How do I get the ball rolling here?!?!

Question

So I'm new to real estate and now that I'm making some decent money I would really like to start investing. BUT I have no idea how to get started! I can read all I want (and I've read a lot and listened to a lot of lectures) but when it comes down to it, when it comes to finding a deal and getting the ball rolling I have no idea! How do I get deals? What paper work do I need? How much money do I need? How do I know where to buy?! Is Illinois a good place to buy? I live in the northern part right by Six Flags. I definitely need help. How do I find someone who wants to help and do deals with me? Any advice would be greatly appreciated. Thank you!

Wendell De Guzman · Answer

Collin,

How do I get deals?

Answer:

The top 3 ways for us to get deals are as follows:

1) HUD

2) networking with real estate people (real estate agents, attorneys, etc)

3) bandit signs

What paper work do I need?

Answer:

it depends on the deal. If you're buying it from HUD or from the MLS, you need the 6.0 contract.

How much money do I need?

Answer: if you focus on finding deals creatively like doing subject to's - you don't need any money down. If you focus on finding deals off the MLS, you need enough money as earnest money ($1,000 to $5,000), 20% downpayment if you're going to get an investment loan. Depending on the price range you want to focus on, then that determines how much money you need. If you want to focus on median home price in your area, and let's say the median price is $200,000, you need $40,000 as downpayment. You also need money for repairs. Typical repairs needed is around $20,000 to $40,000. So, I guess, to be on the safe side, you should raise or save up about $100,000 to be able to do deals off the MLS.

How do I know where to buy?!

Answer: buy in your local market first.

Is Illinois a good place to buy?

Answer: YES

I live in the northern part right by Six Flags. I definitely need help. How do I find someone who wants to help and do deals with me?

Answer: first, you have to think of WHAT'S IN IT FOR the person who will help you. What do you bring to the table? Do you have CASH, great CREDIT, what are your CAPABILITIES that could be relevant to real estate investing?

Michael R. · Answer

The podcasts are a gold mine of information.

Collin Vosburgh · Answer

Wow, thank you all for the great answers! Some great advice! I do listen to the podcasts  all the time, very informative. Thank you for that REI groups link Crystal Smith. I had no idea about that. Now I can network and try to fond someone who wants to help me with deals so we all win! Although it looks like I'll have to find other ways to get deals than the traditional way because there's no way I can put 100,000 down right now haha. I definitely have some things I can bring to the table.. but not the best credit.. yet.

Andy V. · Answer

@Collin Vosburgh First of all, welcome to BP!  It is a great community to learn & network.

Second, I would suggest finding a REIA group that you can attend.  I know there are several in the Chicago area and they are great places to meet other investors and to learn.

Finally, if you haven't already, setup some keyword alerts on BP to keep you notified when people are discussing a topic or an area that you have an interest in.

Michael Modesto · Answer

+1 on the podcasts!

Collin Vosburgh · Answer

Thank you! Sorry for all the questions haha. I actually did read the ultimate beginners guide and learned a lot from it. I'm thinking of starting off with single family homes as rental properties and going from there. Eventually multi-family once I'm able to have someone manage my properties. I'm not really sure how to find them though and if i do.. then what? A meet up would be great!!

Carolina E. · Answer

@Collin Vosburgh Welcome!  That's a lot of questions haha, I'll try to help.  Do you know what type of investing you would like to do?  If you haven't already, check out the "Ultimate Beginners Guide to REI"

http://www.biggerpockets.com/real-estate-investing

It may help you sort out what kind of investments you would be interested in.  A lot of your questions will be answered as you gain more experience in your area. Also, try to network with local investors.  There is a meet up near Chicago that BP members set up @George Foster And @Brie Schmidt may be you can attend a meeting.  Also, stay active on the forums.  You will gradually meet local investors.

How do I get the ball rolling here?!?!

Most Popular Reply