Actually, I’m a newbie as well. I got the CS course this past April and was clueless. I wasn’t comfortable in making an offer and looking back now I’m glad I didn’t make an offer. Why? I didn’t know enough about the neighborhood, property, schools in the vicinity, etc. So, I decided to educate myself. I’ve read 3 books, joined an investment club and read the CreOnline Newsgroups constantly. There’s so much information on this site. I’ve learned so much and now feel comfortable getting back into it.
No, I haven’t purchased any property yet but I’m finding out my approach was all wrong, just as yours is. You’re going out and asking agents and lenders for a no money down deal. Don’t do that - they won’t take you seriously. CS says the same thing in Chapter 24 of his course - “don’t ever mention to an agent you are trying to purchase property no money down”. My sister is a broker and she tells me she always knows when a new CS student is calling her because the first thing they say is that they’re looking for no money down deals. She hangs up on them.
I’ve found that no money down deals are easy to come by but don’t always give you a great investment. That’s the obstacle I’ve been working on to overcome. I don’t want a negative cash flow even if I buy something no money down. I think that’s one of your problems - you’re focusing in too much on “no money down” and not looking for motivated sellers with properties you can get a positive cash flow from.
Also, I can tell by both of your posts, that you need to go over the CS course a few more times - you’re not understanding some of the key points he’s making. I’ve gone through the course about 10 times now and I realize now that I was wrong in many of my assumptions about real estate.
Of course, educating yourself and reading all the RE books in the world won’t mean a thing until you purchase a property - but I’m a firm believer in knowing what you’re doing before you get into it. I’ve heard countless stories on this site from newbies who rushed into their first deal being “the nice guy” and have run into serious problems. Make your first deal a good one. I know I will.
New CS student - Need lots and lots of help! - Posted by cusitin
Posted by cusitin on October 19, 1999 at 15:26:17:
I received the course about two weeks ago and have only read a bit due to my hectic schedule. I don’t know a thing about real estate - and I really mean “nothing”. I bought the course to see if I could learn something or anything. My problem is not understanding some of the terms. I also don’t understand the roles of other parties involved when you purchase real estate. I have never owned a home of my own and don’t know any of the procedures.
When I read the other posted messages on lenders and brokers, and what have you…I get confused. Why do brokers have to get involved when you’re purchasing real estate if, so far, CS’ advice is to deal one on one with the motivated seller. Also, why would you need to find a lender if you’re supposed to be buying with “no down payment” techniques. I probably sound “hopeless” but I can’t start the course with all these questions in my head!
Also, my husband doesn’t seem to be encouraging me too much. He keeps telling me that our area is very difficult to buy real estate under CS terms.
Carleton doesn’t say to avoid brokers - in fact he says just the opposite - quote “don’t avoid these people”. Yes, you want to focus on motivated sellers but remember that motivated sellers can offer their property for sale through a realty broker or FSBO. Thus you will be talking to brokers who are selling a home for a “flexible” seller.
Also, you say why you need to go to a lender if CS says to buy no money down. CS goes over numerous ways to buy property no money down and yes some of those involve using a lender. I think you’re confused on what no down payment means. You say you can’t start the course because you have questions - however you will find the answers to both of your questions if you do start the course. Good luck!
It sounds like you may have had some luck with the course.
I need a little push in the right direction.
Do you have any suggestions how to or what to ask?
I’ve poke with RE agents and lenders but I can’t seem to get a know down deal.
Thanks for your help