Where would you start if you we me?

Question

Hello Everyone,

I have been reading this forum for awhile now and alot like it on the internet. I am blown away by how supportive and helpful everyone is here.

I am very interested in starting to invest in the my area (Rochester, NY). Being brand new I have no idea where to start. I was wondering if I could pick your brains on some great starting points.

A little about me I have a few thousand in cash, a bankruptcy 2 1/2 years ago, my credit rating is in the high 600's now. I have a ton of drive to succeed. Is there any hope for someone like me with poor credit history?

I hear and read the stories about people like me suceeding but I never know exactally what to believe. Any helpfull advice would be greatly appreciated.

Thank you - MJ

Rich Weese · Answer

Of course you can succeed!! The drive is the most important, imo. You'll find good ideas on here. Partner up with someone that has the money, find owner financing, do a lease option and find a buyer. There will be lots of ideas  if you search on here. Good luck. Rich.

Account Closed · Answer

Hey Mike,

I believe Rochester has a good local real estate club that you could join.

You will find local investors that could help you with any questions and mentoring. It is always good to network with people in your area.

I am located in Syracuse, if you make it out east!

Good Luck.

Chris

Alan Brymer · Answer

Use the money you have now [i]very[/] sparingly--definitely not for deals.  Only use it to advertise to find sellers or invest a little in education.

But get as much free education and look for sellers using free methods as you can in the beginning, then use funds from your first wholesale deal to ramp it up.

Brian P. · Answer

Mike

First thing I would do is to look at Rochester again and ask yourself do you really want to spend the rest of your life there? Not a silly question, my in laws families had settled there from Europe but they asked that same question shortly after they were married and my father in law was going to start his business.

Result a long drive to California and never a regret.especially from me since they produced my bride for me after they got there.

OK, now that you have decided to stay, my advice is to listen to the good advice you have received here but to change one word. The advice you received was first do this and first do that, change first to now, there is no first there is only now.

One simple little step each day forward no matter how small in each category will get you to where you want to go faster then first do this, then do that, which will only prolong action and lead to more procrastination. Example, how many bills will a person pay off by getting a minimum wage paycheck vs profits from deals (not saying you can't do both).

There is no reason you can't do everything at once as long as it is related to your final goal. Don't have money, do you have $2 Then you can tie up a property with an option.(I know why $2, well when I first started every once in a while I would get a $2 bill and one day I only had a $2 bill on me and I used it to tie up a property, After that I would put those bills in my wallet and tell myself I could only use them to tie up property and every time I opened my wallet and there was a $2 bill there that was a reminder and motivation.

Rachel H. · Answer

Hi Mike,

I've been to Rochester - it seems like a nice place to live  :D

Before you start investing, it's probably best to get your personal finances in order first. From there, you can figure out what your goals are and how you want to achieve them.

Once you have your goals in mind, then you'll know what you need to do (i.e. building up cash, buying and holding, etc).

If your new to the game, the best thing to do is keep reading and educating yourself. Also, you may want to check out your local real estate club - it's a good way to network and find out who they key players are in your area.

I always recommend to people just starting out to go out and find deals for other investors - it allows you to get the experience and learn hands on without taking all the risk. Learn a system and learn it well - find someone in your area who is doing what you want to do and offer to help them find deals. It's a win/win situation for everyone.

Also, this site is a good place to network and bounce off ideas with others. Hope this helps!

Corey Demuth · Answer

mike and chris, I'm in NY too albeit NYC, maybe we can help each other? If you're on linkedin, send me invites? [EMAIL REMOVED BY ADMIN]

Alex Aronson · Answer

Mike,

When attending a local REIA, becareful of the people there.  The associations are great for learning and networking.  At my REIA, I have found a lot of sharks.  The sharks do not want to hurt you infact they want to help you success, however they most often do not provide you with the best deal to start at.

I would recommend developing a Business  Plan.  For example, write down where you want to invest and what you want to invest in.  How many properties do you want to accumulate in year 1 and so forth.  Who do you want on your team (real estate investing is a team sport and does not start out a singular sport): Real Estate Agent, mortgage broker, banker, inspector, insurance agent, CPA, real estate attorney, property manager.  I have walked away from 3 deal because my team mates told me to (IE the house repair is more than you can handle, that part of town is nothing but problems, you'll have a hard time with that property).

Read as much as you can on this sight.  I found the Kiyosaki books (Rich Dad series) to be motivational and to think like a investor.  I read other authors for more detail in the topics I learn from.  Do not pay for a 3K class when you can get the info for free at your local libaray.

Ask a lot of questions here and at you reia.

Colleen Sheridan · Answer

Mike,
            I think the first thing you want to do is narrow down your field of vision.  You should start by selecting a neighborhood you want to be investing in, then learn everything about it.  Why is it a good neighborhood, what are the values of the properties, what is a good deal and what is a bad deal in a given neighborhood market, is it up and coming or trending downward, are the schools good, is it near public transportaion (which I find particularly important for residential rental properties).  You know what they say,...location, location, location... 
            
To be a successful investor, you need to do a LOT of homework.  You should know more about a neighborhood than the people who live there.  Once you know that, then you will be able to spot a good investment in a NY minute.  Don't let yourself get scattered, it is really easy to be snowed if you do not understand the market within which you plan to operate.  If your property stands alone on it's own value, you will have a better opportunity to obtain financing.  However, I agree, with questionable credit, it will be difficult...but not impossible if the deal you select is good.

Michael Rossi · Answer

Mike,

I think you're getting close to being in a position to start.  Having a few thousand in cash is good and your credit score is getting there.  I would suggest continuing to work on your credit score.  Contrary to what you've heard, having a good credit score is VERY IMPORTANT in the real estate business.  Yes, you can buy a house with a creative technique, but you can NOT run a successful business with little money and bad credit.

Good Luck,

Mike

Melissa Webb · Answer

To start off, My advice is to read as many of the forums of this site you can, go to your local library and read some books on Real Estate Investing, Read "You, Inc," and any self motivation books you can find.
            
            Also, there are some really helpful videos on UTube (just type in Real Estate Investing, Finding Motivated Sellers, etc).
            
            And, listen to everything these guys (and gals) wrtie down, their advice is gold.
            
            Don't worry about your past finances, it sounds like you have a good goal and a good head now.  From my experience, the more your back is to the wall, the more motivated you are, the more sucessfull you will be.