I recommend first that you read my post for beginners, if you have not already done so. You can find it by putting “beginners success” into the search function of the main board of this CREONLINE.COM website.
If you are just starting in learning about investing, I think it would be best to wait until your move. In the meantime study up on the general ideas and issues of investing. Since you are going to move, I don’t think it makes a lot of sense to study the local market place in any great depth.
If you have enough time to start investing, I think your situation points toward a quick-turn over type situation, rather than buying for a long hold. That means you need to buy at a bargain price. That means that you do need to study the local market place to know what is and what is not a bargain.
The MLS question? I don’t know. You can find out locally.
I don’t know that there is anything at all special about a wrap around mortgage. In some areas it may be commonly used, in some other perhaps not. I’d not worry about this issue. You have a lot of other things to learn that are far more important. A wrap around mortgage is just one of many ways to structure deals. It is useful in some situations, not applicable in many others, in my view.
Just purchased and received CS course, am learning, and questions are coming to mind about “Real Estate Investing”.
First, let me tell you my situation, I am Active Duty Military, stationed in New Mexico, wife has Realtor license but not currectly working. I am anxious to try to do my first deal, BUT, I could possibly get transferred this coming Feb 04, now, As far as buying a property and renting it out, I may not be in the local area to manage it properly in the future. Next, buying a property and trying to resell for profit— If I did Real Estate Contract, I would not be in the local area “IF” buyers defaulted on the contract.
As I said, I am anxious to get started, but wife thinks we should wait till we get to our next assignment. In your opinion, whats the smart thing to do?
Next question, does anyone know a website to download for free - Market analysis software? Or does anyone have a copy I could get from them? Or a website to get a market vaulue on a property?
Next question, as I said wife has realtor license, but not active, can she still use the MLS with only paying the fee for the MLS, or does she have to be working under a broker? I’m thinking, she may have to pay Board dues and monthly user fees but am not sure, will call monday and ask.
Last question, WRAP AROUND MORTGAGE, is that something to stay away from, or is that something lenders avoid?
This is a very informative site and we are learning alot. Thanks to those who are passing on valuable information to help others learn.
Re: A few newbie questions, please help!!! - Posted by Jasonrei
Posted by Jasonrei on August 09, 2003 at 12:29:48:
Smart thing to do?
Learn more, read what you can on this site. Go through the CS course and digest what you can. Play with numbers in your mind. I wouldn’t advise getting started right away (I mean don’t just jump into any deal), but take action. Be ready if a good deal jumps up and nips you on the rear. Look at houses, learn values, price repairs, know what to look for when you inspect a house. Learn a state-promulgated contract front to back, know what everything means. Network w/ area investors and pick up tidbits. You can get a lot on this board.
Learning market values- get your wife to get access to MLS. poke around in there. see what stuff goes for, days on market, trends. might be nice if your wife could sell a house here and there to make some extra money.
Wrap-around mortgage-
Not necessarily a bad deal. I might sell a house soon with a wrap. The buyers will get a good deal, but I don’t think it would be a good investment. Whether or not a wrap is a good or bad deal depends on the terms of the sale. It’s kind of like asking “Is a duplex a good deal?” Depends on a lot of things.
A $100,000 wrap at 15% on a house worth $90,000 and rent of $400 per month is probably not a good deal. A $100,000 wrap at 5% on a house worth $140,000 with rent of $1800 per month (and payments made directly to a reliable escrow company) IS probably a good deal.