Getting Started

[Timothy Trewin]

Happy Memorial Day everyone. I am just getting started in the real estate investing business and I am totally new to all of this so I had some questions that I was hoping some could help out with. Since I am about to be living in Cheyenne, Wyoming I planned to try and get something going up there along with the Northern Colorado (to include Ft Collins, Greeley, Loveland, and Denver). I was looking around and I noticed people suggested getting in with a Real Estate Investing Club, but my question is.... Are there any clubs in that area that the people recommend? I looked online and it seemed like there were some, but they varied greatly in price (between $500 a month-$200 a year) and I don't know who is good or not, so I was trying to get the opinions of those who know this business. I just want to make sure I get in with the right people. I also was wondering what books or materials (if any) I should look into getting to help educate me. I don't have a problem spending a little bit on materials to help me succeed, but I am very leery of the "get you rich, if I can do it anyone can" infomercial scams. I was also wondering if there are any mentors in that area that would be willing to take someone on without costing too much money? I am just a E-6 in the Army recruiting out of Cheyenne, so money is something that I don't have much of. This is one of the biggest draws for me in regards to real estate, the chance to supplement my income to better provide for my family. I would like to start small and make money doing various different things (whichever a mentor or coach can help me with and I am good at), and eventually reinvest that money in rental property (my ultimate goal). I understand that I wont make money overnight, nor will I make millions a week like I see so much on those late night infomercials. I appreciate any help you can offer. I apologize about the long post and I hope everyone enjoys Memorial Day with their family.

[Hoyt Burdette]

Hi Tim, I'm a welding instructor at Ft Lee. I think the best most comprehensive book on investing in real estate is the Millionaire real estate investor series:( FLIP, Millionaire real estate investor and the Millionaire real estate agent.) Great books. I've been reading real estate books since 1995 and these I believe are the most real, detailed books I've ever read.
Ill tell you how I do it.i find leads on (homepath.com,auction.com, auctionzip.com and i get a daily foreclosure list from my Realtor. I bounce these houses off of Realtor.com, looking at houses for sale in a .5 mile radius. Then I look at recently sold (on the left). If there is a good spread (meaning sales price to what comps are in the neighborhood), I'll investigate further (look at the property and estimate how much a rehab will cost) . The formula i use for real estate is (my selling price- rehab cost- selling and acquisition costs and holding cost- asking price= profit. If its not enough profit then you change the asking price to an offer price.

also you have the VA loan. VA will not finance a house that needs major repair, but look hard and make low ball offers, and find a suitable house that you and your family can live in. Then sell for a good profit when you leave.
I tell all my students that the biggest mistake that soldiers make when moving from 1 base to the other, is they pay market value for a house. Then in 3 ys when they PCS the are stuck PAYING a Realtor to sell the house OR renting it out for a loss. But if the soldier had shopped around, not bought on emotions and bought by the numbers the could easily pocket 30k from each PCS move. These are the lessons I've learned the hard way, that has nearly crippled me from investing for at least 5 years.