Posted by Brent_IL on August 25, 2003 at 11:21:50:
DO NOT USE YOUR MOM’S PROPERTY FOR ANYTHING. LET IT BE.
You want to make a deal because you?re excited about the possibilities, but you don’t know enough to prevent a possible purchase from going south. This is not a reflection of your character, but simply recognizes the time that it takes to learn to locate, negotiate, and finance good deals.
Ron Starr says to study for a year before you make your first offer to lessen the likelihood of a crash-and-burn. I?ve never read anything by Ron that would indicate that he doesn?t know what he?s talking about.
Posted by Ricardo Veiga on August 25, 2003 at 10:32:08:
I want to start on Real State but I don’t have any money,I showed my mom some stories from this site and got her excited,she has a house that has about 40,000 on equity(market value:155,000/principal balance:111.500 @ 7.25% 30 years paying now 1,113 a month)I was thinking on getting a loan on this equity and since she is going to move to other country in December I could lease the house and stil keep the house for myself,after 2 or 3 years get more money from the equity and still have a property,of couse she has to sign a quit-claim deed,which she said it’s fine since she will get her money from the loan to invest on 1 or 2 deal until December.Also,is it possible to by a house from a mortgage company who has a default owner for a bargain ?
I agree with Brent(IL)-----don’t use you mother’s house for investment purposes. Now, if she were to sell the house outright, the gain on the sale would be tax-free at the federal level. So, she would have cash that could be used for investing, if somebody who know what they are doing were to invest it.
I recommend expecting to spend 6-18 months learning about real estate, real estate investing, and the market where you plan to buy. Don’t spend money on properties before you have spent your time learning. You can read my advice to beginners by putting “beginners success” into the search function on this main board of this CREONLINE.COM website.
I doubt that you can profitably invest in one or two deal before December. You don’t know how much you don’t know. It seems easy when somebody else talks about making big profits on a deal. However, usually that just means that the investor has been at it for at least a few years and knows what to do and–equally important–what NOT to do in investing.
Sure, you’re excited about the big profits ahead. I was that way too when I began. Thought I would be a millionaire in three years time. Doesn’t usually work that way. Sure didn’t work that way for me. So, settle in for the long haul. Study up on real estate seriously. Plan to make you moves next spring. That’s my advice, anyway.