The Proven Process
I am jumping in to rehabbing and am being pulled every which way in looking for properties. I am looking for any suggestion or information about ways of consistently finding deals.
Your insight is appreciated.
Greg
You first need to ask yourself:
B]What do I want to do with these deals?[/B]
I know what I want from properties, I am talking about ways to going about getting them.
Find a wholesaler - their only job is to flip to investors.
what is a wholesaler?
Sounds like you need to learn a bit more about the basics of the business before jumping in. I would suggest reading "Buy it, Fix it, Sell it, Profit!" by Kevin Myers, before jumping in. The latest edition has been updated for 2003.
thanks for the book referral. sounds like you have read it. maybe you can save me some time and pass along some proven ways of finding deals.
having consistent deals on my table is my only weakness at the moment.
Quote:
On 2003-12-12 11:01, GB wrote:
thanks for the book referral. sounds like you have read it. maybe you can save me some time and pass along some proven ways of finding deals.
having consistent deals on my table is my only weakness at the moment.
Sounds like you want a quick answer for free instead of investing your time like the rest of us have.
Take the suggestion and read the book.
Mike
what do you think this site is for?
my understanding is that this is a place where investors can collarborate and share experiences. i didnt think this was a book club.
thanks for your suggestion
Were I you, I would definitely buy the book; as a matter of fact, I have, and it's been quite helpful. I had also purchased Carlton Sheets' No Money Down course last March, so that helped me to understand REI better and to gleen more from this Web site and the above mentioned book.
Again, buy the book. Read it in a few days. As much as it's appealing, I caution you not to just run out and buy something. If you make a mistake with buying it, that can certainly put a damper on your future.
Thanks,
OnTheWater
ok guys... i have already purchased the book.
i have read other books as well. when i said i was jumping in i didnt say i was jumping in blind. i am still interested in what has worked best for you guys...... if you have some real experiences to share.
thanks
Here're a few rules of thumb.
If you cannot make 20k after repairs, holding costs, real estate broker (or do you want one?) and the like, then don't.
Buy at or under 30% of FMV (fair market value).
Financing it? How? Partner, bank, 80/20 or 100%? Personal loan or construction loan? Construction loans often only pay out as you need the $ for a specific part (electric, plumb, heat, etc).
If your an LLC, it's more difficult to get the $.
What happens if you become ill? Hey, it's happening to us right now, so don't disregard that.
Are you handy? Can you sheet rock, tape, finish and paint? Can you do electrical?
What are the comps (compareables -get those from your realtor -tell'em you'll sell through them for the comps (just an initial idea)) for the area?
When the rehad is finished, will you sell it for top dollar or 90% of FMV. At 90% it'll move faster as it'll have instant equity for the next buyer.
Are you going to lease option it to a tenant/buyer? You'll make more money doing it that way, but that's more $ over time.
The above is a general overview.
Thanks, and keep it up!
OnTheWater
i appreciate everyone's time in giving their suggestions but my question is specifically about ways that are working well for you in finding deals. not how to buy, not what to look out for when i buy, not questions i need to ask when buying.
i am curious about what is working best for everyone in Finding deals.
but thanks for you time.
Real experience?
Hmm.
We just got one; here's how it went.
A realtor showed it to me.
I took my partner who funds all rehabs.
He got his note from his bank and faxed it to our realtor. We got the bid.
He pays for everything.
We got it for 50% of FMV and it has an additional lot.
Heating is good. Electric is good.
Needs windows and siding.
We'll put a roof on in spring.
We'll redo some plumbing. Some sheet rock, painting, lay carpeting and redo the kitchen.
We should make about 20k each after all is said and done.
No money from me. This was a 100% no money down deal.
Now, we looked at a few foreclosures in our area before we got this one; by far it was in the best condition.
Lastly, I cannot get all the deals. They're always around the next corner though.
Thanks,
OnTheWater
The three quickest ways to find deals is to 1. call realtors, 2. go to the county and ask for the NODs 3. we also use http://www.bankforeclosure.com.
Those are the three methods that we've used.
Thanks,
OnTheWater
thank you on the water
I would look at distressed looking properties and contact the owner. I send a letter out to the owner of record stating that I pay cash and can close in ten days.
thanks
GB -
You can generate leads by running ads in your local newspaper; bandit signs also bring in some good leads <but check your local ordinances abt bandit signs>
Quote:
On 2003-12-12 11:14, GB wrote:
Mike
what do you think this site is for?
my understanding is that this is a place where investors can collarborate and share experiences. i didnt think this was a book club.
thanks for your suggestion
Actually, it IS a book club. We read and review all sorts of books - how-to books, novels, romances, travel books, cookbooks, etc. etc. but we try to keep our cover as a real estate investing site. We pass the reviews around as private messages. I've gotten some GREAT recipes for banana cream pie!
i like your sense of humor. i think you should write your own book. i have a suggetion for the title. "The Pies Behind the Lies..... The Real Story of REI"
you can use that for free, of course.
LOL!!! I like it.