New user - want to get started, but how?

General Real Estate Investing
1

Hello, I am new to the forum, and am interested in starting a career in investing in real estate. I’m a little apprehensive, not sure why, but let me explain…

A few years ago, a friend handed me a binder with a bunch of DVDs and CDs in it, it was Carleton Sheets study course. He said he didn’t want it, thought I might want to learn something. I asked him why he didn’t want it, he said that he was talking with others who had convinced him that investing in real estate was too complicated, had too many pitfalls, yada yada. Said it wasn’t for him. (I guess he thought if he was going to fail at it, pass it on, so that he can watch others fail too??)

Anyways, a couple months back I lost my job of 5-1/2 years, downsized. In the meantime I was cleaning out the old shed and found the binder/DVDs/CDs. I read it all, watched and heard it all, several times. It makes a lot of sense to me now.

Here’s my dilemma:

The good: prices are going down in real estate in my target area. Great time to buy, for rehabs, for renting, for both, etc. I can get good marketable homes in my area for great prices, and priced insurance, taxes, management expenses, etc., and still have plenty of room for positive income while keeping the rentable price very affordable for the prospective renter. There are good rentable homes, and homes that would lend themselves well to buying cheap, rehabbing myself, and flipping them. Now that I am unemployed, I have the time that most working folks wished they had to do all the footwork and handiwork. All the numbers add up. And, I’m excited!

The bad: I have no job, therefore, no income (except for unemployment). Regardless of this unemployment amount, lending institutions want to see an employer on the application, NOT “state unemployment” as a source of income. I have no savings. I have good credit, but I don’t want to jeopardize that by getting in over my head. I have checked around with sellers and real estate brokers in my area, most want at least some cash down at closing, and even if that wasn’t the case, I haven’t found a broker yet that will take back their commission in the form of a note. There are almost no homes in my target area that are for sale by owner (without a broker involved), the few that are are way too expensive for my plan. Partners - all of the folks I know are living hand to mouth, paycheck to paycheck, and can barely afford to pay for their own living expenses, much less invest.

So, all that being said - how did you all get started, and how would you recommend I start? Which avenue should I take? Besides 3rd Avenue downtown to the unemployment office, thanks. :biggrin

Sorry for the long post, just excited - I know I can do this, just need some advice. Thanks!

2

You came to the right place. There are a lot of people, I think that starte with Carleton Sheets. (First course I bought at 2 in the morning-about 6-7years ago) Unfortunately, alot of the strategies he teaches are dated. What I got out of it was the realization, that you don’t need a bank to buy property. Now enough about Mr. Sheets. There are a lot of helpful pros right here that can and often times will answer damn near any question you got. Check the different forums. If you have a question, use the search function first, because your question has probably been asked before. Although, after two or three tries I give up and just ask again, if I can’t find it. As far as your current situation, you may want to check the wholesaling and birddogging forum. Essentially, little money ($1-$100), no credit, very little risk.

3

If you want to get started in the buy and hold strategy go to your local rei club or landlords assoc. Find out who is retiring and ask if they would like to sell and under what conditions. Listen to Carlton Sheets again for financing strategies with these types of sellers. Remember its no money down out of your pocket,but there is money down. The idea is to own a bunch of rentals free and clear in as short a time as possible.
I went to a meeting the other day and ran into a Realtor/property manager friend of mine and I asked him how he got started. He confided that the property management business led him into some great deals. He currently owns 70 sfh free and clear and he manages over 300 in total. People that had one or two rentals that were just too much trouble for them to manage he took over with no money down and he would make payments for 7 years and it would be paid for. After that he could do with them as he pleased. It would not take too many years to get a retirement income from that. Buy current rentals in marginal neighborhoods and manage them for the long haul.
Its not get rich quick but it is get rich.
redhawk

4

To make it simple, you can wholesale property with out fixing anything, with a assignment contract and purchase agreement. No credit, The only money you need is for fees for title company/escrow/real estate attorney. and some earnest money.So check out the form on how to wholesale property.How this helps.
good luck :banana :banana

5

I agree w/ Smart Homes. If you want to do anything REI related, do wholesaling. Since you only have an unemployment check coming in for now, I would steer clear of trying to buy rentals (even if there was a way you could buy one for now). You don’t have the money coming in to take care of things if something breaks, you have a vacancy, your tenant doesn’t pay and you have to evict, etc. Try to get other employment. Maybe you have some skills you can put to use in construction related fields and work for yourself for now. Sell what you can. Simplify your financial life as much as possible. Get down to the basics. Keep educating yourself. It’s ok to be motivated and excited, but you shouldn’t put yourself in a bad position by trying to force something when you don’t have the money coming in at the moment.

6

mike_d,

A different opinion. You sound like a smart, hard-working guy (you cleaned out your shed!) rather than just laying on the couch.

How about getting your real estate sales license? There are crash courses to do that. Once you pass the state exam, you can be out all day looking at real estate and helping buyers and sellers. You will become an expert in your area. You will recognize a good deal when you see it. If you hustle, you will earn a living. Later, you will earn a very good living. 20% of Realtors do 80% of the deals. That’s how its always been.

Good luck on your chosen path. Let us know how it goes.

Furnishedowner

7

You can get started with options and lease options. They’re safe and don’t require capital outlay.