BiggerPockets

I've been looking into ways of getting into real estate by doing short sales with banks as my first avenue to get started. I guess I would be considered a "bird dog." This would be to get me started. The whole foreclosure market is so competitive it does scare me a little.

So going to the bank with a purchase deal (proving I have the $$ - and using OTM other people's money) is how I'm planning on starting. Is it unrealistic or are there really good deals out there that can be obtained thru the bank? Are they more eager to these types of deals than they were 2 years ago? I've been involved in short sales before with an investor but I really only want to work with the banks instead of the property owners....to make some money to help me expand my goals in real estate.

I'm planning on taking a course that shows me how to put together the "deal" and approach the banks.

Thanks for any help or suggestions.

Thanks Josh...made a little typo.

The reason I was taking a course is to get the funding locked in for my deals. I can go to the bank with a cash offer. I'll take your advice and research this site, but are there money sources here that would provide the funding that is NOT at hard money prices?

Hi Jim: It wasn't the lender requirement. The course is providing all the "how to" info and they have access to the investor network to fund the deals.

Hello Elaine- Have you tried finding any local real estate investor clubs? I would try BiggerPockest RE club list to find the closes one in your area. I to am trying to get my foot in the real estate door. Have you tried investing in subject to properties or even looked at it?

I know courses have worked for me. Sure, you can find all the information here on the forum, but you have to go through thousands of pages of stuff. You also have to be able to see through all the bad information.

If you can find a reputable company or "guru" to learn from, someone with plenty of positive reviews and proven success, you'll be able to get started a lot sooner, and you won't have to repeat other people's mistakes.

You need education for everything. You can't use forums. Could you imagine if you used an attorney or CPA who became an expert from a forum?

You need to at least get a system to study, and even better, attend live training.

I have attended his trainings and listened to his materials. And you're right. The gurus and what I just put up there do make it sound a lot easier than it is. It would take too long for me to type out every little step. That's what the CDs and boot camps are for.

I've noticed that people often complain (and I'm not saying you're complaining) that the gurus give them just enough information to get people excited, but not enough information to do anything. And this is true, but not for the reasons people think.

When I hear Ron speak, he gives all the information he can possibly cram into an hour and a half webinar or tele-seminar or lecture. But it's a couple days or hours of CDs worth of training to get all the details.

I just look at it this way. You have to pay for your education one way or another. You'll pay for it many times over by not getting it.

This stuff really works.

Sorry...I missed that part of your first question. I started listening to his materials last June. Since then, I started mailing out letters (about 200 per month). I usually get about a 10% response, sometimes up to 30%. Sellers call into my answering service and they ask them the questions I need to prescreen them. Out of the 20 callers I get per month, I usually call 3 to 5 of them back. The rest aren't what I consider motivated sellers.

I make offers on those, and I get hung up on by most. But I probably get one deal out of every 10 offers I make. So I get one deal about every 2 months.

Now I send letters out to absentee homeowners, not necessarily houses that need to be rehabbed. And if the person who calls me has a junker, I look at wholesaling it. If they have a pretty house, I look at getting the deed.

Pretty house deals come to me way more than ugly house deals. I've only had 2 wholesale deals. My first one I made some mistakes and only walked away with about $3500. The second one netted me a little over $12K.

I haven't tried calculating how many hours I put in. I've got a company automatically sending the letters out for me every month. I'm thinking about having them send out more, but I'm content with what I'm getting now.

The answering service takes the calls and sends me an e-mail for each lead. I look at the numbers, and if it looks good, I call them. For wholesale deals, I ask them what all is wrong with the house, estimate repairs and ask what they'll take for it. If it's low enough, I go out to meet them at the house to sign the purchase/sale agreement. As long as everything was the same as what they told me, I go ahead and give them a small deposit ($10) and sign the agreement. I get the title checked.

Then I place an ad on craigslist for an investment property that will net me around $10K. I never get greedy. Just leave plenty of room for the investor to make money when they rehab it. They call into my voicemail with info on the house. They take a look at it and call me if they want it.

I have my attorney handle the closing part of it. He basically assigns my contract to buy to the investor, and I get the check for the difference.

The whole process takes around 2-3 weeks, but I personally only do about 3-4 hours of work for each deal, including the time it takes to go through all the bad leads and call and make the offers.

I hope that answers your question.

Nicholas,

That was a great response, however, why does someone need to go to a bootcamp to learn the material that you just spelled out in a few paragraphs? Everything that you have just mentioned can be learned right here on the forum; the amount of time it takes depends on your motivation. I have learned 90% of my knowledge either from the people that post here or the personal relationships with the people I have met as a result of this forum.

I just don't really think the bootcamp stuff is necessary; you've been sending out 200 cards every month, averaging one deal every two months? That don't sound very tenacious. Also, what about all those people who have called but receive no reply? Showing people the courtesy and respect by calling them back is where most of my business has originated.

I'm not harping on you or what you have done, to each their own .The real estate learning curve has a definitive price, mine was $80 for the few books that I have purchased. But I have paid a priceless amount with my blood, sweat, and tears in this game.

Elaine,

What is your exit strategy, ie, wholesale, rehab, rental? Also, what is the price of the funds available by the investor network you are referencing?

Elaine,

What is your exit strategy, ie, wholesale, rehab, rental? Also, what is the price of the funds available by the investor network you are referencing?

There are several exit strategies and you have already named some. It's my choice - the training is there for each type of exit strategy. The funds are 3-4%. I'm looking into private funding as well.

I am more concerned with what you are going to do with the property AFTER you purchase it with OPM. Finding good deals in this market is relatively easy. Have you located people who will be your buyers, either investors or end users? Do your buyers have the money to close and get you through the deal?

I am a bird dogger, and I am reversing my strategy: I now find people with REAL MONEY who are actually buying instead of just saying they will buy. Then I find the houses to fit their parameters. Our Florida market is one of the hardest hit markets in the country; maybe yours isn't as slow. But it is a lot easier for us to find great deals, especially REOs, than it is for us to find someone to flip it too. I am concerned about the second part of your deals --- finding a real buyer and getting yourself through the deal.

Barbara
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