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Updated almost 11 years ago on . Most recent reply
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My road map to become an investor - need your suggestions/feedback
Hello,
I am 21 yrs old, I have been a Realtor for 2 months now. Being introduce to BP change my perspective and helped me get my goals in line. I want to start investing in real estate. My main problem is that I live in L.A County which is a very competitive market and I have less $100 to my name. I have gather ideas from members in this community that I think will be great to generate leads and it will just cost me time. Here's my plan:
1. Add all active listings to a database with DOM >100. Email all the listing agents with an offer to purchases the property for all cash at 70% of the listing price.
2. I already mail expire listing but I will teak my letter and postcard. I will offer to re list their property or buy it cash at 70% of the value.
3. Good old fashion door knocking and talking to people.
4. This will require some money, but maybe I can find an investor that wouldn't mind paying for it. Get a list of all out state owners and send me a letter or postcard offering to purchase their home at a discount.
What do you guys think of this plan? I want to get your feedback before I start seeking investors.
Do you guys think offering 70% of the listing price is too much? The original post that I read was offering them 57%, but I don't think that was L.A.
Also when I do come across a great deal, would it be fair to split it 50-50 with the investor. He would have to fund the entire project and I would find it ,sell it, and manage it.
Any suggestions or feedback is greatly appreciated.
Thank you
Alex Rodriguez
Most Popular Reply
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An all cash offer usually requires earnest money of 10% of the offer amount and proof of funds in your name showing you have the cash to close. You're not going to be taken seriously if you have only $100 to your name. A 70% of listing price offer probably isn't going to be take seriously in your area at all.
You are highly unlikely to find an investor to fund your real estate agent business. This is a reasonable marketing approach but you're going to have to come up with the money somewhere. Personal loan, credit cards, sell something, get a second job, borrow from a relative, something. I still think you'll have a tough time with low ball offers in your area. What you're really talking about here is wholesaling. Gurus pitch that as a quick and easy way to generate big paychecks with no cash. As you're discovering is neither quick nor easy and it does require significant cash. An investor isn't going to fund your marketing because its very likely you will blow through the money without producing any deals.