Creating a rehab proposal to give to a private investor

[Alex Henriksen]

I have been interested in real estate for many years now and I know its where I belong. It is the only thing i feel passionate about iv come to learn. I have come to this site to gain knowledge from the experience of its members. So here is the skinny. I have a possible private investor that I haven't approached yet about my plans. Im looking to start out by purchasing a property for under 30k and putting no more than 20 to 30k into it and than selling for profit. I would like to hear experiences on how any of you have secured your first private investments to get started in the business of real estate.

[Blake C.]

When I first started I too was very concerned about having the money for the deal. At the time, I didnt even own the place where I lived, but I wanted to invest in real estate. What i ended up doing was buying a house for a flip, but I lived in it. I was able to do this because I could get easy financing on an owner occupied place. Also, because I was single, I could live in it while it was under construction. Additionally, I was able to do most of the work myself, and even work on it during weird hours or for short shifts. This saved tons on expenses and made it more affordable. While it would have been nice to complete the project faster, I had to work with that I had.

My next step was to bring in a roommate. It was a 3/2/2. The plan was to get two roommates. I ended up getting just one roommate, but he agreed to pay half the mortgage and half the bills. I didnt cash flow per say, but it did in comparison to where I was living. In addition it allowed me to get into the game, capturing equity on purchase, building equity through rehab, and paying down principal with someone else's money.

After a few years, I sold this property for a decent gain and have used the money to fund my next investments.

This might not be what you were thinking, but its one way that a small, young guy got started. Basically, the is no set path. You have to be able to see all the options and roll with the opportunities that come your way.