newbie.frustrated, unsure, confused ,no money(long - Posted by V

Posted by Stew(NE) on September 07, 2001 at 11:00:26:

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newbie.frustrated, unsure, confused ,no money(long - Posted by V

Posted by V on September 07, 2001 at 01:57:46:

Hi, everyone, any advice will do. I have read over 200 posting on how to get started in the REI game. I’ve read books, took a real estate investing class. Have so many ways of obtaining real estate to get into this game, but no way of purchasing them. Only thing I know is that I want to buy/wholesale real estate and hold some of them. I have a realtor, accountant, access to contractors and a mentor and an idea. My idea is my brother has a house (single family-rented-sectiion 8), he hss had it on the market for approx. 4mths. He tells me that nobody has even come to see it. The house is what I consider a not so nice city or neighborhood, some of the houses are good to fair condition. The house next door was rehabbed a couple of years ago. It has one or two other houses needing rehabbing. What I mean by not so nice, the schooling is terrible, they just closed down on of their junior high schools, high drug areas in surrounding neighborhood. Street is closes to a surrounding suburb and is fair. He doesn’t want the house anymore, it’s costing him money, due to the tenant he has in there keeps tearing up the property. My idea is to purchase it, rehab it and put it back on the market and sell it. I don’t want his tenant. He’s asking 65k. I don’t have any idea as to how much it appraises at. He did tell me that the reason he is asking for that amount is because he has a second mortgate on the house. Every day, I drive by all types of fixer-uppers. I have even wanted a few, and when I decided to do my homework on it, they were sold and now I drive-by and see what I could of had. I’m interested in forecloused homes. Saw a few of them I wanted, didn’t know how to get them, another missed opportunity. Frustrated in trying to locate a vacant property owner. I’ve tried everything, except mail a letter. I want to but don’t want the return address to come back to my home. Got a lot of questions so bear with me. Secondly, I want to start my own llc, but don’t know how. Would like to continue in the game, am not a quitter, still wanna play. Have spent many a hours and nights on this site and others looking for answers. All have been welcome, but if I had the extra money to buy or take a course, I would be posting my first deal on this site. Bought books, read post, searched the web asked mentor and took a class. Need advice, need direction, most importantly need cash.(credits fair)
respectfully,
V

Re: newbie.frustrated, unsure, confused ,no money - Posted by Ronald * Starr

Posted by Ronald * Starr on September 07, 2001 at 22:00:53:

V--------------

You may not have read enough posts here on CREONLINE.COM . There are probably many more that you will find interesting. You might put into the search engine at the top of this forum a word or phrase that you have curiousity about or question about. You may find good information that way.

I have a post that I wrote for beginning investors. If you put in “Beginners succee” you will find it. Todd has some interesting contrary things to say in response to my post. It is also possible that that search will bring up some other people’s suggestions for beginners. Here is a recent one: Adam Kings’ message # 49299.

Good Investing and Good Self-Exporation*****Ron Starr*******

Re: CASH is the last thing that you need. - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on September 07, 2001 at 16:48:43:

If you had any cash this month you would be broke next month, and you would probably have a neighborhood eyesore to boot. What you do need is education.

You spend 15 minutes describing a sewer of a neighborhood, and then become somewhat stressed because you can not figure out how to “jump into” this sewer. You need help, and cash won’t get it.

You say you Have a Realtor, what for?

You say you have an accountant, what for?

You say that you want to form a LLC, what for; you do not have anything to protect?

Since you have no money, and do not like the neighborhood that you are familiar with, why not just move? Start a service business for homeowners, like painting or groundskeeping. Move to a neighborhood that you think is nice (to work). I would suggest a neighborhood of homes in the $200,000 price range and up. If you are willing to work hard then why not have something when you get done? Talk to all the neighbors while selling your services, and yourself. Rich people have the same problems that poor people do with bigger numbers (profits).

Now if you just must spend some more money before you get underway, buy a book. I would suggest a book by Bill Gatten for under $20 that will give you some ideas.

Whatever you do get out of the neighborhood that you are looking in now…

An idea - Posted by Stew(NE)

Posted by Stew(NE) on September 07, 2001 at 08:56:54:

I am no expert, but I have bought a few properties. I just have to ask some questions. Pretend we are talking about cars.

Me: Hey, I got a car I want to sell you for $1000 because I paid $1000 for it.
You: How much is it worth?
Me: It doesn’t matter this is what I paid for it
You: OK, I’ll take it.

Your words: “He’s asking 65k. I don’t have any idea as to how much it appraises at.”

Idea: See if he will keep paying on the second and you take over payments on the first. Since you are a realtor and have spent hours learning I won’t go in to the details of how to this.

Good Luck

BIG Problem - Posted by Doug (ON)

Posted by Doug (ON) on September 07, 2001 at 07:38:14:

You’re doing exactly what you’re NOT supposed to do! You’re looking for PROPERTY instead of SELLERS!

Ok, I’ll agree that your brother might be a bit motivated, but for a very good reason. I don’t think buying a piece of garbage in a war zone is the best way for a newbie to start!

Besides that one, you’re talking about the ‘fixer-uppers’ you’ve driven by and the ‘places’ you could have had. I know it’s nice to look at property and think: “I could buy that!” But that’s not how you make money, that’s how you lose it!

Alright, you say you’ve decided that you want to “buy/wholsale real estate and hold some of them”, what does that mean? Please specify which techniques you’re considering to solve sellers problems, and what will be your exit strategy on the ones you don’t hold?

Next, you didn’t mention anything about your long-term goals. What exactly are you trying to do here? Do you want to replace your job income? Do you want to retire in your own private island in the South Pacific? What? When you know EXACTLY what you want in specific physical, emotional and financial terms, then it just makes things SO much easier!

So that’s my advice, grab a notepad and pen and find some nice spot where you can sit quietly, undistrubed, and ponder your true needs and desires, then write them down and build a plan to acheieve them.

Doug

Re: CASH is the last thing that you need. - Posted by v

Posted by v on September 07, 2001 at 18:57:24:

Thank you, Ed copp for your response to my post. First things first, I don’t live in a sewer of a neighborhood. Matter of fact, my neighborhood is very peaceful and my neighbors are the best. Secondly, it is my brothers rental property that is in a questionable neighborhood. I have looked into homes that are in the 200k range that are in foreclosure. Just don’t know how to go about buying them. I have read several books on foreclosures, find it, buy it and fix it. Informative, but not much help. I’m sure when you started out it wasn’t easy. With a little guidance from an expert, soon you were on your way. That’s all I need is guidance. As far as cash is concern that is my #1 problem. Where to get it to start. Guidance is what I need, once I have that I’ll be alright. Thank you once again for your response.
V

Re: An idea - Posted by V

Posted by V on September 07, 2001 at 19:05:07:

Thank you for your response Stew. I never thought of asking him to carry the second mortgage on the house. My major thing is I don’t really like his tenant and I really don’t care for the neighborhood. Although, on my visits to his home when he was living there it, wasn’t not as bad as I thought. No, I’m not a realtor. If I were I would be posting success stories. I just took a class in real estate investing, that’s all. My question is, If it’s taking him this long to sell his property w/o rehabbing, do you think that if I bought it, rehabbed it (minor problems) would I be able to sell it? Thank you again for your response.
V

Realtor? - Posted by Doug (ON)

Posted by Doug (ON) on September 07, 2001 at 09:09:01:

Where does the post say they’re a realtor?

Doug

Re: BIG Problem - Posted by V

Posted by V on September 07, 2001 at 19:25:07:

Thank you for your response my post Doug. The answers to your questions; 1. What do I mean by buy/wholesale? I mean buy vacant, foreclosed, REO property. Rehabbing them and selling them. My exit strategy would be to l/o.
2. My long term goals? My long term goals are to retire from my current job in few years. Have enough income to be able to do what I want and continue investing in real estate. I would like to own homes all over the US and own few a high rises. Yes, I do know about dealing with landlord/tenant problems. I also, know the laws governing them.
3.Financially? I’m tired of working full time and then have to get a part-time job just to make ends meet. I want to replace my current income before retirement, I want to be able to retire and enjoy life or even have the option of retireing early if I want. I hope this answers your questions. Thank you for your response.
V