All Forum Posts by: Michael Carbonare

Your instincts are correct:  he's trying to sell you his latest get-rich-quick scheme.

The ghost of Russ Whitney has returned?  Tom Vu??

@Ty Rainey  The advice generally given to new investors is to start with wholesaling.  In theory it's a good idea. But the reality is quite different.  How frequently do you think a new investor can score a property for .35 on the dollar?
I started with lease options.  Specifically, a type of lease option called a cooperative assignment.  Risk free and cash out of pocket free, and a heck of a lot easier to get a homeowner to yes to the offer.

Not to rain on your parade, Gabriel, but it is almost always a bad idea to borrow money from family and mix business and blood.

Marketing and several employees.

@Hector Carrillo Bandits signs alone won't bring anywhere near the exposure needed to find wholesale deals.  I don't know where you're located but the competition for those deals is usually cutthroat.  Signs can be a part of your marketing but in all likelihood you will need to be much more aggressive about getting your message in front of your target market.  Most likely means direct mail.  I mentioned in a previous post that an investor friend of mine who is a very successful wholesaler drops 10,000 pieces of mail every month to find his deals.  He often needs to hit up homeowners 5 to 6 times before they respond.

@Malcolm Kruger I'll repeat the post I wrote a few minutes ago to another new investor looking to start with wholesaling:

I understand the appeal of wholesaling for the new investor. In theory it's wonderful. In the real world, not so much. Your business model is simple: find homeowners desperate enough to sell you their property for .40 on the dollar. Quickly resell it for a fast, easy profit. Rinse and repeat. How many homeowners do you think you'll find willing to sell with that discount? The competition is fierce, to say the least. A successful investor friend of mine in south FL drops 10,000 pieces of mail each month to find his deals Ten thousand! He needs $30K in profits each month to break even. There are easier ways to get started investing in real estate.

I understand the appeal of wholesaling for the new investor.  In theory it's wonderful.  In the real world, not so much.  Your business model is simple:  find homeowners desperate enough to sell you their property for .40 on the dollar.  Quickly resell it for a fast, easy profit.  Rinse and repeat.  How many homeowners do you think you'll find willing to sell with that discount?  The competition is fierce, to say the least.  A successful investor friend of mine in south FL drops 10,000 pieces of mail each month to find his deals   Ten thousand!  He needs $30K in profits each month to break even. There are easier ways to get started investing in real estate.

@Adrian Sanchez, what @Caleb Brown wrote above.  It's too easy to get caught up in Paralysis of Analysis.  I see it here all the time.  The usual post goes something like "I've been reading everything I can get my hands on; I'm up to podcast #378; I attend 3 meetups weekly; etc".  Those are excuses for remaining in your comfort zone.  Book smarts make dinner conversation; street smarts make money. 
Focus on ONE strategy, put it into play, get good then branch into other strategies.  That's how you grow as an investor.

@Shemroy Mccarthy As noted above, buy and hold in Nassau County is damn near impossible.  Wholesaling is hyper-competitive, also.  If you want to stay local, consider lease option assignments.  And don't rule out investing virtually, in other states.