Hello everybody, I came across this site earlier today, and I must admit there seems to be a lot of people here who are on the ball and are willing to help others. I spent the last 2 days trying to gigure out how to get into the RE investment business. I am in contract on a rental property (projected closing Oct. 4)and am looking to purchase another right after that one. I intend to start an LLC, first for liablity purposes, but more for wanting to start a business. My fiance is awaiting news that she passed her real estate exam, and me...I'm just looking for some direction. I'm trying to figure out what I want my business to be, looking for grants or loans to help me get off the ground. and while it may sound that I have money (being I'm working on purchasing 2 properties) I think I ran into that "Creative Financing" I saw around here. I have no money. The 2 properties I mentioned before should generate approx. $1,000 each a month after mortgage is paid, but I understand, there are other things involved. I apologize for the long rant. I appreciate any and all advice given. Thanks for your time...

www.johntreed.com Will lead in you in the RIGHT direction. NO B.S.

Thanks for replying. This your recommendation? You had success following this person's blueprint. I don't have any money (at least right now). I'm in closing on a rental property, and will soon establish a LLC. My main question, the one that keeps me up at night is 'Where do I go from here, what's next?' I do know that I don't want to stop at one property, but I don't want to run around like a chicken with his head cut off either. I want establish a business plan, so that maybe I can try to acquire a grant or loan down the line, but I wouldn't even know where to start in even outlining one.

Many good books and course are available, but many marginal and a large number of poor information sources are available.

The key thing is to read several and not just one and think it is "THE" word.

I personally think Reed's work is out dated and increasingly negative in recent years. As you will see if you visit his web site, he is "Against" almost everone... unless he feels they took his information and just repackaged it. While some good general information is obtainable from his books... it seems that those who most strongly support him are more "fence setters" than actual investors doing "deals".

One generally good course is William Bronchick's "Alternative Real Estate Financing"... it is Vol #3 of his series and the best of the group.

More good authors are Diane Kennedy,Dave Lindahl, Bryan Whittenmyer and anything you can pick up by Dyches Boddiford will be useful.

Inexpensive books by Peter Conti, David Finkel, Mellissa Kollen-Rice are well worth the money and give great general information... but some of all of these are just ads for more expensive Seminars and courses... Do the low cost books first then select a few key courses to develop the skills necessary to be successful and get off the fence.

One of the best books I have ever picked up is Wittenmyer's "The Hidden Secrets Of A Real Estate Technician". Much more detailed that the typical "light read" type book... more like a text book... if you can make it through that... you can make a strong base for your investment activity.

Several very expensive Pre-foreclosure courses exist.... you can get most of the information from far less expensive books.

One I really wanted was so poorly edited, it was almost impossible to understand the though process... I don't think a dozen comma's were used in hundreds of pages!

If you can connect with a local Real Estate Investment Club, go to a few meetings... swap books and courses.

You will find many Opinions and you will begin to see some are just fluff... I'll put Carlton's stuff in that group.

Study different techniques... not all at once... pick a couple that fit your personality and immediate abilities and get off the fence and go do deals...

You will also find several web sites, where real investors discuss deals and are willing to help newbies. One is DealmakersCafe.com

[This message has been edited by Realty Check (edited 09-08-2004).]

Realty Check- I beleive you are the most Experienced and Knowledgable person on this forum that I have read so far, but it seems you avoid the hard facts when it comes comparing the various Gurus of this business. Practially nothing holds a candle to "The List" of strategies (40 something) that are in Reeds books. His special reports contain another volume of strategies, however the books contain the most prevalent/verified ones. I don't like Ignorant people so if you refuse to check that list and his books out I can't make a mule drink. If you do check them out however and are not 100% sure that those strategies are most -if not all of what only works with investing in Real Estate then I will Refund your money. I noticed you have discussed Financing techniques and options etc.. So im positive you are not fully aware of all the strategies in the Real Estate world, but Im sure you know a lot. Take Care

Tapseer,

I'm in the same situation.
I'm working on my first rental property and I will eventually establish an LLC.

But what next?

My initial thought was to use the equity in the first to finance the purchase of the second. but I think this method just takes too long.

And how come every post Montana puts up is a sales pitch?

dogfood

Look at other methods for the 2nd. You don't want to get your properties lined up like dominoes and have a minor problem and see them all fall down.

For the 2nd and maybe 3rf and 4th look at Sub 2, with a quick flip. That way your only tying up funds to get the property tied up and into sale condition and putting it on the market. With a motivated seller the first part is often free, or at least can be deferred until the sale.

Its actually simple but not always easy...

Always have a plan on what your doing, identify your intended Exit plan and alternatives are always nice. Know your market, look for motivated sellers and never be a motivated buyer. Find out what moves fast in your specific area and spend your efforts in that area until you have enough funds to use other methods and other property types.

Flips and Sub 2's are a generally great way to start... My fav is actually Short Sales, but you need some operating funds to best use that method.

Visit area meeting of Real Estate Investors... you can get a lot of information and leads in a well attended group. Other web sites can also help, some are totally free and real people who actually do real estate investments are willing to give very specific inputs to potential deals at no cost and the information is very good. I like Dealmakerscafe.com where you can get real information from other real investors.

You will find a lot of "fence setters" who have read a book and think they know it all but never actually do Any Deals. Others are former investors who find they can make money charging others for old or outdated or just repackaged material. Avoid them... they are not hard to identify once you actually get into working out deals with real people.

You should read as many sources as possible... but don't get a "brain Lock" and thing one guru knows it all and all others are full of BS..... many methods work... you just need to find those you feel fit your personality and goals. No cookie cutter program can fit each real estate transaction... you have to have the ability work your on system... just take it a step at a time... BUT DO something... don't just read and talk about it, like so many do... then wonder why they are still in the same old place months or years later...

best of luck on your 2nd... 3rd.. and on and on!

ICLOSEDEALS78,
This is not the place to prospect for clients

[This message has been edited by Paul Oaks (edited 11-15-2004).]

thanks alot for the replys. I had a terrible experience with a mortgage broker, but I found someone who is helping me bounce back. I think I will join an investors club, just so I can talk to other more experienced poeple who are actually doing deals on a daily basis. I don't want to refer to books (although I have read a few) I want to learn by doing. Thanks again to everyone who offered advice.

I am a beginner as well, at this investment thing but I have heard of an investment Club, But I thought they were expensive to join?
I am looking at preconstruction.
A friend of my bought a condo about a year ago and wanted me to partner but I was sceptical and didn't. He put 65,000 down and sold it for a $296,000 profit and never had to finance it. I mean I saw the papers in black and white. I am happy for him, but at the same time I am sick to my stomach I hesitated.
He is with someone he really trusts though and has had a lot of positive purchases though them.
I just recently am in a position to consider this but has this work for anyone else. Or is this a pipe dream? I like the idea of Preconstruction but where do you buy?

Not sure if this is true in other part of the country but in Northern Virginia this is happening. On new construction builder's are making sign an agreement where you cannot flip the property for 1 year from the date of settlement.

Ritu


------------------
Ritu Desai
Buying or Selling in Northern Virginia? Contact me for all your residential real estate needs

SAMSON REALTY,LLC
Phone: 703-625-4949
Email - rituadesai@yahoo.com
On the web: http://www.homesdatabase.com/ritu

try ERA for training, 120 internet based training classes. www.erametrorealty.com

[This message has been edited by erametrorealty (edited 11-24-2004).]

Hello everyone. I am new to the forum which seems to be interesting. I am in the mix to do a flip on a property with a couple of friends. Does anyone have advice or suggestions. This is a small investment (single fam. house at 200ki) but its our first - hopefully of many.

I guess looking for tips on financing (currently doing 20% down interest only)

Capitol gains - or like kind exchanges for the next one

Thank you

Using Investment Clubs is an extremly useful idea. They are very helpful (generally), and you will be able to learn a lot. As for the Gurus - there are tons of them out there - many which repeat the same thing - for a handsome fee, of course. My advice is to hit the book stores/library and read up. Then go online to some investing sites (like mine - shameless plug) and read up there. Go through forums and read free articles posted all over the net. You should now be somewhat educated.

The final and most important step - go out and do it. No matter how much you read, it won't mean a thing until you are in a deal. Every deal will be different, but your first deal will get you past all of the fear. Tons of people want to invest in property, but a small percentage of those actually do. Unless you give it a shot, all the reading in the world won't tell what it is really like.

Good luck and all my best. Let me know how your investments go!

Just a note on setting up an LLC to hold your properties in. My real estate accoutant suggest an LLC, but check a box or something to be taxed like an S Corp.

I would be weary of pre-construction speculating(investing). There are people that caught that wave in 2003 and 2004 and made a lot of money. Builders absolutley will not tolerate it anymore and they are coming down hard on those that try to "pull it off". Appreciation will not top last year and should taper off over the next three years as the foreclosures from Adjustable Rate and interest only loans hit the market in droves. That's the market I would target.

How can I develop mutual business relationship with agents located in UK and in USA to sell and buy properties. I am in Cyprus, and I have properties for sale and I have clients who wants to invest in other countries, primarily in UK and in USA. Any help?

I think online communities like this one are the best way to go. Find someone that you trust and connect with You have already taken the first step

When someone is going to tell me how to do something I first want to make sure they know: 1. How to do what they're going to tell me, and 2. that they've done it more than I which would make them more experienced and hopefully better at it so that I can profit from their knowledge and experience.

In other words if you're going to tell me how to make money buying and selling investment properties you need to have bought and sold a significant number yourself, i.e. more than 11.

According to the Reed's track record on his own website he has bought and sold a grand total of 11 properties since 1969 including the one he lists as his home address!!!

http://www.johntreed.com/Aboutauthor.html

Dude, I've bought and sold more than 11 properties in the past 3 years excluding the one I live in!

11 units bought and/or sold in the past 36 years and the last one in 1992. Does anyone think real estate and the investing climate has changed just a tiny bit in the past 13 years??? :p

If anyone might be interested in a good bunch of guys that do an inexpensive, hands on real estate investing seminar that will take you by the hand and lead you step by step from locating a property, to selling it for a $15-30,000 profit, BEST OF ALL without doing very much to it, you need to take a look at these guys.

http://www.lucky7seminars.com/

I've been to Chattanooga, Tennessee and have taken their seminar plus their 1 year follow up coaching program. I learned a ton of good stuff and I've been a real estate broker since 1978.

Billy Weathers and Darrell Knoch are the principal partners in this seminar; both great guys and real people just like you and me.

They don't mind helping, answering any questions you may have, and they have a marvelous product in their semnar for any level of investor or would be investor.

I have no connection with their seminars and get nothing from mentioning them.

However I don't mind passing along information about good stuff I've found along my real estate investment road.