hello,
I’ve been doing a lot of research and reading about commericial investing
and can’t afford the wealth courses, when I’m getting started who should be on my team,should i build a buyers list,do i drive for dollers,what do i say to motivated sellers and what do i say to commercial agents. basically i want to get started but want to have a solid gasps on real world concepts and formulas to determine value of properties.
any advice will be futher in to my education
thank you
thirsty
Quite a group of questions.
Not being able to afford the weath courses might turn out to be a good thing. Real estate is numbers not marketing. One book that helped me quite a bit was “the complete guide to Real Estate Finance for Investment Properties” by Steve Berges. Don’t normally sponsor any of the various books but this was fairly nuts and bolts of how to look at the numbers.
As for many of your other questions like “drive for dollars,” of course we drive for dollars but don’t be surprised if it fails because they think you are getting too greedy. With motivated sellers you are looking to understand what they really need, and for commercial agents it is all numbers(more or less since they look at your ability to manage the property and finance the property). For Commercial experience will give a lot of weight which you don’t appear to have.
If you know experienced commercial property owners then buddy up and glean their knowledge as well as reading. At a very base start small on say single family home and keep a close eye everything.
Knowing world concepts only means that you are familiar with the basic numbers and the value that is in your area of the country. Though some of the folks on this list probably have indepth knowledge of more than one region.
I agree with Karen, book knowledge is second to experience. But it does provide a solid base to grow from.
Karen, when you provide your advice for free then I’ll begin to believe you don’t have a second agenda. Most of the people in this group are “guys who are already doing commercial” who “wont give you the time of day.” Some of us are not complete vultures.
Investing is straight numbers and commitment. There is no mystery. Just most people don’t take the time to increase knowledge which is why those that do are able to increase wealth. If all people had complete equality in knowledge then there would be know way for anyone to be rich. And if there are not a few of us that provide free advice then there would be no control to the vultures that scavage our society.
Happy feeding.
Here’s some free advice.
when I’m getting started who should be on my team
Forget about this Rich Dad Team stuff. Just jump in. The team will come together as you need a lawyer, title company, etc. Who is on it is dependent on exactly what type of investing you are doing. You did say you are broke so I assume it is bird dogging or wholesaling as those are the two you can enter with with very little money.
should i build a buyers list
Yes
do i drive for dollers
What is driving for dollars?
what do i say to motivated sellers
Say you want to give them an offer on their property. You are thinking too much about this. Just jump in and use some sellers as practice. It doesn’t matter if you screw up. You are just practicing. You will have to give MANY offers to actually get a good deal so you can be sure you will get plenty of practice right out the door.
and what do i say to commercial agents.
Are you talking about real estate agents? Why are you planning on looking for “deals” through realtors? You find people problems and you will find deals. What kind of commercial property are you going to wholesale?
basically i want to get started but want to have a solid gasps on real world concepts and formulas to determine value of properties.
Value is based specifically on what the end use is and what kind of real estate you plan on working with.
Look here for some answers to real estate valuation.
http://www.reiclub.com/forums/index.php/topic,43281.0.html
Driving for dollars is a term referring to people driving down streets in their targeted neighborhood looking for homes for sale. This is how they could find FSBO properties, abandoned properties, older people who would downsize houses, etc. When people decide to invest in a certain area, this is a method that could help them find other properties in that area which are not listed on the MLS.
Ok, Yes. Do the driving for dollars. Must be GURU terminology. That is what I do in addition to the code enforcements list of vacant and derelict structures… but I just call it “looking for houses to buy” :rolleyes
I am not overly concerned with FSBO property because most of those people want full market value or more. I look for the vacant properties and ones in need of dire repair indicating a homeowner who has the financial straights.
I am curious why you are looking at commercial investing?
BRAVO! WELL SAID.