I am a soldier in the army, in the california area and I am looking to get into real estate. I have very little credit, but I have $30,000 saved. My goal is to go to school full time and get an apartment building to have income. By the time I get out of school (2-4 years), I do not want to work . I want real estate to be my full time job. Any advice on how to accomplish this goal with real estate? Is apartment buildings the best thing to do? I have read alot about renting single family homes is that easier or more challenging? and is that worth it? I apprecite your response.
Welcome to the REIclub and thank you for protecting all of us.
You have done a great job in saving! Your goals are great!
Becoming a landlord can be a great profit opportunity but it does come with a few headaches and being in the military you may be faced with trying to manage your property from another state or country this can be a problem so you will need to locate a good property manager or property management company and will have to deal with some extra cost if you yourself can not manage and in your case this is highly probable.
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. The REIclub has some of the best-experienced teachers around who provide their knowledge and time free of charge to you!
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 and in this process 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:
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!”
Thank for the advice…