Hi! I’m new at the whole real estate business, but I know I have a good nose for potential great deals. I’m want to know how to get started on purchasing properties to eventually rent out to generate regular cash flow. There is a list of properties that I would like to purchase, but the majority of them my city owns them. I know this may sound like a stupid question but I’m new at this and I just wanted to know can you purchase property from the city? If so, how do you go about doing it? Especially if you want to purchase a whole block, but not all of it is vacant how to purchase the properties from both the city and individual owners?
I would suggest calling a city official to determine if they are willing to sell the property. In my area, I would call a city council member.
Usually, property being sold by a city will be auctioned or otherwise opened up for bids. However, that is not always the case. One guy in my REIA bought a run-down house from the city for $300.
So, just like everything else in real estate, you need to talk to people. Talk to your city officials. Talk to the private owners involved. Talk. Talk. Talk (in-person as much as possible).
Good Luck,
Mike
What city do you live in?
How much money do you have on hand to . . .
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Buy the Property (Including Pre-paids and all closing cost)
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Amount of money to spend on the Rehab (Including all Holding Cost)
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Hours per week to do the Job OR are you paying contractors?
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Most important what is your Exit strategy in detail, this MUST be in place
before you buy the property and start the work.
I personally do not have any money, but I do have two investors willing to go in with me.
In terms of rehabing the properties, I don’t know yet how long or how much it will cost to rehab, because most of them are boarded up. I intend to purchase, flip, then rent. If for some reason things go south, I would sell the property outright to another investor. There are already other investors in the area, so getting these properties i’m certain will be a challenge. I live in the city of Philadelphia. I’m certain you can see some faults in my process, like I said i’m new, any suggestions and criticizms will be greatly appreciated. I really believe I can generate some good cash flow with any of the properties that I’m interested in, just need help getting started.