I have recently become an agent in DC. I want to start buy purchasing a 4 unit building and renting units. I am currently working on my credit. My score is moderate. Looking for investors. Don’t know where to begin.
HELP!!!1
You got alot of studying ahead of you. Read up on landlording first(thats a job in itself). Learn your cities laws thouroughly and get familiar with the processes and contracts common to your area.
Then learn how to properly analyze income property. There are some great books for short money on this topic.
Next you’ll want to get out in the market and start building up your connections. Being a realtor this will come easier, but it will still take alot of commitment and dedication on your part.
Before you do any of this make sure landlording(esp. in your area) is what you want to do. I may be mistaken, but I think DC is rent controlled.
Hope this helps.
Washington is Rent control. I have been studying for almost 3 years. I know the area inside and out. I know the rules. I understand all the different aspects of RE but do not understand REI. I have met alot of people that have bought properties for little down and flipped them for a higher rate. I have been told that Sect. 8 is the way to go because the government pays the majority of the rent, but I have heard many horror stories. I want to buy rehab property and remodel to luxury property. I have taken a look at the SE area and noticed that the city is rehabing the entire area now like they have done in NW. In 5 years that area will be pretty expensive to live in. And I want to get my foot in before the prices go up. My biggest issue is how do I find an investor? Do I need to do a business proposal?I have done property management before and have met great attorney’s and others working in the biz. But still need help in figuring out the next step.
My biggest issue is how do I find an investor?
Why do you need an investor?
dont have the money to purchase on my own and credit is not the best. Is there a way to go about getting started w/o any money down?
I would put a short business proposal together 4-5 pages) based on the information that you know about your market.
I would outline what your part will be in the managing and finding of the properties.
Take one of the buildings or properties that you find and do an indept analysis of the property, the potential profit, expenses, costs, etc. to show the potential investor what it is you know and how you plan to make a profit.
Then advertise for an investor in your local newspaper or go to one of those real estate group meetings in your area with your proposal in hand.
When someone from the newspaper contacts you send them the report. If the property is no longer available, then you can look for something that is and you have your investor(s) lined up.
dont have the money to purchase on my own and credit is not the best.
So what does the investor get from you? What do you bring to the deal?
I would put a short business proposal together 4-5 pages) based on the information that you know about your market.I would outline what your part will be in the managing and finding of the properties.
Take one of the buildings or properties that you find and do an indept analysis of the property, the potential profit, expenses, costs, etc. to show the potential investor what it is you know and how you plan to make a profit.
Then advertise for an investor in your local newspaper or go to one of those real estate group meetings in your area with your proposal in hand.
When someone from the newspaper contacts you send them the report. If the property is no longer available, then you can look for something that is and you have your investor(s) lined up.
GinaSands is right on with this. I’m not a landlord myself, but if I was going to get started that’s what I would do (as a matter of fact I used a very similar idea when I first got into RE). Rent Control scares me…tough eatings.
Anyways, SE is having a comeback, huh? It’s been a few years since I was in that neck of the woods, but it’s about time I suppose.
Best of luck, and keep the board posted if you wouldn’t mind. 
Thanks for the advice. Now at least I know where to start. I’ll keep you posted on my progress.
Getting started that way is fine, but you need to get that credit fixed. In real estate your credit is a business tool. Not having credit is like a carpenter without a hammer, or a plumber without a wrench. You need to get it fixed and then guard it. Like my main mentor said, when his daughter and her friends all turned 16, they all got their fathers to cosign loans for them to get cars. He had to buy his daughter the car because he couldn’t risk her messing up the payments and affecting his credit. Once you are in the real estate business your credit is no longer that thing you use to go on vacation with, it is no longer that thing that you use to order a pizza with. It is a business tool, don’t play with it. Treat it like a tool.
Getting the credit fixed will take some time and patience. Your investor or partner may be able to help you get past that immediate problem. Lots of people don’t want to partner with anyone because it affects the bottom line the amount of profit that is possible
However in order to get started sometimes you have to forego all the profit and provide those things that you have (i.e.) your access to inside real estate knowledge, mls listings, ability to analyze a good deal, etc. and find someone who has good credit to balance your ability to invest and earn any profit.