While the economy has been unstable in the wake of COVID-19, there’s one investment sector that is holding relatively steady: real estate. As the stock markets were rattled by the economic uncertainty, more and more people started to turn to different forms of real estate investing.
Being a newcomer to real estate investing can be overwhelming, especially when you see how successful other, more seasoned real estate investors can be.
We sat down with Nicholas Trimble, a professional real estate investor, for an exclusive interview about what it’s like to be a newcomer in the real estate investment industry and must-know tips for every investor.
Nick, what’s your real estate investment experience?
I come from pretty humble beginnings in South Carolina, and I learned about real estate investing all on my own. When I first got into real estate investing, I bought a rental property. I definitely struggled as a new investor, and I was overconfident.
I lacked experience, which is what comes with being a new investor. Then, I turned to house flipping. That experience was a whole new learning process. But now, I’m a much more seasoned investor, and I want to use my experiences to help educate other investors.
What are some of your thoughts about fix-and-flips?
Fix-and-flips have always been enticing, especially for newer investors. But there’s been a huge surge in fix-and-flip deals, in the wake of the coronavirus pandemic.
I think that fix-and-flips are excellent opportunities for newer investors and experienced investors alike. They can have a lower cost of entry, because the properties are usually priced very well, and fixing up a property can be a fun and creative experience. I definitely think fix-and-flips come with their own challenges though.
And what are some of those?
Well, it’s tough to know exactly how much work a property will need. You may see a property that seems like a great deal, but when you start working on it, it needs endless repairs.
This can be a huge drain on your budget. So, it’s important to try to understand the inner workings of a property when you purchase it, so you have a good idea of what work needs to be done.
But if you’re an investor who is worried about your finances, I think wholesaling can be an excellent option.
What do investors need to know about wholesaling?
It requires a lot less cash up front to get started with wholesaling. Basically, you act as a middleman, finding buyers for properties already on the market, for a markup. That markup is your commission.
There is massive wholesale profit potential in servicing the needs of real estate investors because they are always looking for high-equity properties.
Wholesaling doesn’t require loans or big purchases, but you do need to establish a network, and be a master marketer. Wholesaling requires a very different set of skills than some other forms of real estate investor, and that makes it a great option for some people.
How can people learn more about you?
I share a lot of articles and advice on my website at nicktrimble.com, to try to help other investors achieve their goals. I’m really dedicated to helping other investors get to where they want to be. Whether it’s with fix-and-flips, rental properties, wholesaling, or another form of real estate investing, I see that this can be an avenue of financial freedom and can be fun in the process.