I’m 22 years old with around $40,000 to invest.

[Brandon Coleman]

What steps would you take if you were in my shoes to start and build a portfolio? I’m interested in buy and hold properties, and I am just curious as to what some more experienced investors would do if they were in my situation?

[Account Closed]

Act as if you have no money, practice nothing down creative financing. Let your Mom hold your $40,000, don't blow it, if you can do deals without money, you'll make millions using the little you have, your cash is golden, conserve it! I have been teaching and buying using creative financing for 49 years. oh! don't blow your $$ on useless courses or on mentors who will try to attach themselves to your bread! Be careful telling the world how much you have. be careful of folks here offering you great deals

Look at 50 houses, keep a journal of all the details, listen carefully to the sellers, and agents. look at those house again in 6 months.

 ask questions; 

• .mortgage balance,
• .how much you need above your mortgage,
• .know the potential equity in the deal, negotiate for equity (no equity, no deal!)
• always make offers below market value
• .ask can you help with financing, put request in your offer
• .delay settlement as long as possible'
• .ask for immediate possession
• .use contingencies and assignment clauses
• .Build in a automatic extension (you will always need more time)
• . make sure that "time is not of the essence"
• .use banking days, not calendar days
• .learn how to control and roll while in contract
• .ask for money back at settlement
• .ask seller to pay for home inspection
• . use a skinny contract offer, study and understand contract and creative clauses, they'll be your best friend and will make you millions!
• .beware of agents, they represent themselves!
• .make sure you understand comps
• .don't make an immediate buying decision, think it over get opinions
• .make a statement, "my goal is to earn a reasonable profit!" let seller and agent know that
• .Talk less, listen more, take notes, don't tell on yourself, don't reveal too much.
• .remember Cash  IS KING conserve it.
• .ask sellers to fix stuff before settlement
• . Always ask for more, the furniture, the old car in the garage, money back and all .the lawn equipment.
• . you should be in this business to make a profit, not to make a friend!
• . if you don't like the deal or agent move on, there are many more sellers who will let you have your way.
• .use the 7 words all the time "Is that the best you can do"?
• .Do you need top price or a fast sale?
• .learn "Power prospecting"
• .learn to represent yourself
• .study all expired listings in your area
• .Go to housing court to find motivated landlords
• .attend real estate auctions, take notes, network with other investors.DON'T bid unless  you are sure you can get it wholesale
• .Trust only your Mother
• . be kind, smile and have fun as you learn this business.
• Charlie