Starting out with a Plan

[John Romero]

Hi All,

I guess you can say I have information overload!! Been reading tons of forums, blogs, and articles here on BP. I have a few questions, maybe someone can help with the answers...

1. How should a beginner categorize ALL this information. What are the steps when considering a distressed property to purchase, renovate, rent, and/or flip?

2. Numbers, Financials, etc. What does it mean to "run the numbers" on a property. I've seen a few formulas. (ARV * 70% - repairs = max asking price) I've also seen a 50% 2% formula when dealing with rental expenses. Are these the two basic number scenarios when considering property that investors usually follow?

3. Area demographics. Where can you find information of what percentage of a town/city rents vs. owns property? What should you look for in an area (numbers, and facts wise)?

4. What should you put on your business plan? I understand a RE business plan is different than a regular retail business plan. What's worked for you?

I'm just trying to make sense of everything, it seems like a lot of the articles assume you have background information on real estate. I'd like to find a prerequisite so i'm prepared when the time comes.