Need help getting started with Rentals

I am in the process of trying to understand of how to get started with the rental business. I am starting off posting few questions about it. If anyone else wanna add another question that would be gr8

1. How do u find wholesale deals....do u just talk to a Realtor as u would to buy a house to live in? Are there specific places to look for these deals or r u better off searching for it ur self.

2. If you r buying a property to rent do u just get a regular mortgage or investment loan. Does it even matter? Or does it depend on if u r getting it in ur name or under an LLC or some other entity?

3. Is the best place to look for a property at discount is pre-forclosures or forclosures?

4. If the answer to #3 is no, then where in this market could u find properties with good amount of equity in it?

5. Do u look for property first or financing first?

Some of these questions could totaly be irrelevant please lemme know and also the reason why. Thanks in advance for the help.

Edited: 06/26/2010 at 03:45AM

Account Closed

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Jul 11 '07, 04:18 AM

AA,

I am not being rude when I suggest the following.

The questions you asked are rather basic. It could be much better for you to spend some time with a few books so that you can get a more complete picture. By reading a book one at a time you generally will find that the author has a plan for the book and can build on what was already covered.

Once you have read 2-3 books on investing and being a landlord then specific questions on a forum will make more sense. You will have a framework and the individual questions can be used to fill in gaps.

I have heard good things about Mike-OH's book. The Weekend Millionaire books is also very good. There are books specific to being a landlord while other books cover the broader topic of investing with landlord details in a chapter or two.

I believe you will learn faster once you have a consistent skeleton to work from.

John Corey

Edited: 06/26/2010 at 03:45AM

Ken Hicks

· Boonies, Pennsylvania

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Jul 11 '07, 05:19 AM

I agree with REI, you really need to read past post. At the top of the page use the search tab.

As for land lording, Don't expect to get rich fast. Take care of todays debts first.

weekendmillionaire.com I recommend

Edited: 06/26/2010 at 03:45AM

Afsheen Akbar

· FL

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Jul 11 '07, 07:43 AM

Good advise . I got both books ordered just waiting on them. I'll definately look in the previous posts as well :D
Thanks alot

Edited: 06/26/2010 at 03:45AM

Donny Random

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Sep 22 '07, 11:35 PM

" Rental Houses for the Successful Small Investor" by Suzanne Thomas is also another very good book.

Edited: 06/26/2010 at 04:01AM

Christian Morency

Real Estate Investor · Millbrook, Alabama

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Dec 01 '07, 05:48 PM

It depends on how much time you want to " waste" .

I went to one seminar that said you have to look at at least 100 houses to know your market good enough to spot a great deal and jump on it before someone else does. That's good advice if you have the time.

The bottom line is to make an offer. Without a written offer you have nothing. With a written offer that has been accepted, you have what it takes to find the financing even if you can't do it yourself.

People with money know a good deal when they see one. I have been known to pay for a doctors appointment just to get 15 min. of his time to show him the return on investment that he could never get in stocks or bonds. If you give him first position on the note and you don't perfom, he gets the house at your bargain price.

Hard money lenders always want their money back too soon. Doctors only want good return on their investment. Offer them 10% and it will be hard to refuse.

That's one way to get started.

Edited: 06/26/2010 at 04:19AM

Danielle Morrow

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Dec 21 '07, 07:13 AM

Understandably, asking questions is a good way to way out the pros and cons, and really feel out what is going on.

Here are some answers, along with some tips.

1. To find wholesale tips: Get in the network. Talk to realtors, tell them what your looking for private deals welcome. My brother was a newbie and just put in his first purchase offer, that was accepted for a 18 unit originally for $250,000 and purchased at $185,000.00. (Utica,NY) Private/Cash Deal. No Financing. I got into the network, talked to tons of realtors, and investigated the market. Scowered it. I was all over the place.

2. To have the financing available that fast was the key. Even if you have a mortgage behind you already pre-approved. When you put in your offer, put down a hefty deposit to get the sellers attention. Show them you mean business.

3. Foreclosures - There is no reason not to go to auctions and sales. If it is a good deal, jump! Why not?? You can get houses for next to nothing that way and make them into something that improves the neighborhood. All that much better.

4. I believe if you have the financing backing you, you will have an easier time going through the closing when the seller accepts. Less waiting and hassle time! Faster Closing.

Edited: 06/26/2010 at 04:24AM

Kimberly Anway-Morency

Real Estate Investor · Millbrook, AL

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Dec 22 '07, 11:57 AM

All good advise. Also read all the forums here! Landlording and starting out will help.
P. S. John (REI guy) you are never rude.

Edited: 06/26/2010 at 04:24AM