Appreciate Investors , I had reading some books, purchased some TV courses even I visit the public library to take out some materials about the theme , well I still stock here , thinking on how to start investing , I found that is more complex that I thought . I become a member of my local REIA and attend the meetings and meet a few investors that are like me New , also I meet a local one who is a seasoning investor and I ask for some advise , instead to help me to find a right way he send me to the Public Library , ahh. of coarse to mentor me he ask me for $3,000.00 , well I don’t have it so since them I still taken books from the Library . I just ask for a little push to jump into the water .
Well , from what I read I think my niche will be some wholesales to get some experience and $$$ them move on short sales and foreclosures .
I had contact some HML but they ask for some experience (portfolio)? but at this point what I need is some mentoring , it will be really appreciate .
Due to lack of space I can;t continue writing down
Yes getting started is the hard part.If you do as I say without lengthy explainations then it would be a pleasure to mentor you. No cost involved whatsoever. What i find is that most people want me to do the work for them and take the blame for their bad decisions. It is not wor.th it at any cost.
If you are serious your first task is to get a map of your local area and draw a circle of about 5 miles in dia. Then look at and get the listings on 50 to 100 houses to compare within your circle. Start a spread sheet and add each house as you are looking at it. When finished e-mail me your spread sheet. PM me when ready and I will send you my E-mail and the next task. Spreadsheet should be complete with all comparable information.
Hassansr is not just being a smart aleck. You study and get a good idea of how it works, and then you have to close your eyes and jump off the bridge.
Most deals are different in one way or another. You can study all you want, but then you actually learn by doing.
You can receive good advice and some encouragement (and some sarcasm) on this site. There are people here who would be happy to see you suceed, but when it comes right down to it, nobody can do it for you except for you.
So, “just do it” really is exactly how you get started.
Thank you all who respond to my post , now I have a question ,
Suppose I found a nice property and the seller just want the asking price (cash not sub2 no any lease option ) still nice clean property no need repairs .He try to sell by him self for couple of months , now it is under RE Agent . I offer him a lease option but not interesting .
Can I make another offer? How low I can go 60%? of asking price? I really want to pass to an investor and get some cash… I don’t have $$$ at this time that’s why I am thinking to offer in the REIA club .
In case he decide to deal with me what form I supposed to use? i hear that I need to put under contract whats that??
please any help its more than welcome!
thanks again!!! and Merry Christmas everybody!!! God bless you all…
Jose, with all due respect it sounds to me like you’re running before you’ve learned how to walk. Slow down, get a basic level of understanding and what it is you want to do. You can’t be all things to all sellers. You need to focus on one strategy to begin and then build your business from there. Without cash in hand your best approach would be options or wholesaling.
Jose, there are lots of nice clean properties for sale. You made your offer and the seller indicated that he is not interested in the slightest.
Go find a different property with a different seller who is more eager to sell.
Wait 6-8 months and if that first one is still for sale, the owner might be more flexible. Maybe he is too smart to sell subject-to or lease option. Maybe he doesn’t have to sell.
Half a year from now, he might take a low offer if you can offer all cash. Even right now, he might take a low offer if you offer all cash, but I suspect that you don’t yet know how to put together that much cash, nor do you have the contacts to do it.
OK, here’s your lesson for the day. You must find motivated sellers. That seller is not motivated enough.
Tatertod , I agree with you , he was not very motivated 4 month ago , he live in other place, this property was hes home until 5 months ago , I find out that he refinance couple years ago , he took all the cash possible and now he want cash…
I offer him a lease option (2 years) 4 months to find a buyer (1st offer) them 2 month after same terms and break 50/50 equity at close , he reject the offer . I walk away, the property is now 6 month or so list by agent . It is OK if I found a buyer with cash ? what I do with the agent? paid his commission? or maybe I can go 50/50 ,60/40 or not?
This is a two lots property (2 acres) two liens. I want negotiate one lien fist to lower the price with the option to buy the second in two years. Can I do that?
as you see I give some thinking . Do I thinking right???
thank again!!! good discussion!!!
Many of the new investors that I have trained over the past 20 years need help with their first several deals before they move out of their paralysis. Finding someone you can partner with on your first deals could work well. Also, you might consider a smaller deal that is less intimidating that you can start with and then after a few transactions, you can increase the size of the deal.
When I train new investors, especially in the current market where you don’t have lots of resources backing you, we start by ‘creating notes’ and selling them to investors in their IRA accounts for a couple of reasons:
creating a note is simple and the yields are high giving the option to resell at an attractive rate to investors. This can be done on many things other than real estate such as cars, mobile homes, business equipment, trailers, and the like.
small investments at high yields are easy to resell as investors like small deals and greed likes high interest rates.
there are trillions of dollars in IRA accounts. Owners are looking for secured investments at high yields to make up for losses incurred in R.E. and the stock market falls.
Here is a typical example I’ve done numerous times:
Buy a Mobile Home on a rental pad for $3k. If you don’t have the $3k, use a $100 deposit and offer the balance when they move in certified funds in exchange for the title. Resell owner financed for $500 down and $200/month for 5 years. That leaves $2500 in the deal with a $2400 cash flow per year…nearly 100% yield. Sell the note secured by the title and insurance for an 18% yield which is $7,876.05. Now you have a deal under your belt with $5,300+ profit to buy groceries! Then do it again!
There are many safeguards you need to consider to protect your interest in this type of transaction regarding the property/pad that the home is sitting on and their rules in the lease of the pad. Make sure all options are covered and your paperwork is done correctly…this is where you would need an experienced mentor or partner to help you stay out of trouble.
Small deals in this market will keep you from disasters and prevent you from any one deal ‘sinking your (investment business) ship.’ I’ve done hundreds of these deals and mentor others to do the same in the down economy. $5k profit on a $3k investment can be done numerous times each month and keep alot of groceries in your kitchen!
Initially for the start up every one face some problems but very soon we get used to of that and start working more efficiently.so for a good start up you can invest money in real estate which gives profit and better earning.
Just do it is key! but you have to be careful. I see myself as similar to your statement; I could spend my whole life just ‘learning’ and never ‘doing’. At some point you just gotta jump in the water. Granted, I’m doing it on the software side of real estate but hey still a jump
To all the investors who respond to my post , Thank You a lot for the inputs , I would have present while I’m going true this journey , I know is a learning process that never ends and I hope this open forum helps other ones, like me, little bit lost to find help and jump in too…
Unfortunately for me it will be quite hard ,because ,I suffer a spinal cord injury since my service 10 years ago .
I need to excuse my self if I do not respond quick to your messages but because an unknown reason my condition is getting worst obligated me to stay convalescent for couple of weeks on bed . It is hard because I use to do everything for my family and it doesnt fell good depend on somebody else , you know I am the one supposed to take care at my ones .
I will review the messages as soon my situation allowed me . I really appreciated the help provided .