Resources for New Real Estate Investors

[Brian Gibbons]

New Resources for Real Estate Investors.

I am going to list resources for real estate investors.

Get Organized And Setting Up Shop
As a beginning investor, there are things you need to do to get yourself organized.

Making A Space To Work
Start by setting aside a space in your home for working, for doing deals, and conducting your business. It is important if possible that your work space be secluded enough that you will not be disturbed by other family members while working, studying, or on the telephone with important contacts and sellers.

Your workspace should at least consist of a table to write on and a telephone. The phone should also have call waiting and either an answering machine or voice mail system.

By setting up a space in your home for doing business you will feel more professional and dedicated.

Tools Of The Trade

As a real estate investor, there are certain "tools of the trade" you must have.

Get A Daily Planner
First, get a daily planner and use it. The most important tool you can have as a real estate investor is a daily planner so you can keep track of who you need to call, along with people's phone numbers. You can also put a to-do list in your planner.

Cell Phone
The next most important thing an investor needs is a cell phone. A cell phone can instantly put you in contact with real estate agents and sellers while you are at a property. It will also allow agents, sellers, other investors, and also homebuyers to easily contact you no matter where you are. You don't want to miss that million-dollar phone call from a seller with the deal of a lifetime.

A Fax Program on Your Phone - Scanner Is A Must
You are also going to need a Fax Program on Your Phone - Scanner because you will be faxing things back and fourth to your title company and real estate agents and maybe even other investors.

If you have a computer you can get fax software to use with a scanner. However, we highly recommend that you get a dedicated fax machine on a dedicated phone line that does not require you to flip a switch or turn it on for it to receive faxes while you are out. A dedicated phone line will only cost you about $10 or $15 a month or you can get a phone line switch that will automatically switch the phone line over to your fax machine when the switch detects an incoming fax.

A Filing Cabinet
You should also have a filing cabinet to store important documents and files that is dedicated to your investing endeavors. You may not need one right away but once you start looking for deals, you'll find yourself needing a way to keep all your papers organized.

Digital Cameras - Smart Phone
A digital camera can also be very handy.
If you are tracking down vacant houses or dealing with "for sale buy owners", a digital camera is a necessity. One of the most effective ways to get deals is by following up with a seller two or three months down the road. You are going to need that picture so you can remember the property and the physical condition it was in.

Street Map (I know it is old fashioned)
A street map is also a must for any real estate investor. It is best to have one that is a book rather than a large foldout sheet. The book style maps are much easier to handle when you are in your car. A Wall Map for your office with zip copdes is great too.

Personal Computer - Smart Phone
Finally, if you do not have a personal computer - smart phone, you should seriously consider getting one. They can be very handy for drawing up agreements and tracking your leads. There are also a ton of resources at

https://www.biggerpockets.com/rei/

[Brian Gibbons]

1. Which Strategies did you find most appealing to you and why?

• Wholesaling
• Retailing - Rehabbing
• Sub2
• Agreement for Deed - Land Contract
• Lease Options
• Wraps
• Option Flips

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-Wholesaling,

Advantages Of Wholesaling
There are many advantages to flipping wholesale especially if you are just getting started in real estate investing and have limited funds and/or credit.
When flipping houses you do not have to come up with funds to purchase the property because the funds will come from the investor/buyer you flip to.
The most money you need is for binder deposits & you won't be getting any new loans so you don't need credit. Also, because the only money you will be putting up is for binder deposits, you have very little at risk.
You won't be owning the property for more than a few minutes at the closing table and you'll be selling the properties in "as-is" condition which means you won't be dealing with contractors or dealing with tenants.
Nor will you have to deal with getting buyers qualified for financing at banks because most of the investors you will be dealing with will either be paying cash or getting the funds from their partners or hard money lenders.

You also don't need good negotiating skills when wholesaling or retailing houses because you will almost always be offering cash.

Therefore, the only thing that really needs to be discussed is the price and much of the time you'll be dealing through real estate agents which means you won't be talking to the seller anyway.

Even then, you will know what you are able to pay, so you still won't have to haggle about prices.

You will simply put your offer in writing and let the seller decide.

Either the seller is willing to take your price or they aren't.

So, the benefits of flipping wholesale are that it
-requires very little money,
-you get instant profits that can be very large,
-you do little or no repairs, and
-you are dealing mostly with investors who pay cash so you don't have to deal with qualifying homebuyers.

It is no wonder that flipping is the number one choice for getting started among beginners, but let's not forget that there are a few drawbacks to flipping.

Disadvantages Of Wholesaling
The drawbacks are that you will be buying properties at 50 to 60 percent of value.

Which means that you are going to be dealing in houses that tend to be very ugly and that need extensive repair work most of the time.

-The hardest part of wholesaling is finding the properties because you are limited to houses that can be bought well below the after repaired value. The seller of the property must be very motivated and willing to take a low cash offer.

As a result, the number of houses that can be bought below market enough to make a profit and still leave room for another investor, can be somewhat limited. However, a lot depends on your market place and your ability to dig up deals.

If you are dealing in higher priced areas, it can be harder for buyers to come up with larger sums of cash and if you can't flip a property to another investor before closing, you'll have to come up with all cash or lose the deal and your security deposit. However, in the higher priced areas you can make larger paychecks per deal.

You also only get one payday and that is when you flip the property, so there is no residual income.

Finally, if you focus solely on wholesale flipping, you are missing out on about 75% of the deals that are out there in the other types of deals (see below)