All Forum Posts by: Pat G.

Travis:

That is a great start. Now, choose an area or city to work in - typically it is your own city or one close to you. A city where you can pick up homes that are typically 50% of their value so you can wholesale them. 

Then...

Go to Google and search for a Real Estate Club near you that you can attend. This will do 2 things, start you networking and get a feel for the Real Estate market. And you may even meet your buyers of your wholesales.

Then go to www.vistaprint.com and order some FREE business cards. You just pay for shipping. Make sure to have those cards with you when you go the REIA meetings. Put on the biz cards what you do and what you are looking for, and you contact info.

Good Luck

Douglas:

It is a sales seminar to lead you into purchasing more training from Than. These types of events are always good to go to if you know that up front. It's a good networking opportunity. 

Than is an outstanding speaker and knows what is is doing, so take good notes and maybe you will learn a thing or two. But be prepared for the sales pitch at the end, again as long as you know that going into it you will be fine.

I have purchased several courses by attending events like that.

Travis:

Great Question. This may help you:

1. Choose what type of opportunities you are going to do, i.e. Residential, Commercial, wholesale, flips, foreclosures, bankruptcy, Subject To and Lease Option, Section 8 Rentals, Standard rentals, etc. Get Focused! 

2. Know your exit strategy - hold for long term cash flow and appreciation, etc.

3. Choose an area that you believe would have a lot of your #1 choice and become the expert in that area for the chosen #1.

4. Study and research everything you can about the opportunity you have chosen, talk to people whom have done or are doing, BP is a great place for that.

My #2 maybe in #1 as well. 

Hope that helps

Pat

BP:

Just listened to the podcast - Great Info. Real Actionable steps.

Thanks

Pat

Jennifer:

You are correct for a wholesale deal. See the wholesaler will sell typically to 2 end user - a homeowner, somebody that is going to live in the home and fix it up (sweat equity) or to a Flipper, somebody who takes a dirty penny and shines it up and sells it retail (homeowner).

Thanks for posting.

Let me clarify one thing on the LLC for @Rob Beland and @Christian Carson I was suggesting to set up an LLC for his business not to place the duplex into, yes placing the duplex into the LLC  would negate any tax benefits that you gain by owning your own home. 

I guess the last sentence in @Rob Beland's post says it all. "You are their neighbor" and therein lies the problem. It is going to be a challenge being their neighbor and their landlord at the same time. Especially for your first RE deal. 

Because the first time the rent is late, the excuses start, and then they will say, "Hey our kids play together", "Our wifes' are friends', "We have beers together," etc.  Then you agree and let it slide, but down inside you are thinking I still have to pay the mortgage. 

Then you start thinking that this RE stuff doesn't work, it is too hard, people suck, whatever. But RE does work and it is challenging at times but let me tell you from 20+ years of experience with dealing with tenants - Your not their friends, sure you need to be friendly, but you are not friends. You may think of it that way, but they don't, trust me.  Don't put yourself in a position that you are going to regret later. Ask me how I know?

Anyway, I guess to solve this issue my suggestion would be to buy the duplex and place two paying tenants into both units and get an apartment which will be paid for by your 2 paying duplex tenants.  Then go get another duplex, and another and another. Rinse and repeat!

Work on your business not in your business. I have bought a lot of properties from "Tired landlords".

Engelo & Erik:

Thanks for the info.

Have a good one.

Pat Gage

Jameal:

Nice house. It looks like it has already been wholesaled to your seller. I mean there is no value add to the house. No repairs that can be used to reduce the price. 

To wholesale a opportunity the loan to value (LTV) needs to be below 50%. Right now, with the figures you gave me this house is a 73% LTV. How I got that is take the value of the house ($60K) divided by what it is worth ($81, 783). There is no meat on the bone for a wholesale deal.

Find out why the seller is selling, financial trouble, can't afford etc. I can bet you he/she in another investor just like you and never lived in the home. 

When you are looking for opportunities look for the worst one on the block, not the shinny penny, which this one is.

Gina:

All the posts so far have been great advice. Have you thought about Commercial Real Estate? Apartments, Self Storage etc.?

The reason I say that is you would have to have quite a few rental homes free and clear to give you $4K a month net. 

Now, you could put that $150K in the bank and then go get some private money lenders and purchase a small apartment complex say 20 units or more.  You would be closer to the $4K per month goal, plus have the $150K in the bank. 

Check out Michael Blank here on BP he has a great course to assist you. 

Hope that helps :)

Jamael:

Great on taking action. Without knowing the details of the property and how you are purchasing it it is hard to give sound advice, but here goes. 

Before you leave your house you need to know the following about the opportunity:

- what is the value of the house your are buying?

- What does the sellers owe on the house, will he/she take what is owed?

- Are there any repairs needed to house and cost of those repairs 

- What is the ARV (after repaired value) of home, if repairs.

- How are you buying the property - land contract (seller financing), subject to, new loan etc. 

- And finally what is your exit strategy - long-term rental, flip, wholesale, or fix and sell, or live in.

With these items above the offer writes itself, or at least one comes out front.

Hope that helps, need more help just let me know.

P.S. They are just as scared/nervous as you are!