Posted by js-Indianapolis on July 29, 2003 at 02:33:45:
Go read it again, and see what you come up with.
College Student looking for advice - Posted by Craig
Posted by Craig on July 26, 2003 at 09:06:55:
As a financial services major, I have gained a strong interest in REI. I have bought many books and read this and other websites for information, yet I feel that I do not have enough information to get started. I would be interested in hearing how others got started, their initial fears, and what type of transaction (flipping, etc.) would seem logical for a beginner. I realize that everyone is diffrent, but in terms of complexity what type of transaction should a beginner focus. Thanks to whoever responds, I appreciate any advice or help you give.
Re: College Student looking for advice - Posted by js-Indianapolis
Posted by js-Indianapolis on July 27, 2003 at 22:36:15:
OK, I’m tired, but will answer this quick.
“financial services major”
forget most of what you’ve learned. You’re stepping into a strange place, called the real world. Worse yet, CREATIVE real estate. Conventional thinker may exit using either pair of exits.
“I have bought many books and read this and other websites for information”
Good background info, and a starting point for sure. Knowledge without application is useless knowledge. Once you start doing it, is when you REALLY learn something. Never before.
“yet I feel that I do not have enough information to get started”
You’re never going to know it all. You’re not going to succeed with the first person you deal with. You’re going to look like an idiot with a seller at some point. That being said, get started failing soon. Fail early, and often. It becomes less painfull, and less frequent with time. Start with listings in the paper. They’re the people who are too cheap to use a realtor, or have no motivation or equity. Crap leads to start with, so when you “waste” them with a stumbling q & a session that goes no where, you’re not losing anything important.
“I would be interested in hearing how others got started, their initial fears, and what type of transaction (flipping, etc.) would seem logical for a beginner.”
I started by borrowing C Sheet’s material from a friend. I was afraid I would look like an idiot in front of a seller, trying to do a partial owner carry back with seller refi yadda yadda that I had never tried. Attempted it, and promptly looked like an idiot. Figured this stuff doesn’t work, and quit for about 7 years. Regret every second of that now.
Saw Sheet’s ugly mug one to many times on late night TV last year. Figured, well, it’s gotta work somehow, and I bet the internet has all the goods. Found this site, read for 36 hours straight. Found a junker and flipped it via double close about 6 months later. $11K net profit. Not bad, for deal one. I figured I could get used to this.
So that’s my story. Well, part of it. Don’t think you’re going to get rich quick. Those who do “Forrest Gump” their way into a shrimp boat deal. It can happen, but it’s not the norm.
So finally, here’s a little quiz for you. If you take a home Sub to for $145K, FMV of $150K, and the owner pays you $10K to take it, you get $150 a month positive cashflow for 36 months, from a tenant buyer who put $5K down, and cashes out at $170K, what is your return on investment? An experienced investor could answer this in seconds. Can you?
You can email me, and I’ll help you out, if you can answer my last question. No, I’m not looking for $$, just want to help a brother out. For the record, I’ve got 11 months in the business full time, so I’m no pro, but I do remember what it is like to be new. I have a soft spot in my heart for us poor souls who went through college finance (I graduated with an accounting major).
ps. Don’t go full time right away if you like steak. I’m pretty darn sick of burgers and chicken after nearly a year.
Re: College Student looking for advice - Posted by Ryan_MO
Posted by Ryan_MO on July 28, 2003 at 23:23:43:
Would that be a ROI of 31.3% over the 36 months the home is leased?
Ryan_MO - fellow college finance major