My .02 - Posted by Tony-VA
Posted by Tony-VA on February 01, 2000 at 14:55:51:
You may want to find a partner for the first deal. Find someone who wants to get huge yields on $4000. (That gives you some cushion for holding costs). You do the work, they put up the money and you split the proceeds 50/50.
On future deals you can simply borrow the $4000 from them say at 15-20% and you do all the work, but keep more of the profit. Before long you will have enough to do your own deals.
As for taking over the payments. I would caution you on this. I would encourage you to stick to the typical lonnie deal for now. With a lonnie deal you already have the manuscript on what to do and what not to do. When you start taking over payments, you are taking on a lot of debt, and typically the home is not worth what is owed on it. Too much room for error on these deals, especially on the first deal. Yes, I am sure someone has made money on these deals somehow, but for now, err on the side of caution and stick with Lonnie.
Your best bet to find an investor such as I have mentioned is by attending the Convention (it can’t be to far from you). You will hear lonnie speak in person and get to ask him these questions in person. You will also hear other speakers explain their different means of investing. These ideas may very well spark an idea for you. Other investors that attend these conventions would be happy to make 20% yield without any management headaches. You never know until you ask! I can testify that the information you receive at this convention will pay for the convention in the very first deal. It did for me last year.
Best wishes for your success,