Posted by Jason S on March 31, 2006 at 24:03:05:
Very Nice Charles.
Thanks
Where do I Start? - Posted by Hyana Mok
Posted by Hyana Mok on March 30, 2006 at 17:47:21:
My name is Hyana Mok and I am a new real estate investor and need help. I just completed a three day course with the Robert Allen Institute. After taken the class, I found a couple of ugly vacant properties in Sacramento but not sure if I should pursue the project. The area has a high rate of prostitution and drug dealers but the property is so deterioted that I can probably get it for less than $100,000. I went online to look for comparable prices and the homes in that particular area are being sold from somewhere between $250,000-$350,000. Im really lost and need help. Can somebody tell me whats the best way to go about this situation? Thank You I would apprciate it.
Re: Where do I Start? - Posted by Edd
Posted by Edd on March 31, 2006 at 01:58:11:
Don’t do it at least at the beginning.
Good Luck!
Re: Where do I Start? - Posted by RichV(FL)
Posted by RichV(FL) on March 30, 2006 at 19:19:36:
Ok…all you have taken is a 3 day course?
You are not ready to become a Real Estate Investor.
You need to continue your REI education before jumping in.
Start at this site. Go through archives, read the success stories and money ideas and seek out other authors with different points of view.
You need to find your niche in REI…then you will be on your way. Take baby steps!
RichV(FL)
Re: Where do I Start? - Posted by Charles Parrish
Posted by Charles Parrish on March 30, 2006 at 23:23:18:
The 100 house rule ? getting started
The rule: Look at 100 properties before considering making an offer. The theory behind the 100 house rule is that if 100 properties are inspected over a period of time, the beginning investor will become very aware of value in that local market. It may only take 50 properties to become a ?street expert?, or it may take 125 depending on skill and awareness level.
Many starting out become frustrated with information-over to a point that it short circuits their ability to reason and process information and they are easily influenced by agents and sellers trying to sell their proposition Investors are prone to make poor decisions, construct inadequate contract offers and as a result, get in to a bad deal, lose profits and potential equity.
Parrish Rule #1, Look, Inspect & Analyze before Committing
? If you are just starting to get involved in real estate investing, and your interest is in single family residents, select an area to farm. This area could be a few zip codes, the east side, west side, or a particular neighborhood. The important thing about farm is consistent, walk in the farm area, send letters, meet store owners, distribute flyers (I buy real estate), make warm calls, attend real estates auctions, subscribe to local news papers, attend REIC?s (investor clubs), collect listings, actives and expired listings. Farming is a great way to promote and spread the word about buying real estate.
? Start with a journal where you will keep notes on the properties inspected. This journal could be a PDA, Microsoft Out Look or a $3.00 note book. What ever system, keep track of dates, description of properties, the seller or agent?s comment on the houses, the price, and any terms that may be offered.
? If the lead is an ad, clip the ad and tape it inside your note book journal, or make notes in your PDA. The benefit of working with a PDA, or Palm Pilot, is that you can search your data base by telephone number to see if you have already spoken to that seller, what were they asking 2 month prior, their comments etc. The PDA has the ability to sort, keep track of your comments and be a tremendous tool to track sellers. This information will become useful when following up on these leads.
? Pick up or subscribe to daily and weekly newspapers, collect Realtors marketing booklets. Call FSBO?s (for sale by owner). Make appointments with agents and owners. Take time when inspecting properties.
? Next step call sellers, make appointments and look at the property. Look at as many properties as possible every day. Complete your 100 house rule. When you do, you will become the local expert of values.
? When talking with agents gather information on the property and make an appointment for an inspection. Agents can be a great benefit in helping supply information on market trends, values and comparables. Respect the agent?s time, let the agent know you are looking for just the right property. Attend open houses. Call ads from the internet, find sellers on bulletin boards.
? Make it a game to look at the 100 properties, be consistent with this activity.
Completing the 100 house formula will turn an amateur into a seasoned pro in a short period. Now it is time to sharpen the necessary skills in making offers.
Study next, contract engineering, make offers.
Charles Parrish
Re: Where do I Start? - Posted by Johnny
Posted by Johnny on April 04, 2006 at 13:22:19:
Great Post Charles. I am copying it into my daily planner.