Newbie. Looking for guidance

I am looking for ways to get started ... birddogging, partnering ... I am not looking to make a lot on my first deals and will provide help in the Denver area for the chance to learn.

I am looking for any other ideas on how to get started. I am not sitting still -- I am reading, researching, looking for houses and trying to understand values and rental fees in neighborhoods near me -- but I welcome any chance to work together for mutual benefit.

Ray

Edited: 06/26/2010 at 10:03AM

Paul H.

Real Estate Coach · Jacksonville, Florida

14 posts
50 influence

Oct 13 '09, 11:26 PM

You can start by picking a subdivision your familiar with and start to get REAL familiar with it. When you can drive by a house and determine within a 2% tollerance of what its worth, you have learned that area.

Once you know a area, then you can birddog or whatever. Most importantly - why find others deals when you can wholesale them for more cash?

Start off by looking in a subdivison thats around 15-30 years old. Hunt in this neighborhood. Why you ask - these homes usually hold equity. They are better for wholesaling and rehabbing.

Whats wholesaling - well, some say it is controlling a property and transfering control for a fee. So, if you can find a home in this 30 year old neighborhood, make a offer with assignment, you can wholesale it to another investor and collect a finders fee.

Alot better than being someones DOG. Don't degrade yourself and don't give away deals you don't need to put cash into in the first place, unless you can assign the contract.

Later.

teh_homepwnerer

Edited: 06/26/2010 at 10:04AM

Ray S.

Real Estate Investor · Denver, Colorado

12 posts
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Oct 13 '09, 11:49 PM

Thank you for this specific and excellent advice!

Edited: 06/26/2010 at 10:04AM

Ray S.

Real Estate Investor · Denver, Colorado

12 posts
50 influence

Oct 13 '09, 11:56 PM

Here is a follow up question. Why would someone allow me to control the property while I find a buyer rather than tell me to "go look for a buyer and come back to me when you have one" ?

What is the mechanism (specific example requested) for controlling the property?

Edited: 06/26/2010 at 10:04AM

Jon Holdman

Real Estate Investor · Wheat Ridge, Colorado

Moderator Pro

12,319 posts
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Oct 14 '09, 04:17 AM

You control a property with some sort of contract. Simplest is a purchase and sale agreement. Options are another method.

They would let you do this because you've done some marketing to find desperate buyers who aren't willing to use the normal sales channel to get rid of their troublesome property.

Denver's a big place. Some ares are good for fix and flips, some areas are good for rentals.

Edited: 06/26/2010 at 10:04AM

Jon Holdman, Flying Phoenix LLC

Ray S.

Real Estate Investor · Denver, Colorado

12 posts
50 influence

Oct 17 '09, 11:05 AM

Jon,
How do you determine which is which -- rental vs. flip?

Edited: 06/26/2010 at 10:07AM

Kevin McGuire

7 posts
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Oct 20 '09, 11:49 PM

I may be wrong, but I think that kinda depends on your personal strategy. Do you wanna be a landlord? or do you want short term cash?

Edited: 06/26/2010 at 10:10AM

Shaun Steckler

Foreclosure Specialist · Lafayette, Louisiana

68 posts
2 awards
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Oct 30 '09, 08:15 PM

A few thoughts here. First, why do you want to get into real estate investing? Is it just for the money?

Or do you want to build a real estate investing business. There is a very big difference.

The latter will get you through those tough times because you will be on purpose and working from your pre-determined plan.

Make sure you have the right reasons going into this business. Because real estate investing is not for the faint of heart.

If you want to become great, you have to want it badly. You have to be willing to pay the price. And there is a price to pay.

But trust me, it's worth it.

Edited: 06/26/2010 at 10:19AM

Jon Holdman

Real Estate Investor · Wheat Ridge, Colorado

Moderator Pro

12,319 posts
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Oct 31 '09, 01:46 AM

Sorry, I missed the question above. It really depends on your strategy. IMHO, the only true form of "real estate investing" is buy and hold. Everything else, wholesaling, brokering, fix and flipping, developing, property management etc., is a real estate business. With RE investing, like investing in stocks, bonds, or CDs, you're putting you money in and hoping for a return. Unlike those others, if you invest in RE, you may well end up with a property management job that goes along with your investments.

The other types of "investing" are jobs. You turn the crank, money falls out. You stop turning, the money stops. Absolutely nothing wrong with that.

So which you choose to do will depend on your personal situation and goals. Its really tough to hold rental properties if you have no cash and no credit. Not impossible, but more risk and a lot more work. Some of the businesses, like wholesaling and brokering, require minimal initial cash. It will require time and some money to get a RE agent license, and either of these will require a significant investment of time before you can actually achieve a payday. Fix and flipping will require some money, but has at least the possibility of a much bigger payday. Developing requires a lot of money and knowledge. Property management, if you're doing it for someone else for pay, typically also requires a RE agent license.

As far as any particular property, its just a numbers game. Whether its a rental or a fix and flip, or a wholesale deal that leads to one or the other, you must look at the numbers. Rentals are typically lower priced. The price to rent ratio has to be in synch. Fix and flips can cover a much broader range. There are lots of threads here that go into the details of what works for each.

Depending on the strategy you choose, you need to find properties that support that strategy.

Edited: 06/26/2010 at 10:19AM

Jon Holdman, Flying Phoenix LLC