Newbie
Good Day all,
I’m a newbie to real estate and I’m looking to do my first investment with two co-workers. We wanted to buy a property somewhere but because of the market inflation I don’t see how we can afford anything in this area. I’m originally from NJ so I have looked around the NJ area to a good town to invest in but I get the feeling everything here is very over priced. I was hoping to find someone that can perhaps guide me and point me in the right direction.
I have much to read but from what I read so far tax liens look very promising. So do the fix and flip property approach but with very little money to invest I don’t know how to get started.
Thank you
A seminar selling the Ron LeGrand program laid out the flipping as very simple.
1) Find a property needing rehabbed, well below ARV after repair value, not in war zone.
2) Ask the 3 questions to get the lowest price seller can accept.
3) Place a simple ad: Handyman Special Cheap Cash Phone in the daily paper for 3 days.
4) Write down every caller and what they can do to purchase, what they are looking for, build a buyers list for later.
5) Callers who are rehabbers, make sure they have cash and can close quickly, send them to the address, say to look inside, call with an offer quickly because you've sent several other rehabbers.
6) Accept the highest offer, close immediately. Simultaneous close.
$1 or $10 binder to seller, $500-$1000 earnest money from buyer.
NOTE: I'm going to start saying "Rehabber Special, to hopefully weed out the calls from the ad.[ Edited by bollinproperties on Date 05/28/2004 ]
guidance--------------------
First, please do NOT get involved in owning long-term rental properties with other people. This is a bad idea, usually. Few such partnerships work out well.
If you do quick-turnover properties as a joint venture, that is another thing. They will end soon and you can then decide if you want to repeat the experience with other properties or do things strictly on your own.
Real Estate investing is an entrepreneurial activity. Everybody has their own views on how to do it. Rarely with two people agree on what to do and how to do it. Usually one wants to sell and the other one wants to hold. Disagreement is built in when you have partners with long-hold properties.
There are probably thousands of different ways to make money with real estate investing and real estate merchandising. I suggest that continue to read on the topic and get ideas of how other people do it. And ask as you read, "how would this fit me?" What activities are required, what sorts of people interactions, how would you feel about them? What strengths do you have that could make you more effective as an investor?
Design your own investment program to fit your uniqueness and to fit the investment environment in which operate. Use it to extract profit from that environment.
It might take you a year or so of studying to clarify where to invest and how you should invest. Don't get discouraged, it is just that you are complex, real estate investing is vast, markets are complex and it takes time to understand and figure out where your fit is.
Tax lien investing is good in that you can start with low cash. These days it is very competitive. You probably should, I think, talk to the offices conducting the sales in many different government offices to try to find the ones where you actually could get liens and get a good return. In many locales--especially the high-population counties--the wall street investment banks buy most of the liens at about 8% return.
Good Investing***********Ron Starr********
[ Edited by RonaldStarr on Date 05/28/2004 ]