I have been trying so hard to put together a serious buyers list of assignment deals of commercial properties and have not been very successful does anyone have any sugguestions as to how to go about it? :banghead
I would suggest joining your local REIA and making friends with the SUCCESSFUL investors in your area. Your new friends and their contacts will be your buyer’s list.
Mike
If you’re a complete newbie, you’ll have a hard time convincing experienced investors to take you seriously. You’re going at this completely backwards. First, FIND the good deals, and you’ll have the property sold to the first investor you call. I wouldn’t bother looking on forums to find buyers. There are most likely plenty of local investors in your area that would love to buy the good deals you find.
Keep in mind, flipping commercial real estate isn’t like flipping houses. To me, the goal of consistently flipping commercial real estate is laughable. This method is usually pitched by the gurus because it sounds easy and lucrative. Really good deals are much more challenging to come across in the commercial end. I see people talking about assigning commercial deals on these forums all the time. The reality is, if you have the knowledge and skill to consistently find good commercial deals, you’d be smart enough to keep them yourself.
I would prefer to buy and hold if it is possible to. No assets for collateral and monies for down.
I live in Hawaii. Single mom of 2.
Currently laid off and not many jobs available in Hawaii since many companies are laying off and going out of business. Tourism dropped and state may even consider raising taxes to make up the deficit in lost income from revenue the state makes as we depend on tourism.
If someone can teach me how to buy and hold for myself that would be awesome. I know how to eval and put together a package but having difficulty finding commercial real estate investors who are active and seriously buying.
If you’re wanting properties for yourself, you’re going to have to bring something to the table. Banks who, only a couple months ago, were quoting lower down payment %'s are now wanting investors to have more of their own money in the deal to keep people from walking away. Some people here may be able to help you think of some “creative” ways to get properties, but without a job, collateral, or any money saved up, you’re going to have a tough time trying to convince someone to lend to you (especially in this lending envrionment). Aspirations and goals are good, but you have to be able to provide the building blocks to help get where you want to be.
I’m sorry that you’ve been laid off. Considering the current economic climate it isn’t surprising that the Hawaii market is suffering. I wish I could tell with the same enthusiasm as the gurus that it’s no problem and you can easily have success in real estate, but your situation does make it much more difficult, though not impossible. Besides finances, I could imagine your two children are a large time commitment.
If tourism is slow, how is that affecting commercial real estate in Hawaii? Investors might be looking outside of Hawaii for opportunities. I’m sure there are investors in your area. Try and call the prominent agents or appraisers in the area.
If you want to buy real estate I would recommend the residential side. That may not be what you want to hear, but it is far more realistic. Get online and find the Carlton Sheets course for as cheap as possible. He’s been around forever and alot of investors laugh at his material, but they do work, and people still use the same methods he teaches everyday. The two methods you need to be looking at are selling financing (preferably 100%) and buying homes “subject to”. If you have foreclosures in Hawaii then you have “subject to” prospects. In this market, you’ll probably have to plan on leasing the homes for a couple years at least. Once you get a couple homes under your belt start talking with local banks and hopefully you can get approved for some financing.
Justin0419 is right. Aside from that, things happen slowly in real estate so you need to find stable employment to put food on the table. It’s takes time to have enough real estate to quick your day job.
Yeah Been trying to find a job for the past 3 months but very very difficult unless I waitress and even then I would have to put in 80-100 hours a week to break even and hold 4 jobs just to attain that since every one is down sizing etc. I had a very good job so it is hard to keep my resume good without throwing it to crap which took me 10 years to build with out a degree. I could easily get a job at 30k a year but I would need another job and then my kids are 2&3 so time and energy would end up close to 0 so have been trying to put together this business since I really don’t have anything else to do besides watch my kids. Its rather a challenge to put together a buyers list to do assignments. I have been busting my chops daily for the past 3 months to create one but not much of a list. Had a property under contract to “sell” but found alot of posers. Ended up canceling it. A total waste of time for the sellers and felt guilty so thought its better to build a list first.
Residential real estate in Hawaii the only way to make money is foreclosures which happen all the time. I am very uncomfortable with that. i paid a local investor to teach me how to do it and it was so predatory I walked away.
I have been looking at properties on the mainland and think that assignments are the way to go…the problem is to find seriously active investors who would even entertain assignments of commercial property.
How are you making it now? You say you could get a $30K/yr job. Isn’t $30K coming in better than $0?
It’s very difficult to put together a business that’s going to be profitable for minute one especially without money. That’s guru talk right there.
I would be very leery of venturing out of your backyard right off the bat to start working deals on the mainland.
I think it’s Bluemoon who says the worst time to start a business is when you need money from that business. My advice to you is take the immediate steps to take care of your family for now. Get some stable income. If you want to do REI, learn what you can during any “off” time you may have. Then you can work into something on the side. Maybe it will take off and you can transition over to REI sometime.
filing for unemployment till I can find a job that will pay 50k Hopefully I would beable to find one before the unemployment runs out which is another4-6 months. Since I have time now I am trying to put this business together as much as I can if that makes sense. I am not crazy have calculated it. I got laid off a job that paid 75k.
the 30k won’t cover daycare, just the basics. I would need 2 full time jobs to cover my expenses. Rent alone is 1500/month daycare is 1200/month gas is 350/month and I live in town. if That does not include every thing else.
I think we understand your financial situation and you seem determined to assign commercial deals. You need to get more specific because you’re in a very different and isolated market than the rest of us. Questions -
What’s the commercial market like in Hawaii?
What have you done to find investors and where are you looking?
How are you finding deals that investors would be interested in? How do you know when a property is a good deal? I’m especially curious as to how you’re finding good deals in the US from Hawaii…
If you don’t like how residential foreclosures are being acquired, then why not choose to acquire them ethically? How was it predatory?
I might be asking some of this out of ignorance because I don’t know the market in Hawaii or the laws/regulations that govern it.
Hawaii is definitely not a good place to invest in CAP rates are at 5% if your lucky actual 7%. Which is not the kind of returns a investor looks for. 10 Cap is the minimum. That’s why Hawaii is not a place to invest in.
I took the ICRE course and they teach alot of good information that I would not have learn otherwise. For the experienced investors maybe not something worth their while but for a beginner I think it was well worth it.
The guy who I paid to teach me taught me alot of things about how to find, approach and research individual properties that are up in foreclosure and to go and talk to the people and convince them when they are in denial without telling them to talk to their family to help them out…yeah he was a slime ball and I didn’t like his way of doing business. I have read that some investors market themselvse to get the truely motivated sellers to call them but even if I had a property I don’t know how to find a buyer so I don’t know how to do that and no money to pay someone to teach me so…yeah its :banghead :banghead :banghead :banghead
So the guy that taught you was a slime ball. So what? It doesn’t change the basic methods you use to acquire a house with very little down. The techniques of 100% seller financing and assuming a mortgage are completely ethcial. The reality is most of these “we buy houses” guys buy homes “subject to” if they can. They don’t automatically buy homes with their lines of credit unless the deal makes sense and it’s the only way to get the property.
Learn the methods then carry them out in a way that you feel comfortable with. Keep in mind, you’re not getting paid being their debt counselor, you’re there to get their house. If you’re helping them and it’s benefiting you, what’s the problem? Borrying from family could actually be worse for most people, as family loans usually end in disaster. Don’t assume that everyone wants to stay in their house. Sometimes people just want out for their own reasons. If they’re willing then you should be willing.