Re: ADVICE TO NEW INVESTORS - Posted by Russ Sims
Posted by Russ Sims on December 14, 1998 at 24:36:06:
If you have poor or little credit, you may find that the VA homes are hard to aquire. Yes, the prospect of getting a home with 0 down and 100% financing is enticing, but you must qualify for a VA loan as you would with any bank loan. I have been told that the VA gives preference to owner occupied bids, so buying them as an investor is sometimes more challenging. If anyone reading this post has evidence to the contrary, please speak up.
Have you taken the CS course yet? All it takes is an hour or so a day for two to three weeks, and you’ll have several possible answers to the questions you pose. If you have no investment money, perhaps you know of a family member or friend who does. It’s a matter of convincing them that your real estate finds are great investments. The CS course tells you how to analyze a property to asess it’s income potential. You find a property you like, do the math, and submit the figures to a partner. You will have to split the profits but you’ve gotten your feet wet.
Look for properties for sale by owner where the owner is willing to finance. Sometimes their priority will be to get out from under a mortgage payment. This may supercede their need for a big cash down payment, especially if you can offer them attractive terms (check into the CS section about wraparound mortgages). Then it’s a matter of convincing them you are a good credit risk.Speaking of credit, work on it. Follow the guidelines Sheets sets forth. His credit building method is virtually guaranteed to work. Good credit is a tremendous asset.
Another logical place for you to look would be the lease with the option to buy properties. You can sometimes get into them with very little down (especially if you can convince the seller to accept property fix-up as a down payment). Then you can turn around and sub lease to a tenant and have them make the payments for you!Hard to beat…
Read all the articles on this site. I’ve found them to be an invaluable supplement to what I learned in the CS course. Good Luck