I’m certainly no expert, but here are my thoughts:
“For example, there is a great house that is almost new and is being foreclosed on (builder is being foreclosed on) This house needs minor cosmetics and carpet. It’s only 2 years old. They are asking $94,900 and it has been on the market for months.”
– If this house only needs cosmetics and is such a great deal, why is it sitting for months? That would make me wonder. Around here, a house like that must’ve had 10 offers on it already. Now, I’m not saying you can’t do a deal here and make money - but be skeptical.
“Second, I decided to search MLS for L/O’s or owner finance deals. Everyone of them is requiring a large down payment and crazy terms. I would buy one of those as a rental house. But, since I have no money then there’s no deal.”
– I own one of Joe Kaisers courses and one of my favorite quotes from him on this board was something to the effect of: You don’t want to find people who have it all figured out already. IOW, don’t look for people who are offering L/O’s and carry back’s per se, because there’s a good possibility these are savvy investors who are NOT going to leave any money on the table for you. Look for someone who’s selling who’s desperate and offer a L/O or carryback as your solution - that’s how you make it work. REMEMBER: No motivation on their part means no deal for you!
As far as general advice on how to make it all come together, that I can’t give you. For various reasons I am not where I want to be in this biz either (but I know exactly why). All I can say is: Keep plugging away, believe in yourself and keep frequenting this site. Oh yeah, and don’t listen to all the idiots you’ll meet who say it can’t be done.
I’ve been trying to get my feet off the ground doing these real estate investments, but it seems like everytime I try to start one thing, I get thwarted. For instance, all of the fixer uppers I am finding are going so fast that I cannot seem to get my offers in in time. Even if I do, my estimates for repairs may be higher than what I can get in hard money. For example, there is a great house that is almost new and is being foreclosed on (builder is being foreclosed on) This house needs minor cosmetics and carpet. It’s only 2 years old. They are asking $94,900 and it has been on the market for months. The FMV is about 95-98. It needs probably a max of $5,000 in work. If I offer, say $75K, then I would be too high for getting enough hard money and repair money. I don’t have any money to put in of my own and I know they won’t accept a lowball offer.
Second, I decided to search MLS for L/O’s or owner finance deals. Everyone of them is requiring a large down payment and crazy terms. I would buy one of those as a rental house. But, since I have no money then there’s no deal.
I would love to wholesale, but I haven’t a clue how to get going. I guess the dreary weather today is making me insane, but I cannot figure out how to get going here. I even wrote an offer today and I am trying to decide if I should fax it. It is basically half price for a home that I know is going to the foreclosure sale in a couple of weeks. Maybe she will take it… who knows…
UGH! Someone pump me up or tell me something that will get me going. I am teetering on the edge of success and I need a good push! And please, no flames. I cannot take it today. I am waiting to pick up my new adopted little girl fron guatemala in a couple of weeks and I think the stress of that is making me paralyzed…
I’m no expert either, but I’ve read every post on this site for a month and you need to find MOTIVATED SELLERS not houses! Go through the archives on motivated sellers and call them: for rent ads, owners facing forclosure, etc.