Posted by Killer Joe on May 15, 2005 at 08:09:56:
Hi Austin,
As mundane as this might sound, with your good credit, your best route starting out is to learn everything you can about the neighborhoods you would choose to invest in. By that I mean you will need to know and understand the values that properties go for in those areas. This would not only be what the SOLD properties have gone for, but also what the rents are for the various types of properties found in your locale.
Assuming you have found this board through your continuing efforts to learn as many aspects of REI as you can, the best way to apply the knowledge is to locate properties that IMMIEDIATLY put you on the plus side when it comes to equity. You MUST buy wholesale.
You must also determine the stratagey(s) that will suite your personality and goals. For instance, I enjoy rehabbing, it suites my style, allows me to enjoy the process, and makes me money. You may not be ‘handy’ to the degree I am so that aspect may not be your avenue of choice. I have no real desire to handle tenets and all the baggage they bring to the table. Others have no problems in that area and enjoy being landlords. It’s a personal choice. You need to find out what type of investing you can stick with. If you get involved in an area that becomes a burden on your spirit, it will be hard to sustain any momentum.
I started in 1996 with the Carlton Sheets course. It’s a great launching pad, and gave me a good foundation to start with. Here’s what I did after I studied the course, it’s so simple and easy, it amazes me that others have trouble getting started. I went to several REAs and had them show me properties on the MLS and provide me with printouts of the MLS profiles. About 300 of them. I visited a little over 70 of those properties to inspect thier conditions, locations, etc etc. I made offers on 7 or 8 of them as they came up on my radar screen. (Does any of this sound hard so far?)
I would find a property that fit my needs and make an offer. Eventually I made an offer that fit the sellers needs and bought the property. Nothing hard about this so far is there. The property put around $70K in my equity bank account because I bought it right. I had found that all important ‘motivated seller’.
So to anyone who is just staring out, the simple steps are these: 1. Get the basic education in place. 2. Choose a particular locality. 3. Look at as many properties as your time allows. 4. FEARLESSLY make wholesale offers and not take the rejections personally. 5. Be prepared to follow through when your offer is accepted.
If you have laid down a good foundation for the process, this method of aquisition is not only easy, it’s enjoyable as well. And yes, it will make you money and/or increase your wealth.
Hopes this helps,
KJ