Posted by Paul on February 14, 2001 at 24:16:38:
Where do you find these things?
start-up money - Posted by Brett
Posted by Brett on February 12, 2001 at 15:02:22:
I’m a new rei. I haven’t bought any properties yet; reason being i have obsolutely no down payment money. I have been talking with several real estate agents, and loan officers about my situation. It seems to them that because I have no money for a down payment that I have little opportunity in my area (Milwaukee, WI). What would be a better situation to look for. Should I focus on having the seller take back all financing? Or, should I take out a mortgage for a down payment? These are the two that I’m having a hard time deciding between. I want to leverage myself to the fullest but, I don’t know the best way to go about doing it. Currently I don’t have a property in mind because I have a feeling that I need to know where the money will be coming from before I venture off into the the marketplace. Thank you to anyone that responds!
Don’t worry about money, find a deal! - Posted by Tony James
Posted by Tony James on February 13, 2001 at 24:19:14:
This web-site is about doing deals without money or credit. I read somewhere if you can’t make money without money you can’t make money with money. It’s all about networking. Connecting sellers and buyers and taking off a chunk. Get your buyers lined up. Marketing is the key…let everyone know that you buy and sell. I was a newbie last year and have made over $100,000 no joke, I have no reason to lie to you. Worrying about having money and credit is holding you up. FIND A DEAL!!! It is a sellers market. There is more people then property. People want to give you money for your money management skills. There are rich people who want to make money off of their money, and will give it to you. I am probably not making much sense, it’s because I been where you are and I am seeing how far I have come and know where you can go. What I mean by find a deal is…
1 learn your area, how much the houses are selling for in your area, called the “FAIR MARKET VALUE” you can check the articals to find that out. Once you know the fair market value of a house, when you hear about a house being for sale, you see if it is lower then the FMV. For example a house for sale at 55k but it needs work. After fixed up it would be worth 100k. And it would cost 5k to fix up. Thats 60k investment. 40k equity in it. That is a SUPER DEAL!!!
After you found a deal, step 2…get the property in a contract, that gives you the power to do business. and this is where the skill comes in at, you want a deal to meet your needs. So now you need someone to invest the 60k, this is where your hard money investors come in at. Make an offer to them like…I have this place having 40k equity we can split the profit. They send the 60k…you pay the 55k and use the 5k to fix it up, sell it for 100k, making 20k profit. it sounds easy becuase it is. It just takes allot of footwork, and networking, and the internet makes it easier. A matter of fact, find a deal, get it in contract, and if the deal is good enough I am willing to invest. If you have any questions e-mail me
Re: start-up money - Posted by Tony K.(Miami)
Posted by Tony K.(Miami) on February 12, 2001 at 19:48:47:
Hey Brett, I guess you are on the other side of the boat because I am in the same boat. I have called several mortgage brokers and some have not been willing to even listen while others have been very cooperative. I was really surprised because I went to my bank and told the loan officer that I was looking to get a loan and was looking to see what was the most they would loan and when she told me 97% I mentioned that I have asome realestate brokers that are willing to laon me 100%, she said she would look into it. Especially since I told her that I would be ecstatic with $100 per month per unit. Of course we are also talking about someone who has been working in a bank for who knows how long and doesnot believe in investing in anything that is not guaranteed by either the FDIC or US government. So I find that I have to remember that when I talk to these people maybe you should to. They are still thinking the old fashioned way and not trying to think creatively, maybe it will wear down their brain(Have not figured that one out yet?). Just keep on looking. Have you thought about partners, right now is thhe time with everyone that is an investor is looking at their losses in their stock portfolio from last year and a lot are looking for other investments, start asking around. Well that is all this Newbie has for another Newbie. Take care & Good Luck to you.
Re: Don’t worry about money, find a deal! - Posted by Erik Bergerud
Posted by Erik Bergerud on February 18, 2001 at 02:05:15:
Tony-
Hello from Northern CA. I am a beginning REI who
just read your reply on creonline. I am beginning
to find deals in my area and am still in the
process of lining up investors. If I were to find
the deals and if the numbers checked out; would
you be willing to invest? How much and how fast
can you go? If I presented deals that were beyond
your means, do you know of investors who can supply
the cash?
Re: Don’t worry about money, find a deal! - Posted by Kiel (ga)
Posted by Kiel (ga) on February 17, 2001 at 09:58:14:
Mr Hooks forgive me if I sound ignorant but I thought
most abandoned homes have no equity. And if I find the
deals what is your price limit for financing?
Re: Don’t worry about money, find a deal! - Posted by Keith Hooks
Posted by Keith Hooks on February 14, 2001 at 14:41:13:
Is this an open invitation? I live in Washington, DC, home of abandon properties. There is so many opportunities here, but, like Brett, I am a newbie to this. Any help you can give will be appreciated.
Keith Hooks
Hooksrehab@aol.com
Re: start-up money - Posted by Scott Az
Posted by Scott Az on February 12, 2001 at 21:18:55:
Start up money?
I’m a newbie as well and havent done a deal yet but if I were you i’d do deals where I could get in for 0 down. Look for lease options and try to do some flips, thats where I’m focusing my energy. Just my two cents
Re: Don’t worry about money, find a deal! - Posted by Bob (Md)
Posted by Bob (Md) on February 17, 2001 at 01:25:35:
Even though they say you make your money when you buy the property, you don’t REALIZE the money 'till you sell it. There’s no market for rehabbed housing in war zones. Parts of Baltimore are like N.E. DC - you can literally buy townhouses for $3-5k. But even if you fix them up, nobody wants to live there so you end up with a pretty house you can’t sell. Guess who makes the mortgage payment on that baby? Remember, you want to buy the worst house in a good neighborhood, not create a dollhouse in the middle of a war zone.
find the deals…money will come - Posted by George
Posted by George on February 13, 2001 at 02:08:04:
If you find the deals, I bet you will find the investors.
Just this past week I happen to find a huge possible deal, I may have the chance to get several properties 50% below appraisal (same owner). In about 24 hour I found an investor willing to put his money and resources to make the deal happen.
Altough we are still in the initial negociations, I can tell you that money always come if you have the right deal…
If this deal does not come through, I already know that I can find an investor if I find a deal to big to handle by myself
Re: Don’t worry about money, find a deal! - Posted by Keith Hooks
Posted by Keith Hooks on February 20, 2001 at 16:58:06:
What about section 8, public assistance and low income housing could this possibly be an avenue for these homes?
Re: Don’t worry about money, find a deal! - Posted by Keith Hooks
Posted by Keith Hooks on February 20, 2001 at 16:49:21:
What about section 8, public assistance and low income housing could this possibly be an avenue for these homes?