Real Estate Investor · Lincoln, CA · Member since 2009 · 28 posts · 1 vote
Hi, I am a new investor in the Sacramento area. I'm young, in college, and have no cash to put up for investments. I have decent credit but can't get a home loan, and this area has TONS of REO's and very little homes FSBO or Owner finance, and also barely any people who are selling that are not competing with REO prices. Any suggestions on what I can do to be successful and get the ball rolling? I can't assign REOs and there aren't many assignable properties here in this area. Without going out of state, what are some suggestions or resources I can look into? I am determined to get started as soon as I can but I want to be knowledgeable and resourceful! Thank you all!
Here's a short cut to building that buyers list. Call every I buy house sign, and add you can find, ask what kind of properties they are looking for. Then get a web page and market to those types of sellers.
You might even call a few home improvement contractors as these guys are always looking for projects.
Now some advice for the newbie wholesaler, don't get greedy.
If you find a deal with a lot of upside, leave most of it in the deal for the next guy and you will sell the place quickly. Don't be discouraged most of the sign guys are newbie losers who bought a course and are just going through the motions so they can say it doesn't work and go back to the assistant manager job at Burger World.
Have you read my blog on REO flipping? It contanins a video series too.
I would suggest you build some contacts of private lenders and or money partners to get started. It does take money to invest in REO's but there is no rule stating it must be YOUR money!
I started out with no money (although I had good credit - but didn't use it) and had ten properties before I ever invested one dime of my own funds.
It is not easy (or else everyone would do it) but it can be done with serious effort and determination.
In my opinion, REO's are the way to go in CA (assuming you buy right) and having the right team in place is also crucial to your success.
I started off with an assignment of contract out of state on a small commercial property. I recommend you get some seed money by assigning properties or locating properties for investors.
You might be able to do this by building up your contact list.
I know the advice is a bit hackneyed, but you might give it a try.
Thanks for your answers guys. I am going to check out the REO flipping information you have, and also research some money lenders in the area, and also I am going to work hard on building a power team! I am excited to learn all the creative strategies I can, it was just difficult to figure out because of our market in this Sacramento area. Thanks for your help, I will be reading and learning as much as I can. Chris, that was also good advice as I am looking into assigning as well!
Here's a short cut to building that buyers list. Call every I buy house sign, and add you can find, ask what kind of properties they are looking for. Then get a web page and market to those types of sellers.
You might even call a few home improvement contractors as these guys are always looking for projects.
Now some advice for the newbie wholesaler, don't get greedy.
If you find a deal with a lot of upside, leave most of it in the deal for the next guy and you will sell the place quickly. Don't be discouraged most of the sign guys are newbie losers who bought a course and are just going through the motions so they can say it doesn't work and go back to the assistant manager job at Burger World.
Hi, I'm an investor in the Wisconsin area and had typically the same problem as you when I was starting out. Typically, I buy foreclosures at a greatly reduced price and fix them-up and resell them at market price. One source of funding are "Hard Money Lenders". Their rates are high, but if the property can be purchased at the right price, you can generally get funding.