Newbie Needs Assistance

[Rosa Weatherly]

Hello BP,

My name is Rosa Weatherly I live in Chicago on the Southside I am to BP and new to real estate investing. Although I don't feel new to real estate because for at least five years I have taken every course and attended every seminar out there. Just last week I was invited to a real estate investing college that will cost $20,000 to teach me how to invest in real estate. Although I know that knowledge is power and 5 years ago a real estate college would've been a great idea I really just need to know how do I get started.

I have  three properties that I am looking at right now. One property is $11,900 in the Englewood area and will need a complete rehab. And the other is $85,000 8 unit in Englewood that is fully occupied. Last a three unit for $125,000 in Woodlawn that will need some updating.

Are these types of properties good for a new investor. I struggle with the idea of buying a cheap property in a not so good area? Or a property that cost a little more in a decent area because I am using private money for the deals. Any ideas?

Thanks in advance for any help.

[Dale Stevens]

My first question is, have you attended any local investing groups? Real estate isn't about GURUS, it is about INVESTORS. There is a huge difference between the two. GURUS just are out there to sell their products. If they were making so much money and doing so well investing, why do they travel all over going to clubs to sell things?

Investors are the ones taht actually own rentals and/or rehab/flip properties. 

As to englewood, let me as you this, do you feel comfortable going alone to the properties at night? If not, then don't send your money there. I learned that when I listened to actual experienced investors. While the numbers look awesome there, you have to take into account crime, unwillingness of contractors to go to certain areas (their trucks/vans get broken into during the daytime even and tools aren't cheap). 

Get to local investment groups. Not all are the same, (thank god) because some really SUCK. Some are just about bringing in Gurus to sell their products. Others are full of people that are nothing but fake liars, and some actually have investors. 

I attended many groups, and ruled some out and regularly attend others. Finding experienced local investors to glean knowledge from was the key for me really turning from a seminar attendee to an investor. I haven't looked back and life is much better for me now. Am I a millionaire? NO. Is life on easy street? NO, but I am happier and have properties now with more coming.