All Forum Posts by: Melissa W.

Hello Jared,

Welcome to Biggerpockets!

The first place to start is to attend Real Estate Investment meetings in your area.  Look on line for them in your area.  They usually meet once or twice a month.  In addition, think about what venue of real estate do you want to invest?  Do you want to fix & flip?  Do you want to buy and hold? Do you want to work with parners to invest in commercial properties?  Once you find out what kind of real estate interests you, is when you can effectively start to plan.

If you want to start with a multi family unit, then make sure you study the numbers. Study the 2% rule, the 50% rule, and the 70% rule.  These three rules help you to determine whether a property is a good deal or not.  When purchasing any property, there will be fixed expenses, and one time expenses.  Make sure you calculate all the expenses to determine if you will have cash flow or a profit.  The fixed costs are, (1) property taxes, (2) water bill, (3) insurance, and (4) most important the mortgage. The future costs are, (1) vacancy, (2) maintence,  or (3) major repairs (replace roof or concrete).  The Holding costs to calculate are, (1) repairs to bring the property up-to-date, (2) utilities until it's ready to sell or rent, (3) insurance until it's ready to sell or rent, (4) closing costs, and (5) property taxes.

Once you become familiar with the real estate language and study your numbers, is when you will be ready to make your first deal in real estate investing.

I strongly suggest attending the Real Estate Investment meetings.  They will help you connect with seasoned investors, and your youth is an advantage because seasoned investors will want to share their knowledge with you.

Hope that helps you.

Melissa

Hello,

Welcome to Biggerpockets.

The best way to do that is to ask questions, and to do a google search on them.  Google them by company and by name.  

I would start with finding a reputable Investment Realestate Agent in the area that you would like to invest.  Once you find one, then ask them if they work with a good title agent.  A title agent is very important in this business.  Usually a great investment realtor will have all the resources you will need to start investing in real estate.  That's how I got started, and I became good friends with mine.  

Hope that helps you.

Melissa

Hi Nikki,

It all depends on how you are financially.  Usually when you fix and flip or wholesale a property is because the investor is trying to build up capital in order to buy and hold.  

It looks like you did your homework on the property, and you answered your own question that you feel it may be a great long term investment.  If the property generates possitive cash flow after (1) mortgate, (2) property taxes, (3) vacancy's, (4) insurance, (5) repair costs, (6) water & gas bill, and (7) any other unforseen cost, then I would buy and hold.

When I mention repair cost, I am talking major future repairs suchas, roof replacement, driveways etc.

It is a good investment if you can generate at least $100 a month after all your fixed costs.

Hope that answers your question.

Melissa

Hello,

Has anybody purchased properties successfully at an Auction?  I am attending one later this month, and I have a few questions.  The properties I am looking at are Foreclosure/Trustee with a total estimate debt amount attached to it.  My understanding of the total estimate debt is that if the bid does not meet that criteria, then the winning bid could be rejected.  

My questions are: (1) Is it possible to get the private lenders, hard money lenders or banks to upfront money if I present a good deal to them?, (2) Is there a way to find out if the properties have leans on them by calling; or do I need to go directly to the county?, and (3) How do I make an accurate repair cost report if I can not see the inside of the properties?

Thank you.

Melissa

Hello,

Jean gave useful advice.  I bought two properties where the owners financed.  It is possible if you work out the numbers that is a win/win for both parties.  

I think it is the 2% rule today, it use to be the 1% rule back in the 90's.  

Good luck and don't give up on your dream!

Melissa

Hello Lian,

I also was nervous my first time attending the REIA meetings, but as soon as I arrived, I felt at home.

The REIA meetings here in California are organized, and usually have a guest speaker talking about a topic of interest. I attend the meetings that lean toward my real estate goals. Afterwards is when the meet and greets happen.

Bring your business cards to hand out if you meet someone you want to connect with.  That is what everyone does here.

I hope that was helpful.

Good luck!

Melissa

Hello Dylan and welcome to Biggerpockets.

I feel your excitement.  The first thing to do is have somebody with experience, like a contractor, walk through the property with you to give you an expert opinion on its condition.  The important things to find out before purchasing a property are, (1) is the roof in good shape?, (2) what kind of plumbing does the property have; is it galvanized or copper?, (3) how old is the electrical panel? and, (4) is the foundation raised, or flat?  It is important to know so you can evaluate your repair costs accurately.  Also, have you applied the 50% rule to evaluate if the numbers work out.  Meaning, will you have cash flow after you account for mortgage, taxes, future repair costs and vacancies?  I can not stress enough how important it is to know your numbers, before buying any investment property.

Good luck.

Melissa

Hello Phillip,

Did you consider an FHA loan? I have been investing for a long time, and I personally have had a few bad experiences with Bank of America. They are great when the economy is strong, but they will not work with you when the economy is weak. The small, and local union banks are great! They will be there for you in the good times and the bad.

I suggest that you research Bank of America 's consumers report files, before using them.  I call Bank of America, "The bank that doesn't care!"  Please just research B of A before making the decision to use them.

Thank you.

Melissa

Hello Jacobus,

Your post seems hostile, or maybe you are just frustrated.  Real Estate is an investment.  If invested wisely, then yes it can support you.  Real Estate is like any other job, one must have a passion for it.  

I have invested in condo's and single family homes.  I also did a few flips successfully.  On my first flip, I made almost $40,000 in profits.  If you know your market, and do the numbers correctly, then you can be successful in real estate investing.  

I live in Southern Ca where properties are expensive, and I did it.  I had to come with scenarios that worked for me, since I had no money to put down on my first property.  All the properties I purchesed was creatively financed.  I used private lenders on some, and owner financed on others.  

Once you purchase your first property, your in the real estate game or business.

I hope that helps you.

Melissa