Semi-Newbie Needs Help

Hello,

My first time back in a long time. I’ve had some success with investing in the past (mainly with easy-assume mortgages), but I’m needing to start over in today’s world. I now have little cash and little credit because of twists and turns in life.

I’m presently paying rent and I need to find a place for myself, AND/OR for investment purposes. This, of course, would be “for starters,” but I would hope to get back into the “swing of things,” as well.

Please, I really need help. What are some suggestions: Lease-option? Multi-plex unit? Condo? Other?

Thanks!

You said it had been a while so welcome back. I had been a regular a long time ago and only came back recently myself.

Focusing on your situation…

What did you do in the past? You said you were assuming existing loans. Did you hold for a period, sell immediately or something else? What worked well and what was a waste of time back then?

What is your market like in terms of cash flow vs. the typical price? You mentioned condos, plexus and lease options. I assume you know how to run the numbers to see how the cash flow will stack up. What is your market looking like for condos vs. SFR or plexus?

You can do a lease option with any of the various types of property if that is what the owner wants to do. I see a lease option as a tool. If the fit is right, then use it. If the fit is wrong, it will not matter how bad you want to focus on lease options.

So, tell us more as it will help to narrow the choices that are possible in theory.

John, thanks for getting back to me.

In the past was when they had a lot of FHA/VA assumables, and this should give a clue as to how long ago it was. As for what I did, I wholesaled some of them for a profit, with some of them involving notes that paid me monthly. There were others that I rented. But my whole financial situation back then was different.

I live in Las Vegas, and the prices have come down. I could review the numbers, ect, but I’m basically having trouble thinking I can do much with so little that I now have. It’s not like I’m kicking back like Trump or some guy with a cigar going over numbers. I really haven’t gone over the specifics in the market that you asked me about, and I don’t know what I can or should try to do, if anything.

Two suggestions.

  1. CREOnline is running a summit this coming Friday, Saturday & Sunday. You will find a link on the page highlighting the event. Do you think you could afford the time and money (minimal money given you do not need a hotel room) so you could attend? There will be other investors there who you can talk to and see what they are doing.

  2. I am attending before I head back to London. If you do not want to attend the full weekend, we could get together at a break and grab a coffee/tea.

Let me know. The hotel details are on the site with the summit info.

I was looking at a post by Ed where he addresses how to get started. Here is a link to his reply.

http://www.creonline.com/forums/showpost.php?p=881475&postcount=2

John, thanks for the additional info which I’ll check out at this time and for your kind invitation. I have a lot going on right now and I don’t think I’ll be able to meet with you, but I am going to keep this in mind and if it works out where I can I’ll certainly let you know.

People, I would appreciate hearing from others on this also, thanks!

[QUOTE=martster;883825]People, I would appreciate hearing from others on this also, thanks![/QUOTE]

I dont know one person who has actually transitioned from any occupation into being a full time “investor” who hasent learned the skills to be a landlord. Furthermore, the laws in NV are heavily in favor of the landlord.

Under any other circumstances I would stop my reply to your post here;

but since your in LV, I would encourage you to go on any weekday to the foreclosure auction. Its at the Nevada Legal news, and its on 4th and Charleston. Most foreclosure auctions are boring and uneventful, so is Clark countys, but its special. A very very short time ago in Clark county NV, if you knew what you were doing, buying directly from the lender and reselling (after an eviction and clean out) was the fastest real estate money game in north america and possibly on planet earth. I know thats a bold statement, but if you figure out whats going on down there and you learn to abstract title, you will agree with me. No matter what happens, if you go down there, come back and post if you can even get a chair in the lobby.

[QUOTE=AmotoXracer;883828] buying directly from the lender and reselling (after an eviction and clean out) .[/QUOTE]

I should clarify, that you do not actually buy from the lender. Generally the lender is the only other bidder, so its just sort of seems that way. You actually buy from the “trustee”.

What strange advice. “Figuring out” what’s going on down there? “Abstracting title”? Do you really recommend trustee sale investing for anyone without a lot of experience in RE and a lot of cash to risk? I’m pretty good with title and I have cash and I don’t buy at sale. Too much competition in my farm and too risky for my purposes. Plus I can get the same deal in terms of equity buying directly from a seller.

You must know something about dropped minimum bids or crazy stuff that happened at LV trustee’s sales that we’re not privy to.

As for landlording being a necessary skill, I’ve been buying and reselling for 10 years as a full time gig and have minimal to no landlording skills. I have had some holdover tenants, but none of my dollars have come from buy and hold with tenants. Buy and hold is where it’s at today, but that doesn’t mean everyone has to do it.

Thanks, Kristine…

Honestly, I was a bit perplexed by this. Just to remind people, at this point in my life I’m like boxer who is very out of shape and trying to make a comeback. A more accurate description would be that I’m like someone working on the lower deck of the Titanic, coming onto this discussion of the upper class.

While “figuring out what’s going on” and “abstracting of title” may be great advice for the Donald, it’s like teaching trig or calculus in kindergarten. I don’t know how much of a chance I have at getting back into the game at this point in my life, but I posted this as sort of a last hope.

I just need some more suggestions on how to personally move out of my extended stay accommodations away from the roaches, while possibly getting back into the real estate investor/entrepreneur mode, as well.

[QUOTE=Kristine-CA;883833]What strange advice. “Figuring out” what’s going on down there? “Abstracting title”? Do you really recommend trustee sale investing for anyone without a lot of experience in RE and a lot of cash to risk? I’m pretty good with title and I have cash and I don’t buy at sale. Too much competition in my farm and too risky for my purposes. Plus I can get the same deal in terms of equity buying directly from a seller.

You must know something about dropped minimum bids or crazy stuff that happened at LV trustee’s sales that we’re not privy to.

As for landlording being a necessary skill, I’ve been buying and reselling for 10 years as a full time gig and have minimal to no landlording skills. I have had some holdover tenants, but none of my dollars have come from buy and hold with tenants. Buy and hold is where it’s at today, but that doesn’t mean everyone has to do it.[/QUOTE]

I didnt say it was impossible to make it without the landlording skill set, I just dont actually have any firsthand knowledge of anyone who has. Now your saying you havent been a landlord and do this full time, I dont have any reason not to believe you.
I wouldnt have said anything about the trustee sales had the original poster been in any other city anywhere, for the reasons you have stated, but he actually lives in LV, at least thats what his post says.
I mentioned abstracting title so you dont have to take me on my word. Public records speak for themselves.

@martster

The laws are heavily in favor of the landlord in NV. Its hard to beat a business model that has an advantage built in by legal structure.
You said you had some experience w/rentals, so maybe your looking for somthing different, if thats the case, Ive got nothing for you except suggestions that are just average and without any real competitive advantages, such as lease options which was mentioned.

Amotoxracer: You should get out more if you don’t know any successful investors who didn’t have to go the landlord route. :slight_smile:

I guess it’s who you know. Or maybe it’s where I live. But none of the REALLY successful RE investors I know personally are landlords or have been landlords. They are deal makers. They custom build or develop or divide or buy paper or lend or solve really big problems. I worked for 2 partners in the late 90s who are now retired. The did things like buy an oceanfront compound for 9M and sold for 18M six months later. They bought two thousand acres from an oil company on the coast. Then figured out how to pre-sell the beach front acreage so it would offset the purchase of the remaining land and then redeveloped the business that were on that piece (campground, horse ranch). They bought land and all they did was divide it to make millions. They weren’t rich kids, they just built their way up from small deals to bigger deals. Their skill set was 1) always seeing a yes where everyone else said no, and 2) they teamed up or hired the very best professional and creative help out there.

I was very well paid but quit working for them because I knew I’d never learn to do the deals myself unless I did them myself. I know lots of people like them. But again, maybe it’s where I live and what I aspire to. Volume land lording for cash flow is a special skill set and certainly not for everyone. That being said, today’s low cost entry to cash flow rentals will attract a lot of people that think they should be landlords.

Martster: I noticed in your original post that you mention condos or multiplex. IMO deals aren’t by categorized by property type but by entry and exit strategies. Since you mention wanting to buy a place to live why not set a goal to purchase a property with as little as possible out of pocket and that will pay for itself. Duplexes or a large SFH with possibilities for rental income. Don’t buy something until you are sure that that the income will pay for the property. This will give you some breathing room as your housing will be taken care of.

[QUOTE=Kristine-CA;883847]Amotoxracer: You should get out more if you don’t know any successful investors who didn’t have to go the landlord route. :slight_smile:

I guess it’s who you know. Or maybe it’s where I live. But none of the REALLY successful RE investors I know personally are landlords or have been landlords. They are deal makers. They custom build or develop or divide or buy paper or lend or solve really big problems. I worked for 2 partners in the late 90s who are now retired. The did things like buy an oceanfront compound for 9M and sold for 18M six months later. They bought two thousand acres from an oil company on the coast. Then figured out how to pre-sell the beach front acreage so it would offset the purchase of the remaining land and then redeveloped the business that were on that piece (campground, horse ranch). They bought land and all they did was divide it to make millions. They weren’t rich kids, they just built their way up from small deals to bigger deals. Their skill set was 1) always seeing a yes where everyone else said no, and 2) they teamed up or hired the very best professional and creative help out there.

I was very well paid but quit working for them because I knew I’d never learn to do the deals myself unless I did them myself. I know lots of people like them. But again, maybe it’s where I live and what I aspire to. Volume land lording for cash flow is a special skill set and certainly not for everyone. That being said, today’s low cost entry to cash flow rentals will attract a lot of people that think they should be landlords.[/QUOTE]

Yeah I do need to get out more. There is a shortage of folks around here that have a verifiable track record. Which is why I am so skeptical and cynical. In my opinion, you got lucky having a front row seat to anyone making 7 figure deals. Especially if that happens in the beginning of your investing career. There once was a time when I would have paid for that privlage. All that being said, Im not over here thinking the only path for the original poster is being a landlord, its not. Rather, I am just trying to come up with somthing (anything) that has a verifiable competitive advantage. Hes going to need it in LV.

Good discussion folks. I think it has helped to highlight there are different paths and the local market or local legal rules influence what might be the preferred path.

[QUOTE=Kristine-CA;883848]Martster: I noticed in your original post that you mention condos or multiplex. IMO deals aren’t by categorized by property type but by entry and exit strategies. Since you mention wanting to buy a place to live why not set a goal to purchase a property with as little as possible out of pocket and that will pay for itself. Duplexes or a large SFH with possibilities for rental income. Don’t buy something until you are sure that that the income will pay for the property. This will give you some breathing room as your housing will be taken care of.[/QUOTE]

Kristine, this is the sort of advice I was looking for. I would certainly buy with as little OUT of pocket as possible, because I hardly have anything IN my pocket to begin with. Also, I’m going to have to figure out how to do a land trust or something because of my credit situation and past problems.

Don’t confuse the situation with land trusts for christ’s sake (I can say that because I’m named after Christ). Your project has nothing to do with land trusts or credit.

Focus on finding a seller that has a duplex or property with additional rental space so there will be income, with or with out current tenants. Make a deal with the seller to give them very little cash now and they carry back the rest. Make sure the rental income will cover your taxes, insurance, utilities and payments to the seller. Live there and fix it up over time. This is like Sweat Equity 101 from the early 1970s. And from the early 1870s. Las Vegas is actually the perfect place for this. While the bulk of what’s on the market is REOs and short sales, there are also plenty of owners who do have equity but have a property that is difficult to sell. Find them. Target an area. Call every FSBO add. Call every rental ad. Write to every tax defaulted owner. Write to every owner living out the area. One of them has equity and wants to sell today, on paper…to you. Did I make it sound simple enough? :slight_smile: