All Forum Posts by: Laura Alamery

Adam, based on what you are saying I have a few recommendations:

1. Start with one property and manage it yourself. You have to know what to expect from a property manager before hiring one and you can only know by being one yourself for a while. That will give you a chance to organize the business and set some ground rules that you can work with.

2. $100k is a fairly good amount, but not too big in real estate. Use some of that money to wholesale/flip some properties "as is" (without doing any repairs.) Once you build another $30-$50k cash reserve, buy another property/multi-family to buy and hold.

3. Once you are ready to hire a property manager, find someone to work only for you (not one of these large property management companies) - that way you can control costs, management policies and you will profit more.

If you are really new at real estate, residential (single family up to 4 units are considered residential) would be your best bet.
It depends what cash reserve you have: if you have some money aside for real estate, buy and hold some nice basic "bread and butter" properties would be a great way to start your portfolio, since you can buy at highly discounted prices nowadays.
If you don't have much funds, I would suggest flip/wholesale a few deals until you build your cash reserve, then use a mixture of buy and hold and wholesale/flip.

Well, it depends what and how much you can handle as a landlord.
Numbers might look better in some parts of town, but you have to offset with a lot of other issues you might have to deal with: vandalism, evictions, crime activities, inspectors being hard on you, etc.
I have a friend/partner who deals in properties in the worst part of town: his car gets periodically vandalized, got shot a few times (the car) and he has to be careful when and how he knocks on doors. He has done very well for himself and makes a lot of money.
Personally I have properties in a "safer" area, where I have no problem standing on the street. My cash flow is less than his from my properties, but I sleep better at night. :)

Definitely start small, with what is called "horizontal investing" - several multi-family buildings, up to 4 units. Easier to manage and maintain.
Once you got some experience as a landlord and learned the ropes :), than you can trade to a bigger apartment building (1031 Exchange is a good way) if you want to.
I personally prefer horizontal investing and I have done quite well with that and I know people who have retired on the income alone after a few years.
It is a matter of organization and starting small.

I assume you mean leads in getting sellers.
It all has to do with the correct approach, timing and the right marketing material.
It is a matter of trial and error - my goals is 5% or better of whatever form of marketing I use.
If I send 100 letters out for preforeclosure leads, I expect to get at least 5% responce (and I do), but it took some revising, trial and errors.
I know 5% seem ambitious to a lot of marketers, but pushing to the top is what will make you survive in the business (and it works.)

Welcome! I actually just wrote a post in my Blog here on biggerpockets for new investors and the most common pitfalls - check it out!

I agree, flipping contracts is a good way to start out in real estate, however you have to do it the right away so you will not get burned. I have taught the process for years in my seminars and coaching.
There are several books on the subject or you can search on the internet.

Yes, but it takes a little bit of effort.
Local banks like to deal with customers. Their REO portfolio is usually shared first with customer and investors, who have dealt with the banks previously.
I would suggest you visit the bank in person. Ask what the policies are about sharing their REO list. If you have to be a bank's customer to get the preferential treatment, open a savings account.
Also ask to meet with the President or Vice President or REO Manager: bring with you Proof of Funds letter and let them know you are a viable investor.

The best way for you to locate private investors is for your agent to run an MLS search for the area where you invest and locate properties that have sold for cash in the last 6 months.
With this information, you can look up the investor/buyer at the Recorder of Deeds office and contact him/her about partnering with you or advancing you funds.
Also look and advertise on Craigslist - look for active wholesalers selling properties - they would have leads on private investors and cash buyers.

Your plan could be doable, but only one property a year and only HUD? :lol: You are limiting your potential too much, especially in this market.
Also I assume sunrooms and terraces are great features where you are located, but I would research what homebuyers really are looking for in your area.
With that type of cash reserve that you have, you could also wholesale and flip all type of properties nowadays (short sales, REOs) without fixing or waiting a year.
There are so many options out there - but, if you plan to buy a property to live in it, fix it up and resell it, HUD is only one of the possible alternatives.