I’m a new investor in Bloomington, In and i need help with a few questions. I know the most important thing for a new investor is to take action, so that is exactly what I’ve done. Yesterday I called sellers with the intention of finding sellers who were highly motivated to sell. I set up a few appointments to meet with two of them next week. I need help with what to do next. What contracts should I use in the negotiations of subject to existing financing, lease options, or rehabbing? And what do I do after that? Please help
What to do next??? Backup, learn some, take a course, read this forum and the free articles. Herbster
does anybody else have some advice. thanks herbster you helped a lot
Yes, my suggestion is to backup, learn about the business, read the forums, and join your local REIA. It’s pointless to “take action” until you know what you’re doing.
Propertymanager and Herbster are right, but now that you have the appointments keep them. Learn all you can about the seller and the property, keep notes. Before you go to these meetings, you need to decide on the entrance strategy and the exit strategy that you are going to use. If they don’t fit your plan move on and know that you have gained valuable experience.
I think you’re on the right track. You’ve done what others won’t, that’s taking action.
I applaud you for that! Keep taking action. You’ll definitely make mistakes. When doing
creative real estate, you have out’s. So keep going out there and taking action.
Continually read these forums.
Also, with the strategies that you mentioned, those are all great strategies. However,
one main question I want to ask you is, do you have reserves? What if you get a property
subject-to or lease/option and something were to go wrong? Do you have at least $3,000
- $5,000 sitting in reserves to cover the expenses? If not, you may want to consider doing
some no risk deals to build up those reserves…
here’s a thread from a week ago right up your alley that I started
you’ll learn why you need to backup and learn first
I wouldn’t set appointments with any of them unless they sound motivated on the phone. The main indicators are their answers to:
- What would your house appraise for?
- What are you asking for it?
- What do you owe?
Try wholesaling your first few deals until you feel you’re good enough at knowing what a deal is and isn’t. Get forms for this either from a course on the subject or other local investors.