Posted by Sean on May 07, 1999 at 22:10:18:
People who place ads saying things like, “I BUY HOUSES, any condition, any neighborhood…” etc., etc. are good ones to contact. Find out how much they pay for help in locating houses.
I understand $100-500 is the going rate. Even if you only find one every other month it’s a good start not only to educate you about what houses are worth buying but to provide funds to help you purchase the courses you’ll need to get.
Sorry to hear FCNB didn’t work, try http://orchardbank.com/ or good luck on finding other methods to improve your credit.
Beginner Seeks advice from ALL the REI’s here… - Posted by Christina
Posted by Christina on May 07, 1999 at 04:41:24:
Hi everyone,
I’m looking for advice on how to start in real estate investing, from people who have been there and done it. I have poor credit and very little money to spend…I’d like to know what the different pros would recommend.
Please feel free to e-mail me…I’d appreciate it. I’ve read many of the articles on this site already, and know that this is a career I’d like to have, and would be good at,if only I can get a start.
So, how can I get started with:
Bad credit
AND
nothing to spend
Re: Beginner Seeks advice from ALL the REI’s here… - Posted by Bud Branstetter
Posted by Bud Branstetter on May 07, 1999 at 17:01:21:
Christina,
I’m not one of those guru’s that say it is easy but it is getting easier. There are those nothing down deals out there. I was over at a friends Tuesday after doing a foreclosure for him. He got a call from a lady in town that had a rental property she wanted to get rid of. We discussed approaches of L/O and taking subject to. She had been calling the other I Buy Houses ads only to be told that she didn’t have enough equity. He did buy and could have bought nothing down. Instead he paid cash because he had money in the bank earning less than the mortgage interest rate. He will probably only net 12K.
L/O’s are generally easy to get in with little or none of your money. Flips are the same way. Make a little money and do a Lonnie deal with the cash. You don’t need it for the next L/O or flip. These deals do take knowledge and work. If you don’t make offers you will find it very difficult to get a deal that will make you money.
Get Ron Legrands book - Posted by Steven
Posted by Steven on May 07, 1999 at 10:25:58:
“Fast Cash with quick turn Real Estate” I hate to
sound like a salsman but it will help you figue out
which part of the biz you like before you spend
your last $300 on a course that isn’t practical for
you. Just a thought.
Steven
p.s. you can get the book for about $13 at amazon.com
Re: Beginner Seeks advice from ALL the REI’s here… - Posted by Barbara (ME)
Posted by Barbara (ME) on May 07, 1999 at 10:18:56:
My advice is to start with the Lonnie deals, not end with them. There’s gold in them thar hills!
Barbara (ME)
Ok - Posted by Sean
Posted by Sean on May 07, 1999 at 08:16:49:
First of all, fix your credit. This is done by paying everything on time and keeping balances on your credit cards low.
If you don’t have a credit card go to http://www.fcnb.com/ and you can get a secured credit card for only $100.00 deposit. Just every month charge $25.00 of groceries on it, then immediately pay it off.
Seek out people in your area that rehab properties. Begin to “bird dog” for them. That is, you find them properties that need work, and if they buy them they’ll pay you $200.00. As you continue to bird dog keep careful track of what properties they will buy and what ones they won’t.
You can then graduate into flipping. That way you’ll contract to buy the property and then sell your rights to the same person you’ve been bird dogging for. That should move you up into the $1,000-$2,000 a house business.
From that you can move up into contracting for a house and fixing it yourself. That should move you into the $10,000-15,000 a house range.
At that point you’ll probably figure out that you’ve gotten yourself a job in the real estate industry but you’re still not financially independent. So you’ll branch out into converting some of your rehabs to rental units.
And that’ll be nice because you’re bringing in cash flow but it will take up more and more of your time until you realize that you’re trading the job of a rehabber for the job of a landlord.
So then you’ll just sell all of those on contract or lease-option them and sit back collecting the checks and wondering what to do with the money. Then you’ll probably branch into buying notes like John Behle or doing Lonnie deals.
That’s kind of how I see success in the real estate industry. Anyone else have a different vision?
Re: Get Ron Legrands book - Posted by Rick_(MD)
Posted by Rick_(MD) on May 07, 1999 at 17:36:43:
Or you could always go to one of his “free” seminars. As I understand the book comes free with the Quick Start, Fast Cash Workshop.
Try calling 800-496-1874 to see when one will be near you.
Re: Get Ron Legrands book - Posted by Christina
Posted by Christina on May 07, 1999 at 16:51:06:
You don’t sound like a salesman. I’ve been wondering which book to go out and buy, instead of sinking money I don’t have at the moment into an expensive course. I think I’ll go by the bookstore later and take a look and buy it.
Thanks for responding,
Christina
Mobile Homes are a great way to go - Posted by Barbara (ME)
Posted by Barbara (ME) on May 07, 1999 at 17:34:14:
Yes…see my success story on this site and I also went on to do more. As I have said on this site, I like having the control and not having to worry about appraisers or mortgage loan officers, or tenants, etc.It really is “my” business!
If you decide to do this, by all means buy Lonnie Scruggs’ books on this site. They are invaluable. Just do exactly as he says and you will succeed. The best of luck! It is a great way to make money.
Barbara (ME)
Re: Beginner Seeks advice from ALL the REI’s here… - Posted by Christina
Posted by Christina on May 07, 1999 at 16:48:57:
I seriously thought about mobile homes, too, since they’re far more economical than regular houses, and it won’t be quite as big a financial risk for me at first.
Have you successfully bought and sold MH’s?
Thanks for answering my question.
Christina
Re: Ok - Posted by Christina
Posted by Christina on May 07, 1999 at 16:45:42:
I understand that I need to fix my credit by paying off bills on time, but that in itself is one of the reasons I want to get started in REI very quickly - we really don’t make enough money to cover our bills on time. I’m trying to find work right now - a JOB as I’ve seen it written here - to help pay off the bills.
I went to the credit card website you suggested and it’s only available in the United States. I should’ve mentioned that I live in Canada. There are secured credit cards available through banks here, but with a very high downpayment necessary, I’ll have to save up for a while before I can go get one.
I do appreciate very much the suggestion about becoming a bird dog for some rehabbers in the area. Would those people who place ads: “I Buy Houses for Cash” be ones to contact? Or how else do you think I could find people to ‘bird dog’ for.
Thanks for taking the time to answer my questions. Please keep in touch – I really would love to keep in touch via e-mail with a number of investors who can help me as I go.
Christina