I am brand new to the concept of REI and have yet to purchase my first property. However, I do believe in trying to get my ducks in a row before I make a start. Listed below are the modules I have in place so far:
$100,000 Line of Credit with Bank
$25,000 cash backup account
Business cards printed and ready to go
Biz partner who is a real estate agent & broker
Mortgage broker who has guaranteed mortgage(s) up to $450,000
Plus a Mortgage Broker letter guaranteeing credit approval on any home up to $450,000
I am also a web designer with 15 years experience, plus a Google Adwords, Yahoo and MSN advertising specialist, plus a Search Engine Optimization Specialist. A web site will soon be in place and Google and Yahoo advertising campaigns too.
I also intend to do a series of direct mail marketing to home owners via letters and postcards - the idea being to drive them to the web site and have THEM contact me.
This is what I have so far, and would really appreciate any and all comments any of you seasoned investors would care to throw my way.
the idea being to drive them to the web site and have THEM contact me.
sounds good in theory. i don’t know anyone who has ever been successful with this strategy. my clients who are successful all do it the “old fashioned” way.
You’ve obviously done some homework. The odds of a successful outcome have gone way up. A very good friend and investor used a similar approach in my market. He was capitalized about like you and used the internet and 100’s of bandit signs. Long story short he has been acquiring about 4 properties a week for the past 2 years and with his website is finding tenants quickly. His 2 biggest challenges were managing his cash flows and finding enough quality contractors. The marketing piece is one thing, but the back room stuff (finding money, property analysis, using assistants, understanding local politics) will keep you profitable. Sounds like you’re off to a great start with a quality partner. Hope you can take it to the next level.
As I said in my first post, I am brand new to RE Investing and my plan is to try and find a (relatively easy) first purchase & sale with the least amount of rehab work to be done.
My line of credit is to pay for mortgage deposit and anything else required to effect a successful purchase and sale, as well as repairs as necessary. Plus $25k in cash as backup for whenever necessary.
A mortgage broker letter - for those that don’t know - is a doc that says you have the finance to be able to carry out the purchase. Together with a 20% deposit. this will show serious intent and hopefully a faster closing.
The web site will be a marketing tool to support advertising campaigns and will hold a ton of info for buyers and sellers both.
For housebroken…Thanks. Hopefully I have a reasonable solid foundation from which to work. My partner is a real estate broker and agent and does have access to quite a lot of stuff that I wouldn’t normally be able to get at. I am looking to buy and sell initially and not worry about renting to start with. But only one property at a time.
I have a lot of backroom boys in place - mortgage broker for funds, Escrow company with 50% off EVERYTHING, Free title searches for lien info, good contractor, and quite a bit more.
I realize I am new to all of this and I posted mainly to see if my setup was anywhere near enough to get me started on my first flip. I was looking for as much advice from people that are doing a similar thing. Also looking to see if I had overlooked anything that might be important.
I need all the advice I can get, so please feel free to chime in.
For what it’s worth, an AdWords campaign will bring you deals. People are on the Web Googling “sell house fast” and “sell house quicK” and “i buy houses” and “we buy houses” etc.
Sounds like you are ready to start looking! Have a broker search the MLS for vacant homes that have been on the market for more than 90 days. Those are you most motivated sellers. If the owners live out of state, that’s even better for you.
You know, just when you think you have it all covered, you get a great tip like this one. Tammy, I hadn’t even thought of looking for vacants only for +90. What a good idea.
I am just taking it steady to start with and will look for an easier property to turn around just to get the feel of things before I head into deeper water.