How to Start in Real Estate Investing, Play Monopoly!
After 4 years in the real estate technology field, I decided that foreclosures were for me. I had the skills, knew the terminology, almost had a license, made plenty of connections, owned a great computer, but I was missing one thing… MONEY.
I began mentoring under an agent that services Fanny, Freddie, and Indy Mac repo’s. When I say mentoring, I mean we spent several evening talking about how things should be done in the foreclosure game, and where others are missing the boat. My mentor and I shared talks and knowledge, and this seemed to spur us both on to pursue it more seriously. He had serviced hundreds of REO’s but never bought one house from a Trustee’s Sale.
My major skill set involved the use of technology (websites, and databases) to quickly manipulate the data and sort through hundreds of properties in s short amount of time. What I lacked (beyond the cash) was experience.
My mentor had years of experience in the REO servicing field, yet lacked the streamlining of technology. We partnered up in a plan to play “The Game” with “Monopoly Money”. Keeping my full time job, I was able to put the basics into place. At first I went to Lenders’ websites and tracked their foreclosures. Then, seeing the profit potential, I got serious. A software program to manage the downloads. A NOD/NTS list company to supply me with the leads. Access to Title Co’s online profiles. Access to the MLS.
I began tracking properties as if I was loaded with dough. I went to my first sale, then another, and another. I kept track of fellow bidders, and tracked their properties AFTER sale. I visited them during rehab and the contractors let me do walkthroughs. I found them listed in the MLS and compared my scheduled profits to the other investors. I even had an agent check my comps… we came within less that $400 of eachother.
All of this was done in my spare time. I watched auctions during my lunch hour, and set my “not to exceed” bid price. I made note of who went over my bid, and why. I started flashing my reports to people and agents in my office. I drove property from 5:30am to 8am before work with my digital camera. I tracked each property as if I was full of cash and ready to bid.
Then something happened… people started knocking on my door. “Hey, if you’ve got any more of those deals, let me know” “I know some investors that would love to see your reports.” They kept coming. I adjusted my sights. I had $30K to work with, but not the $150K I’d need to really get started. So I offered to split the profits 50/50 if I used my insight, technology, time, contractors, and MONEY to locate, bid, and flip the properties. All the investors had to do was put up their cash.
My reports circulated, word got out. I now have partners and plenty of investment cash. My reports spoke for themselves, the numbers spoke “Profit”. I followed some simple advice from my mentor, “Find the deals, and the money will come to you.” Although I never believed it would happen, it did, and rather quickly.
If you’re a newbie, keep your job, slowly and as time and money permits setup your “shop”. Get your comps, your lists, your paperwork, and setup reports to show others. PROVE to yourself and others that you can’t go wrong by doing ALL of the research, and ALL of the legwork first. Do this for a few months, get to know the players and how it all works. Take the time, make the calls every morning, and always track the properties that “push” a few weeks.
My mentor now comes to me for advice. Play Monopoly, and soon you’ll own a piece of Park Place.
–MakoShark
Why not try International monoply.
With selling properties in Australia to Americans I have lernt More about Americans than a professor of social science at a college.
People really need how to understand and implement ideas and methods to make money from real estate not just think they can do it.
One of the things that I find intersting is that many Americans do not know that their dollar buys 30% more if spent in Australia and it is one of the safest vacation area in the world.
Regards
Lex Willmott
www.gladstoneregion.org.au
Hi Lex,
Already in the international game, but although I think I love it down under, it's too long of a flight for me to visit my money. I chose Costa Rica, I own 2 properties totallying 23.5 acres of rainforest, waterfalls, coffee farm, and views. The weather is always warm, they are "gringo friendly" down there, and property ownership rights are guaranteed. And my dollar gets me about 80% more than what it does here in the first world. Costa Rica is not Puerto Rica, Mexico, or Costa Mesa. It's the Switzerland of Central America.
If you wanna see some of my offshore stuff, go to TerraSanctu dotcom. Click on "Gringo's in the Mist" and then on Ken and Ann to see my stuff. Then click on lotushouse to see what I'm building down there.
I'd love to visit OZ one day soon as I am a Toyota Landcruiser offroading fanatic, and Oz is the Landcruiser graveyard. My pals and are planning on a trip in a year or two. Maybe we'll hook up some day. -MakoShark
dub-dub-dub
dot
KenFleming
dotcom
Ken at KenFleming dotcom
I agree...Costa Rica is a special place where you can make a fortune in real estate while surfing great waves in tropical http://www.paradise.I just purchased 200 acres of ocean view .wonderland.Now I need to learn how to develop !
Very good article... Thanks Mako!
Am a beginner i only have 4,000 dollars to work with i still got my full time job and trying to save more but forclosures are 100,000 and more what should i do ?
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By building hits, and also requesting feedback, I can build this into a premiere web listing service.