How Did You Get Started?
I ran accross this topic title in another forum and thought it was good topic for this one. If a moderator moved it there I am sorry about reposting it here.
For most newbies to REI I think this is the biggest question all of us have.
How do you get started without getting burned on the first deal?
Most books, "Kits", "Seminars" give great info on the ins and outs of the industry but almost nothing on the steps and how to get started aspect.
Many advertise "Nothing out of pocket" is that true and can it be done? What are the risks?
Where should a newbie start to learn the ropes and have the best chance of success and staying with it?
What "Tool Kit" should a newbie have set up before they start?
I think I have covered some of the biggest questions I have seen around the site in one form or another. Most seem to be asking these but are beating around the bush instead of directly asking. In general they just want to know "How did you get started?"
another member is asking the same question so I will try and answer and then copy it and reply to the other one. first of all, wow, what a long answer this could be. I tried for a long time with decent credit, high debt to income ratio, and in a very hot market. I was unsuccessful. so my credit got better, my debt to income ratio got better, and I left a hot market for a not so hot market and picked up a partner and am going to close on 2 sfrs homes next week. Then in the hot market I am on my own buying land and having spec homes built on them for a pretty good profit. everybody starts differently and so will you . you need to find out what really interests you. I know the answer is money but you need to find the best way for you to make that money in rei. are you handy with remodeling or know people who are? you may want to buy low fix up and sell high. does property management sound good? then go buy and hold some properties. or do it all and have a diverse portfolio. I would suggest buying some kind of rei course if your not sure what your doing, and stay informed on this site for some good knowledge. start reading and investigating and then post some more specific questions about what you want to do. dont give up and good luck.
I plan to birddog for a few places and do some contract flips. From there I plan on going on doing some L/O's or sandwich L/O's. eventually moving up to the full out wholesales.
Was not really looking for long answers. I think what we are all looking for are the steps needed to start.
Say the steps needed to start in a contract flip, or steps needed to start in an L/O.
What to look out for that could really bring down a starter.
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i had bad credit, no money, and didn't believe money could be made in rei. my wife wanted a house so she dragged me to look. an agent said they had a good deal. the house was just going into foreclosure. the agent drug me to see the bank officer, the agent and the b/o did all the calling. i knew little of what was going on. the next thing i knew i was accepted. i had bought a home worth 85k for 48k. i thought, there must be something to this rei stuff.....km
I bought a house to live in, naturally I wanted the most house I could get for the money, we ended up getting a HUD home that was pretty beat up (back when HUD meant bargain). Put in some sweat time and had a decent amount of equity. I was transfered and the numbers made sense so we hired a property manager and rented the place out. Liked the results so kept going. Didn't like the long distance thing though, would never do that again.
Couldn't begin to tell you how to start, everyone is different. Different goals, different abilities, different locations. Talked to a guy who had read a book and decided he wanted to be a bird dog, a bird dog in junction city kansas? Sure, use them all the time, they are called realtors LOL.
Short(ish) version...
Started in Silicon Valley.
Read a book, took a 2 day 'nothing down' seminar soon afterwards. Sat & Sun was the seminar.
On Monday bought a house nothing down.
I used the place to live and rented 2 of the 3 bedrooms. When it was all done I was paying less to live there (after tax deductions and rental income) then when I was renting 1 bedroom in a 4 bedroom home.
I figured that if I did a good deal (not great, just good was fine with me) and I got my first deal under my belt I would learn more. I did and it got me started so I could build momentum.
Environment - High prices for CA housing, very high interest rates at the time, nationally the unemployment picture was pretty bad, working about 9 months after having graduated with computer science degree, credit was fine (not sure exactly what my credit was at the time). Property was listed and I used an agent. No seller financing. OPM for 100% of the deal.
John
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