I too am a newbie, but from what I’ve learned if you’re talking about wholesaling/retailing, the holding costs (what you’re talking about) are built into your offer. Also, I’ve found that if you buy a property and have a difficult time unloading it to a rehabber or if you rehabbed it, to an owner, then you probably paid too much or you bought something in a warzone or both…if you’re not embarrassed by your offer, you’re offering too much…in any event, don’t let this fear stop you, i’ve let the fear control me for the last 7 years…i’ve gained a ton of education in this business, but it took till now to “get the train out of the station”…I’ve sat back and read success stories, one after the other, and did nothing…the only way to succeed is to just do it…at least that’s how i feel…anyone out there feel free to correct me…thanks.
I’m really intrested in REI and I get motivated everytime I visit this site. I plan to start investing this year, even though I still have a lot to learn, but trust me I’m working on it. I’ve read about people that don’t put any money out of their pocket to buy these properties, and my question is, what can be done if you buy a property and for any reason you don’t get to sell it in a reasonable time, do you have to start making payments on the property or do you make a deal with the bank untill you sell the property. The reason I’m asking this question is because I do not have enough money to cover for a payment like this and I really want to start investing but if I encouter a problem like this I wouldn’t know what to do. Remember, I haven’t start investing yet and I don’t have any knowledge on this subject. Any information on this subject will be appriciated. Thanks.
I think that you are thinking poorly here. Why would you ever buy a property that you were not SURE you could sell right away for a profit? If you do that you are gambling, not investing, in my view. Don’t do it.
So how do you know for sure that you can sell a potential property purchase right away for a profit? You have to know the market value of properties in your investment area very well. You have to be an expert on them. When, and only when, you are, THEN you start thinking about buying. Not before.
Motivated is a driving force, not a guiding force. Motivation can drive you to great success or over the precipice to investment death. Having motivation is probably necessary to be a successful investor. However, as the scientists say, while it is a necessary condition, it is not a sufficient condition for success in real estate investing, in my view–and those of many other people who post here on the CREONLINE.COM website. You also have to have “guidance,” or direction, or a plan, or a roadmap. You have to know what you are doing.
I’m glad to hear that you are studying furiously. I think that it is possible that you MAY be able to buy a property before the end of the year. But don’t be surprised or mad at yourself if it takes longer than that to buy a property that you know is worth more than you are agreeing to pay. In my advice to beginners (put “beginners success” into the search function at the top of this main board of this CREONLINE.COM website) I suggest that studying for 6-18 months before starting to buy is reasonable.
There is no reason, in my view to rush. Study then buy. Then study more and buy more. Even after over 20 years of real estate investing, I still study it. So do many successful real estate investors, judging from their comments here and when talking to them in person.
For Starters ? Don?t Look for houses ? Look for Sellers with Problems. Once you have found a seller with a problem (a motivated seller) make an offer to purchase their problem (for a discount of course) subject to your escape clauses - with the closing to occur in 30 day?s. If you don?t locate a buyer in that time you don?t close with your seller?
If you do YES YOU have to make the payments because His PROBLEM just became YOUR PROBLEM!
There is a lot of information on this site? so dig in and start reading.