The red-hot Upstate housing market continues to sizzle, with many believing this to be a good time to start investing in real estate. But jumping in without experience can backfire, says Trent Smith, co-owner of Coldwell Banker Exclusive Realty & Management.
“There are a lot of mistakes to be made out there, and typically they are very costly mistakes,” said Smith, who began investing in commercial real estate in his early 20’s, seeking the advice of an experienced investor who served as his mentor.
“I was there to share in his successes, as well as his failures,” Smith said of his time as a mentee. “And we all learn more from our failures than our successes.”
Presently, real estate investing is extremely competitive as more and more house flippers enter the boon market. But with very few foreclosures compared with five or 10 years ago, investment inventory is low, according to Smith.
“Less foreclosures are a good thing as a whole for our economy, but from a real estate investor standpoint, that’s where a lot of the inventory comes from,” he explained.
To help would-be and novice investors better understand the real estate landscape and the world of flipping, Smith is offering real estate investment coaching at Coldwell Banker Exclusive Realty & Management. The course covers such topics as buying assets at the right price based on needed repairs and how to look for behind-the-walls issues such as foundation, electrical or plumbing problems.
“Watching a show on HGTV is not going to count as experience in this world,” Smith said. “If you’re not budgeted properly for repairs coming into the deal, you’re not going to be profitable coming out of the deal. A real estate investor told me a long time ago and it sticks in my ears today that you make your money when you buy the house, not when you sell it.”
Presently, Smith is flipping houses in Anderson, Belton, Piedmont and Williamston.
“There’s just so much attention and growth going into old mill hill communities,” Smith said. “I grew up on the Pelzer mill hill. I was the kid running up and down the Saluda River. I never would have thought that those homes would one day be worth a quarter of a million dollars, but it’s coming.”
The Pelzer Heritage Commission recently unveiled a redevelopment plan for the old Pelzer Mill properties that includes construction of nine single-family cottages, almost 200 apartments and a new restaurant.
“There are just a lot of things going on in that area and it’s good,” Smith said. “I love to see it coming back to life how it once was. That was a very happy and special place to me as a kid.”
In addition to real estate coaching by the hour, Smith will consider partnering with a first-time house flipper, walking them through the project then splitting profits at the end. Coaching also covers investing in commercial buildings such as strip shopping centers and medical offices, and industrial properties.
Smith also can show investors how to upgrade their real estate portfolios. For example, he can coach someone who owns five or six rental houses through a 1031 exchange that allows them to swap the houses for an apartment building in a tax-free event, as long as overall value increases and debt is replaced.
As for 2022, Smith said he believes the new year will be another hot one for the housing market as long as interest rates remain near where they are presently.
“I believe our local economy is even better than the national economy,” he said. “I believe we’re going to stay strong for a long time with all the job growth and opportunities that the Upstate has. Housing is here to stay. As long as jobs are coming here, folks are coming here.”
For more information on real estate investment coaching, contact Trent Smith at Coldwell Banker Exclusive Realty & Management, (864) 225-3788.
