How to Do Your FIRST House Flip in 2024 (Part 1)

TL;DR

Renee shares her first house flipping experience in Denver.

Transcript

hey rookies normally investors who come on the podcast share their personal journey of real estate investing but it's usually after they've experienced their highs and lows which is still incredibly valuable but what if we learn together in real time today we're bringing on Renee hosman the community manager and rookie real estate investor here at ... Read More

Key Insights

• Renee Hosman, a rookie real estate investor, is documenting her journey of flipping her first house, offering real-time insights into the process.
• She purchased a condo in Denver, leveraging her network to secure private financing within 24 hours, demonstrating the power of connections in real estate.
• Renee's strategy includes multiple exit options: a BRRRR, a flip, or short-term rental, highlighting the importance of flexibility in real estate investing.
• The building has a unique first right of refusal clause, which allowed Renee to match an existing offer and secure the property.
• Renee plans to manage the rehab herself, using a combination of DIY efforts and trusted contractors, emphasizing the importance of hands-on involvement.
• Her renovation budget is meticulously planned, with a 15% buffer to accommodate unexpected expenses, showcasing the need for financial preparedness.
• Renee is leveraging resources from BiggerPockets and local networking events to enhance her real estate knowledge and skills.
• The episode underscores the potential of private money lending as a viable financing option for rookie investors, with Renee securing a 15% interest loan with no prepayment penalty.

Questions & Answers

Q: How did Renee find the deal for her first flip?

Renee found the deal for her first flip through her knowledge of the building where she already owned two units. The building has a first right of refusal clause, which allowed her to match an existing offer when the unit went on sale, securing it for herself.

Q: What financing strategy did Renee use to purchase the condo?

Renee used private money lending to finance the purchase of the condo. She leveraged her network to find a lender who provided the necessary funds within 24 hours, demonstrating the effectiveness of networking in securing quick financing for real estate deals.

Q: What are Renee's plans for the condo after the renovation?

Renee plans to pursue a BRRRR strategy as her primary exit, but she is also open to flipping the property or renting it out short-term. This flexibility in strategy allows her to adapt based on market conditions and the outcome of the renovation.

Q: How is Renee managing the renovation process?

Renee is managing the renovation by combining DIY efforts with the help of a trusted handyman and other contractors. She is actively involved in the process, learning new skills and ensuring the project stays on budget and schedule.

Q: What challenges did Renee face in securing financing?

Renee faced the challenge of needing to secure cash quickly due to the first right of refusal clause. She overcame this by leveraging her network to find a private money lender who could provide the funds swiftly, highlighting the importance of having a strong network.

Q: What is Renee's renovation budget and how did she plan it?

Renee's renovation budget is approximately $26,044, with a 15% buffer for unexpected expenses. She used the BiggerPockets rehab calculator and conducted thorough research on material costs to ensure her budget was realistic and comprehensive.

Q: What does the first right of refusal clause entail in Renee's deal?

The first right of refusal clause in Renee's deal allows current owners in the building to match any offer made on a unit. This clause enabled Renee to secure the condo by matching the terms of an existing offer, giving her an advantage in the purchasing process.

Q: How does Renee plan to handle potential HOA issues?

Renee is part of the small HOA board in her building, which consists of only three members. This close-knit structure allows her to have significant influence over decisions and ensures she is well-informed about any potential assessments or issues that may arise.

Summary & Key Takeaways

• Renee Hosman, a rookie investor, shares her journey of flipping her first house in Denver. She secured a condo with a unique first right of refusal clause, leveraging her network to obtain private funding quickly.

• Renee's strategy involves multiple exit plans, including a BRRRR and a flip. She is managing the rehab with a mix of DIY and contractor help, emphasizing the importance of hands-on involvement.

• Her renovation budget is carefully planned with a 15% buffer. The episode highlights the power of networking and private money lending as key tools for rookie investors.