Posted by Rick(CA) on January 26, 2001 at 13:45:50:
That would depend entirely upon you. Do you have the time and energy and wherewithal to deal with tenants? Do you plan on having enough extra cashflow with each rent check to cover “incidentals”? Do you plan on doing a THOROUGH check of any units you may purchase to ensure you’re not going to have to replace the roof in the first couple of years, or replace major appliances or plumbing?
If you decide to go that route (which I’ve heard it recommended by some of the real pro’s here, to never become a landlord in your first year), then search on this board and archives for some good contract clauses. These can be things like “tenant is responsible for all incidental repairs up to $500”, etc. I know there’s an argument out there that the tenant will just let things go if that’s the case. I guess it goes back to hoping you get good tenants after doing a thorough screening.
Post your question back at the top of the board and let’s see what some of the others say. (about becoming a landlord in your first year).
Best of success!
Seeking Insight - Posted by Luke Jones
Posted by Luke Jones on January 24, 2001 at 11:44:23:
I’ve made up my mind to get seriously involved in real estate investing and need some advice. I have read over a lot of information on this site and others and have taken in as much as possible.
I have decided that the best way to get started in this business is probably flipping (or wholesaling) contracts to other investors.
I have limited funds right now because I’m going to school and I would like to know which course I should invest in. I’ve narrowed it down to Ron LeGrand or William Bronchick becuase it seems that these two teach you how to put cash in your pocket fast. It seems like this should be my first priority so that I can build up my assets when I have some money built up.
Please give me any insight possible as to how I can get going in this business and start making some profit. Should I start out as a scout? Should I start flipping right away? Which course will give me the info I need to get going immediately in this new found passion.
Re: Seeking Insight - Posted by Rick(CA)
Posted by Rick(CA) on January 25, 2001 at 01:51:48:
Both of them are excellent courses. So what it boils down to is which one if more affordable for you? If it were only that, then I would choose Bronchick, but only because LeGrand is known for being one of the more expensive gurus out there.
On a personal level, I like both. However; Bronchick is VERY willing to offer advice and support. He has really good contracts (in the course and on his website www.legalwiz.com), he’s an attorney who not only understands real estate law but is also an investor. He’s also a regular contributer to this board.
If I had my choice, which one do you think I’d pick up first if I were in your shoes?
Re: Thanks Rick. Any other suggestions? - Posted by Luke Jones
Posted by Luke Jones on January 25, 2001 at 12:59:00:
Thanks a lot Rick, I appreciate you taking the time to give me some advice. Obviously it looks like I should pick up Bronchick’s course because money is definitely a concern for me. I’m only 19 years old, so I don’t exactly have money to throw around, but figure that a few hundred dollars is obviously worth it if it will get me started towards making thousands.
My only other question is, what are some other steps I should be taking to get started. I have made up my mind to go to an investment club, but I’ve heard that they can be misleading in some cases. What’s your opinion on this, and what else should I be doing to prepare myslef for the real estate investing world?
Other suggestions - Posted by Rick(CA)
Posted by Rick(CA) on January 25, 2001 at 16:02:08:
I can’t say much about real estate investment clubs because, unfortunately, I don’t have any here where I live. Although, I think you’ll get more favorable responses from people here on this board about the benefits. If anything, it surrounds you with like-minded individuals. True, there can be some good and some bad, but you can quickly figure them out just by asking questions. And nobody twists your arm to do a deal with you for pennies on the dollar. If you don’t think assigning someone a contract isn’t a good deal, move onto another investor who won’t take advantage of you.
There are several other things you may need to do to get started:
- Continue to read everything here on this board regularly! I cannot emphasize that enough. If you’re not learning something new here everyday, you’re not reading. Even if it’s a topic you think you know, read it anyway. You’d be surprised how repitition burns it into your mind so it becomes second nature.
- Start shouting from the roof tops (well, not literally) that “I Buy Houses”. Pass out flyers, print up business cards and hand them out, put up bandit signs, take out ads in the paper or pennysaver. Whatever. Just start putting out the word. You don’t have to do all of that at one time, that can add up to a lot of money you may not have right now. But, the more you do, the better your results. I wouldn’t worry too much about not knowing how to handle every kind of transaction. You can always figure out a way to either A) do it, or B) tell them you can’t help them.
2a. If you think you can do it, but are unsure how exactly, POST IT ON HERE! Let the experts help you. I cannot tell you enough how generous and giving these guys (and gals!) are here.
2b. If you need a contract, you can usually get one from someone here, or at William Bronchicks site (www.legalwiz.com)
Get familiar with filling out forms. If you buy Bronchicks course, then it will be a piece of cake. If not, you may scratch your head on a couple of the lines. Ask.
Figure out what you want to focus on and start there. You can branch out as you grow comfortable with other techniques.
Hope this gives you some ideas of what to do. READ the HOW TO articles again if you haven’t read them already.
Best of success!
Re: Other suggestions - Posted by Luke Jones
Posted by Luke Jones on January 26, 2001 at 02:56:13:
Rick, you went above and beyond the call of duty on that one. Once again…thanks for lending your advice, Lord knows I need it.
If you have some time…what’s your take on getting involved with rentals? Would it be too much for a newbie like myself to even worry about dealing with tenants, or should I consider it? I’ve set up an appointment to go to a workshop at a local investment club next week and they seem to be mostly into buying and holding.