I Have A Buyer Now What?
Hi fellow investors. My name is Nicole and I'm verrrrrry new to the realestate game. I want to attempt a lease purchase but I've hit a snag. I know how much my buyer can spend a month. But the areas and room space desired may not match what is needed to get the house. Now I was lured to this income opportunity because of the part where they said you can get the properties with none of your own money. I guess what I need to know now is how to proceed? Do I just place ads to landlords or fsbo to find the house desired? Any advice that anyone can give me would be appreciated. The sooner I can close this deal the sooner I can take my baby to get some clothes and formula. :-?
Hello Nicole, it sounds like you're going at this from the wrong side. The hardest part of investing in L/O 's is finding people who are willing to sell (Lease) you their house for very little money out of your pocket, for a long enough time to sell to a tenant buyer, and usually for less than they could get by renting it out. You should add this tenants info to a growing list of people looking for houses, then when you've found a house and have it under contract you can go to your list and match houses with tenants.
Hi Nicole,
Wow, you're working the LA area, eh? Are you very familiar with the RE market there? Like Ted said, the most difficult part will be finding sellers/lessors, particularly in the So Cal market, although it is cooling a bit, at least it is here in San Diego.
Just a side note, most people get into creative real estate on the side and build up to quitting their job. I wouldn't recommend expecting this to support your basic income needs at the start.
Good luck,
Paula
Thank you Ted and Paula for your advice. Believe me it is invaluable. I don't have any experience at this really. But I needed some form of supplemental income. Ok finding my sellers. Is it really that hard in So. Cali? I'm in LA and see so many houses for sale signs up in every city, from West LA to Harbor City. Should I go after foreclosures then to find my buyers' house? I already birddog for a couple of established investors. Of course without a deal as of yet, I won't see a dime. What should I do? :-? :-(
Fist of all, you should study. Read post in the forums, read articles.
You need to be proactive. landlords won't come to you. Call and talk to them. But mostly, it sounds like you may need to better understand how it all works. And I think you need to learn more about your market there in LA.
Paula
Thanks Paula. I will look into some of the articles.
Hi Nicole,
I too am very new to the l/o game. I've done a lot of reading and attended boot camps and seminars. I actually work for a real estate investment group that rehabs, flips, wholesales,etc.
My market here is very different than yours. At my seminar WP advised me to line up buyers first and then go looking for houses. Our economy here, er, "sucks", highest foreclosure rate in 13 years, highest unemployment rate ever, etc. etc.
You do need to know your market and where to look. FSBO, OWC and rental ads are great places to start. Don't get discouraged by "No", just think of it as another phone call you are done with in no time and on to the next!
Keep in touch and let us know what happens.
Thanks for the encouragement. I will keep trying.