Greetings and Salutations to all…
I’m a 35 y/o ex-athlete from the Twin Cities in Minnesota…college educated, hate the corporate world especially making money for someone else…looking to become areal estate investor to gain financial freedom…is it really possible, even if I have no capital to start with…would I offend any of you if I approached you and asked you to take me under your wing and show me the trade, the talk, the walk, etc…and in return promised a percent of my annual income after I ventured out on my own…
-JR
Sebastion16,
Welcome to the REI Club. We wish you the best of luck in your endeavors. However, openly soliciting partners or mentors is not an accepatble practice on the Forums.
I would suggest that you visit some of your local REI Club meetings.
Also, there are numerous REI programs and seminars available, please feel free to ask questions about those as some are just a waste of money. Feel free to read through the Forums and use the search function to direct you to the most appropriate posts.
Good Luck!!
Read, study, learn. This is a great forum. Read about different strategies and see which appeal to you, then focus on those.
Chris
I apologize…just trying to understand the REI etiquette as I go. So, lesson learned, will not happen again Mdhaas.
Chris, thanks for the advive.
Now, maybe I can rephrase my question…if you were looking back thinking “that was a waste of time and money” or “I really wish I would of…” could some of you fill in the blanks.
Where do I start?
What state are you located in?
JR,
I’m also in the Twin Cities area, and I’m just getting started. An important part is making sure things really cash flow in your area. Many realtors in the area have been used to saying it cashflows when the rental income covers the debt service and that’s it.
THIS IS NOT CASHFLOWING. You need to account for your expenses.
Propertymanager, one of the best posters on this board will tell you to find properties where the debt service will run 50% of the rental incomes. In Mpls you’ll find that almost impossible. The area he’s in, he collects $300 - $500 rents and his properties are bought for $20,000 or so.
The formula on my first rental is that I’m pulling in total rents of $1675, my debt is $1185. That gives me $490 to cover taxes, insurance, and repairs. I have 34% equity in the place since I’ve owned it for 8 years. I could make it cashflow better if I refinanced over a 30 year again, but I have cash reserves to cover unexpected expenses.
I guess my message is to do your homework, but if you wait for a formula from Cincinnati to work in the current market in Mpls, you might find yourself waiting on the sideline for a several years and you won’t gain any experience from DOING.
I have read a few books, joined my local REI Club, talked to a ton of people, and asked many questions. And I am still a newb, but working on 2 deals this week, and hoping to run with both.
Find a specialty, Multi-family, Single Family, fixer-ups, condos, other rentals, and see what those people are doing.
Read, read, read, and ask, ask, ask. Get in touch with realtors, mortgage people, builders, property managers, etc, whoever deals in the industry and can provide answers or give you info.