Hi guys. I’m new to real estate but I have been reading up on a lot of advice.
I was wondering if anyone can give me more. I don’t have any equity I guess, and I don’t really have any money saved back. So what is the best way to get into real estate if those are my circumstances.
My credit isn’t horrible. I’d say around 630 now and it’s all limited to $4k…just incase someone needed to know. I’m in the process of getting my credit report
With no money the best way to get involved (in my opinion) is to Bird Dog / Wholesale properties. This requires very little to zero cash outlay and gets you involved in the process. You will learn the most difficult part of the business – FINDING good properties.
You’ll learn what are good deals and what aren’t and why (provided you ask the right questions if an investor says ‘no’ to your deal).
what are those?
What are most investors looking for. I want to get into bird dogging. Like you said its a good starting point. There are no reiclubs in my area at this time. What are the numbers investors are looking for? Here in alaska you can find some nice house that are started but the familys didnt have the money or time to finish. I have found a few different propertys with a little time and some money to finish a investor can make a good to great profit. At least in my oppinion. The market different than most places in the world. Im just not sure what numbers i should be looking for. Any help would be appricated.
thanks
kathy
alaska
If you find a house that fits this criteria I’m certain that most (if not all) investors in your area will pay you for the assignment fee.
The criteria are:
Solid comparable property sales in the last 6 months with normal marketing times not exceeding 6 months and evidence that property demand is stable / increasing.
The sales price for this property will be 70% of After Repaired Value (ARV) minus the repair costs to get the property to that saleable value.
Strong evidence that the repair cost you use is as close to accurate as you can make it.
Or instead of the Sales price being (ARV - Repairs) * 70% ---- if the property would immediately generate cash flow of a MINIMUM of $125 per month.
These are good starting points for determining if a potential deal is possible. There are instances where the sales price might be higher than (ARV - Repairs ) * 70% but this is the general formula that will get you alot of action on a deal.
Birddogging refers to finding potential deals and having the investor due most of the due dilligence for a fee (say $500). Wholesaling means you do most if not all of the due dilligence, get the property under contract and the investor walks in and does the work AFTER the deal is closed. For this your assignment fee will be greater but you do alot more work on the front end.
Ah, alright. I was confused about bird dogging. I had never heard that term before. I have to go to work so I will come back later and respond some more to these answers
Hey Twisted,
There are several ways to get started in investing. With a credit score of 630, you are in OK shape.
Let me give you an example of how I structure most of my deals:
I locate a property that I can aquire around 50-60K. I eval the prop for renovation cost(normally 15-20 K) with a resell at or above 115,000.00 My bank will carry the aquisition cost plus improvments on a construction loan for 12 months for 1-1.5% over prime.
My bank requires 5 % from me to be paid on the back of the deal, If I budget the project right, I normally have no out of pocket expense of the deals. This can be done with a credit score of 600. You may need to check with your local banks to see what options you have.
CLM
What area are you investing in?
I am located in the metro Atlana area.
how many square feet are you getting for 50-60k? Trying to compare the prices to my area.