I don’t know if anyone have asked this question or not, but I have a passion for RE and want to invest but have little money. I don’t know where to start and is looking for a mentor but not yet found one. I am apologize if this question is a repeat, but if it is, please show me the link to where the duplicate one(s) is(are). I am want to join an REI club but it cost money too. I am a college student, money is tight. I like to hear what advise you have for someone like me. I am sure there are people out there who had nothing to invest but found ways to over come it and now is successful. Do you mind sharing with me how you get to where you are today? And what were the biggest challenges?
Hi there. I am brand new too and want to learn how to do this. Have no clue and no idea where to even start. If I get info - I will try to lead you and give you input. Will you do the same for me? I am in the Pacific Northwest. Thanks.
Brenda.
What is it you want to do? What’s your credit like? Do you have student loans? Car payments? and such?
Getting started
First: locate an association in your area, you can find many listed right here on thise web site under Investor Resources / Real Estate Clubs. Join and get involved, volunteer to help (you get to go to stuff free that way) at events and on committees.
The more involved you are the more people you will meet and you will be able to build a database of other investors in your area and learn what they do and how they do it.
I would also recommend investing in a how to class of some sort on finding motivated sellers.
Locate great deals and offer them to the buyers in your group for a bird dog fee - many of the big investors in your area may even offer to train you to find deals for them for a bird dog fee. ($300 to $1000)
Save theses fees to reinvest into your business or improve your credit enough to get loans, then you can step up to wholesaling and assigning the deals you have found. ($2000 to $5000 or more per house)
As you work learn more you earn more and can do more deals.
You can also get fancy with subject to’s, and lease to owns, but the easiest to learn is to bird dog and wholesale. Plus you turn houses around more quickly and I think more fun.
But no matter what you hear you will want to work on improving credit and building up financing funds.
“First: locate an association in your area, you can find many listed right here on thise web site under Investor Resources / Real Estate Clubs. Join and get involved, volunteer to help (you get to go to stuff free that way) at events and on committees.”
Thank for your kind advice. I will put that in action. May I ask what is bird dog fee?
“I would also recommend investing in a how to class of some sort on finding motivated sellers.”
Where do you suggest me to sign up for this kind of class? I looked at Universities and they don’t have it. I also looked at those senimars education thing, but they were not what they say they are.
“You can also get fancy with subject to’s, and lease to owns, but the easiest to learn is to bird dog and wholesale. Plus you turn houses around more quickly and I think more fun.”
Can you please elaborate a little bit more? I don’t quite understand. Like what is whoesaling?
I am currently building my credit by not having any debt and paying my bills on time.
Is there a “job” out there that I can work for a company and gain some RE experience?
Thank for your kind advice. I will put that in action. May I ask what is bird dog fee?
Experienced investors who do not have the time to hunt down good deals will pay new people a fee from $300 to $500 even more depending on the deal for you to find the deal. Many will even help give you ideas to find these deals so you will bring them more.
“I would also recommend investing in a how to class of some sort on finding motivated sellers.”
The best place to look for classes is your local real estate investing association - if there is not one in your area close by, then you may have to go a little further to see actual people. You will also find many online/ teleseminar classes - this web site has teleconferences and records them and pots them online somewhere - look around.
Where do you suggest me to sign up for this kind of class? I looked at Universities and they don’t have it. I also looked at those senimars education thing, but they were not what they say they are.
Most of the free teaser seminars are all hype to get you to buy into a $3000, $4000 training, but from your local association you will find that speakers will come in and speak for an hour or two and teach for a good solid hour and then have a sales pitch at the end where they sell their materials. Do your online research about the speaker before you go to the event and then if you like what he has to say and the research is good, consider purchasing their programs.
“You can also get fancy with subject to’s, and lease to owns, but the easiest to learn is to bird dog and wholesale. Plus you turn houses around more quickly and I think more fun.”
Can you please elaborate a little bit more? I don’t quite understand. Like what is whoesaling?
Wholesaling - is finding a house and either passing the deal on to someone else for a small bird dog fee, or getting it under contract and assigning it to another investor for a larger assignment fee, or outright purchasing it and then selling it to another investor for a larger profit - you don’t do anything to the house an the end investor will fix it up and sell it and rent it for the largest profit - but then he has the deeper pockets and the better credit.
To learn more about subject to & lease options - search this web site for articles on this topic - look for Wendy Patton - I know she has a prerecorded teleconference posted and possibly Charlie & Randy France or Bob Meister.
I am currently building my credit by not having any debt and paying my bills on time.
That is the best way to build your credit. I always recommend maintaining a car payment, a mortgage payment, or some type of revolving credit like a credit card. If you can maintain two or three credit lines and pay them off at the end of the month every month you will build great credit. Plus the more loans you pay off the better your credit.
If you don’t trust yourself with a credit card, make a calculated purchase once a month. Pick something that you have the money for - like groceries then go home an write the check to the credit card company and deduct the amount from your account. Then when the bill comes in, put the check in the envelope and mail it back.
Is there a “job” out there that I can work for a company and gain some RE experience?
A “Job” - There are many real estate industry jobs: Mortgage Lending, Realtor, Appraiser that take a lot of training and don’t pay much when you are new. You might look at your local group and see if any of the larger investors in the area are looking for help.
If you are any where near the Kansas City area - our association is at www.MAREInet.com.
“outright purchasing it and then selling it to another investor for a larger profit”
What is outright purchasing?
What advise?
Your post from another thread regarding whether someone should get a real estate license;
“…if that is the case, then why is such a big deal not to have your license? Are the people saying “no”, is b/c their experience have taught them so? Are you saying “yes” b/c you are license yourself? Thus, you feel the need to defend yourself? If investing is all simple just getting a good bargain, then why is it so hard to be disclose everything to get a good bargain? Is it b/c you have to lie and decieve to get good bargains?”
That comes off a little edgy. If that was not your intent…be aware…it could be construed as offensive.
If it was meant to be antagonistic…I’d advise you to leave the attitude behind. Making comments like that to real estate professionals in public will earn you a reputation & advise will not be forthcoming.
These comments may irritate you, but it’s VERY GOOD advise.
-Infowell
[b]"That comes off a little edgy. If that was not your intent…be aware…it could be construed as offensive.
If it was meant to be antagonistic…I’d advise you to leave the attitude behind. Making comments like that to real estate professionals in public will earn you a reputation & advise will not be forthcoming.
These comments may irritate you, but it’s VERY GOOD advise."[/b]
Infowell, it will be a very good idea to read my posts carefully before you respond to it. When you reread the post, you will notice that there question marks at the end of every sentences. I don’t know how you define question marks, but for me it simply means a question is being ask and nothing more. It is unfortunate that you have interpret it to be offensive. I have no control over how you choose to interpret things. Reality is your own interpretation. Also I am not interested in getting into a conflict with anyone. I am simply here to learn and ask questions. I am sorry if I have offended you or anyone else, but I have no control of how you choose to respond/react to things. Thank you for your input and I will take it into consideration.
“…if that is the case, then why is such a big deal not to have your license? Are the people saying “no”, is b/c their experience have taught them so? Are you saying “yes” b/c you are license yourself? Thus, you feel the need to defend yourself? If investing is all simple just getting a good bargain, then why is it so hard to be disclose everything to get a good bargain? Is it b/c you have to lie and decieve to get good bargains?”
outright purchasing it and then selling it to another investor for a larger profit"
What is outright purchasing?
Getting money some where, going to closing, buying the house, and then you own it.
Then you find another buyer, have them get the money somewhere and buy it from you for more than you paid for it.
You have then successfully wholesaled a property.
Hi Kim -
I know this is off the topic of the post, but I saw you were in Kansas City and was hoping I could get your opinions/feelings toward investing there. What kind of investing do you mainly do? Do you feel that KC is a decent market, on the rise at all, or is it pretty flat? I’m in NYC now, but will most likely be moving to KC within a year or so and would love to hear your thoughts about breaking into REI in this city.
Thanks so much for any help!
Depends on what type of investing you would like to do and where in the metro you are wanting to do it. I buy primarily in an area where the homes are a good mix of renal an owner occupant, better cared for, but still inner city. in Kansas City Missouri. Homes are getting very difficult to buy in this are through MLS and the best deals are to be found by hunting out the sellers yourself.
I have several investors I work with that work in the war zones. Those that wholesale the junkers to the local landlords are doing well, but this is not really a market to be buying to resell unless you have a landlord who wants to build a rental portfolio, but does not have the time to do his own rehabs - and you will need to sell to them probably at a discount so that you can do volume.
Nicer suburban areas - houses are harder to come by, and can be slow to resell as there are a lot of houses for sale, but if you can buy a house for the right price you can always make a profit.
But I don’t work the suburban areas. Primarily the rental / first time home buyer makets around $80,000 to $100,000,