Getting Started Full Time - Looking For Direction
I have just taken the plunge, quit my job to become a full-time RE Investor. Now I'm faced with the decision as to which aspect of RE investing to focus on.
I am considering getting my feet wet by working with motivated credit-challenged buyers (by launching a marketing campaign) and pairing them with other investors in my area that I network with and collect a finder's fee.
This would enable me to develop a database of ready buyers so that when I expand into obtaining properties directly from motivated sellers, I would have a ready list of potential buyers.
I know the income would be modest to start, but I am not in need of immediate income and am more concerned with starting a long-term re investment business conservatively and smartly.
Is this a realistic and viable way to get started?
Thanks for any responses.
Hmmm....
Based on your description, this sounds an awful lot like what a real estate agent/broker does. That is, pairing buyers and sellers for the purpose of facilitating real estate sales.
I would be careful on your approach as you may find that the local realtors will not take kindly to your new business and will probably report you for selling/brokering real estate without a license (assuming you do not currently have one).
There are other ways that you can get started and make more money in the process. Risk is relative, of course, and only you can judge what is risky and what is not. However, I would recommend looking at some of the creative methods here. If you have a lot of cash sitting around, I would seriously think about learning about notes.[ Edited by Rogue on Date 12/07/2003 ]
Research on Notes would be very beneficial.
Okay! It sounds like you may know how to build the network or database you will need. As long as you know how to find the house and negotiate the price right. Just contract with the seller using the famous "and/or assigns" tag after your name on the contract. Contact the buyers on your ever-expanding list of investors and assign it to a fellow investor for a fee. All good and sound.
On an average assign you can make $1000 to $10,000 per.
You have added a twist though. Are you asking if you can "pair" a Buyer with bad credit with a seller? And charge the buyer a fee?
Either way, tread lightly and do a little more research on the other ways of making income producing deals work within the confines of the law as well.
You do not have to reinvent the wheel here. I always recommend tweaking with it though...
[ Edited by Buy-n-Hold on Date 01/08/2004 ]