Posted by Dirk Roach on May 20, 1999 at 02:41:15:
Posted by Dirk Roach on May 20, 1999 at 02:41:15:
AHHHH, relief!!! - Posted by Brian in MI
Posted by Brian in MI on May 18, 1999 at 01:09:40:
Dear fellow future investors,
It is so good to know that many of you have the same frustrations as me. I always here about these “get rich schemes”, and the ol’ saying “there’s no quick way to make money” still holds a little truth in my book. I have yet to purchase any of the info-commercial or cd’s, however, I did attend Russ Whitney’s joke FREE seminar, but forgot to bring my vasiline with me. Sorry Russ, I don’t have an extra $3500.00 just sitting around. I have read about 10 books that I had picked up at the local bookstore on investing. They had some good ideas, but none of this, no money down stuff. I have found that you will always need some money, but maybe I’m wrong. Maybe there’s a bank out there that does charity work and just gives money to people who have no assets or money to put down. I have great credit, but no income as of right now because I am a real estate agent (only for 5 months)and to be eligible for income, you have to be an agent for at least 2 years. So, my question is, “What do I do first”? I have been farming the nieghborhoods for about 4 months now, searching the papers for FSBO’s, looking in the MLS system, but with no money to put down, and no income yet, what do I do? I have read almost all of the posted messages and have gotten some info out of those. So what’s next?
Re: AHHHH, relief!!! - Posted by Bill Gatten
Posted by Bill Gatten on May 18, 1999 at 17:57:04:
>>no income as of right now because I am a real estate agent
Hmmm. Is that a non-sequiter or an excuse? Maybe you’re confusing the term with “insurance agent” or “Yogi,” or something. Remember what Henny Youngman’s Mom used to say: “Henny…if it hurts when you go like that… you shouldn’t go like that.”
And too, if you honestly think it will take two years to make money in the Real Estate sales business, you either have a very bad teacher, a very bad commission split, a very bad territory, a near zero sales apptitude, or a Confidence Deficiency of major proportions (my guess is that none of those is true…your post is too articulate).
Thank about it: That transaction that throws you into the big money 2 years from now, will have opened and closed over just a few weeks… just like the first transaction you do, and the “next” transaction you will do. Why wait two years? There are dozens of these transactions looking for you right now, and you are as close to them as you will be to that biggee two years from now a month and a half before it happens.
“The no money down stuff (that which is obviously impossible to do)” has made more than a few millionaires on this board. Personally, I enjoy folks who are told what can’t be done… and who do it anyway, and then make money teaching the disbelievers how do it…despite its not be able to be done.
For whatever it’s worth,
Re:please explain - Posted by Irwin
Posted by Irwin on May 18, 1999 at 07:09:15:
Please explain what you mean by “…to be eligible for income you have to be an agent for two years”. What are you during the two year period, a slave?
Also, the answer to your question about finding the down payment is in two words: owner financing. I don’t see how you missed it in all your reading, especially on this site.
Re: AHHHH, relief!!! - Posted by ChuckSWMO
Posted by ChuckSWMO on May 18, 1999 at 02:49:11:
Establish goals. Do you want long term equity? Do you want quick cash, cash flow? Until you know the perameters you can’t play the game, even if you own the ball.
Be fore we walked we had to crawl. So it is in REI. Go find an FSBO where you can get in for nothing down, (beg, borrow or steal the down) and get your feet wet. Once you do, the next one becomes more simple. You start to get hyped and start to experiment with things you read and/or hear.
Ask for help. A senior associate at your firm may have more money than time. Do the legwork and let him/her fund the project. The clue here is to do something.
I bought CS’s course on 11-11-98 and closed on #1 on 01-06-99. #2 on 02-25-99 #3 on 03-11-99 #4 on 03-19-99 and #5 on 05-20-99. Both #3 and #5 were 100% financing through banks.
Like Nike says JUST DO IT.
Re:please explain - Posted by Brian W (IN)
Posted by Brian W (IN) on May 18, 1999 at 10:06:43:
I would also like to hear your answer to the question of why you need to wait two years in order to make any money as an RE Agent. I am trying to get my wife to become an RE Agent. The reason for this is because I am an investor and I would have her help me by getting access to the MLS and getting comps for properties which I am interested in. In turn, I would be helping her by having other investors purchase properties from her and when they are ready to sell, she could also help them. Also so that she can make more money than she is currently making in Retail.
Re:please explain - Posted by Brian White
Posted by Brian White on May 19, 1999 at 02:42:08:
First off, let me quickly explain my situation a little better for everyone to understand. I have recently just moved back to Michigan from LA. I love sales, and I am very good at it too. So I decided to go into real estate. Mind you, I have had my license now for merely 5 months. I don’t know many agents out there who exactly “boom” in the real estate buss there first year, however, there are some exceptions. Now, I don’t know how much everyone know’s about mortgages, but there are 3 things a lender looks at when approving a loan. One is the obvious, and that’s credit, which is good for me. The second is down payment. The third is income. Now, in order for a real estate agent, in Michigan, to qualify for a steady income, you must be an agent for a minimum of 2 years. Now, since I was in LA working as a bartender and doing a little acting on the side, I didn’t exactly have W2’s to file if you know what I mean. Since I have had my license for 5 months, I have sold 4 houses, none of which have been under $120,000.00. I am not making excuses for not having income, because I am making money in real estate as an agent, and I have a down payment. The problem is if I don’t show any income on a credit check, sure I can buy a house with just a down payment and good credit, I just need to come up with 25% to 30% of the loan which is not how I want to go about it. I know there are ways of getting around this obstacle, I just have to learn the tricks of the trade.
Now that I have told you my life story, maybe someone could help me answer my question.
What is my next step that I should pursue to enhance my goal in picking up some investment properties?
Thank you for your regards and responses.
Re:please explain - Posted by JPiper
Posted by JPiper on May 19, 1999 at 07:18:42:
First, as far as lenders are concerned, there are loans available called “stated income” loans. What this means is that the lender either doesn’t document your income, or documents it through looking at a couple of bank statements. If your credit is good, all you really need is a down payment (which you say you have) AND perhaps a seller willing to carry some portion of the purchase in the form of a second mortgage. The combination of your downpayment plus the seller carried second mortgage will give you the “equity” expected by the first mortgage lender. The combination of your downpayment and the proceeds from the first mortgage will give the seller most of their cash. Call a few mortgage brokers for details.
Second, this site contains numerous methods of buying/selling property using methods that don’t require bank financing, large downpayments, good credit, or 2 years on the job. I would question whether you have really availed yourself of the numerous free articles, success stories, or money ideas available here. That’s where I would start. There are two components to buying a property without a bank?..one is knowledge, the other is action. Sounds like you need to work on your knowledge. Study the free articles. After you have done this, you may want to acquire a few courses that deal more deeply with the particular areas in which you have an interest.
Continue to read the site. People are talking about transactions every day, many of which they have acquired without bank financing. Lease/options are one of those techniques. Another is the process known as “flipping”.