Posted by SCoo85 on December 12, 1998 at 16:58:27:
I started this business with no money. My first deal was one in which I put down a $200 earnest money deposit on an REO. That one was scary I almost did not get it done. I didn’t get my mortgage approved until the day before settlement. I was to scared to call the private investor, but when I called him he asked a few questions and I had a mortgage. I rehabbed my first deal and moved into it.
All my deals to follow were flips. I found an all cash investor that was agressively buying and just started finding homes for him. I flipped 7 homes to him at $1000 each.
I found my sources for financing by asking other investors where they get there money from. They all don’t give out there best sources but they almost always give me someone. I was also told to call settlement attorneys and ask them if they knew of anyone who might be interested in funding my deals. I did this and it worked well. I got a few more leads that way.
I don’t know if I have a favorite kind of deal. I guess flips are always exciting. I’ve done a few paper deals, I’ve retailed one home and am rehabbing 2 as we speak. I want to start making bigger money but am finding that rehabs are headaches. Flips are quick easy money hard to beat.
My goals are to continue to do a lot of flips while getting much more involved in the paper business (creating my own notes). I’ll probably have 1 or 2 rehabs going at all times.