Good Morning,
The great thing about getting into real estate investing is you don’t have to have a lot of money. When I
started 14 years ago, I had just finished with a divorce, had credit that wouldn’t allow me to finance a stick
of gum, had less than $500.00 and actually purchased my first property out of an argument. My parents were having a garage sale
and were selling all their Carlton Sheets stuff. I asked them why they bought it if they weren’t going to use
it, and then sell it in a garage sale for $5.00. They told me it didn’t work. I responded with, “It’s up to the
person to make it work, Carlton seems to be offering the knowledge, not the motivaiton”. So they handed
it to me and told me to try.
I am now blessed with properties in several states, and I am a full time investor; buying and selling several
different ways, whichever is most profitable for the deal.
If you don’t mind a suggestion, I would focus on two types of “purchase plans”, get really good and comfortable
with that and then add a third. That generally makes it easier to know what type of property your
looking for and know for sure it will work for you.
With little money, I would suggest lease-options from retail sellers and working with investors who are
willing to flip their REO properties to you with little to nothing down.
Lease-Option from retails sellers - this will allow you to gain a property with little or nothing down, fix up
the property and sell it outright, or if the numbers are right, put a tenant-buyer in it with a nice size
non-refundable option payment, or assign the contract to another investor that is looking for nice homes
to rent out. Again, which direction you go really depends on how the numbers look and which way will
make the most profit in the shortest period of time for you.
Buying REO from other investors - Many investors who have several properties will sometimes sale some
of their inventory with little or nothing down, allowing you to make small payments for 12 - 18 months giving
you time to create value in the property and selling it for a profit or putting a tenant-buyer into it and then
obtaining financing, letting the tenant-buyer make your payment.
IMPORTANT - ALWAYS LEAVE ENOUGH MEAT ON THE BONE FOR THE NEXT GUY, THE REALLY SUCCESSFUL
INVESTORS YOU MEET WILL ALWAYS LEAVE MONEY IN THE DEAL FOR THE OTHER GUY!
Go Get’em!
Ray Rochefort
Managing Member
Purpose Investments LLC
Indiana