Ah, ok. First time I have heard that.
Something that I have completely not mentioned on here, but has really helped our lead generation. Web Optimization. We have been able to do this in a cost effective manner as I know that if you outsource it , you can end up paying anywhere from 3k - 70k for it to be done. It is a great source of leads. We split our buying and selling site so each one can be optimized. webuyhomes2fix.com is optimized differently than wesellhomes2fix.com. They do use each other to help the rankings though.
I am very new to the RE world. I recieved a list of charge off properties from a friend who has been in the field for many years. Problem is… she is not very helpful when I have questions. Basically, I was given a list of Charge off properties and she told me to generate offers by marketing these properties. Could you give me a bit of direction as to where I can learn ow to market these properties. I have been using Craigs list and have spent countless hrs reasearching but I find myself getting nowhere anytime soon. Also, I was told this lists is not a "LIST " that I could purchase on the internet or get from City Hall. It is supposedly a compiled list from Banks that she deals with.
Please advise.
Thanks…
Rick
I have not heard the term “charge off” properties. If you are saying that this list is from the bank, I assume you mean they are REO’s. These are properties owned by banks. I would tell you to call the banks and make offers, but where you are right now it wouldnt be worth it. You need to develop basic business structure. Figure out your exit strategy. Figure out a monthly budget. Figure out a farm area. Go to your local REIClubs and talk with some of the bigger buyers in your areas. Go into 50-100 homes in your farm area and learn everything about them. Lots of stuff I would do if I were you. Just my 2 cents
I am new to the field of real estate investing. What books would you suggest that I read that will guide me in the process.
The only reading I had done when I first started was pretty much the internet forums. I dont say that to sound arrogant. I say that because I believe there’s a whole lot better info to be found in these forums than what a book can offer. Forums are growing, dynamic and offer lots of perspective. Books are one authors point of view. Im sure there are some good ones out there, but as you grow, forums are crucial. I still bounce ideas of certain people I know from forums. You’ll find that others might disagree , but thats the beauty of these forums. You need to develop your own sense of filtering garbage from quality info. It really is an art on the boards.
Agree completely about the forums vs. books. I’ve seen some books that are just plain wrong. I’ve seen others that would have been relevant 3-4 yrs ago. Then there are some where you really only get about 8-10 pages of good information. Sometimes on here, you’ll find differing of opinions about how to do something but neither way is really wrong. Other times, someone’s advice might be completely off base, but another person will set the record straight.
yonel,
Your question is much too broad. It’s like saying “I’m new to the work force. What do you suggest I do?”
What areas of REI interest you? Some people want to buy & hold for rental and don’t mind being a LL. To others, the thought of dealing with tenants is their worst nightmare.
agreed. you need to work from the finish to start in mental planning.
Dont allow the holidays to be an excuse not to make money.
Hello,
My husband and I used to work for D.R. Horton - purchasing manager and operations manager. We had certain investors that would buy lots of homes from us and then rent them out. I am not an investor - I KNOW NOTHING ABOUT IT - except what I have read on these forums. I stay at home with my kids and my husband works for a commercial construction company in purchasing. He makes decent money - but with me staying home well our income went from 170K/yr to 75k/yr. Big adjustment for us. I don’t want to go back to work full time and have to put my kids in daycare. We have talked for a couple of years about building houses on the side to try and make some extra money. But from reading these forums, I am thinking I need some advice from the experts on real estate investing. I don’t know the terminology - so bear with me.
How do you find the houses that are for sale (short sale, foreclosure etc.)? How do you come up with the money to buy them? We have good credit but we don’t have much cash flow - things are tight.
We live in Charlotte NC now - moved here from Myrtle Beach SC a year ago. In Myrtle Beach we lived in a D.R. Horton home - I did not sell it because of the market. I have been renting it out through a property management company - but I make NO money on it. I did this simply because I didn’t want to lose the cash I had put into the house (40K). I thought it would be best to wait for the market to come back some and then try to sell. We have purchased and are living in a nice bigger home here in Charlotte. But we can’t afford both mortgages. The current renters haven’t been paying on time and it just seems we keep going further and further into debt. These renters are moving out and another renter is lined up - but we will probably have to pay a couple of months of the mortgage with out any rent income and I am so scared we will sink.
We want to get involved in the real estate investment business but we don’t know where to start. Literally…DON’T KNOW WHERE TO START.
If you buy a home and rent it are you using a property management company or do you manage the property yourself?
How do you get approved for a mortgage on a second home when you don’t have tons of money?
I told you I know nothing about real estate investing - but I do know that I want to learn about it!!!
I am 24 years old and would love to get into the investment realm. I have been blessed to see both good and bad in the industry. That is why i wanted advice. I am starting a company that handles all aspects from purchase to financing to rehab and selling. is this a good idea to embody all aspects? also, what would be my best method of reaching possible investors?
I have a question… i am interested in rental properties and holding them and getting them paid off so in about 15=20 years I can retire and live off the the income. I am 23 now by the way. But right now I have to work my regular job and have no way to take the time to be a landlord so I need a property manager that can do everything for me so all I have to do is collect that check at the end of the month or write him a check to do repairs. How much does this typically cost? I talked briefly with one in CHicago and He charged 8 percent to manage the property and then I was a little confused about the teneant placement price cause he said 50 percent of the monthly rent so I don’t know if that means each month the tenant stays there or just the first month. What are some of you guys getting charged for property management??
Some PMs charge 1/2 a month’s rent to put someone in. I’ve even heard of people charging a full month’s rent for that. Seems like 8-10% of the rent is the going rate once someone is actually in there.
The more hands off you are, the less control you’ll have. Is that PM going to search for a reasonably priced repairman or are they going to hire the first one they come to in the phone book. Maybe they have their own person they normally use, but he might not be the most reasonable one either.
Most people just want to sit back and collect a check each month. The less you do (management, repairs, etc); the less you make and the longer it will take to pay these places off.
How many hours do you work at your job each week?
anywhere from 40-50 per week and lots of other stuff I got going on too like a wife to keep happy :biggrin
we are 9% and 1months rent if we place the tenant. most people are between 6-11% and on the lower end there are usually fees to bring it over 10%.
Greetings WeSell,
I’m hoping I didn’t miss the Q&A as this was opened a lil while ago. I have a question about buying homes with no money down to rehab/wholesale.
I ran this question by my ‘mentor’ who told me;
“That’s easy. Take the equity from your own home and apply it toward purchasing REO’s.” to which I replied “I live in a 2bdr apt you b%&#@…”(i didnt say that but i was thinkin it)
Anyway, I think I’ve heard ppl say they got properties under contract for $0, rehabbed with 0$, and payed all prior costs at the final selling of the property. How would one go about doing that??
buying properties on a LOC does not mean no money down. no money down is buying a property with no deposit. the LOC has nothing to do with this. 95% of our deals are done with a $10 deposit. thats as close to “no money” as we get. it is just consideration money on the contract
as far as people buying , renovating and not paying a dollar to do it, it is possible but i probably wouldnt be the best one to talk to in regards to structuring that. we stick to straight forward transactions. nothing wrong with structuring a deal like you mentioned, just not something we do.
at the end of the day, no matter how the deal is structured, just make sure you have it at the right price. all the creative and fun ways to structure dont mean anything if you get the house at 90 cents on the dollar.
when you are looking for properties to flip do you do most of the repairs yourself? Is it possible for you to contract out all repairs and still make a decent return? Obviously it will cut into your profits but is it something that is done a lot?
I am not in a big market area where I live is very rural but I would love to invest in real estate I have seen many 4 unit multi families for sale dirt cheap but are in need of big time rehab. Are these worth it? How can I go about getting estimates for repairs when the property is in another city?
I’ve got a quick question.
I’ve read a few books where basically the author says you don’t need to know much of anything to get started in real estate, just to jump in and get your feet wet even with little to no knowledge of what you’re doing.
Do you think that’s good advice? If not, what would you recommend?