Re: Future Real Estate Investor - Posted by Stu Silver, Trainer
Posted by Stu Silver, Trainer on June 28, 2001 at 07:37:47:
Congratulations on your first two steps - the first is a decision to change your life, and the second is to feed your mind to implement the change.
Tampa is a great place to start. I live 2 hours away, and I have done over 20 auctions in Tampa - there is plenty of inventory for a beginning investor.
My advice would be to start in the moderate income areas, and look for cosmetically distressed properties. There is less competition for these properties, so you can buy them under favorable terms (i.e. little or no money down, with a price discount). Once you buy the property, you can force the value up and either rent it for positive cash flow, or flip it for a profit.
My experience has shown that the two main ingredients to a no-money-down deal are a motivated seller, and trust between the seller and yourself. If there are little or no offers for a property because it looks and smells terrible, the seller will be motivated. If the seller sees little or no cash, and must wrap, assume, lease/option, etc., then the seller needs to trust you to make the mortgage or lease payments.
After all, as a seller, wouldn’t you rather sell for full value, get quick cash, and move on your way? I have found in the middle and upper income areas of a city, there usually is less motivation on the part of the seller because there are plenty of cash buyers for the property.
I wish you the best of luck, where luck is defined as opportunity meeting preparation and sweat.
Stu Silver, CCIM
Lead Trainer at Russ Whitney’s Millionaire U
Licensed Broker, Mortgage Broker, Auctioner
Registered Real Estate Appraiser, C.E.C.