I have been a part of this forum for a few months and now I think it is time for me to get off the fence. I am ready to purchase my first piece of property but I have some questions. I have been approved for a 100% financing. I have the few thousdand for the closing cost.
What is my next step?
How do I find motivated sellers? Should I search for investment property in the classifeds or the internet? What should I consider when I am pricing the house?
I need advice!
Although I am a newbie as well and have yet to close on my first deal iIwill tell you getting off the fence is the hardest part to this madness. I finally have begun making contacts and executing my marketing plan. I’ve also started calling FSBO looking for deals. the fact that you already have financing means your further in the game than I am. Read every article and post on here then read it again! I’m no expert but here is where I’ve started to look.
- Legal setion in newspaper for foreclosures auctions.
- FSBO signs in yards.
- Found a good realtor who will keep an eye and a ear out.
- Put ad in local paper syaing what your looking for.
- Take a different street and find some vacant houses.
Once you find what works stick with it.
Hope this helps.
Seems like the newbies are ready to kick in with advice, since I am also willing to throw my .02 in here, but am unwilling to write that first check yet.
I’m looking for deals/motivated sellers and started going to the county websites in my area. I’ve got information on upcoming sheriff’s auctions on foreclosed properties. Addresses, names of the people that own the house and when the auction is. This last part helps in that I can get a good idea of just how motivated someone may be if they are staring at an auction in 2 or 3 days.
I’ve also taken in a REI club meeting here last weekend and picked up some information on available properties the people there had. The downside there is that they’ve already built in their profit and made many of the deals too thin for me to think about getting in.
Once again though, I’m a newbie who’s afraid to jump in the water. I almost wish I would just do a deal, sink or swim, just to get that first one out of the way.
Any other newbies out there who would like to “role play” some of these conversations we should be having with homeowners, feel free to shoot me an email and I’d like to explore something like this to maybe get my butt off the bench and into the game.
you’re going to fail. now, get over it.
it’s going to be hard work. your first deal is going to cost more than you estimate. you’re going to run into unforseen problems. you’re going to second guess yourself and question every decision that you make. the painter will leave in the middle of the job and the pipe will burst and the inspector will nit-pick you to death. you won’t make as much as you wanted and may even lose a few bucks. get over it.
learn from your mistakes, grasshoppah…
you can’t figure out every nuance to the penny before you own it, and if you keep trying to do that you will end up doing lots of work and having no deals. find a deal, get off your a** and get in it.
well said wagnerson, but next time could you be more direct and not beat around the bush. I feel like I’ve been sent to my room----deservedly so.
But you truly coudn’t have said it any better in twice the words to those of us who haven’t made that first step.
sometimes all we need is a kick in the pants.
Congratulations on your great decision to take action.
I assure you your first or second or third property is exciting and scary.
The best advice I can share from my own experience and coaching is this:
Don’t ever Fall in love with the propery, fall in love with the numbers.
Have your exit strategy fully in place before you you make the purchase.
In other words if the numbers don’t work up front then pass on the deal, and make sure you know exactly what you are going to do with the property.
What is sad to me as I have read some of the post on here by “experts” is they tell your how to buy a property in the way they understand and thats it?
Most investors fail to look at how to set up your business to protect yourself. They fail to have a Real Estate lawyer inspect the contract. They dont hire an inspector because they try to save money. They dont know about 1031 exchanges, the challenges with being a landlord, and tons of other things than JUST buying the property.
There is a lot more to it than just making an offer and finding “motivated sellers” and such.
Do your research, continue to educate yourself, and don’t worry if you make a mistake…
Ever one of us that have been investing for any time have made many mistakes!
The old saying of put up or get out is no more prevelant than in the investing world.The one thing investors are known for is wasting peoples time.Although we as investors are learning the realtors and motgage brokers get sick of fielding our calls .But fortunatly there are more realtors and mortgage brokers than gas stations and bars so we will always have someone to pester.But the Fact is that if all you do is pester people and never take action your going to limit your resourses and credibility,Studying and learning in the REI world is a trick in its self and should be done carefully and wisely ;D
Any newbies jump in yet? If so, how did it go??