Roughly how much money (REALISTICALLY!!! no BS please) does it take to get started in investing? I know this number is probablly going to be opinion for the most part but what I am asking is how much money should I expect to spend in marketing to be able to get a deal done. Thanks.
Realistically- that depends…
On the type of marketing you use and it depends on what you want to do.
If you are a wholesaler and trying to get leads directly from owners it can be as simple as a tank of gas and several books of stamps and envelopes.
That’s how I got started. Simply driving neighborhoods and looking for vacant properties and mailing to the owners.
$100 will do. Do at least 3 mailings 2 weeks apart for them to start noticing you.
If you have more capital, you can always get a website put up, advertise in the paper, have flyers placed in a certain neighbor hood and pay bird dogs to scout for you.
Personally, learn first hand how to find deals using the driving method I explained above. ONce you’ve got this down you’ll use the profit you make from your deals to finance other ways to market.
Hope this is helpful and welcome aboard!
Dennis
Thanks for the response Dennis. I am looking to start with wholesaleing on a tight budget. When you talk about looking for vacant properties do you mean properties for rent? If not how do you pick out a vacant house. Thanks
I’ve identified a property I want to wholesale. I’m writing a letter to the owner.
Assuming the owner is on board, I make an offer and plan to sell it to another investor for a profit. Do I need to get an attorney involved in the contract work, or can I use a standard contract I find online? What’s my next step?
Good tips from Dennis. Identifying your target area is critical.
I would get to know local investors - your local real estate investing club/association is a great place to start to network with potential investors (print up some business cards using good paper stock from your local office store; should be no more than $10). Find out which areas they’re buying in and then plan on spending a whole day or two driving the neighborhood(s). All you’ll spend is your time and gas money for this.
Then, per Dennis’ suggestion, work in the mailings. Cost will depend on how many you do. I would plan on doing at least three per property. You need paper, envelopes, and stamps.
As far as identifying vacant properties… there are the obvious signs such as boarded up windows. Also look for poorly maintained yards, dead grass, overflowing mailbox (careful not to add or remove items), and utilities shut off. Talk with the neigbors - most know which properties are vacant around them.