Re: 1st time buyer needing help - Posted by Ronald * Starr
Posted by Ronald * Starr on June 26, 2001 at 21:04:48:
Good for you, going for a property. I agree with BatPro’s response.
I suggest you expect to spend several months before you will be able to put a deal together. You need to get to know the market values for properties like this in your area. That means you have to look at a whole lot of them and see for what prices they sell. Probably at least 35 or 40, maybe more.
You have to answer first the question: can I find some properties that will do what I want? Pay a positive cash flow, plus pay all expenses, and you don’t have to put any money in? Whoa, I’d have to see that to believe it. It wouldn’t happen around here in the San Fran Bay Area. But, maybe it will work where you are.
If you can do that, then start making offers like that to people who want to retire or cut back on their property management duties. Not people with properties for sale, but anybody who owns the type of property you want in an area in which you want to buy and who has owned the property at least say 10 or 12 or 15 years. So they have a small loan compared to the value of the property. It may have gone up in value. They may not know the value, but you do, because you are an expert on the value of properties like theirs because you did your homework, right?
Send postcards or letters. Telephone. Knock on their doors. It can happen. You just need to make it happen.
Then make the deal, with them financing most of the purchase or the amount of the purchse above the amount you can borrow and pay yourself.
Good Investing and Good Learning*********Ron Starr