Any Advice On Starting Out?
I just started doing some real estate investing. I have an LLC and am about to sell my first house that I purchased and remodeled. I am 20 years old and wish to do real estate investing full time. Any advice on where to go from here would be much appreciated. I wish to own rental homes and flip properties as well... Thanks. 
hi, I am also 20 and have done quite a few deals so far. i started when i was 19. I spent a lot of time learning before i started and then i must say one of the first things i did was buy a duplex with my father when i was 18. i sold my car for 5000 and i bought another for 1000 and i used all the money for the duplex we bought conventionally.
i owned it for a year before i started really looking into creative investing. I then set up an LLC and started the real game from there. since then i have done probably about 5 deals.Always working on a few at any time.
What the last guy told you to do is pretty much a book definition and not to creative. I feel that is a little risky for you to do at this point. For now you should stick to finding properties and flipping or assigning them to other rehabers for smaller profits. I have done an assignment for 21k, 17k, 5k so far. So the profits are not that small but i guess you could make more doing the rehabs. the way i look at it is that if you do the rehab and do the work and make 40k and spent 200 hours on it. you are now not making much more than you would have assigning it. i would rather not do any work and use that time to find more deals.
A lot of people dont think it is realistic to find deals and "sell" or assign them when you dont own. In fact it is pretty darn easy and it can be done all the time. I guess the hardest part is getting that list of rehabers together. My list is growing everyday. If i had a prop. i had to get rid of i can look at my list right now and pick off about 15 rehabers i could call.
p.s. i quit my job the day i set up the LLC and i have been living w/o a job for about 8 months. the only downfall is that i do not have insurance and the dentists cost me a fortune because i get cavities about once a damn day.
Sorry for the long post, i just like seeing people my age doing the same thing. email me at jbrconsultants at yahoo
thanks, Ryan
I tried emailing you Ryan, but it didnt work.
oooooooooh im sorry it was http://www.sbcglobal.net not yahoo ..i am sorry about that..yes i Do live my parents and i intend to until i feel i should move out. why would i want to pay to live when i can live for free? its jbrconsultants sbcglobal net[ Edited by ryand on Date 03/08/2005 ]
dont say that starting out you should be taking out equity on your house, especially if you dont have a house. for people as young as i am the best way to start out and is the LEAST risky would be to do assignments. When i do assignments i have 0 risk and all i do is collect the check. Buying a house conventionally cost money to begin with. second, it cost more money to refi and 3rd, who is to say that something else critical doesnt happen where you need that money (equity)?
If you have no money to start out, why wouldnt you do Risk free assignments all day long and make thousands of dollars? then after you establish a decent bank account you can buy and sell and hold and take out equity if needed. This business does not have to be risky so why make it?
Other investors on here will argue that that you cant get a lot for assignments. This is not true by any means. It all depends on how you set up your system and who your contacts are. It also depends on what kind of deals you come across. The last two deals i have assigned i planned on buying and rehabing myself, but the further i got into it and started noticing termites, beetles, septic, roof, etc, etc, i went ahead and made some phone calls. To me dealing with a house that can turn out to be a huge can of worms is risky. To make a long story short i assigned it and made about the same amount i would have actually doing the work and selling. after factoring in all of the costs involved (rehab, realtor, inspection, etc.) it would not have been a wise decision
hope that helps, Ryan