I am getting start with my real estate investment course. I am looking to get start in real estate investing by flipping foreclused properities. I do not have the best credit in the world, I also do not have the funds to obtain a property. I have a lot of questions and would like to hear from other Real Investors opinion in getting started and finding good deals. I am a mortgage underwriter in New York City, I am taking my mortgage broker license exam in may. I would like to flip properities as well and obtain a rental property soon. Any suggestions
Hi Ronald - Welcome
Congrats on your interest in getting started with REI.
I am not one to discourage anyone from doing REI, but I think your starting out in the wrong area i.e. buying and flipping foreclosures. You state you don’t have the funds to purchase property. When Purchasing Foreclosures - You need CASH. Wether you buy REO’s from the bank or realtor or take em off the courthouse steps - In General you need Cash to purchase. For example, If you were to buy a property from the courthouse steps (auction) - you will be expected to pay a portion at the steps and the remaining balance within x amount of days (7-10).
You might try looking into the Low cash required methods of acquiring property such as Lease/Options; Lease/Purchases; or Sub to. These methods will allow you to acquire properties with a minimal amount of cash.
Being in the Broker Business will be a good thing for you. With your contacts in that industry, and in particular if you concentrate on the creative end, You will be able to qualify your buyers and find them financing much easier than those of us who are not in that industry.
You may have to walk a fine line between your investing and your Mortgage Brokering as some may view it as a conflict of interest or self serving when your dealing with your tenant buyers and providing third party financing for them. Then again, maybe not.
I just wouldn’t want to be placed in the middle of mortgaging one of my own tenant/buyers with 1 of my Lenders and have something go wrong. Mortgage Brokers can play a big part with getting buyers financed and Lenders look to the Mortgage Brokers for answers when deciding on approving a loan. But then again, you will have the contacts you make to take you out of the middle.
Just my thoughts.
KEC
Thank You Kevin for the advice, How can I pursue the method that you suggested.
I would start here and read all you can on L/O;L/P and sub to’s-decide which method you want to use or use em all. The more you know and understand will benefit you in this business. You will learn of the risks involved and the rewards you can earn from taking those risks. Once you get a good understanding, buy a course or two from the experts who have done lots of deals. there are some good ones here. I would name a few, but don’t think I can in this forum. Anyway as you learn more, you will know who they are. Read the articles here, learn how to minimize the risk and increase the benefits. Don’t walk away with the impression that this is easy stuff to do. This is work, alot of work. But the dividends it pays beats the 9-5. Don’t get discouraged. You will get out of it what you put in it. Most important thing is that you will have to overcome your fears of meeting sellers, making offers, and taking risks. It will be well worth it - just be smart about it and get out of your comfort zone.
There are some real good experts here that will be happy to help ya out. I’m by no means one of them (expert) and will help ya out if I can. I’ve read that many don’t last more than 3 months doing REI and get frustrated and get out. Its a process of evolvment not instant riches - at least not for me…lol. I’ve heard it said here and can’t find any better phrase “If ya want to run with the big dogs ya have to get off the porch”
Good Luck to ya
KEC
ronald,
I am in the same boat as you are. I did alot of research on funding investment property and was fortunate to find a great company that looks at the “deal” rather than the credit. Look in your local sunday paper for ads that state Short term Capital available for real estate investment. They cost more but structure everything to benefit both parties. Also they make sure you have a solid investment property.
Good Luck!!!
Ronald-
It’s nice to see that you’re looking in the right places. You’ve already gotten some great suggestions and I would like to give you one more.
I’ve found that when you don’t have money to get started in Real Estate, you should use somebody elses money (AKA. O.P.M. – Other People’s Money)
What I’ve done to get started is pretty nuch the samething you’re doing. I went and checked on the web to find people with the money and know-how to help me get movin’!
The way I would say to get acess to OPM is by asking them if you can help them out while they help you out! What I mean by that is, you should find other investors in your area who have money and properties who would be willing to mentor you and show you how to get started by working for them. I actually met an investor who made a deal with me that if I made phone calls and set up deals, he would split them with me 50/50. While I was making phone calls and setting up deals, he was training me on what to look for in a deal and how to set everything up.
Just remember, that RE Investors are people just like you and me. If you’re straight forward and honest with them and let them that you’re new, you don’t have any money but you really wanna play this Real Estate Game, you WILL eventually find someone who will say, “Okay, Ron, let’s get down!” I can say that with confidence, because we were ALL beginners at one time and we ALL needed someone to show us how to do it.
How do you find a person who will train and mentor you? The way I did it was be going to websites like this one, going into REI chatrooms, putting posts in forums and doing searches on Google for Real Estate Investor Clubs in my area. I live in Henderson (Las Vegas) NV, and so I knew that I would find at least a couple of clubs out here. (I sure you’ll be able to find a few in New York with no problem.) Once I found the clubs and investors, I got their phone numbers and email addresses and called/emailed them telling them about my situation. I said I was a begining investor with no money, but if you can should me how to do it and hold my hand a little bit on the way, I can do this Real Estate thing and we can all make money!
Because I did that, I now have Millions of Dollars at my disposal to buy properties! Now, I can’t go down to the courthouse step and start making bids yet, because its not my money. However, if I look in the paper and find a FSBO where the people are leaving town and need to get rid of their house, I can make an offer, put the house under contract and sell the contract to one of my investors.
So, in a REALL BIG nutshell, I suggest that you find a club where you can meet and talk to real people face to face about real situation, and who knows, maybe one day, you’ll be the guy training and mentoring a new guy with no money who’s just trying to get started.
Ron, I think you’re on the right track. Just stay honest and keep asking question and you’ll be answering them for others in no time!!!
Now, let’s go get this money!
8)
If i were starting and i wanted to do that kind of stuff, i would get some private lenders. But if you want low to no risk kind of investing, I’d get into options, the most youd have to pay doing those is about 100 dollars.
beaver124