Understanding the market! - Posted by G. DeStefano

Posted by helen/lonnie peaster on September 15, 2002 at 05:29:41:

we have a good understanding of the foreclosure market in greater atlanta, we have several dry runs . title search, apprasials, stuctual damage or just needing jazzing up ect; what we need now is someone to finance us when we get ready to bid on foreclosures at auctions,the money would be good for them and us, any advise? thx,helen/lonnie.

Understanding the market! - Posted by G. DeStefano

Posted by G. DeStefano on July 18, 2002 at 22:03:39:


I have been asking more then answering questions and I appreciate everyones help. Hopefully at sometime I can answer some questions.

My next few questions would be:

What is the best way to learn about the RE market in my area?

How would I go about deciding which method of investing would work?

Better yet how would I learn about the RE market in the country overall?


Re: Understanding the market! - Posted by Buck

Posted by Buck on July 19, 2002 at 19:10:42:


If you don’t ask, you won’t get… I’ll be doing my share of asking very soon… like today…

But, to answer your question. I am a newbie with the same question just two days ago. I spent a lot of time reviewing the investment courses I have and reading the articles on this website. It is easy to get overwhelmed by the number of different approaches to re investing and then for each approach, there must be 50 variations.

I see from the testimonies of the experienced, that all approaches and variations work. I immagine at least one variation of each approach works in every area. (I know, that doesn’t help much.)

What I decided to do is to look for the method that harbors the lowest risk and the fastest turnover and profit. To me, it appears that “Flipping Homes” is that method.

Just reading what Steve Cook has posted on this site about the topic will keep you busy, but he isn’t the only one discussing the topic.

I like the idea because it will allow me to buy and sell the property at the close. This releases me from obligation immediately. Sure, like any approach, there is a lot of WORK building up to that day, but on that day, I close and walk away with profits in hand and no chance of failure.

Learn to love being turned down. Real estate investing is a numbers game. If one in 15 offers closes, remember that when one offer fails, you are one offer closer to closing.

May you keep on plugging, not get discouraged, and may your victory be sweet.


Re: Understanding the market! - Posted by Ronald * Starr(in No CA)

Posted by Ronald * Starr(in No CA) on July 18, 2002 at 23:19:44:


Decide what types of properties you want to invest in: residential, vacant land, commercial, industrial, etc.

Then study properties for sale of those types. Watch and see for what they sell. After you have looked at, say 100 houses, you will have pretty good feel for your market. You will know values, how fast things eell. Talk to other people about their perceptions of the local market–investors, agents, lenders, title company people.

Study a lot of different investing approaches on a pretty superficial level. Think about what is involved in doing that approach, who you will interact with and how. What activities will you need to do if yhou do that approach. Does it seem to fit you? I suggest that you read my post for beginners on this topic. Put in “beginners success” on the search function at the top of this Carelton Sheets forum of the CREONLINE.COM website or else at the top of the main bulletinboard forum. Then read the post.

Why would you want to learn about the real estate markets in the country overall? Real Estate is a local phenomenon. If you are trying to choose a place to invest, you might try to find magazine and newspaper articles about real estate investing in different locations. There are lots of newspapers with their newspaper articles and their real estate classified advertising online. The realtor.com site has properties being offered for sale by the local real estate brokers. You can see what is being offered for sale in about any place in the country, I think. Mostly it is single family houses, but in some areas it can include other property types.

The 2000 census has some information about housing values, rents, vacancies, and other data. This is offered at the census tract level and aggregated into counties, major metropolitan areas, states, and so on. Search on the internet for census. You will probably find more number than you will want to read.

Good InvestingRon Starr

Re: Understanding the market! - Posted by G. DeStefano

Posted by G. DeStefano on July 20, 2002 at 12:27:56:


Thanx for the response. I am excited about learning the biz of RE however the more I read the more questions I have. My goal is to develop a plan and stick to it. This is fine but then there are other variables like forming a corp, LLC, marketing, even picking the name of the business. Where does one start? It is good to here how others may have similar experiences. I am thankful that I have found this sight because I am on my own. No rich relatives or friends in the biz. How have you gone about sorting out these ideas? Any mentors?


Re: Understanding the market! - Posted by Buck

Posted by Buck on July 20, 2002 at 14:01:05:


I can’t be a mentor, but I will try to help answer your questions.

Where does one start?

I would start by quickly evaluating the different strategies in REI. Then pick one or two that you feel comfortable in working on. I chose to work on a combination of Lease Option, Subject 2 and Home Flipping. The reason for my selection is because the risk is minimal, the rewards are fast and I can generate immediate or quick cash.

The next step would be to pick one of the methods and study it. Don’t spend the next month researching the method and learning EVERYTHING, just learn enough to know how to make it work.

Then put together a file of all the required forms and paperwork.

Finally, start your search. Your study should have taught you how to find prospects, etc. Start the process.

At the same time, spend time studying the next method on your list. Again, put together all the required paperwork, forms, etc.

Start the search process there.

Next, start the third study, if you have that many, and put together all the paperwork, etc.

As you get leads, follow up according to your study and make the offers. Continue studying in your spare time.

Eventually, you will get most comfortable with one or more methods and focus only on that method or strategy.

Once you have made your first chunk of profit, then see a good account or tax attorney and learn about what kind of corporate shelter you need.

I have decided that for me, I will use 4 corps. A personal trust for myself and my personal belongings. A corp for flipping since there are tax risks inherent to the nature of the business. A series of corps, one for each property I buy and hold. Finally, I will put together a corp for financing and paper trading so I can fund some of my own ventures. This company will own a portion of each of my other real-estate corps so it receives a percentage of their profits. This corp is planed for the future when I have so much money I can’t spend it all…

I spent 17 years off and on studying real estate investing. I have yet to buy my first property. That is my fault! Don’t follow that strategy. It isn’t very successful. Instead, focus on success. Success is buying and profiting from your first piece of realestate.

To summarize:

  1. Choose a path
  2. Learn enough to get started
  3. Organize the paperwork
  4. Get started
  5. In your spare time, study more
  6. Close and celebrate.
  7. go back to #4.
  8. Protect your assetts.
  9. Enjoy your retirement.

I hope this helps.