Re: Just Starting Out - Posted by Tim Fierro (Tacoma, WA)
Posted by Tim Fierro (Tacoma, WA) on February 14, 2002 at 10:58:48:
Kristin, you may get differing opinions because there are many types of investors, many different locations, many different purchase strategies, many different exit strategies, etc…
The ‘techniques’ will be very similar, but you have to find the techniques that work in your area. A Subject-To type of deal may work very well in an area with $20k homes as maybe the owner just wants to get rid of it. If you think about it, these types of homes have a value less than most people have in their car values. But a Subject-To deal may not work well with $500k homes if the owners have more of a fear of you actually making the payments. It will have to do with the motivation of the seller and their fears, and the buyer/investor’s calming and negotiating skills.
You will need to determine what areas of investing you like the best and start to learn a method at a time. Learn the ins and outs of it so you know it well, and keep learning other ways to also purchase. When you run across a seller who you can’t help, try to pass it on to another investor in your area who may be able to help.
Home equity loan to buy properties? Yes, that is one way to buy and to get funds, but make sure you have all your investing decisions making money so you don’t lose your own house in the process.
Your husband has questions? Excellent! It makes you sharpen your skills so you will have the answers. If your husband is asking, you may have sellers asking some questions too. Know your market area, and know your techniques and skills.
How much risk in flipping when you don’t have a buyer? That risk should be assessed before you purchase. If you know of buyer/investors in the area who look for a certain type of deal, then keep your eyes out for those type of deals. If you find a good deal, ask around to other investors if this is the type of deal they would do. You don’t want to buy a run down property real cheap, but have nobody to sell to.
Try to network with others in your area, maybe look to see if there is a club local so you can meet other investors in your area.