im clueless newbie with 15k burning a hole in my pocket
i am 25 and my credit stinks. I have about 25 to 30k saved and i really want to try my hand at rei, any suggestions?
[ Edited by thebottomline on Date 05/06/2003 ][ Edited by thebottomline on Date 05/06/2003 ]
actually clueless newbie isnt accurate, i have had prior experience in probate law and i also have a general contractors liscense
thebottomline,
Welcome to TCI!
You have found a great website for free information on just about every area of REI there is. You should read as much posts/articles/etc. as you can.
Here is my outline of suggestions you should do:
1. Create a business plan.
- You need to figure out what you want to get accomplished as a REI. You will need to start answering questions that will help you come up with a plan of action. Here are a few to get you started:
How much time do you have available to put towards this business?
Do you want to rehab (fix and sell)?
Are you looking for long term or short term investments?
Are you partnering with anyone? If so, then do you have an agreement between the both of you?
What area of REI do you want to pursue (subject-to, rehabbing, foreclosures...)?
2. Pick an area of REI and either invest in a course or learn as much as you can about the subject before getting started by reading the information on this website and books in the library.
3. Start networking with RE professionals.
- Build a team of real estate agents, RE attorney, mortgage brokers, CPA, and other investors.
Those are tips to help you get started. You need to learn as much as you can before going out and getting yourself into a lot of trouble. If you have $25K to invest in, then you may want to invest in other investors who need cash. You can find ads in the paper where you can put up the cash and split the profits when the property is sold, or earn at least 10% on your money.
Another way to get started fairly quickly is to become a bird dogger. You match up motivated sellers with investors. If the investor buys the home, then you get paid. Plus you learn while you earn. You can have the investor explain what technique they used to acquire the property so that you can better service their needs. I hope these ideas help get you off your butt. You should check out your local library for REI books.
Tanya
...I'd add to Tanya's post, this
Figure out your financing. Find out what is available to you and at what rates/terms. That way you can evaluate properties with a good idea of how much the financing will cost you.
There is a world of difference between 7 and 10% when it comes to cash flow. Find out what you can get in your circumstance for the properties that you are interested in.
There are also LOTS of posts regarding how to get in with no money/no credit. Figure out what you're going to like and what you're going to be good at and start running.
Read and Study....but the real education comes when you start doing it.
Clueless and $15K burning a whole in your pocket is a deadly combination. Spend some time on this site and learn, learn, learn. That way you'll make an informed investment decision with your money.