So what is our goal here starting out as new investors?

Take every $10-15k we can get our hands on and turn it into a a $100-150k property? And no I’m not looking into rehabbing necessarily, mostly rentals. But is that the basic strategy?

Your numbers suggest buying properties with 10% down. That’s a possibility depending on which way you go. It all depends on what price point you want to work with. You can go that route or you could invest in a larger number of cheaper houses.

My wife and I have invested in houses for 30k and less. Going that route, you’re basically looking for cash flow and not counting on appreciation. If you go with more expensive houses in good neighborhoods, you’ll probably see price appreciation there. I’ve written many posts on here at length about what we’ve done and analyzing deals. You can search thru those and look at other people’s strategies as well.

Thanks again.

It depends, where do you want to invest? Are you guys planning of managing the properties or have property manager?

Well I can’t get conventional financing so I guess for a while I should be looking for seller financing if and when possible no? I have cash to spend which would yield better cash flow but as I’m learning I should avoid that when possible so it can keep my ongoing property acquisition going, so I’m thinking seller finance over and over again wherever I can find that option. Does that sound good?

Seller financing is one way to get around the mortgage problem.

Perhaps you should consider getting into wholesaling, lease options or sublets. Each of these options do not require an actual property purchase but can generate good income if you are willing to stick with it.

Another option is to get into real estate sales. This can be a great foot in the door to a beginning investor. Not only are you gaining valuable experience but you also have first dibs on new listings.

Hmm, thanks for that food for thought…

When I began investing in 1991, I thought I would be ‘brokering’ notes and mortgages. I found out very quickly that everyone and their sister was doing the same as that was the biz op of the day. You had full time plumbers that were part time note brokers and so that would drive the prices up and cut back on the profit margins.

I quickly realized it would be better to ‘create’ notes and sell them which would give me the edge along with an unlimited supply, based upon my efforts. Most of my time was lining up investors who had money to invest in notes out of their pensions and IRA funds.

Typically, I would use mobile homes or mobile home and land packages as I could buy at substantial discounts for cash and re-sell at a premium with no credit check financing, then have a great note which was secured to sell to an investor.

Knowing the markets have changed over the years, if I were starting out I would still use the same strategy as above in today’s market place. I still do, actually…it works fine and it is a profit center still after 23 years!

In addition, I’ve done hundreds of house deals with what is commonly referred to as ‘sandwich lease purchases’ and ‘subject to’ transactions. With zero equity and negative equity homes sitting on the market for extended periods today along with the fact that ‘no credit check’ financing allows you to sell a home with private terms at a premium price, this is a viable strategy in today’s market place.

So…create notes and resell for profit (or keep for wealth) and lease purchase/subject to deals on houses…two favorites of mine…worked in 1991…and still works in 2014.

Hope this helps.


Another option is to participate in tax auctions. Often the property taxes are relatively low. Tax auctions have a positive effect on attached liens. Since most people end up paying off the taxes, this is less a way to obtain real estate but a very quick way to build cash since the repayment of the taxes includes a very high interest rate which is paid to whoever paid the taxes at the auction.

To directly answer your question, the “objective/goal” is whatever you want it to be. There is no wrong answer.

If you want guidance, start by reading my book published on this very site/forum titled “Pssst: Wanna Be A Real Estate Millionaire?” You’ll have to go back to January of this year where I started the publication chapter by chapter - 22 total. You’ll find numerous areas of real estate from which to choose. There is no wrong answer/choice. Do whatever is of the greatest interest to you.

Another factor is cash flow and cash on cash return. Before investing in a home, you will want to determine a realistic return you want on your investment. Then, no matter what the price, each property you consider must cash flow enough to meet your requirements including your mortgage payment and the additional mortgage insurance you will need to pay for with less than a 20% down payment.

It totally depends upon the investment you had selected.