I want to get started in realestate investing, but I have little start up money…any suggestions? Is there anyone out there with the same issue?
You can definitely invest in real estate with little or no money down. You have to make sure that the property has a seller willing to finance. Let’s say you want a 100K home and the lender will finance 80%. Where are you going to get the 20% down payment? The Seller must be willing to Give you a loan for the remaining 20k , usually at around 12% interest . The 80% lender must allow for owner financing , but many do. Your credit needs to be pretty good . How is your credit?
Or you can place a property under contract ( research and know your market) with little or no money earnest money. Place FSBO signs and add. Do a open title closing and walk away with a check with zero money down.
This works best with low income properties and motivated sellers. Not big checks but enough to get started slowly.
Do lots of research and work hard. You will succeed.
REIaddicted
As a new investor you will find tons of information on the internet, on TV, in your public library, at book stores and the list of sources can go on and on, but the best teacher is experience.
You have to get out and take a few steps to become a successful real estate investor.
One vary important step is to research your question on this forum before posting as this will teach you proper research techniques to become a successful investor.
Your next steps will be to dedicate time each day for investing in real estate.
Treat this as a job and your rate of success will grow.
Get a feel for your market, property prices, property sale prices for your market area by talking to realtors, brokers, researching the tax office and by picking up the real estate magazines.
Look for classified ads that have:
Desperate
VA
Assumable
Owner finance
Discounted
Just to name a few. This will give you a feel for the marketplace.
Drive through local neighborhoods focusing on Vacant, FSBO, & for rent properties. Take down the telephone numbers and or address of each property.
Check with an office supply company or the Board of Realtors to acquire a local contract for purchase of real estate.
Invest in business cards and letterhead to let people know you are a professional investor.
You will want to pass out 1,000 business cards per week your first 30 days.
Prepare a contract or an agreement. Check figures and clauses. Be sure you have a couple of ‘out’ clauses such as ‘subject to partners’ approval’. Submit your offer to the homeowner and see what happens. The homeowner could ignore the offer, let the deadline expire or counter offer. In the event, the homeowner does not respond to your contract put them in a database with a note to contact them again in 30, 60 or 90 days. Things do change over time!
Get accustomed to viewing property and take a clipboard, notepad, pen, and flashlight before going out to the property.
Evaluate the property and look for the opportunities. Could the property be assigned? Could you acquire the property through assumption? Could you structure the deal with limited money or no money down?
Examine your credit profile and increase your available credit.
Search out other investors and or money sources to finance or assign your deals to.
Talk to your banker let him or her know you are beginning to invest in real estate. Ask for timely information regarding interest rate changes, bank properties, areas to invest in the local market and potential investors they might know.
Inform friends, associates and who ever will talk with you that you are looking for properties, providing an incentive if necessary. “Offer a carrot.” A finders fee for locating a deal, investor, or even a homebuyer.
Visit with real estate attorneys and title companies. Inquire about their fees, services and time it will close a deal. Ask about open title closes, assignments and trust purchases and how they handle them.
Go to the courthouse and research a property. It is not a scary place and you might be surprised how friendly it actually is. Start by researching your own property or a friend’s. The first time or two the clerks will help you in your research or in pointing you in the right direction. While you are there, also check out the Tax record office. Inquire about the office that handles tax and mortgage information.
Be present at several foreclosure auctions just to learn the process.
Develop a database of buyers and spread the word among your contacts. You might consider passing out business cards, posting flyers or ads to acquire buyers’ database.
Look at a minimum of 100 properties per month.
Set up a mailing campaign to:
- Other Investors
- Expired Listings
- Homeowners facing foreclosure
- Homeowners facing legal problems
- Homeowners facing law suits
- Homeowners behind on property tax
- Probate announcements
- Engagement announcements
- And the list goes on
Drive a new way to work or to the store and look for real estate.
Never let lack of money stop you!
Your mission is to never stop, never give up!
“Never, Never, Never, Never Give Up!”
can u tell me whay and open title is and what purpose it serves doing closing?
The open title close is explained here and what it can do for you.
http://www.reiclub.com/forums/index.php?board=29;action=display;threadid=2918
johnmicheal,
Great post, I just saved that to a .doc and it is headed to my printer! 
If you have no cash and no credit you simply have one choice and that is to get a property under contract and sell your contract interest to another. Until you have the cash or credit to make.
Keep the outcome in mind as you structure the offer. Single family homes vs. other real estate investment You can lease option an apartment complex, assign a contract for a commercial property, or use negotiation tactics for any real estate property. However, I suggest you begin your real estate investment in single family homes. Single family homes have distinct advantages for the beginning investor.
Good luck to you all in your investing! Continue to seek after knowledge and you will be amazed at how your success will grow.
i want to start my reaestae venture assigning propeties.can u tell me where to find invetors to assign them to?
You will want to pass out 1,000 business cards per week your first 30 days
Check out the ‘money available’ section of your newspaper. Several of the individuals could be a good source of contacts and properties as well as ‘cash’.
Let your banker know you are beginning to invest in real estate. Ask him for timely information regarding interest rate changes, bank properties, areas to invest in the local market and potential investors he might know. The rapport you build with your banker is just as important as this information.
Inform your friends, associates and peers that you are looking for properties, providing an incentive if necessary. “Offer a carrot.”
You will find investors at foreclosure sales!
City meetings!
Local REI club!
Doctors!
Lawyers!
Even grandma!
Any one with money is a potential source as a private investor.
Look at recently purchased REO’s and see if an individual is making several purchases. BINGO possible money source.
Good luck my friend.
hi, i want to know if lease options can be assigned?
Great question!
Most any contract can be sold or assigned but it all depends upon the contract verbiage.
To answer directly “YES” a lease option can be assigned.