Hello everyone I have been lurking here for awhile and have decided to join and start my journey into real estate investing.
I am living in Southern New Jersey and have been a web designer for 7 years but due to outsourcing I found myself on the way to being out of work.
I have always had an interest in REI and figure now is the time.
My credit isnt that great (673) dont have much to show workwise for the last couple of years but own a home appraised at $245,000 and only owe $125,000 on, so I have decent equity build up.
I have been thinking of flipping preconstruction homes in Florida among other things but realize I need to learn alot of things before I can make that step as being an investor, plus I am not sure if I have enough credit and funds to purchase my own investment yet.
So I have decided I will start as a bird dog or as Barry Grimes calls it a “jobber”, less risk and from what I have been hearing the best way to get my feet wet.
My question is simply “Where do I begin?”
Thanks everyone and forgive me if my first post was to long.
If I had your credit score I would be setting the world on fire. I am at a tad under 500 and bought a duplex and house last week and a 31 unit rehab the first of the year and have two other rehabs going with partners.
Where to start is asked often. Just start. Heck you have already started by doing research. Knock on your neighbors door and see if he needs to sell his house. If not go next to him. Look for a burned house and rehab it. Preforeclosures are great. REO’s and Huds. You can get these and sell to others or why not just do one yourself.
The basketball pros make it look so easy at what they do and to them it is just another day at the office. You may not make a slam dunk the first try but you might. It is pretty much being at the hoop ready to play and when you get the chance take it and score big time or just a lay-up will accomplish the same result.
You don’t need credit or investment money to flip property if you do a double close.
With rehabs you can make more money, but they will bleed you dry in the meantime.
I started by finding ugly houses and flipping them to handymen who wanted a rehab but were too lazy to find their own property (or simply didn’t know how). It works in every town and city, but is most popular in single family homes in $80,000 - $150,000 range IMO.
For example, there was a $110,000 (and change) property that went through a minor fire. I offered the neighbor $500 to help me find the owner - turns out it was his cousin. He didn’t know what to do with the property, he didn’t have the money to fix it. I convinced him that it probably needed $20,000 to rehab - in reality, a good handyman/contractor could probably do it on his own for $7500. I offered him
$110,000 - $5,000 - $3000 - $20,000 - $15,000, or
ARV - 3 mos mortgage - taxes - repair cost - what I wanted =
Flipped it to a contractor for $80,000, two weeks later.
I saw the property later. The contractor put in about $10,000, did some great upgrades and ended up selling for $118,500 when he was done. Lucky bastard got almost $30k, but unfortunately had to do a rehab. I got $12.5k and didn’t do anything.
Thanks a lot Christopher. I have a couple of questions though, did you just call handymans and asked them if they accept/receive homes, should I say “a home to rehab”. How do you go about doing all the paper work to purchase the home, do you just get a mortgage I’m pretty confused on how that works. If you have any suggestions on where I can find this information please let me know, since I know it can be much to ask. I have been doing my research on REI but I’m also trying to finish College. I appreciate your suggestions and thanks in advance.
No problem. I notice your handle has “84” in it - was that the year you were born? If so, congratulations - I wish I started this when I was your age. Hope you retire by 25.
The easiest way to sell a house is to put an ad in the paper under “Investment Property”.
Don’t put the address or your phone number. Rather, put a voicemail number where you can describe the property and give directions.
In the voicemail, tell the caller when they get to the property, to call the number on the sign in the front window. This is so they can get the lockbox code and get inside.
Don’t ever call it a “showing”, or noone will show.
Leave a stack of applications on the counter, and tell them to fax it if they are interested.
Call them back in 20 minutes to make sure they put the key back - also, they will usually spill the beans about if they liked it or not.
This process eliminates about 80% of the work you have to do, and is a great way to prescreen the people. Otherwise, you will get 100 calls asking you to describe the property. THIS WAY, the only way they can get through to you LIVE is once they are actually standing in front of the property.
Everyone who seriously checks out the property, add to your investor list. Get a name, phone number and email address. The next time you have a good deal, blast your email list with the property, or call one by one. It will be snapped up.
As far as paperwork, it’s probably best to get a book. I could try to explain it, but there are a bunch of tiny things I will probably forget. The basics are that you convince the seller you can give them cash, fast, at the closing table. Then you find a buyer, and do a double close - literally, the buyer brings the check, you take your cut and take the rest of the check to the seller right down the hall. A good title company can help you with this.
Your “fee” shows up as a closing cost to the buyer.
Try some LeGrande books on flipping wholesale properties… there are probably even some free resources.
I want to tell you congrads on making a decission to move forward with your investing carreer. I believe the “Jobber” course is a great starting point as that is where I started.
I read the course and followed it without question;simple belief. I started calling on potential leads while I was contacting local investors I identified in my local paper. That was 7 months ago.
In my third week I spoke to a wholesaler that recognized I was serious. He asked me to spend some time with him working on pre-foreclosures to get a feel for their approach. I liked it and we clicked. 2 weeks later I was offered a full 1/3 partnership and the rest is history. As soon as I started my “Jobber” business, I walked away from it for a partnership. Understand, though, that I still refer to the course for ideas on locating properties.
End result: I have closed over 13 deals in the last 7 months. My last deal was closed today; bottom line: $50,800.00 profit. We had an additional closing today that will fund this afternoon for an additional $8,000.
If I can tell you anything to encourage you it is this: Follow the steps and keep your eyes open. As I studied the course it apeared to me that the course was designed to lead you directly into the next step.
And it worked! I am sure it work for you as well.
If you’re wandering why my user name is different now its because I forgot my password and no longer use my old email so there was no way I could log in here so I signed up with this name which I’d like to go by for now.
Mods if possible could you delete the rbw account?