What's next?

Question

How's everyone doing? I started doing real estate investments just about 3 weeks ago. I'm focusing in on pre foreclosures in my neighborhood in hopes of getting ownership of a house for little to preferably no money down or financing on my part. So far I have knocked on doors, sent out letters, made a website and business cards, and posed signs in the area. I am not a person who is content with sitting back and waiting for things to happen. I'm planning on making my next round of door knocking this weekend. In your opinion, what would be the best next step in my journey?

Christian Belleque · Answer

Thanks for the advice Paul! I have listened to over 35 podcasts and read the Ultimate Beginners Guide along with Rich Dad Poor Dad and the ultimate real estate investors guide by Rich Dad Poor Dad. I will definitely go to my local REIA meetings. I actually have looked into the HUD housing options, unfortunately I am unable to put down 25-30% being a college student. I am trying to find ways to get creative financing in place. Also, being a college student, I was really intrigued by student housing as well. I feel I would be able to market my house very well and understand what the kids want and need. Thanks for your input once again. I will be sure to continually post my updates!

Christian Belleque · Answer

@Kyla Ross thanks! I appreciate the encouragement. Hopefully we could meet up and bounce ideas off of each other considering we are neighbors. Do you happen to know where to find the information about the REIAs?

Brian P. · Answer

ChristianI'm old school, and hitting doors is always been the best approach for me even though I was very fearful in the beginning of what kind of nut I might run into. but if you approach them the right way almost all the receptions I got were good. One bad one was a shotgun when the door opened and a loud burst of profanities. I said good morning, who the hell do you think I am and why are you sticking that scatter gun in my face. I was really amazed that came out of my mouth, and I didn't wet my pants. He said aren't you from xyz bank? I said hell no, I hate xyz bank they screwed me over once. What's your problem with xyz bank? Definitely not my usual opening statement. He said they are trying to steal my house from me. I said that is interesting , how are they planning on doing that? He tells me his story and then said what are you doing here? I said I wear three hats, one is I'm a real estate agent, and I'm knocking on doors in the area trying to find people that might be planning to sell in the next year but I wasn't planning on finding you. I know a lot about foreclosure law so how about we go inside and sit down and maybe I might know something that can help you out? I was able to help him out and he kept his property, and he became one great referral machine for me. One thing I found out in my early years is that face to face rapport building put me in front of all those competitors that phoned and mailed and put a flyer on the front door. Competitors told me yes but while your hitting 5 doors I can mail out 100 letters. I said how many deals do you get from those 100 letters, they said usually one. I said that's nice I usually get 2 from my 5. Of course I did mail outs to the houses not in my immediate market area I didn't intend to pass those up as possible business. Also I bet I got about one deal a month by paying attention and driving 4 $ on the way to those leads and back. Well some were deals, some were listings.

Paul Timmins · Answer

@Christian Belleque Welcome. Take a good look at student housing see below. Fill in the foundation below.Check out the Start Here page http://www.biggerpockets.com/starthere Check out BiggerPockets Ultimate Beginner's Guide - A fantastic free book that walks through many of the key topics of real estate investing.Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice. And you get the benefit of having over 90 past ones to catch up on.Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and rehabbers.Two Great reads, I bought both J. Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbookConsider checking out HUD homes for small multi's owner occupied gets first crack. You might consider Niche or Specialized Housing like student housing. Rents can be 2-4 times more. Remember you don't have to own a property to control it. Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting overhttp://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-bookGood Luck Paul

Kyla Ross · Answer

Yes, funny you mention "MeetUp" ... in www.meetup.com, you will find groups that are meeting in your area. In fact, the Fullerton group is meeting tomorrow. I am going to private message you the link so you can check it out! There's also one a little ways from were you are located in Lake Forest two Wednesdays from now. I plan to be at the one in Lake Forest. Also, see if you can upgrade your account to PRO so that you are able to post deals in the Marketplace forum. Take Care!

Kyla Ross · Answer

Great start Christian. As a fellow Newbie, may I recommend you locate you local REIA club? I think the Fullerton one is meeting real soon. These groups are a good place for you to meet with people who are more experienced and you can interact with them in person. Way to go with the door knocking!

Christian Belleque · Answer

I'm planning on taking over ownership by paying off their over due mortgages. I've come across the upset owner but I've also got a couple of great receptions. I have thick skin so I know being yelled at is just a part of the game. I've been driving around usually about an hour a day as well.

Curt Davis · Answer

I dont know what type of reception you have been receiving when knocking on a door to a homeowner who is in pre foreclosure. Some might be happy you are there but I am sure some are not happy about this. How do you plan to get ownership of a home with little or no money down on pre foreclosures? I suggest using bandit signs, at least when someone calls you they do have a home for sale. You should also go Driving For Dollars. Good luck