A Beginner

General Real Estate Investing
1

As I read through this forum I’m trying to figure out the step to real estate investing

  1. First Start an LLC (S-Corp)

By doing this you will not have to get loans using your credit but the company’s credit

  1. Establish company credit

  2. Find property

I want to specialize in Townhomes/Condos

  1. Get loan (hard money loans??)

I’m trying to go into real estate investing without using my own money. This is probably all wrong but from what books I read ( 1 book - The ABCs of Real Estate Investing) it did not go into all of this. It just told you how to look for a property which I guess is the important part.

Please help and go easy on me.

Also are local real estate investment clubs any good. Do they help beginners? Thanks

2

First, yes local real estate clubs are good. It’s a great way to meet other investors and hear speakers who cover various investing topics.

No, you don’t want your first step to setup a company and expect to be able to get credit using the company name. You will have to personally guarantee any loans.

Your first step is to figure out your strategy. This comes from looking at different strategies such as wholesale, rehab, rental, lease-option, subject 2, etc. and decide which one you want to pursue.

3

I want to do rentals. I already own 1 property but how in the world would the bank or any other company approve me for another loan. How do people end up owning 12 rental properties?

4

I just go to the bank and ask…I show them that the last property is performing (and how well…). If you’re managing it properly and cashflowing, that’s what they want to hear. What a Lender really wants is to be paid back!

Keith

5

Hey Beginner,

Thanks for that post. You are asking the question I should be asking I to am a beginner in REI.
I hope you get several informative responses back that can help me too. I am now reading Rich Dad Poor Dad.

6

I have not gotten to reading that book yet. I started with the ABCs of Real Estate Investing.

Is the book answering any of your questions?

I mainly thought the book talked about Robert’s success story.

Another question. Do you want to go to a bank first? I always thought they were the hardest to get money from.

7

It depends…first, define “hardest”…do you mean the most stringent financing requirements or do you mean the most inconvenience to you?

The bank that I dealt with for my properties was a dream…they understood what I was doing and how (because I took the time to explain it to them…). After the first house, I could call them and give them the details (what I paid, what it would appraise for, and how much rent I was collecting, etc.), I would go in sign the application (they already had it filled out), and close in a couple of weeks. By the way this was a local/regional bank…

Just as an aside, this is credit rating-dependant and I’m not in my 20s…I have a plan that I can articulate clearly and my properties perform as I advertise (some even better!)…

Keith

8

This is old school investing.

READ READ and READ some more there are tons of ways to invest in Real Estate w/ NO (to VERY LOW) MONEY DOWN!!

Don’t be silly, invest in your mind, then invest in Real Estate!!

9

What is a good book to read? Any advice for somebody that wants a step by step book.

10

Newbie’s start by talking to people, investors, agents, etc.
Call on fisbo’s, Ask dumb questions. Dive in just don’t put your money on the line yet.