She hires professionals for more complex tasks, like roofing and electrical work, ensuring quality while keeping the overall budget in check.

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.