Hello everyone,
I am new at this. I am looking into becoming a RE investor. I don’t have huge capital. I have been looking at lease purchasing. I heard it is less headache. Does anyone of you think Michael Carbonare “The Naked Investor” Lease Purchasing course is a good way to learn and/or Leasing With A Purchase Option By Fixer Jay Decima.
Can someone out there who have heard of them or had some experience give me some feedback?
Thanks,
Theresa
tct,
Never heard of the author you speak of but as to buying via Lease Purchase, not a good thing in my experience.
When I started out, I wanted to have my toolbox full of ways to buy so that I could offer a solution to anyone who may call. For this reason, I was willing to buy with L/P.
After a few of these buys I have come to this conclusion…
NEVER AGAIN!
When you buy on L/P you are little more than a renter. There are just too many ways the deal can go south for my taste. Now I know there is this disclosure you have them sign and that memorandum you can file at the courthouse but in the real world, problems are problems and I have enough of them without looking for more. Problems with the tenant, problems with the seller, just too much brain damage for me. banghead
Get the deed or buy for cash.
Friends don’t let friends buy on Lease Purchase.
Just my opinion of course. -)
WilliamGA,
I don’t have cash to buy RE. How do I get people to sign the deed? I’m trying to get in on the soap opera of RE. What is the best way of becoming a part of it all?
tct
tc,
If you’re low on cash, don’t plan on keeping properties, period. In my opinion, you need serious reserves or access to cash to even consider holding props. If you’ve got great income, this could offset it some, but then why are you low on cash? It’s not a judgment, just an observation, and I promise you I know what it means to beyond “low on cash”.
I always suggest folks learn the lower risk ways of investing first for two reasons. First, obviously, lower risk. Second, they’re typically cash-type transactions where you make some cash and you’re out. This could be a variety of methods from bird dogging, wholesaling, options, assignments, joint ventures, etc.
The learning curve is steep starting out, but I’d suggest doing some reading and studying to discover which area interests you and then go get some street experience.
The money you spend on your RE education will come back to you 10 times.