New To REI, But Would Like Some Guideance In Options
Well...where to start,first I would like to introduce myself,my name is Joe and I am living in Cali. Just scratching the surface in REI. Really haven't read any books yet but would love to get recomendations on which to read. I have some questions and if anyone could answer them I would really appreciate it, so here it goes...
1)What is option/lease investing exactly?
2)What is a sandwich lease?
3)What books do you recommend on lease/options without investing big bucks on the books at the moment (I want to crawl before I run)
4)How is the money made in lease/options?
5What kind of money is expected to invest in lease/options?
6)What avenue would be best for the begining investor...ie:optons, wholesale etc...
Thats it at the moment, I am sure I will have more when I get some answers here. From what I understand I am living in an area that is growning leaps and bounds (Bakersfield CA.)...only 100 miles from LA, people are leaving LA to move here because real estate is cheaper here, but the appreciation on properties is incredible. To give an example a friend of mine bought his home in 2002 at 125,000 and just got it appraised last month in march 2004 and the appraisal was 208,000 I think this is incredible, am I right thinking so?
This is why I want in on investing. So if anyone could guide me in the right direction it would greatly appreciated.[ Edited by pcmedic on Date 04/12/2004 ]
You should never invest based on appreciation. That is the gravy when you sell, but the property needs to work financially (whether rent, flip, lease/option, whatever) INDEPENDENT of appreciation for it to be a good investment. Others would disagree, but markets can change (though S. Cal. is its own animal in the country right now)
Best, Dave
Two books I thought were very informative and give a comprehensive plan of action were: "Flipping Properties" by William Bronchick, Robert Dahlstrom and "The Weekend Millionaire's Secrets to Investing in Real Estate" by Mike Summey, Roger Dawson. Good luck!
Also, "Making Big Money Investing in Foreclosures without Cash or Credit" by Peter Conti & David Finkel I found informative. At the back of that book gives u info on how to get for free a previous book of there's on lease/option entitled "Multiple Streams of Income: Buying Homes in Nice Areas with Nothing Down, which explains the lease/option very well. Though half the book is selling their expensive protege and mentoring programs and legal forms for big buckst, the other half is right to the point. They give a lot of good info on how to get started. All four of the previously-mentioned books sell individually for under $20 a piece. Happy reading!!