How Should I Start Out?
OK, I’m moving soon. Going to Cincinnati. When I arrive I will not have a job. However, I will have a six figure sum of cash (toward the low end of six figures) and a burning desire to make a go of it in REI. I have studied long and hard on-and-off over the past several months and plan to join the local REIA as soon as I arrive in the big city.
I would like to either lease/option or buy a fixer upper property to start with. It will need to be somewhat livable since it will be our (my wife and I) primary residence. Question 1: If we lease/option a property is there a really sound way to secure our investment in improvements while we are leasing or is this simply too big a risk to take? Question 2: We presently have no income but good cash reserves. What options are available to us loan wise (seller financing comes to mind) if we were to purchase our home? My credit score is good. Question 3: I am not particularly looking for a job at the moment but I wouldn’t mind a part-time one connected with real estate that gives me the time and flexibility to launch a REI career. A few hours a week for a few dollars. What do you think I could shoot for (I have a pretty broad background in the corporate world)?
Once we’re in our house I will turn my attention to the REI career (with or without side job). Wholesaling and rehabbing sound attractive. Landlording not so at this time, maybe a little down the road for that one. I like the idea of foreclosure auctions, REO’s and working with a real estate agent to scour the MLS. I am less inclined to direct market using flyers, banners, bill boards etc. to get to the homeowner directly. Given these investment parameters what recommendations would you make?
It’s time to take the dive, with all due caution of course. I am ready to act! Thanks in advance for any suggestions.
gprint.. "great goals"..on the improvments , may be put you concerns in an addendum, if agreed upon, you'll have some protection.
As you stated ,..join local "REI"..and find some people you feel comfortable with and work out a "bird dog" ageement. Have the best of both "worlds" ."YOU" scour the 'REO's (don't forget HUD)you "network", you make contacts and so money while bird dog-ing.
best of "success" mcldavid[ Edited by mcldavid on Date 01/08/2004 ]
mcldavid
"Bird dog agreement". Makes sense. Find the opportunities, pursue the occassional one for myself (to get started in this biz) and feed the rest to another investor(s). Over time as I gain experience, wean away from bird dogging to feed my own REI machine..........First order of business - attend my first REIA meeting ASAP to get the networking started post haste.
Regarding the lease/option. My major concern is that if the owner defaults on the mortage or has some other crisis that affects the property, the property could conceivably end up in foreclosure. Is there some way that I can see to it that our rent money does in fact pay the mortgage, taxes etc. before the owner pockets the rest?
Thanks for your help.
I am in Cincinnati and have some ideas. Private Message me.