Hello all,

Just wondered what advice you might have for a new investor. I was told recently by a wise friend, that if I wanted change in my life, that I was the only one to make this possible.

I'm interested in starting an investment porfolio, but wonder how one does this with little to no money and bad credit?

Any ideas? I know people do this, but how?

Thanks much,
Robyn

Like anything else, it requires knowledge of the subject.

Yes, people do it and are successful and others (most) fail from the very start, loosing money and creating financial and legal problems that devastate not only themselves but their "clients".

Many forms of real estate investment exist, you need to determine which are best fitted to your needs and abilities.

With no money and bad credit, you are not likely to have much success with traditional real estate investmenting... buying, holding, renting, selling.

You should probably look into the various Creative Real Estate Investing techniques. If your a licensed agent you will have certain advantages, but you also have more responsibilities and potential for liabilities. Over all I find it to be a major advantage. If your not a Principal Broker, then any activity will have to be cleared with your broker.

Go to the book store and pick up several books on real estate investment, including foreclosures, Lease Options, Contract for Deed, and Subject to purchases, appraisals. All techniques have advantages and some disadvantages. YOU MUST UNDERSTAND them PRIOR to attempting to use them or you and any other parties can have major financial and legal problems.

Many home study coursed are available... forget about the Carlton Sheets stuff... just outdated /fluff with out foundation at a high price,IMHO.

A key elements is the ability to properly evaluate properties values and repair cost.

While real estate investment is a very lucrative field if your knowledgeable, it can and has been a source of problems and loss of money for the uneducated and untrained.

Study, learn and then do what you know and keep the study/learn/do cycle going on each technique until you have the tools necessary to be successful. CAUTION: Don't try to force fit a technique you happen to know an a situation that it does not fit. This is one of the major causes for failure for new investors.

Hello,

Thanks for the input. A friend mentioned to me the possibility of starting out with a partner investor. Someone who could supply the credit rating and the capital, while I did the majority of the research and work.

I am studying for a realtor license. However, should I find a possible investment opportunity now, I would probably hold off on applying for my license until a bit later.

I was thinking about starting with a 4-plex and converting to 2 units and resell them separately. Do you think I might be able to find an investor who would be interested in doing something like this? The return would be great (in California), but was not certain about how to “find” an investor that might be interested in partnering in something like this. Would this forum be a good place to find an investor do you think?

In the meantime, I will keep on learning!

Thanks,
Robyn

Robyn... it appears you do not have a business plan... or even a good basic idea about one. Develop one and modify it as you learn more about how real estate actually works.

If you goal is to be a good real estate agent, study that, get your license and then learn how to do real estate... your license course will not even cover the basics of what you will need to do in the real world.

Real estate is a full time professions if your going to do it well. Learn the basics then continue to expand your knowledge base and abilities.

It is most unlikely you will find a brokerage that would allow a new agent to become involved in real estate investments. It would be very foolish for both you and the brokerage and would most probably be very costly.

Learn traditional real estate if your going to be an agent. After at least a year or so, then start investigating and studying real estate investments.

What client in their right mind would trust a new agent to advise them on investments??? Of course most non-agents think having a real estate license means you know all about all forms of real estate... of course we all know this is ridiculous.

It is very unlikely you will find any broker willing to allow a new agent to become involved in real estate investment.

After at least a year or 2 of traditional real estate, with heavy involvement in property evaluations... then you would be ready to START your investigation and training into real estate investment techniques. It would be best to restrict yourself to traditional real estate investment techniques at the start. When comfortable and successful with those, learn some of the non-traditional techniques but be sure you have advised your brokerage and have modified your independent sub contractors agreement to cover these new activities.

Stay focused, don't go chasing every turkey that crosses in front of you until you know the basics and have the knowledge and ability to act responsibly.

Having access to some one else's money to invest is a very poor way of learning, but a great way of ending your career very fast.

Realty Check,

Hello. Perhaps my question was poorly written. I was definitely not intending to become an agent to "take part" in investments. As I know that this would not work well as an agent under a broker, nor would I be qualified to advise any clients on their investments. My first year real estate biz plan is indeed already in place.

I was thinking of perhaps "putting off" the real estate license application, while I looked at investing (minimally) first. Then continuing on later with the real estate license in the traditional sense as a realtor.

I was simply "playing" with the notion of flipping the order of my already in place real estate biz plan with the idea of investing first.

Since I have NO plans of combining my real estate career with my investing, I was a little confused about how using someone else's money for investing could be harmful to my career? My plan is to start with one or the other, rather that doing both at the same time.

Since I value the opinions and advice of those wiser and more experienced (like yourself) here on this form, I will remain focused in my original direction of licensing and learn all I can in the next couple of years.

I'm sure you can understand that one becomes anxious to learn as much as possible and want to "act" on that knowledge. But I'll continue to stay the course, bide my time and the learning curve as to NOT make the costly mistakes you mention.

Thanks!
Robyn

Lets See?........Flippin Mobile Homes, Buying Judgments! , Tennant in Common Interests, Partial Notes, I can't think of the other 2 or three strategies, because I don't have JOHN T REEDS BOOKS with me....

You can do attain wealth on liitle deals -diversifying your risk. You just have to make it up in volume.