Posted by Gary on January 18, 2001 at 20:03:01:
I started a little more than a year ago after doing a lot of reading and analysis. I suggest that you read the Sheets materials, the various forums on this web site to see how the techniques are being applied in real situations, and some other books at your local library…then start calling owners and hooking up with a broker who will be comfortable with your objectives. Look at properties and make offers, even if they may seem ridiculous. After one year, I now have 4 rentals that cash flow a thousand dollars a month and I have increased my net worth by $50,000. Just be sure that you don’t get so hung up on the no down payment thing-putting money into a deal (yours or partners- parents, friends, etc.)is good if the cash flow is strong. For example, my last deal I had to put in $10,000 but I am netting $3,000 a year! You can’t find a bank to give you that kind of return…In fact, partners might be willing to give you $10,000 if you split the cash flow. In my example, $1,500 on a $10,000 investment is not bad (15%), particularly if income is more important to my partner (i.e. retired parents. Read, get educated, then get out there and make offers but don’t get involved in a deal unless you know the cash flow is there or the potential for profit is worth the risk. Good luck…