Schaumburg, IL · Member since 2013 · 5 posts · 0 votes
I decided to go the route of attaining my license before I started investing. I am looking for some guidance on the route to take while investing. I live in the Chicago land area. I was thinking of acquiring a 3 or 4 flat using the fha 203k or Fannie mea homepath rehab loan.
My credit is 680+, fulltime job 4rs, few thousand in my 401k and a couple in the bank.
I once read that the best way to get started is to do 1 or 2 flips in the beginning, can anyone attest to this? PLEASE HELP
You don't need a real estate agent's license to invest but it sure comes in handy so you'll have access to the MLS. The best way to start is work for an experienced real estate investor in your market and learn from him/her. It sure beats learning from a book or audio CD or from a guru.
The real estate license is a first good step. Network with those people successful in what you want to do. Learn as much as you can from them and don't analyze some much that you don't take action. Doing is the best teacher.
I recommend digging into a chunk of the 36,000 REO's on the books in Chicago. Yes, you read that right. And you are an agent now, so you can make the offers yourself and offer your side of the commission to the listing agent for "incentive" to get your offer accepted.
That said, I like your idea of a 3-4 multi also. But I personally wouldn't try to get into a multi where it's the property that is distressed. I would prefer to find one that has an owner that is distressed. Rehab costs can be funky, subjective, and ambiguous enough for SFR's, much less being new to the game AND dealing with the less-widely-dispersed information about typical multi rehab costs. Plus, if you find a rent-ready multi, you can use existing rental contracts to deduct required income from the underwriter for lending terms. Boom!
That said, if you want to dig into REO's, especially ones in Chicago, and you want to extract en masse, I've got some knowledge there that I am always willing to impart.
Or, you could just put all my offers for me and rake a handful of slam-dunk commishes off 1 investor every month.
That is a great first step and plan. I am defiantly looking at getting my license as well. I can see the value of having access to the MLS. I am looking at investing in the Chicago area and would love to network and work with you. I am especially looking for licensed professionals to work with in the area that understand investing. Once again congratulations Charles, and I hope we can work together in the future. At the very least I am looking forward to networking with you here on BP. I sent you a connection request with some more details.
You don't need a real estate agent's license to invest but it sure comes in handy so you'll have access to the MLS. The best way to start is work for an experienced real estate investor in your market and learn from him/her. It sure beats learning from a book or audio CD or from a guru.
@Charles Wheeler Welcome to Bigger Pockets to a fellow Chicagoan. That willingness to post shows a willingness to take action and put yourself out there. I commend that!
For me the first step is EDUCATION EDUCATION EDUCATION.
Learn the areas and avenues of REI and then select the one or two that intrigue you the most and learn more. Learn about all areas, from the style of investing to financing that style and the markets/location that work best.
You can learn from networking, gain knowledge or gain the location of that knowledge from networking!
Giving your commission to the listing agent won't do a thing to get your offer accepted. The seller is going to take the best offer, period. Use your commission to put in on the deal and make your offer the strongest.
Most areas have some type of brokers meetings, go to them (you don't have to be a "broker", agents can go too) Get to KNOW the inventory, neighborhoods, etc. Get into MLS and go start looking at all the vacant homes in your area. Find a handyman to work with that can go with you to give you an idea of costs to repair, etc.
Are you planning on actually working in real estate sales, etc.?
@Karen Margrave - You don't see any REO offers magically disappear before they get to the bank? Perhaps the bulk-buyers in your market have gotten a tight enough grip on the inventory to give the Asset Managers a breather.