You "fetch" properties which fit an investors criteria. You negotiate a fee for your services with the investor.
Ex: The investor requests 4br/3ba luxury executive homes GREATER than 20% under market in the Palm Beach area with a maximum sales price of $560K, and a minimum of 3500 square feet.
I realize this is probably a topic for the wholesale forum, but...I am more interested in buying lots, form the owner or possibly foreclosed lots. I am VERY green and am having a hard time figuring out where to start with regard to finding these lots. Any suggestions?
When getting started it can be best to focus on the largest segment of the market unless you have some unique knowledge. Easier to find lender and other professionals to work with.
By focusing on lots you are picking an area that has limited buyers, limited financing options (50% LTV is the max a lender will consider most of the time if you can get 50%) and no ability to support itself off the cash flow (lots rarely are rented).
If you happen to know a niche that you can make money with, great. If you want to learn how to invest in RE I would not think lots is going to be the most productive or educational.
lorinl,
I would recommend focus ing in one area till you get your feet good and wet and unless you have cash, the options are limited. I personally work in pre-foreclosures (requires minimal out of pocket) and I am now getting things on track for my area. It takes a while in some places, but it can be done. Just remember not to get side tracked and keep your focus on the prize at the end.
Good luck
When you say "one area"- do you mean pick vacant lots, foreclosures, or pre-foeclosures. Instead of trying to learn about all three or even two. If so, what would you say is a good area for someone who is brand new to real estate investing? Should I focus on properties that have houses on them, vacant lots, etc...?
lorin,
The answer to your question can only be answered with more questions. A lot depends on your financial situation, your credit, your abilities (such as rehabbing knowledge) and what your looking for out of real estate. I have found it very helpful to read as many books as I can on many different aspects of real estate investing and trying to make a plan with what works for me. Like everyone wholsaling sounds so good... you buy low and simply sell for a profit. I'm sure this happens with many people but isn't quite as easy as it sounds. For me I've found the beginning of a nitch that I'm working. I got a friend of mine involved in a two family that needed lots of work. I've been rehabbing this on the side for just over a www.year.It has covered all the expenses with rent as we have gone. I'll be renting out the downstairs on june 1 and the property will now produce a nice profit. My sweat equity will allow me to buy this from my friend with no money down and about 30,000. in equity. I will hold this as a rental and pay down the mortgage with excess money coming from the rents. I'm cloing on a 3 family on 6/17 and will be owner occupied. I'm in the process of a divorce and this will allow me to own this building, live there, and pay only $250. a month out of my pocket. This leaves lots of room on my debt to income ratio so I will begin looking for another multifamily in need of some work. I see thes multifamilies as a good way to achieve several objectives in one property. First, they can and will produce positive cash flows. Second, they will appreciate and the mortgages will pay down using other peoples money. Third, by me doing a lot of the work I'm building in considerable equity which if I needed to I could refi out or simply sell to get capital for other deals. This works for me because of the circumstances I'm in regarding income, credit, knowledge, and what I'm looking for out of real estate investing.
Hope this helps somehow.
Mike
You "fetch" properties which fit an investors criteria. You negotiate a fee for your services with the investor.
Ex: The investor requests 4br/3ba luxury executive homes GREATER than 20% under market in the Palm Beach area with a maximum sales price of $560K, and a minimum of 3500 square feet.
Bird dogging is a wonderful way to start in REI.
Eric & Rosa
[addsig]
Thank you.
I realize this is probably a topic for the wholesale forum, but...I am more interested in buying lots, form the owner or possibly foreclosed lots. I am VERY green and am having a hard time figuring out where to start with regard to finding these lots. Any suggestions?
When getting started it can be best to focus on the largest segment of the market unless you have some unique knowledge. Easier to find lender and other professionals to work with.
By focusing on lots you are picking an area that has limited buyers, limited financing options (50% LTV is the max a lender will consider most of the time if you can get 50%) and no ability to support itself off the cash flow (lots rarely are rented).
If you happen to know a niche that you can make money with, great. If you want to learn how to invest in RE I would not think lots is going to be the most productive or educational.
John
[addsig]
lorinl,
I would recommend focus ing in one area till you get your feet good and wet and unless you have cash, the options are limited. I personally work in pre-foreclosures (requires minimal out of pocket) and I am now getting things on track for my area. It takes a while in some places, but it can be done. Just remember not to get side tracked and keep your focus on the prize at the end.
Good luck
When you say "one area"- do you mean pick vacant lots, foreclosures, or pre-foeclosures. Instead of trying to learn about all three or even two. If so, what would you say is a good area for someone who is brand new to real estate investing? Should I focus on properties that have houses on them, vacant lots, etc...?
lorin,
The answer to your question can only be answered with more questions. A lot depends on your financial situation, your credit, your abilities (such as rehabbing knowledge) and what your looking for out of real estate. I have found it very helpful to read as many books as I can on many different aspects of real estate investing and trying to make a plan with what works for me. Like everyone wholsaling sounds so good... you buy low and simply sell for a profit. I'm sure this happens with many people but isn't quite as easy as it sounds. For me I've found the beginning of a nitch that I'm working. I got a friend of mine involved in a two family that needed lots of work. I've been rehabbing this on the side for just over a www.year.It has covered all the expenses with rent as we have gone. I'll be renting out the downstairs on june 1 and the property will now produce a nice profit. My sweat equity will allow me to buy this from my friend with no money down and about 30,000. in equity. I will hold this as a rental and pay down the mortgage with excess money coming from the rents. I'm cloing on a 3 family on 6/17 and will be owner occupied. I'm in the process of a divorce and this will allow me to own this building, live there, and pay only $250. a month out of my pocket. This leaves lots of room on my debt to income ratio so I will begin looking for another multifamily in need of some work. I see thes multifamilies as a good way to achieve several objectives in one property. First, they can and will produce positive cash flows. Second, they will appreciate and the mortgages will pay down using other peoples money. Third, by me doing a lot of the work I'm building in considerable equity which if I needed to I could refi out or simply sell to get capital for other deals. This works for me because of the circumstances I'm in regarding income, credit, knowledge, and what I'm looking for out of real estate investing.
Hope this helps somehow.
Mike