Information Overload
I am on information overload with subject2 information and Wholesale information. I don't know which way to focus on more? I have very little time and would like to focus on most lucrative to bring in some well needed cash fast. Any feed back from doers would be well appreciated.
mush,
Bird-dogging is the least complicated way to get involved in CREI. It takes very little money to get started, and you don't ned to worry about the sometimes complex details of the deal. It is a great way to find an experienced investor that will work with you until your confidence is where you want it to be etc.
Ok..I'll say it...so what is "bird-dogging" and how does a person find these situations?
Bird-dogging is doing for investors what a bird-dog does for the bird hunter. The Bird-dog in this case expends the effort to find the houses with qualified owners , and lets the investor(s) know where they are. Some bird dogs will prequalify the house, and the owner. provide repair estimates, and Comparitive Market Analysis etc to the Investor, and set an appointment. It's the investor's job to make the deal happen. The bird-dog gets paid by the investor for this effort, and will sometimes agree to work with the bird-dog on a few deals when they are ready to invest themselves.
The nice thing about it is the fact that you don't have to negotiate with the sellers, or work exclusively for one investor. While you are doing your research, you don't have to pass up a property just because it doesn't fit the investment criteria of one investor, you can get a referral for every deal you are able to find.
Best of all, you get to learn a basic skill that every investor should know. "How to get the sellers you want to call you."
Good Luck,
Jeff
Why would I birddog if I can do for myself? I just have too much information wizzing around in my head and can't focus on one to manage my time the most effecient. Just wanted to get insight from people on this site as to which one would maybe the best way to profit. I understand the concects of both. I think I just too excited about all the possibilities to make money in RE and can't seem to focus. I'm jumping from one thing to another without following all the way through on any.
Sounds like you need to slow down a bit and start where it feels good to you. I know what you mean, cause I did the same thing and I had to step back and start where things made the most sense. Hope this helps.
mush,
The reason that I suggested Bird-dogging was that it allows you to get involved in actual CREI now. It allows you to get some income coming in while you are getting your thoughts straight, while you're un-jumbling all of the information that you admittedly have in your head right now. It was not intended in any way to put you down, or stifle your desires. There are valuable things to be learned be starting this way. If it's not for you, that's OK.
1) Sub2 should net you 20K-25K per deal, and required little capital outlay on your part to make happen. You can do sub2 with nice homes that are nearly move-in ready for your buyers.
2) Wholesaling are not generally nice houses, they're junkers. You can net any where from 1K to 5K typically on a wholesale deal. They have very little in common with typical sub2 houses.
The information you are trying to disseminate are from two almost totally different ends of the spectrum of real estate investing, and will need to approach them with regards to generating leads very differently.
Both methods work, and both methods can put cash in your pocket very soon.
Good luck which ever method you choose.
Jeff
Do they all pose about the same amount of risk if done properly? Hey Jeff 12002, how do you get that little smiley face under your name? I've seen others with different things. It's cute.[ Edited by mush on Date 12/10/2003 ]
Go to My TCI, and click on the "My Info" button.
Scroll down to the section called "AVATAR" There are several Avatar's that you can choose from.
Risk depends on you, and your belief structure. When you do sub2's, you're commiting to the seller that you'll make sure that the payments on their loan are going to be made on time, and understand that there is a possibility that the DOS will be excercised by their lender. Not likely, but a possibility.
When doing Wholesale deals, there is a possibility that you won't find a buyer, and lose your deposit money.
The level of risk pertains to your perception of that risk, and it is particular to you and your situation. Having a well founded knowledge and understanding of the process will reduce your risk in both types of deals.
Good luck,
Jeff
I specialize in Wholesaling and one of my best friends specializes in Subject To. Both methods are very good. However it would be difficult for him to be as successful with wholesaling as I am where he lives and it would be difficult for me to be as successful with subject to as he is where I live.
Don't get me wrong, my methods and his methods work everywhere, but my market is better suited for ugly home deals and his is better suited for pretty home deals.
He does what I do, but focuses on subject to, and I have friends who do subject to in my market.
Try to determine what others are doing in your market and to what degree of success they are doing it, then follow the leader, but try to get ahead of them every once in awhile to get your fair share of deals.
[addsig]