I too am new to REI. I have completed the Sheet’s course. I am fearful of actually buying my first property. My problem is I am intimidated by real estate terminolgy and I worry about forgetting some detail in the offer and end up screwing myself. I suggest reading as much as possible about real estate as you can. I am reading as much as I can and am finding with each new book more and more confidence. This web site has also been a tremendous help. I have also read time and again that the most difficult property to purchase is your first. So once you break the ice it becomes more and more easy to do.
I want begin investing in real estate. I’ve purchased Carlton Sheets course and at best it has seriously peaked my curiousity. I have about $2k to invest, but I would like to learn and use no money down techniques.
Any suggestions on books, tapes, courses, etc.?? I would like to begin asap. In my study of Carlton’s course, I’ve come across several techniques, but I don’t understand how to apply them.
For example,
What is a wrap around mortgage?
What is a sandwich lease option?
How do I get the seller to finance the sell of the property?
Posted by Mark (SDCA) on March 13, 2001 at 14:02:48:
You need to choose the niche you are going to invest in. Will it be rehabs??? Flips?? Buy and hold?? Mobiles?? Single family?? Multi-unit?? Commercial?? Lease option?? Paper?? And so on…
Then at that point, you can pick a course which is VERY specific to what you are trying to do. Otherwise, you are just running around trying to learn everything about everything. You need to focus.
As for your questions…
A wrap around mortgage (also called a wrap or AITD or all inclusive trust deed) is a mortgage which “wraps around” the first mortgage. So the first mortgage stays in place, the new buyer pays the seller on the wrap and the seller pays on their existing mortgage.
A lease is merely an agreement to rent a certain property at a certain rate for a certain period of time. An option is the right but not the obligation to buy something at a certain price on or before a certain date.
A sandwich lease option is a set of lease options with an investor in the middle. SO for example, the investor would lease from the owner at 500 per month for 3 years with the option to buy the property at 100,000. Then the investor would sub-let to a tenant/buyer for 700 per month for 1 year with the option to buy the property at 110,000.
Get the seller to finance the property by asking…
Cheers,
I am also new to realestate investing and have also purchased the Carleton Sheets course. I have found his explanations to be easily understood however, I am having a difficult time determing exactly what the first steps are for someone who has good but little credit, no down payment cash and no experience in buying or selling. The course is simple to follow, but maybe I am just looking for someone to walk me through the first or maybe second transaction.
fearful, yet determined.
Your explanations where to the point and easily understood. As for my niche, I’m looking for both single family and multi-unit dwellings.