Hello, I’m trying to get started in REI here in central texas and I’m not even sure of where to start. From what I’ve read, I know I need to get very familiary with RE Laws here in the state, but after that, what do I do. How soon do I start looking for foreclosed properties, and once I do find them, what do I do?
You may want to start by reading some books first to understand the business. I liked this book
Flipping Properties
http://www.amazon.com/gp/product/0793144914/sr=8-1/qid=1142049700/ref=pd_bbs_1/102-5568250-5118563?_encoding=UTF8
What you do with them once found is up to you, and that’s a LOT of information to take in… But… as to what to do once you understand your local RE laws…
Read… and read… and read… and read… and find someone you can ask questions about what you’ve read… and then read some more and keep at it until you understand what EXACTLY it is you want to do…
Then… take the next step. This is a field that requires doing a LOT of homework.
Join the local REI club. We have meetings the 1st Tuesday of the month, so you barely missed this one this week, which was about doing short sales. We sometimes have people selling products, but they’re approved and will work.
You need to learn as much as possible from others. It’s not easy and the investor market is oversaturated here. There are a lot of beginning investors who really don’t know what they’re doing because they’re so eager to start. They really should study first and learn all they can, then jump in with their eyes open.
Generally I know I would like to focus on short sales until I can start having a cash flow positive enough to acquire duplexes, houses, etc to rent out to tenants to have a monthly cash flow. Are their certain Texas RE laws I need to focus on or should I read them all?
Read about our lease option laws, which you can get a feel from on the forums here. After listening to the presentation that was given this Tuesday on short sales, most investors decided they weren’t worth the time. The investor who does about 20/month showed us some analysis of 200 deals. He averages about $2100 on them with the median being $1000/transaction.
According to him, you should allocate approximately 40-60 hours waiting on the phone to talk to the bank. I forget how many deals work, but I think it was about 50%.
hmmm, is fix and flip the same as a short sale?
You can fix and flip a short sale. It’s not the same thing. Short sale is just a pre-foreclosure strategy.