How should I get started in Real Estate - Posted by Roger


#1

Posted by Rob FL on October 28, 1998 at 21:23:42:

It would be pushing it with any seller to have them hold the paper with less than 10% down. On less pristine properties, I would probably try for a lease/option or use financing from another source. It really depends on the situation.


#2

How should I get started in Real Estate - Posted by Roger

Posted by Roger on October 26, 1998 at 13:39:13:

I been reading into this site for 2 days now and learned quite a few infomation. When I read the articles, I been giving many different ways of getting started. I am convinced that there two ways that would work best for me. One is buying low/ selling high and the other is lease option. (did I type those right?)

There seems to be a problem using both of them if I don’t have money to do it. If I were to buy a house I would need to find a mortgage broker to borrow money from, buy the house, do whatever repair needed, and try to sell it for a profit and pay everything off.

If I were to find a house to lease option, I need to find other people who would be willing to pay more per month and to buy the house at a premium. Now if I don’t have the money to pay for the first month rent, how can I pull this off?

It seems like there is no articles that can clearly tell me how to get started without using money. True it tells me it can be done and uses example, but am I suppose to try to imitate what someo


#3

Re: How should I get started in Real Estate - Posted by Rob FL

Posted by Rob FL on October 26, 1998 at 19:49:12:

Here is an idea for you. I just submitted an offer today. Seller to sell to me and hold mtg and I will resell on a lease option. To close by 11-23-98. In the offer, I asked the seller to give me a key in order to do inspections and show the property to prospects. I also put in that the first mtg payment will not be until 1-1-1999. If they take the offer, I can start showing the house to tenants this week and don’t have to make a single payment for 2 months. I will find out tomorrow if I bought a house.


#4

I’ll take a shot at this… - Posted by Soapymac

Posted by Soapymac on October 26, 1998 at 14:03:02:

and I will share what you need to do in three words:

  1. read

  2. Read

  3. READ!

You have already started to focus on what you want to do (buy low/sell high) and (lease option). Good for you!

Now…get your mind out of the box that it is in. I say that because the rest of your post mimics the conventional wisdom of thought about real estate purchases.

Now, to what you nead to do:

  1. read…the posts here…all of them…and concentrate on those that relate to doing lease options. You may want to print those out and start a “library in a notebook” for yourself.

  2. Read…all the “How-To” articles on this site. They get added to on occasion, and some of the Success Stories combined with them will be welcome additions to you notebook library.

  3. READ…and make an investment in the most precious thing you have…YOU! Purchase some of the courseware relating to lease options that are advertised on this board. Sure, money may be tight, but everyone else will tell you that your education in you is your own best investment.

And welcome!

Soapymac


#5

Re: How should I get started in Real Estate - Posted by Philly Dave

Posted by Philly Dave on October 27, 1998 at 07:42:07:

Hello, Rob:

Good luck with this transaction! Please post the outcome of this offer; it sounds interesting.

I have a couple questions.

  1. I am wondering if you needed to put any money down, or is the original seller (current owner) willing to accept 100% financing?

  2. What kind of “kick-out” clause did you use to protect yourself against the possibility of not finding an acceptable tenant/purchaser? Can you get out of this deal if you can’t get a Lease/Option contract signed (or an outright Agreement of Sale or Assignment)?

Thanks for any info you can provide. I hope this one turns out to be a money-maker for you.


#6

Read The Fine Material - Posted by Mr Donald (NORVA)

Posted by Mr Donald (NORVA) on October 26, 1998 at 18:53:21:

This site is a virtual goldmine of opportunity, if you just avail yourself of it.


#7

Re: How should I get started in Real Estate - Posted by Rob FL

Posted by Rob FL on October 27, 1998 at 22:04:14:

As for loopholes, I try to use as many as possible but I don’t want to show bad faith on the deal. I will always close if at all possible. I don’t like to string anyone along.

Well my liability is limited solely to my deposit money of $500 and didn’t even write out the check yet. The contract is fully assignable and my liability would be released if I do assign it. I don’t see any problem with finding someone to rent/buy the property as it is in a great neighborhood and in mint condition.

My offer is 10% down seller holds the rest, I only made this offer because the property is in mint condition. Spoke with the seller tonight, she gave me a counter offer. Will have to crunch numbers and get back with her but I feel good that we can make a deal.


#8

Re: How should I get started in Real Estate - Posted by Philly Dave

Posted by Philly Dave on October 28, 1998 at 13:45:15:

Rob, thanks for the response. I agree that it makes sense not to worry too much about getting a tenant/purchaser in this case since the location and condition of the property are so good.

One more question. When you said that you “only made this (10% down) offer because the property is in mint condition,” do you mean that you normally would have offered more or less than 10%? Based on the deals I’ve read about on this web page, I’m inclined to assume you would normally offer less than 10%, but you know what can happen if I “a-s-s-u-m-e” something (yuk, yuk). Would that be an accurate assumption?

Thanks!