I like what you said Miss B
The only thing I would add is that he should start fixing his credit (and I don’t mean going out and getting charge cards)
Also start saving some money. Every little bit helps.
Read “The Wealthy Barber” It is pretty simple but has some good points, and it is cheap.
You need to be in the position to move when the deals come up.
The really good deals will not wait for you to organize your finances.
So the best thing to do, when you are not in the position to act, work on getting yourself in position and learn as much as you can.
What is the most effective advice that someone can give to a man like me who is a Christian; an honest man starting over again at 44; married 23 years; has six children (who need to learn to invest in real estate); broke; living in a travel trailer in the back of my Katrina damaged home; and who has a sincere desire to be a real estate investor but has been so busy with this thing called life that he didn’t take the time to read the books that he should have but is now trying to catch up? I also want to add that I know I am truly Blessed to be in the situation that I am in, because some don’t have it as good as we do, most of our home is still standing. Do I really stand a chance at making some real money in real estate? A lot of people make a lot of promises, but can it seriously be done in a reasonable amount of time? Point me in the right direction please. Thanks
Honesty is good. My advise is to build up a cash reserve via doing “assignment deals”. Go to the worst section of town,and look for houses in terrible condition. Try to get these deals signed up from the seller. Be sure that you can get a property for at least 65% of the “good value” of something that would sell normally in that area. Know your local market and prices. Do your homework. Once you get a couple of properties in bad condition at 35% below fair market value, sell the deal,not the house, to a rehab type investor that will actually do the work of fixing up these properties. Your margin is less, but your exit strategy is clear up front: you’re selling the deal, not the house. The rehab investor fixes it and actually sells it to a retail buyer. Once you have raised enough cash from these “assignment” style deals, use the cash you’ve generated to buy rental properties. Use the good rental properties in better quality neighborhoods as your cash flow machine. But you need to generate cash first before you generate cash flow. Read Peter Conti and David Finkel’s books. Look them up on amazon.com
Re: Wanting to get into real estate but broke. - Posted by Ruben (KCKS)
Posted by Ruben (KCKS) on May 28, 2006 at 18:50:25:
Rodney,
Look at the Mobile Homes section of this web site and I think you will find what you are looking for. Lonnies Books are worth their weight in gold and it will not break the bank to purchase them. Good luck and I hope to see you post on that portion of the site.
You can certainly make money in real estate. I read the Carlton Sheets course several years ago not long after purchased two multi family homes. One was financed by the seller. It is tougher when you don’t have capital or good credit, but you can purchase properties with no money down and there are sellers who will finance. You will have to look hard for properties, but they are there. Just remember, not everyone is honest like you. Do not make decisions based on faith alone. Make them based on research and realistic analysis of the numbers. You may be able to get a copy of the Sheets course (there are others also )and other real estate investing information at your local library.
Do an internet search on real estate investing clubs in your area. See if you can find one to attend. These are the best for meeting local people who are doing all aspects of investing. In our area we have several, and a couple of them have resources that you can rent, ie books & tapes of the “gurus.” Also check the ads in your newspapers. Call the fixer upper ads. Many of them are offered by other investors, who would be a great source of local information for you. Start getting all the education you can, but don’t spend a fortune doing it. I went to Barnes & Noble several times and sat there reading real estate investing books for hours without spending a dime. I don’t have much money either, but am on the road to success through education.
Good investing.
Miss B