Before I ask my question, for the budding RE Investor like myself, all of the info from all of you here is great! Thanks a million!
Anyways, my question:
How many deal strategies should I be armed with before scouting for my first deal???
So far I have read almost a dozen books by now regarding doing foreclosure deals in my farm area and have learned about several deal strategies:
S2 - Subject To
Short Sales
Land Contracts (CFD)
Lease Options and Sandwich Lease Options
Wraparound
Did any of the succesful investors here approach their 1st deal armed with more strategies? Less strategies? About the same # strategies?? What can anybody tell me about what approach would work best in terms of being prepared for my first deal?
So far, my approach has been as follows:
Know the values and rent levels in your farm area
Know (Or find a contractor who knows) how much construction/renovation repair costs are? (Labor, Time, Materials)
Become proficient with the strategies you’ve learned (Create Step by step procedure for executing deal strategy, required documentation and forms, ideal situations to apply) strategy,etc.)
In all likelihood I am simply another textbook case of ‘Analysis Paralysis’ but everytime I sit to map out how I am going to find my first deal, I feel in my gut that there is still some more information at the library (Where I accumulate my real estate knowledge) that I should read and take notes about before getting ready to play the field.
Please someone help and let me know how I can understand if I am prepared or not. And if not, what more should I be learning before I start committing myself to finding my deals???
Thanks all for your help with this! I will keep reading the posts and articles for they provide an insight into the experiences and understanding that no book could ever give!
You’re killing yourself with information overload, paralysis of analysis. Education is a good thing. But too much of a good thing can create problems. You’ll review, study, and analyze a deal to death. Before you know it the deal is gone to another investor who has more street smarts than book smarts. Don’t fall into that trap.
Concentrate on one area to begin. Learn it, get a deal or two done, and grow from there. For most beginning investors, lease options are the way to go. Wholesaling, too.
go on an information diet, it seems your so fat with information that you not moving. If your uncomfortable with the the process try bird dogging or wholesaling some properties. Keep in mind investing is very simple.
Find Buyers (which you know how to do) + Find Sellers (Which you know how to do)+ Obtain financing if you need it + Exit strategy that matches your financing strategy= Profitable real estate transaction. (done deal)!
if your uncomfortable break it down into easily manageable steps, but by all means do something, even if it’s just bird dogging.
You guys are absolutely right. I need to cut myself off and dig right in just like you say. Thanks for the refreshing reminder. Gosh I wish I just had a mentor I could talk to every now and then just to put me in my place and bring me back to reality just like you guys are doin.
Thanks again!
And BTW, if I go out and wholesale some deals, what strategies have you found works best with going out to secure a foreclosure deal? Im really impressed with what the S2 deal can do for me and my seller and I was thinking of just going out and finding a seller that just wants out and has a high LTV and very little time until auction. Or do you think I should perhaps go out and stick with just doing a simpler Lease Option (Or sandwich)?
Thanks again for your input. Its made me feel even better and more confident about going out there now!
Chicago, when you talk about foreclosure deals, are you talking about pre-foreclosures, or properties that have already gone to the bank? In either case, however, you’re probably going to need cash or access to it. A lender who has taken back a property, or is about to, doesn’t want to fuss with terms and creativity. They’ll want their money and to get the problem property off their books. So if you have the money or the financing available, there are plenty of deals to be had at discount.
On the other hand, if you want to get started with little cash or risk, I mentioned previously and I’ll say it again, options and lease options are a great way to get started in this biz.