I have just decided that the only way I am going to have a chance to get out of my dead-end job is to start investing in Real Estate. I am very nervous to do my first deal because I keep haering the RE market is going to go into a downturn or the"bubble is going to break". I am interested in rehabing, is this a good thing to do even if the market does drop?
I’m in the same boat. The dead end job with a maniacal boss and I know I could do better, but the fear of the first deal is slowing my roll a bit. The unfamiliarity of how to work a deal with nothing down and zero credit is another… I know that knowledge for this is the key, but the course I have is not enough. Is there any place on line that offers more indepth coverage of the process?
The first step in this venture is understanding what your goals are. From there, you can work backward into formulating a documented plan. Break down your goals into sub-goals and sub-sub-goals, and so forth. Develop a 10yr, 5yr, 1yr, 6mo, 3mo, 1mo, 2week, 1week, and daily plans on what it is you will do to reach you ultimate goal(s). I’d say 95/100 people ignore this step, yet it is the most crucial. Ironically, figures I’ve seen suggest only 95/100 who pick up an REI book or go to an REI lecture will ever do the next step - coincidence maybe?
After you’ve broken down your plan into sub-goals, develop actions on what you will do to achieve those goals. A book I’d recommend for learning more about all this stuff is George Keller’s The Millionaire Real Estate Investor. He interviewed hundreds of successful REI’s and basically wrote a book detailing how they became successful (note: some of them are even members of this message board).
Until you’ve understood what it is you wnat and the actions required to get it, all the other ‘technical’ stuff is useless.
What is that you fear? With the right knowledge and the correct strategies you can make money if the market goes up or down. I have found a phenomenal real estate course (accessed on the internet which is played in video format through Windows Media Player) and the great thing is this is only part of the package (other modules include negotiation, stock investing, entreprenuership…). Check out the following link and if this is of interest to you please let me know as I can give you a FREE guest pass which will give you full access so that you can have a look through the product for yourself.
I liked what I saw in the video. I am an investor and entreprenuer but could always do with more information to add to my toolkit. Can you send me a guest pass so I can check it out? Will I have access to those other topics such as negotiation etc?
Not sure how you do this but you can email me at email@example.com
I look fwd to your response.
As to rehabs. Seems you’ll need sweat equity, a loan, or an investor ~ so your ducks better be in a row. Maybe not a good first choice to start. How about Lease/Purchase? You buy using leverage and rent it to another.
And think of the ‘Bubble’ threat this way. When interest rates go up and some people cannot afford to buy, they rent.
Nothing removes fear quicker than knowledge from education. I started out with a desire to make REI work for me and I found a new group that educates you like Students in College. The school only admits new students by referral so they are highly motivated to make sure the materials are current and practical. They also promote encouragment and Team efforts on our deals. I was one of the first 50 and now they have over 16,000 students nationwide.
My wife and I were living in a 1 bedroom apartment in June of 03. We’ve since bought 20 houses and live in a 6500 sq ft estate in Scottsdale and we did every deal without our money or credit.
We teach people 2 things “Education doesn’t cost…it pays” and “You can make excuses or you can make money but you can’t make both”