My husband and my self are virgins at the real estate game. We have 7 children and are looking for a way to better our income and lifestyle for our children. We have a money backer ( if you would call it that). I guess I am looking for as much advise as I can get. I have started searching pre-foreclosures, and on the web for homes. I just need to know where to start.
How much experience do you have? Do you own the home you live in? Have you ever purchased property? I think you said in your intro that you were a realtor 10 years ago. I guess what I'm trying to figure out is where exactly you're at, so we can help you out a bit more.
Let us know! :mrgreen:
We own the home we live in now. We bought back in 2000. We used an agent. We would like to look int pre-foreclosure, foreclosure, REO's, that sort of thing. I am trying to find out everything I possible can. I have gotten a sub. to the COUNTIAN. That is the legal paper in our area. I have also started reading How to find Hidden Real Estate Bargins By: Robert Irwin.
Does that help?
What are your goals? What are you looking to accomplish? You can't start everywhere. You need to assess yourself. Decide what you want to do. Are you looking to rehab? Landlord? Flip? Bird-Dog?
I guess the real question is, Why exactly are you searching for homes to purchase?
Originally posted by "gwaltneymomof07":
I just need to know where to start.
I recommend getting into the landlording game. It is a great way to bring in consistent income. If you can get a property cheap enough, the cash flow can be quite good. Looking at pre-foreclosures is a good start, but might not be the easiest way to start out.
We are looking at rehabing. I really do not want to landlord as of yet. We have already completely rehabed our home. So we have the experience and the mind set to do that. I'm just having a problem finding "step by step" how to's on finding the properties. I live in missouri and I have already started getting the local legal paper delivered. I wouls like to start with the pre forclosures but just don't know where to begin.
I would not waste your time with looking at the newspaper for good deals on properties. If you want to get a good price, you need to take a different approach and "cut out the competition".
I recommend renting properties because you have a monthly cash flow but you can just as easily fix them up and sell it.
Let me know if I can answer any of your questions.
Purchasing without competition
The original question of "Can I make a better life for your 7 children," I have 2 kids and a wife for 19 years. My kids are: 9 year old daughter, and 7 year old son.
I've sold real estate and invested in it. Long term, investing in real estate wins. But, here in CA and other places, the recent 5 years have produced sales prices that are next to impossible to break even.
Here in Orange County, the average $650,000 house that's junk will only bring in $2,300 a month in rent. Spare me the 1% "Pay Option" negative amortization loans. In real estate, the long term---you want to get that house with the most equity you can get and get it paid off. Too many "gurus" out there preaching that "tax benefits" out weigh debt. Really? Does it make sense, to save 25 cents in tax to spend 75 cents to the lender? NO! That's why super wealthy people don't have mortgages on their homes.
I own a mortgage company. I sell loans for a living. The goal in real estate (I've signed 14 loans myself) is to get the house paid off.
If the investment cost $3,500 a month, and you can only get $2,300 a month, this is going to be a bad alligator biting you back!
Be careful on the "expert wisdom" out there----most are only pitching their new tape and course or seminar for you to attend.
Want some real "cash on cash" investing advice, call me.
I'd say if you're looking to support your family, like I have and do on a daily basis, become a loan officer, work from home, and sell money. Also, you can do your own loan with my organization, and avoid the costs and also have access to the money and property deals.
Investing in real estate (and I don't want to hear about the "lucky" ones over the past 5 years where a dog with a note in his mouth could make money by buying at $250k and then selling for $500k----this is luck and stupidity from buyer's in the market place not "slowing it down" and bidding too much----remember $800 gold stocks? It's coming here in CA), requires an understanding of ROI. Warren Buffett, the second richest man in America. Why hasn't he been buying stock and real estate over the past 5 years? NO BARGAINS!
Am I saying not to invest, NO! I'm saying INVEST, not SPECULATE----there is a difference!
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