Posted by charlie on January 02, 2001 at 21:45:27:
you start by finding a good broker in the area your interested in you can set up an account listing the town and they will send you daily emails with new listings that go on every day in the mean time you should get preapproved for as close to what you want like a three family with the aproximate cost and all info you want to add just get approved for the house you want to buy then find it you dont have to buy exactily what your approved for ive found 10 percent down with income verification and 10 percent with rehab money too as long as you can create equity dont go to a bank use a mortgage broker one who dose comercial mortgages they a more experenced in investor mortgages if you have any more question fell free to ask i own for multifamilies and im allways learning too tell me what you own and how you got started and where you want to go with realestate it will help me understand your situation
Posted by jabdel on December 20, 2000 at 10:51:57:
Hello Ed,
I am interested in REI. The more I read and the more seminars I go to, the more excited I get. I have been thinking about starting this business for a couple of years but for some reason i haven’t. I am 27 and have a household income around 90k. I live in Dallas, Texas. My credit rating is in the 700’s. I want to be able to use my good credit to my advantage in this business. I have been looking for private investors but no luck yet. I finally decided, “I’m going to do this on my own”. The only problem I have is limited hard cash (lots of bills and a high maintenance wife). I know I will be successfull in this business because I am a jack of all trades when it comes to remodeling homes. I am not going to hire contractors to do the work and pay them thousands of dollars. The labor is the most expensive part of remodeling not the materials.
Do you have any advice for an ambitious, ready for some hard work, lets make some real money, beginner?
Re: Looking for advice - Financing - Posted by Ed Garcia
Posted by Ed Garcia on December 20, 2000 at 11:38:01:
Jabdel,
After reading your post I have a question for you. When you mentioned the high maintenance wife, I hope were not married to the same women. LOL
Jabdel, you are ready to go. You have the income, credit, and are talented enough to save yourself money on fix up cost. I agree, labor in most cases, as well as time, ( contractors don’t always do or finish jobs when they say they will) are a major consideration.
You’re coming into this game equipped better than most; it’s a matter of DOING, NOT TALKING. I find that investors with your circumstances have a hard time getting started because of NEED. They make a good living doing what they do, and therefore some how either don’t find the time to find deals, or make excuses as to why they’re not looking for them such as, I don’t have any money (smile). PROCRASTINATION seems to be the enemy.
I’m sure you know that if you need some help in landing your deal, you can come to this board and there are many knowledgeable people here who will be happy to help you.
So after saying that, I only have three words of wisdom for you, JUST DO IT.
Re: Looking for advice - Financing - Posted by jabdel
Posted by jabdel on December 20, 2000 at 12:26:32:
You are right, I am procrastinating. I just need to learn as I go, but I would like to have some creative realestate knowledge before i start. I hesitate to start because I am unfamiliar with buying and selling homes. Can you recommend any good books to learn the process better and to be able to create the contracts.
Re: Looking for advice - Financing - Posted by Ed Garcia
Posted by Ed Garcia on December 20, 2000 at 12:36:24:
Jabdel,
I think the best thing you could learn at this time is, DEAL STRUCTURING. You mention NO MONEY DOWN DEALS. They normally don’t present themselves in that manner. We as investors have to cultivate a deal to become a “NO MONEY DOWN” deal.
Jabdel, you’re in an excellent position to do that, because you have excellent credit. I think if you hang around this site, read the How-Articles, Success Stories, and spend time on the news group, you’ll pick up all you need to learn, the language, concepts, techniques, etc. But you need to go to the STREET to learn your market, and develop deal making instincts.
On my section of this site, I try to emphasize BORROWING POWER. Financing is the key to all deals unless it is a true cash deal. Lease Option, is just a form of financing, Seller Carry-backs are essential in most 100% financed deals.
Jabdel, welcome to our site, and I hope you become a regular.
Re: Looking for advice - Financing - Posted by charlie
Posted by charlie on January 01, 2001 at 16:33:05:
try being creative buy in a lesser expensive are do a fha 203k rehab the 3 percent can be from relatives and the closing costs can be rolled in plus you can probably pay your self with the rahab money my personal recomdation would be to stick to you budget dont fall in love with you first house it business
Great advice. The houses i am interested in buying range in the mid 20’s to the mid 30’s. After remodeling they are worth 50 to 60. Still resonable to sell. i can’t do a FHA because i used that on my first house. Here is my question. What are the basic steps to buying an investment home? Do i go thru a real estate agent? do i go thru a bank? or do i use a mortage company for a loan. What if the house is HUD or listed by a realator? I hope you can help