Get Started as a Real Estate Investor & Look Like a Pro

Dan Krupa and his wife Michelle had been investing in real estate off and on for 10 years. They had dabbled in long distance buy and hold, they had Bought-Rehabbed-Rented-Refinanced, flipped, house hacked, got taken to the cleaners by a couple of property managers and then decided to leave their W2 jobs and start a full time real estate investing business.

They started with both of them getting a real estate license in Missouri and making the decision to focus on flipping houses to generate capital. Here we take a look at their first steps that others may find helpful in their process.

Getting a Business Name

They brainstormed and picked out two business names that they liked and were available on Go- Daddy.com to purchase as a domain name.

They turned to friends and family to vote on their two names and their favorite won out.

They bought the domain name for their business on GoDaddy.com

Then they went to 99designs.com to get a logo crated. At the time it cost $300 and they got a great logo sent to them in eps format (eps is used to place your logo on flyers, door hangers, signs, magnets, etc..), jpeg, tiff, etc...

Setting Up the Business

Next they took their name and formed an LLC. They did this through a local lawyer who speaks at the local REIAs, deals exclusively with real estate, and came recommended. LLC creation rules vary by state, I recommend you pay the $500 and use a lawyer. Also, don't be confused. If you are flipping you will create an LLC then your CPA will file a letter with the IRS to make your LLC an S Corp but it will only be an S Corp in the eyes of the IRS. It is an LLC for all other intents and purposes.

Have your CPA file for your S Corp status if and only if you are flipping or actively working in real estate. We elected S-Corp because we both became agents and we are flipping. Ask your CPA why.

Starting their Marketing

Set up a google phone number. This gives you a local number if your cell phone isn't local, the ability to screen calls and to have a voice message translated into an email and sent to you. Plus, it's free. Thanks Google! (I know Alphabet Corp is slowly taking over the world but I am slightly ok with it....I digress)

Create a Facebook page. This is the minimum via social media I would do. Twitter, Google Business Page, etc...be creative. Get yourself out there. Be known!

Business cards were ordered. Use Moo.com or Vistaprint. They always have good deals going on. Make sure your logo and name are both in large print. Again, sell yourself.

Create your website. Do it yourself using square space or wix or pay someone to do it. Please don't use WordPress - you aren't hosting a blog. However, ensure your website can post blogs you write, photos and videos of future flips, testimonials, and a place where people who want to sell their house to you can leave their information. (The marketing machine you create should be leading people to your website. It needs to shine. It should look new and professional but doesn't need to cost 5k)

Start Building Your Team

Build your team. Throughout this entire process, you should be meeting with people in your area who are involved in real estate investing and you should be networking. Go out and meet: agents, general contractors, other flippers, lenders, etc... Go to your local REIAs. Put yourself out there. Tell people what you do. Hustle. Most importantly - be collaborative! Personally, I think if you are doing this solely for the money and nothing else you are in the wrong business. Purpose is good for both business and the soul - never forget that.

Find a Deal

Start hunting for deals. You can use a wholesaler, find an agent who works with investors or hunt for deals yourself. We are doing a combination of all three.

Get a local agent! Some local agent should know what your property criteria are and have an alert set up for it. Any new house that comes on the market that meets that criteria are automatically emailed to you. Example: a 3 bed/2 bath, 1100+ square foot home in the 55555 zip code under 140k. That meets your criteria and you are alerted immediately.

Don't ignore auction.com and courthouse auctions. There are still good deals out there if you know how to look and aren't afraid to go to an auction. (Some municipalities no longer do courthouse auction. My county and the surrounding counties still do)

Placing signs (not bandit signs) in yards and magnets on our vehicles.

Print out flyers to put on doors in target neighborhoods or direct mail the neighborhood with Every Door Direct Mail from the US Postal Service.

Use Driving for Dollars, to get addresses of rundown houses and then cross referenced with the county tax assessors site and then direct mailing the owners.

When direct mailing, don't use list source or any other list readily available to purchase if you are in an area with a lot of other rehabbers. Create your own unique direct mail list. Use driving for dollars or here I found a local company that will create a list based on credit scores and other criteria not available on listsource.com. Don't be afraid to experiment.

Learn Your Market and Make Offers

Start getting to know all the homes for sale in your farm area. What features do they have, what are they selling for, how fast do they sell, etc... Tour as many as you can.

Be willing to make some embarrassing offers. If the seller doesn't want your offer they will throw it out but have the seller make the determination. Don't talk yourself out of a possible deal.

Stay focused!

There are a lot of shiny objects in real estate. Don't get distracted. If you want to flip, flip. If you want to buy and hold multis, do that. Figure out your niche and stick to it until you master it.

Understand you are going to make mistakes and that is part of the process. Don't beat yourself up. Learn from it, don't repeat them, and get back out there.

Have goals and review them daily. Nothing will push you like a goal and a self-imposed deadline.

Best of luck to you!