Soup to nuts guide by experienced buy and hold investors.

[David Fields]

I feel that I am a good everyman when it comes to the average beginner in real estate investing. I've read a lot of books that most accomplished investors have (mostly the Rich Dad series), but have no experience in deals made over time. I feel that you learn more by doing than reading. I think that most of the books are more guidelines and advice than actual functional knowledge.  So I was wondering if there is a real "soup to nuts" guide for beginning investors that are looking to buy and hold rental properties when they are starting from $0 and have no wealthy friends or family to rely on for non-traditional investment loans. 

In my case, this summer I will have a credit score nearing 700 (650 right now), Debt to Income ratio around 40%, 11.5k in available credit (over 5-6 different accounts) with less than 9% utilization, no accounts in collection, one old public record for a medical bill. I make around 30-40k as a 1099-self employed, and I have a car loan around 14k. Right now, I only have a few hundred in savings. As you see, although my credit is at an upward trend and I have very little debt not counting my car, my capital is very small and has no velocity other than the monthly contributions after expenses. I think many people just beginning in real estate are at this point or are even worse off than I. 

This is where I think it would be beneficial to start a plan of achieving acquisitional strength, but a plan that has the wisdom of hindsight guiding it. 

Immediate Questions: 

-What steps should be taken now? 

-Keep saving and wait till next year when capital and credit are stronger? If so, where's the best place to park the money for maximum growth? How much would you say is enough for single-family and/or multi-family down payments in Cincinnati?

-Try to find a private lender (not hard money)?

-Try to partner/birddog deals found till independent?

In summary, if it was you, where would you go from this point?

[Ellis San Jose]

Don't wait, time is precious. Get educated & research your target farm areas to buy & hold.  Know who the other investors are in your target area by searching public records.  Learn how to identify high equity & profitable deals to either buy & hold yourself or with a money partner/lender. 

Have 1-3 buying strategies to your arsenal so that you can make deal with your own or others peoples money.

1) Wholesale by assigning contract

2) Seller Carry for cash flow

3) Subject to existing financing

Also what is extremely critical is to learn how to manage rental properties if you intend to be a buy & holder.

Best of luck