Real Estate Investing Forums

Real Estate Investing => Bird Dogs, Wholesaling => Topic started by: THATREIGUY on September 11, 2010, 08:49:26 pm

Title: Newbie Starting Out
Post by: THATREIGUY on September 11, 2010, 08:49:26 pm
Hello all im fairly new to the forum but i've read a few post as to creating a name on here..anyway im going to be starting my real estate adventure monday..i've made up my mind to start out wholesaling because it fits my investing style right now..(i have bad credit, no saved cash  :anon ) i've been doing a little research in my market as to building a buyers list(i have 3 cash buyers) and i want to start out with foreclosures and bank owned properties,but i believe i need a proof of funds letter to even submit a offer?? what is the process in making a offer and getting it excepted and what type of contingency's should i put in place so that i have enough time to let my buyer know about it?? and should i let my buyers know that i deal with bank owned so i'll need there immediate attention?? thanks in advance  :beer
Title: Re: Newbie Starting Out
Post by: AJ290 on September 13, 2010, 06:06:32 pm
Congrats on your decision to get started in your new career.  I replied to a similar post about getting started just a few minutes ago.  I think you are wise to pursue wholesaling as your strategy to begin.  But don't overlook lease options, either.  They are low risk, require minimal cash out of pocket, and are a heck of a lot easier to get the homeowner to agree to in my experience.  Good luck.
Title: Re: Newbie Starting Out
Post by: nsu1997 on September 14, 2010, 08:42:12 pm
Hello all im fairly new to the forum but i've read a few post as to creating a name on here..anyway im going to be starting my real estate adventure monday..i've made up my mind to start out wholesaling because it fits my investing style right now..(i have bad credit, no saved cash  :anon ) i've been doing a little research in my market as to building a buyers list(i have 3 cash buyers) and i want to start out with foreclosures and bank owned properties,but i believe i need a proof of funds letter to even submit a offer?? what is the process in making a offer and getting it excepted and what type of contingency's should i put in place so that i have enough time to let my buyer know about it?? and should i let my buyers know that i deal with bank owned so i'll need there immediate attention?? thanks in advance  :beer

If you have no money you won't be making any offers on bank owned properties/foreclosures. You'll need to float an earnest money check of probably $1-2K. You can get a proof of funds letter from any number of transactional funding companies. Just google it. Also keep in mind REO contracts are not assignable so you'll either have to double-close, buy it in an LLC and sell it at closing, or buy it in a trust and assign the interest. If you aren't familiar with this terminology then learn it before you start making offer.

As far as how to do it, making offers on bank owned properties is easy, just get a realtor to do it all. They handle everything and tell you what you need to do. You don't have to pay them a cent.

If your buyers are indeed cash buyers then you won't need to tell them there's a sense of urgency.
Title: Re: Newbie Starting Out
Post by: Sean Terry on September 16, 2010, 01:36:08 am
Congrats on getting started!! This business is awesome if you know what your doing.

I would recommend that you steer away, far away from bank owned right now for these reasons:

1. Takes waaaaay to long.
2. To much competition
3. The need for earnest money & transactional funding(possibly)
4. Banks are tighten their spreads.
5. A Need for an agent to make offers for you
6. Finding a good escrow officer that knows the biz
7. The bank addendum's are  like reading a book

So what's the alternative? Motivated Sellers...Here's the benefits:

1. All deals are off market, you're the only one that knows about them.
2. I never put earnest money down.
3. No need for transactional funding.
4. Very little competition.
5. Deeper spreads, more money
6. Less hoops to jump through.
7. Chances of being regulated...slim to none
8. Turn a deal in 2 weeks

Is that enough?

So how do you find these motivated sellers:

1. Bandit Signs in strategic locations in your city.
2. Direct mail, preferably the Yellow Letter to these lists
a. Absentee Investors
b. Inheritance
c. Probate
3. Internet marketing.

There is an endless supply of motivated sellers.

What ever direction you wish to go, good luck and remember...
Never, Never Quit, Just Adapt and Overcome!

Cheers :)

Sean


Title: Re: Newbie Starting Out
Post by: THATREIGUY on September 16, 2010, 11:57:31 pm
Thanx for the input guys i really appreciate it... basically right now im focusing on just motivated sellers to wholesale the deal....i was also interested if i come across it doing a lease option or subject to deal for the benefit for me and my family cause my credit is shot  :anon i think it would be sweet if my first sub to or lease option was for myself i've been researching it and it seems fairly easily i just really need to understand the paper work involved in it  :deal ... how realistic is it for me to find something that suits my needs right now??? I set a goal to have either a sub to/lease option deal or a wholesale locked up preparing to close before the month is over...  :biggrin

P.S. >> I've been going craigslist crazy posting ad's and chatting with sellers and even buyers that post they buy houses cause im doing the same, they all say lets do lunch and even partner up on a deal one day...This maybe a stupid question but what do they mean partner up??what do i have to offer right now??(no cash or credit)  :shocked
Title: Re: Newbie Starting Out
Post by: xpandergt on September 17, 2010, 04:18:11 pm
It would be suicide to try and tackle REO's with just three buyers. You better have a solid much bigger list before even considering it. Work with For Sale By Owners. At you can control the terms of the contract and you can put down very little earnest money. When  you have a few deals under  your belt, then you can move up to REO's
Title: Re: Newbie Starting Out
Post by: THATREIGUY on September 19, 2010, 01:18:18 am
Thanx xpandergt  :beer  i see exactly what your saying... whats your thoughts on the other question i had?? 
i think it would be sweet if my first sub to or lease option was for myself i've been researching it and it seems fairly easily i just really need to understand the paper work involved in it  :deal ... how realistic is it for me to find something that suits my needs right now??? I set a goal to have either a sub to/lease option deal or a wholesale locked up preparing to close before the month is over...  :biggrin

P.S. >> I've been going craigslist crazy posting ad's and chatting with sellers and even buyers that post they buy houses cause im doing the same, they all say lets do lunch and even partner up on a deal one day...This maybe a stupid question but what do they mean partner up??what do i have to offer right now??(no cash or credit)  :shocked
Title: Re: Newbie Starting Out
Post by: Dziner on September 19, 2010, 01:31:43 pm
I am new to the game as well but figured I would throw in my 2 cents on the partnering up situation.  Since there are a few competitors out there, it is always good to actually sit down with them and see what they have to offer you.  You may not have any credit or cash to offer them right now, but you may drum up leads that they will want and vice versa.  At that point you are almost getting into equity marketing and exchanges.  These can be fairly beneficial after you lock up some properties.  For right now though, I would say go ahead and meet with these other investors and just feel for what they are looking for in a deal.  These guys have the versatility to become a buyer or seller for you.  I would shy away from "partnering" on a deal, in terms of I'll find the deal and you work through it and we can split the profit.  Very few investors will look at this as a good opportunity and may end up structing the partnership in a way that they benefit the most since they are taking all the risk.  Honestly, partnerships are the most difficult things to manage when starting up an investment career.  I have tried a handful of partnerships only to have someone get pissy with the arrangement and crush the deal.  You are better off using these investors as buyers/sellers and they will look at you the same.  Just find what kind of deals they are looking for, and if you get the opportunity to birddog for them they will toss you an agreed upon finders fee.  Just make your presentation straight up with them.  You don't have to divulge how you are drumming up leads or who you have for buyers, but exchange info most definitely.
Title: Re: Newbie Starting Out
Post by: Peter114 on September 19, 2010, 10:09:03 pm
Hello All

Great Information! I'm working to get a R.E. biz started with little money and credit.

Hi AJ290... You mentioned lease options are a lot easier to get the homeowner to say yes to. Most homeowners that I've spoken to what to sell now and want cash now.  How do you get the homeowner to agree to a lease option?

Hi Sean Terry... When you mentioned turn the deal in two weeks, I suppose you are referring to L/O, Sub2 and wholesale deals. How do you get sellers to agree to a sub2 deal? Most that I've contacted don't want to give you the deed?

Thanks for all your input and help!!

Pete
Title: Re: Newbie Starting Out
Post by: nsu1997 on September 19, 2010, 10:36:59 pm
I know you didn't ask me, but just thought I'd help...

You aren't gonna get anyone to agree to a deal that they don't want. Either they're a motivated seller or they're not.

- A truly motivated seller will more or less go along with any solution that you provide them, assuming they like & trust you and the solution makes sense to them. These will represent a minority of the sellers you come across.

- On the other hand, you won't get a non-motivated seller to agree to anything whatsoever, unless you pay all cash and retail price. This will represent the overwhelming majority of the sellers you come across.

The key is being able to tell the difference. Here's my test: if they are willing to give me free equity (assuming there is equity) then I'll try to work with them. If they won't, I immediately move on to the next one.
Title: Re: Newbie Starting Out
Post by: Delondon on September 21, 2010, 10:14:01 am
Hello all im fairly new to the forum but i've read a few post as to creating a name on here..anyway im going to be starting my real estate adventure monday..i've made up my mind to start out wholesaling because it fits my investing style right now..(i have bad credit, no saved cash  :anon ) i've been doing a little research in my market as to building a buyers list(i have 3 cash buyers) and i want to start out with foreclosures and bank owned properties,but i believe i need a proof of funds letter to even submit a offer?? what is the process in making a offer and getting it excepted and what type of contingency's should i put in place so that i have enough time to let my buyer know about it?? and should i let my buyers know that i deal with bank owned so i'll need there immediate attention?? thanks in advance  :beer

Look at you go :beer you get kudos for wanting to start from the bottom.  First thing first, don't worry about the proof of funds letter, if you really need one it won't be hard to find a mortgage broker that will supply one.  simply get you some marketing out, I see that you are to have your buyers on deck and that's good. If you have no money for bandit signs,  find something. Get creative!

I've often seen people in your situation  make it  despite their current situation. Just don't give out push until you get a deal. It'd be a lot easier after you get that money in your pocket. :beer
Title: Re: Newbie Starting Out
Post by: bivsflips on September 23, 2010, 06:49:16 am
Congratulations on deciding to start. In my opinion with your situation, you should concentrate on straight wholesaling to start. It is best suited for where you are right now. Start your marketing asap.

I agree with NSU, you need to know the difference between motivated and non-motivated sellers.

If I send out 1000 marketing pieces, I can expect at minimum a 1% return, thats 100 sellers, I already assume that 90 of those are not motivated and want retail. 10 should be motivated for different reasons, 1 deal will be made out of that (5k+). Those are very bare numbers.

If you set yourself up to expect that type of return you will be fine, anything more is gravy.

I would stay away from foreclosures (unless you are talking about preforeclosures) for right now.

Build up some cash, pay some bills, get confidence, meet buyers and branch out.
Title: Re: Newbie Starting Out
Post by: THATREIGUY on September 24, 2010, 05:30:20 pm
Right now im using mostly Craigslist for buyers and sellers i've come across 2 sellers this week and had to pass on them because they had no room 2 nego a lower price they basically wanted retail for there mediocore houses  :bs  ... im going to keep posting ad's im doing 3 ads a day right now.... im also driving different routes to places i need to go to fing FSBO's i've collected a few and i will come them all tomorrow to see what the situation is on them...
Title: Re: Newbie Starting Out
Post by: THATREIGUY on September 25, 2010, 07:42:49 pm
Alrite!!!! just got off the phone with a woman that just recieved a home after her dad's death its was his and he owned it since 1989 and its a free and clear. last years taxes are owed with a ARV of around $88k most homes on the block have been sold for $85-97k and she's chucking the equity over to me I told her i could do 20k cash she accepted she said i have enough problems with my own home to deal with another. plus she wants it gone because she cant take the pain of her dad kinda sad... so we set up a showing tomorrow so i can check things out abit and see what shape its really in. to. she assured me it was in good she shape but you can never be to sure..i cant wait to put that baby under contract how much should i try to make off of it??? and should i let her know that i will be selling my interest to somebody else??
Title: Re: Newbie Starting Out
Post by: xpandergt on September 26, 2010, 10:55:42 am
If you are starting out in wholesaling, invest in a good course or find a good local mentor to guide you along the way. That should be objective number one
Title: Re: Newbie Starting Out
Post by: THATREIGUY on September 26, 2010, 03:00:51 pm
sooooooo i check the home out and like she said it wasnt in bad shape at all its in a nice suburban area i could use some new windows though(the wood kind) and it looks like the paint color and design hasnt been changed since the 90's  :smile so i went over the purchase contract with her we signed and i told her that i buy alot of properties and sometimes when one project isnt done in time to free up the money i pass things over to my other investor friends(picked that up on a youtube video) and i asked her would that be alright if i did so and she said fine i just want out... so we signed for $22,000 with a 14 day inspection clause i took a ton of pictures with my sis-inlaws camera and i decided im going to sell it for $35,000 because it has small repairs that need to be done and its ARV is around $88,000 lets go!!!  :dance2
Title: Re: Newbie Starting Out
Post by: nsu1997 on September 26, 2010, 03:06:49 pm
Alrite!!!! just got off the phone with a woman that just recieved a home after her dad's death its was his and he owned it since 1989 and its a free and clear. last years taxes are owed with a ARV of around $88k most homes on the block have been sold for $85-97k and she's chucking the equity over to me I told her i could do 20k cash she accepted she said i have enough problems with my own home to deal with another. plus she wants it gone because she cant take the pain of her dad kinda sad... so we set up a showing tomorrow so i can check things out abit and see what shape its really in. to. she assured me it was in good she shape but you can never be to sure..i cant wait to put that baby under contract how much should i try to make off of it??? and should i let her know that i will be selling my interest to somebody else??

Good job! Did you get it under contract yet? Sounds like a very good deal. Tip: in the future never name the price first. Instead ask them, "If I pay you all cash and close quickly what would be the least you would accept?" Then ask, "Is that the best you can do?" You'd be surprised how low a motivated seller would sell for.

You should make as much as your market will bear. Heck, at $88k ARV you could mark it up to $44 and still be selling at 50 cents on the dollar which should move it quickly (assuming it doesn't need a huge amount of repairs). You'd make $24k and never touch the house.

No real need to tell her you'd be selling your interest. No reason to hide it either. Fact is she shouldn't care where the money is coming from, as long as she gets it.

Title: Re: Newbie Starting Out
Post by: REIMillions on September 27, 2010, 11:00:04 am
Ditto on what Sean stated.... If you are developing a list of serious buyers that can buy at the drop of a dime short sales are NOT the way to go. They take entirely way too long and you don't want to wait forever to make some serious CA$H. The typical short sales can take months to be approved, you have no clue how many deals I had fall in the toilet because the bank wanted to take forever to respond. Even after waiting an eternity for the bank to come back with a reply 7 out of 10 times it will be a no.

I see your serious getting started in real estate, so you may not want to waste your time playing with banks. You need to find these properties before they are even up for foreclosure. There are countless of people under financial burdens and are willing to sell their home for way less then is owed. You need to promote yourself online and offline. In the newspaper, phonebook, bandit signs, word of mouth etc.

Short Sales is not the way too go.



Hello all im fairly new to the forum but i've read a few post as to creating a name on here..anyway im going to be starting my real estate adventure monday..i've made up my mind to start out wholesaling because it fits my investing style right now..(i have bad credit, no saved cash  :anon ) i've been doing a little research in my market as to building a buyers list(i have 3 cash buyers) and i want to start out with foreclosures and bank owned properties,but i believe i need a proof of funds letter to even submit a offer?? what is the process in making a offer and getting it excepted and what type of contingency's should i put in place so that i have enough time to let my buyer know about it?? and should i let my buyers know that i deal with bank owned so i'll need there immediate attention?? thanks in advance  :beer
Title: Re: Newbie Starting Out
Post by: bivsflips on September 28, 2010, 09:37:32 am
Sounds like you have the makings of a good deal. Go to the home and do a thorough inspection. If 20k is what she is willing  to take.. unless the house is a shell inside you should get it under contract.

I would caution you..Do not fall in love with the prospect of your first deal. Keep focused and run your numbers. Closing costs, holding costs, repairs, your profit, mktg for end-buyer...just make sure the numbers will support this deal. Get good comps, and start marketing right away, to gauge interest in that neighborhood. Even if the numbers look good if nobody wants to buy there you are spinning your wheels.

As far as how much to make, I would say to consider the investor...if you want them to be a repeat buyer make them love doing deals with you. You don't have to make a killing but don't short yourself..5k is usually a good barometer but you can make as much as the deal will allow. The more you make the less your investor makes so keep them happy and you will have them for more deals in the future.
Title: Re: Newbie Starting Out
Post by: THATREIGUY on September 30, 2010, 05:21:52 pm
 :bobble   :beer   As we speak im holding a $5,000 Non Refundable Earnest Money Check from a buyer i picked up from craigslist my deal will be closing next week and i'll collect $4,000 at close.... Plus i had someone today call me about a nice home for sale $18,900 with a FMV of $28,000 that would make a great rental i would like to set up a lease option on it so i can get some supplemental income going from it  :biggrin man o man and i having a great day!!!!
Title: Re: Newbie Starting Out
Post by: nsu1997 on September 30, 2010, 06:00:38 pm
There's a STRONG case to be made for simply taking action. You did exactly that, and that's exactly why you have a killer deal and most newbies frankly never will. Congrats! :beer

A little bit of education + a whole boatload of action = success
Title: Re: Newbie Starting Out
Post by: Delondon on October 01, 2010, 07:30:45 am
:bobble   :beer   As we speak im holding a $5,000 Non Refundable Earnest Money Check from a buyer i picked up from craigslist my deal will be closing next week and i'll collect $4,000 at close.... Plus i had someone today call me about a nice home for sale $18,900 with a FMV of $28,000 that would make a great rental i would like to set up a lease option on it so i can get some supplemental income going from it  :biggrin man o man and i having a great day!!!!

SEE this is what I like to see. So many people simply don't do it, that complain about what does not work and don't do a single thing. I have been showing people how to use Craigslist to find buyers for a while now, and it works. Cash buyers know how to find deals there and we know how to find their money. lol.

Congrats on taking action, and you get 5 stars for getting a 5K binder deposit  :shocked

Title: Re: Newbie Starting Out
Post by: THATREIGUY on October 08, 2010, 04:56:11 pm
yESSS!!!!! i just wrapped up my closing collecting my last part of my fee which was $4,000... i tell ya   Real Estate will free your mind and your bank account   :beer   hahahaha so much to do now that ive finally finished my first deal it was so easy when i look back at it... i feel like a pro   :anon joke... i think i cracked the code to success though... im ordering some bandit signs tomorrow and taking the wifey out to dinner...
Title: Re: Newbie Starting Out
Post by: Delondon on October 11, 2010, 09:43:31 am
yESSS!!!!! i just wrapped up my closing collecting my last part of my fee which was $4,000... i tell ya   Real Estate will free your mind and your bank account   :beer   hahahaha so much to do now that ive finally finished my first deal it was so easy when i look back at it... i feel like a pro   :anon joke... i think i cracked the code to success though... im ordering some bandit signs tomorrow and taking the wifey out to dinner...

 Congratulations to you. I wish you many years of success with this new found  venture. Keep going and never stop. :cool
Title: Re: Newbie Starting Out
Post by: bafeld2010 on October 11, 2010, 07:12:52 pm
Can you recommend a good course that walks you thru step by step and gives examples of forms to use. thanks
Title: Re: Newbie Starting Out
Post by: Delondon on October 14, 2010, 03:02:32 pm
Lol @ bafeld2010  :rolleyes
Title: Re: Newbie Starting Out
Post by: THATREIGUY on October 15, 2010, 05:54:40 pm
 :anon


do a few searches on this site for the topics you need answer's to...its so much free information out here try that first...then decide if you still need a course because really its all about taking the first step...this business is from what i come to find is 80% action 20% knowledge...basically because the knowledge comes from taking action....      :beer
Title: Re: Newbie Starting Out
Post by: Shelterkid on October 21, 2010, 01:01:40 pm
Hey REIGUY great job, your story has inspired me tremendously
Title: Re: Newbie Starting Out
Post by: Delondon on October 21, 2010, 02:45:40 pm
Nice way to break down the 80 20. You got to love this place. :biggrin
Title: Re: Newbie Starting Out
Post by: idhomebuyer on October 21, 2010, 03:47:26 pm
I have to agree, that your success story is motivating for me. It would be nice to have some money for debt relief and the christmas holiday.

Did it take the full 30 days to go from contract to closing?



:bobble   :beer   As we speak im holding a $5,000 Non Refundable Earnest Money Check from a buyer i picked up from craigslist my deal will be closing next week and i'll collect $4,000 at close.... Plus i had someone today call me about a nice home for sale $18,900 with a FMV of $28,000 that would make a great rental i would like to set up a lease option on it so i can get some supplemental income going from it  :biggrin man o man and i having a great day!!!!
Title: Re: Newbie Starting Out
Post by: THATREIGUY on October 21, 2010, 08:28:00 pm
it actually only took about a week... im still trippin off how money basically came from thin air and into my pocket..... i literally learned how to pull money out of houses that arent mine.....     :beer i tell ya its been crazy around my house in a great way.....
Title: Re: Newbie Starting Out
Post by: JohnLydic on October 21, 2010, 10:45:57 pm
what do they mean partner up??what do i have to offer right now??(no cash or credit)

You can offer full-time legwork, expertise and proficiency in locating, researching, evaluating and securing profitable investment properties.  You can offer a passive income opportunity to individuals who, otherwise, do not have the time and/or experience, but want to earn the higher-than-average return that real estate affords.  A partner puts up all the funds, and you do all the work.  Personally, I prefer land trusts to structure partnerships.  The catch is you need to convey credibility to secure a money partner.  Until you have the confidence to gain the trust of those with bigger pockets than yours, hit the streets and find a few more assignable deals.  Congrats on the first one!    

Title: Re: Newbie Starting Out
Post by: Delondon on October 22, 2010, 02:13:36 pm
Hey John whats up? Long time no see.  :biggrin
How have things been going with ya.
Title: Re: Newbie Starting Out
Post by: idhomebuyer on October 22, 2010, 02:40:09 pm
That is impressive. Is this your first deal?  :dance


it actually only took about a week... im still trippin off how money basically came from thin air and into my pocket..... i literally learned how to pull money out of houses that arent mine.....     :beer i tell ya its been crazy around my house in a great way.....
Title: Re: Newbie Starting Out
Post by: THATREIGUY on October 22, 2010, 03:24:18 pm
yep my first one..... working on the second now..... this one is going to be around 2500 nothing big but still money in my pocket i got my fingers crossed that it will work.....   :crossfingers
Title: Re: Newbie Starting Out
Post by: Shelterkid on October 22, 2010, 04:14:49 pm
Wow thats awesome, let me ask you this...how much knowledge did you ACTUALLY have before taking action? i know like you said yourself that 80% comes from action and 20% is knowledge but what were your "qualifications" for lack of a better word? Just curious
Title: Re: Newbie Starting Out
Post by: THATREIGUY on October 22, 2010, 04:52:47 pm
not that much all i knew and know is find buyers,find out what they want,get them slightly lower than what they want for them,put under contract,then assign for my fee... ofcourse i know i few more tricks now that im actively moving in real estate and still is studying the cross roads that us investors have then find the solution for like exp.(double closes,selling my LLC...and curently right now im trying to partner with one of my buyers on a deal then deed my self off after closing for seansoning issues)
Title: Re: Newbie Starting Out
Post by: lauraalamery on October 24, 2010, 09:59:49 pm
I agree. If you are new in real estate, expecially in these economic times, find a mentor, someone that has experience in wholesaling, if that is what you want to do. It is easy to make costly mistakes (even if you don't have money, possible lawsuits are not fun.) Books are not going to give you all the possible answers.
Title: Re: Newbie Starting Out
Post by: the700level on October 26, 2010, 03:05:06 pm
Good work!  I'm just starting out myself, have a few questions for you:

1. What did you post in your craigslist ads to find these investor buyers?

2. How did you find this motivated seller?

3. For this deal, you got a purchase contract, and then just assigned it to one of your buyers correct?  So the money never actually came out of your pocket... It went from Buyer to you to seller?  How long did it take from agreeing with the seller to sell to agreeing with the buyer to buy?  Did you tell the seller you would need a couple days to find an assignee?
Title: Re: Newbie Starting Out
Post by: ruukie on October 31, 2010, 06:51:14 am
it actually only took about a week... im still trippin off how money basically came from thin air and into my pocket..... i literally learned how to pull money out of houses that arent mine.....     :beer i tell ya its been crazy around my house in a great way.....


My hat offs for you THATREIGUY!  As mentioned before by others, your story is truly an inspiring one for all of us, Newbies.  So i guess u've graduated to the next level from us...lol.

80% action and 20% knowledge huh, kudos to whoever came up with the phrase/idea, very well said. cheers for sharing ur story and knowledge, and to everybody else who are sharing their knowledge and experience as well!!  :beer
Title: Re: Newbie Starting Out
Post by: ClearwaterfloridaREI on November 06, 2010, 11:10:06 pm
Congrats on your decision to get started in your new career.  I replied to a similar post about getting started just a few minutes ago.  I think you are wise to pursue wholesaling as your strategy to begin.  But don't overlook lease options, either.  They are low risk, require minimal cash out of pocket, and are a heck of a lot easier to get the homeowner to agree to in my experience.  Good luck.

Sorry if this is a dumb question but I was wondering what would be in harm in knowing how to do BOTH, (Lease options and wholesaling)? I guess it comes down to cash or cashflow.
Title: Re: Newbie Starting Out
Post by: idhomebuyer on November 07, 2010, 12:34:14 am
From what I understand, there's no harm in doing either. One you can continue getting anywhere from $1000 to $5000 for every new lease option deal (RTO tenant) you get, in addition to a little from their monthly payment. And for some reason they default on the contract, you getta make that kinda money all over again with a new person.

Wholesaling -> You can make whatever (within reason) for each deal you sell to an end buyer. If you can do both, that's great. It's finding homeowners who are up to accepting a lease uption in the 1st place. After that, it's pretty much icing on the cake.



Congrats on your decision to get started in your new career.  I replied to a similar post about getting started just a few minutes ago.  I think you are wise to pursue wholesaling as your strategy to begin.  But don't overlook lease options, either.  They are low risk, require minimal cash out of pocket, and are a heck of a lot easier to get the homeowner to agree to in my experience.  Good luck.

Sorry if this is a dumb question but I was wondering what would be in harm in knowing how to do BOTH, (Lease options and wholesaling)? I guess it comes down to cash or cashflow.
Title: Re: Newbie Starting Out
Post by: Charlie Ozeta on December 06, 2010, 12:40:57 pm
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Title: Re: Newbie Starting Out
Post by: Mz.B on December 06, 2010, 11:49:08 pm
Congrats on your decision to get started in your new career.  I replied to a similar post about getting started just a few minutes ago.  I think you are wise to pursue wholesaling as your strategy to begin.  But don't overlook lease options, either.  They are low risk, require minimal cash out of pocket, and are a heck of a lot easier to get the homeowner to agree to in my experience.  Good luck.

Sorry if this is a dumb question but I was wondering what would be in harm in knowing how to do BOTH, (Lease options and wholesaling)? I guess it comes down to cash or cashflow.

Hi ClearwaterfloridaREI,
I think it's great to know how to do BOTH lease options and wholesaling, one would benefit greatly by having the skill to do both.  This becomes esp. important depending on what type of marketing you choose.  As you get your marketing going, some deals will work as lease options, some for wholesaling, etc.  However, I will say that what worked for me was to start by picking a focus.  I chose wholesaling.  It was overwhelming trying to do all of the approaches starting out and unforatunately that happens to lots of newbies.  I would recommend starting out by picking one approach, do 1 or 2 deals, then add new approaches.
Title: Re: Newbie Starting Out
Post by: parklandgroupohio on December 08, 2010, 07:13:52 am
It is a great idea to go into real estate as this could offer lots of business possibilities and opportunities. For example, if you have enough capital or investors, you can develop said property and put up something that is sure to earn long term. Something that offers rental space like office spaces or a Hilliard self storage facility. something that will earn for the long-term.
Title: Re: Newbie Starting Out
Post by: 4Jay on December 27, 2010, 02:40:50 pm
Im far Baltimore Md and I have a similar problem. I want a career in real estate. I have bad credit no funds to invest. I do work. My question is should I been my career starting out as a real estate agent who mostly deals with investors and to gain experience and knowledge from being a real estate investor. Is it a good idea to start as an agent or should I just focus on saving some cash and get started doing wholesale. My goal is to be able to buy a house and hold/keep for my family to live in and use it as leverage to be able to do other deals.
Title: Re: Newbie Starting Out
Post by: pwoodruff on December 27, 2010, 02:54:28 pm
That's similar to the way I started. I purchased a home to live in first and used it as leverage to buy others. Starting as an agent can build confidence, give you a better "sense" of the market, and make you more fimiliar with contracts; However, I think most of these things can be learned rather quickly without being an agent. On the other hand, being an agent will open up more opportunities. If you have the time, I would say do both. The more knowledge the better.....
Title: Re: Newbie Starting Out
Post by: nsu1997 on December 27, 2010, 03:08:14 pm
Im far Baltimore Md and I have a similar problem. I want a career in real estate. I have bad credit no funds to invest. I do work. My question is should I been my career starting out as a real estate agent who mostly deals with investors and to gain experience and knowledge from being a real estate investor. Is it a good idea to start as an agent or should I just focus on saving some cash and get started doing wholesale. My goal is to be able to buy a house and hold/keep for my family to live in and use it as leverage to be able to do other deals.

Becoming an agent won't hurt (easy access to comps, REOs, junkers, etc). But in my opinion investing the time, effort, and expense required to get licensed all just for the sake of rubbing elbows with investors won't do much as for your real estate investing career. you can do that by simply attending your local REIA. besides, most deals aren't listed on the MLS anyway.

You don't need any credit whatsoever to become a wholesaler, and only a nominal amount of funds. Baltimore is junker heaven...you won't have a problem finding a ton of vacant abandoned houses to work in Baltimore. However it will most certainly take work just like anywhere else.