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JohnSmith would you care to elaborate on the risks involved?

Hello

I have just graduated from school with my bachelor's. I read this board quite often, and really want to start investing. I really think bird dogging is a great idea to get started. Anyways, I live in metropolitan Detroit and if ya didn't know...our economy is terrible and the real estate market is also. Is it possible to survive in this situation and if I do find suitable houses, would I be able to find interested investors?

Brett

Flipping has basically two different meanings....

You could get a house at an auction, own the house, fix up the property and then sell for a profit....

or

Find a house that is well below market value, get it under contract, and sell the contract to another investor for a small profit...2-5k.

You are referring to the first approach...it's much easier to say rehabbing becuase everyone wil know exactly what you mean.

Hey Gaterunner,

Not sure what exactly an APOD is...but can you send me one?

Juzam thank you so much for your reply. I should have edited but I did mean to state that I want to start investing by the end of 2006. Does a construction loan take up time, as far as waiting for the inspection in order to get more money? It seems like a hassle, but it might be my only option.

I might just offer my Mom a percentage of the profit and convince her to open an equity line of credit :lol:

Well, thank you so much once again...

Hello

I am graduating from Central Michigan University on Thursday with a BAA in Entrepreneurship and minor in Marketing. I have 3 job interviews set up for Monday and 2 appear to be very promising. Assuming I land a job in the 40-50k/year range, I want to begin investing near the end of 2007. So...hypothetically...

If I found a house that was say 60% LTV and needed some repairs....

Would a lender give me a loan for the purchase price as well as a loan to cover the repair costs? Also I see many "guru's" recommending to set up a "team" that includes title co., lawyer, CPA, etc... Is this necessary for my first rehab/retail?

Note: My credit is excellent. I have had a credit card since I was 14 and have always paid the balance in full on time. I do have student loans to the tune of 15k. I would expect my score to be around 700....

I don't know where you are seeing houses for 1k, but if it sounds too good to be true, it probably is....

I'd recommend using the links on this site to locate reo websites directly....

Rehab=Rehabilitate. Buy low sell high by acquring properties that need work/repairs....

Really before doing anything you should read up on RE investing. Go to Barnes and Nobles and pick up a book on RE investing. Probably will cost you 15 bucks, but it's well worth it. You will understand a lot of the talk on this forum strictly from reading a good book....

I am a newbie also and plan to start investing in the near future. There are a lot of things you can do in real estate. My suggestion is to make a plan. Do you want rentals or rehab and retail? Remember you make your money when you buy, not when you sell. Always do your due diligence. Here's a general formula that I've seen in several places that I intend to follow:

Maximum Offer Price=(20% Profit)-(10% contingency)-Repair Costs

Example: Repair Costs=5k...I would offer no more than 65k on a 100k fmv home

You make it sound waaayyyy to easy. How do you plan on acquiring it? Foreclosure, pre-foreclosure, HUD home, REO, motivated seller, etc.? Who will do the rehabs and cover the costs?