I’m surprised you paid $6k for the course. I recall as being only about $300 bucks, without mentoring program. Course is beggining of an outline. He is a good teacher and he does give hope, but read other material as well. Also, check out some lenders that will do properties at 65% of the current “as-is” value. YOu need to be able to buy the rehab subject property from the current owner and “perform” if you want to get a contract signed by the seller. You may need to be in a position to rehab the subject yourself if you can’t flip the deal to a rehab investor. That’s why you must buy with enough equity in the deal from day one, so you build in a profit for yourself from the very beggining. Remember,you need generate a built-in profit AT THE BEGGINING of deal, not the end, and at the end is when you HARVEST your profit.
So my advice is very basic. Think like a rehab investor, where you are not willing to pay more than 65% or 70% of the current “as-is” value. Line up some hard money lenders, just in case. YOu can’t sell the deal to a rehab investor if there is no deal to sell in the first place! By thinking like a rehab investor yourself, you will have built in enough “margin” into the deal that the deal is attractive. If you can’t flip the deal to a rehab investor, the deal should be attractive enough in itself that you can carry out some of the repair work yourself and be the rehab investor yourself in effect. In other words, the deal has to be attractive, from a numbers point of view, so worst case, you can rehab the property and retail it.
It can work, yes. This business is MUCH easier with good credit and some cash. But you can buy houses no down. Just be careful. Some “free” houses are NOT good deals and will make you broke.
My personal preference for newbies is to start out flipping (also called wholesaling). Get a property under contract then assign the contract to another investor for a fee, usually 1-5% of the price. Little risk, little cash out of pocket, fast cash. Use the profits to clean up your credit and then build cash basis to get in on the more profitable deals, whereby a flipper is flipping YOU the property.
I shelled out a pretty sum for the Carleton Sheets course - over $6k - and I fully intend to get this back. Wholesaling looks enticing…but what if I don’t find another investor to take over the contract and I’m stuck with it! any advice on how I can assure finding another investor? they say join an investor club in my area… is there any other way?
would appreciate any advice thrown my way.
thanks. Roz