Getting Started.

[Rayshad Gibson]

Hey, Ive been reading and going to seminars and looking things up and now I want to just get started and get some experience. I know myself and I know I'm a hands on person so I will learn a lot more once I get started. But I don't know how to estimate rehab cost, are if I find the private lender or the deal first, and just a whole lot of things holding me back. Can anyone tell me a step by step plan?

[Derek Brandi]

Every deal is a tad different. If your private lender is a sure thing then that part is already solved. If you need to show what real estate is securing the loan then you need to find property first. There are so many variables its hard to make a step by step every time guide. Personally I don't like to look at things I cannot buy. My first properties I secured the finances before making the deal.

Reading and going to seminars is good but its when you actually go out and do it that it all starts to come together. I think you always stumble through the first one. At least I did but that didn't slow me down six months later I got another.

As far as the rehab cost - don't skimp on your numbers to make it look good on paper. Things always come up and you almost always go over budget. The best way to get an idea of what the actual cost of rehab work would be is to talk to a contractor or handy man to get a more accurate quote. If I am fixing something myself then I just calculate the raw materials needed to complete that job. Generally if I am using a handy man or contractor I would take the cost of raw material and either double or triple it.  PLEASE NOTE to shop around if using a contractor you will find there many prices for the same job.

Finally, do not let things hold you back, instead look at them as challenges and come up with an action plan on how you can overcome those obstacles.