Hello Kevin,
Im a brand new investor getting ready to purchase my first home. I just want to say that i agree with most of what everyone else has said. The one thing i have a hard time agreeing with is that to borrow money you need a track record. Im not sure if he means borrow money from hard money lenders, banks, or friends and family, or all the above. For some hard money lenders i believe that if you have most of the things that qualify you then you will be ok. I have a good credit score and stable job but not ten percent of the total cost of what i am borrowing. I was told that i could roll that into the money that i borrow but the interest rate would be higher. So saying this i just want you to be encouraged and find your niche. Your niche will most likely not be the first strategy you think of when coming into the rei business. I was supposed to build sustainable homes and sell them (which i plan to revamp that strategy in the long run, im not giving up on it) now i am into buy and hold investing. I strongly suggest going with the flow of what works best in your current market. Dont try and do flips when your market is screaming "Rent me, Rent me". Well atleast not by yourself and without knowledge of the area. If i may add, your market can change from town to town. For example Towson, Md has had excellent properties that works for flipping homes. A ton of property were bought at 69k fixed up and sold for 225k in less than 3 months. Where as the closer to the city of Baltimore you get properties that are sold for 15k to 50k and rented for 700 to 1200. Maybe more. You see what i mean? As far as tax liens are concerned it can be a gold mind but also a waiting game. If you play your cards right you could have a very good buisness in it. But to me thats something for the seasoned investor. I say that because there are legalities that many newbues know nothing about. Even when just purchasing a home with cash, there is so much you should know. Another thing is that if trying to make a buisness out if it you woukd need to purchase more than one home. And if possible at different times. Some cities have year round tax lien sales (atleast one in florida) and some I know are once a year (i believe anne arundel county). I say at different times because you dont want to have too many projects at one time when the forclosure process is complete. If you choose to go that route start small with maybe two and see how you like it. That way you can find some trustworthy contractors and work on structing your buisness to where everything is bid, wait, fix, repeat. I hope what i said helped. If you have any questions feel free to message me anytime. I live in baltimore maryland and have for a minute so if you want some help with anything i will try to help or direct you to someone who can.
P.s. I say go with buy and hold. But thats just me.
