Posted by David Krulac on October 17, 2001 at 16:06:25:
Paul,
That’s excellent advice, perhaps you could write a success story and post here. You probably have experiences to fill books.
Thank you.
David Krulac
Expert in Real Estate has advice for you - Posted by Paul
Posted by Paul on October 17, 2001 at 02:54:51:
Credentials: 16 million in real estate assets, equity of 6 million, 180 units all my own stuff, bought and sold millions more, not an agent, an investor…
Keys to Success:
Education: you have to know your terminology, know what you are talking about, and you learn by asking questions. You have to seek out mentors, people who are doing it, agents who know what they are doing. You should read books on real estate, study them, look at actually deals, and learn how to do the deals.
Step one is lining up your financing…this is a critical part of real estate investing…look for multiple ways to finance the deal, from seller carry, to private money lenders and other sources than just banks. Find out what the restrictions are , what loan to value they will lend, will they allow junior financing(seller carried seconds) etc. Is there restrictions on how many properties you own, what type of property it is, what is it located next to (gas stations or other environmental things), Get your credit done, get qualified with a few lenders, repair your credit as best you can by challanging old or out dated stuff
Step two is finding deals, I like real estate agents that deal in volume, and deal in foreclosures if you have any in your area. The paper can be a good source, as is asking around. Sometimes you will find a seller who is retiring, selling off say 3,4 or more properties, and you can buy them one by one, or all at once,(most of you are better off to buy 1 and get a track record with the seller).
step three is funding the deal, perhaps the most challenging part. This is the school of hard knocks and they is not any better education, believe me. Fortunately real estate can be forgiving with time if you pay a bit too much.
Step four is either fixing it up for resale, renting it for cash flow, or just plain selling it for a profit.
The biggest mistakes new people make is not having any way to finance the deals, not looking for sources of cash to do these deals, sources of loans, and knowing the guidelines of the lender.
Be sure to use professionals for your inspections if yo udo not know what you are doing, and if it is all seller carried paper, check your values close, check comparable sales, call around to agents, get some help.
Lastly, dont be scared to go for it if you have a good deal. But if everything looks like a good deal, its not, and that means you need to study more and learn more before you go out. Researc the market and the area you want to work. New people are Best to STICK WITH RESIDENTIAL 1-4 UNITS !!!
Good investing.
Paul
Re: Expert in Real Estate has advice for you - Posted by eric
Posted by eric on October 18, 2001 at 09:40:57:
super post paul! i do remember you making an excellent post awhile back and hoped that would have made more but i’m sure managing your business takes quite a bit of time. i’m with david, share more if possible. thanks again!
eric