start with less then $1500?

Question

is it possible to start with less then $1500? my husband saw something this morning about "pennies on the dollar" that said you could buy properties for $300-$1100 dollars or so.... I read some things on that particular "system" and the reviews werent good, but mostly for customer service issues and people not reading the fine print. Nothing about weather it could really be done or not.... so can it be?

Nate H. · Answer

So if there's an outstanding tax lien that goes unpaid, in some counties or states the house will be foreclosed on??  And if you were to pay the tax lien you would hold title to the property??  Is that how it works?

N/A N/A · Answer

I read somewhere else that they dont do tax leins in my state (TX). what about tax deeds?

N/A N/A · Answer

Well it seems like you an I think a lot alike. But what I am realizing is that is a lot more to in then as someone starting out sees.  If you find a property you cannot assume that other investors know about it.  Advantage point number one. Then you tie up the property with a contract meaning, you are making a bid to buy the property.  So the seller just cant go to another buyer as that would be breach of contract.  So an investor that wants the property has to come through you.  Advantage point two.  Then when the investor buys it they are still getting a deal.  Depending on what they are going to do with is their ROI will be higher then the couple of thousand you tacked on to the price.  The investor is happy to be getting a great deal and they knwo you did some work to get that great deal. Advantage point number three.  Investors who are rehabbers or have mutiple properties is in the game and they dont always have the time to find the great deals.  They are thankful for you finding them and possibly finding more.  Its a win win situation for everyone.  The goal is to be the go to person for the deals and youll be in partnership with other investors.  At least thats what I am learning. Hope that helps.

But I do have a question, what if the seller wants to break the contract to sell to another investor who is offering a couple of grand above your offer??

N/A N/A · Answer

ok... that makes sence....

N/A N/A · Answer

Is this what you are talking about with 'paper flipping'?

[link removed]

N/A N/A · Answer

my parents have that one and they buy houses to rent out (with option to buy), but they have had a LOT of problems. A bunch of people move in and then dont pay rent, and then my parents cant throw them out and get stuck. 
they had one guy move all his stuff in, pay rent once, then leave for 4 months. when he came back they had moved all his stuff out and moved on since they didnt even know what had happened to him. he got mad that they didnt leave his stuff alone. :roll:

my husband saw the john beck (I think thats what it was) one on tv the other day and he said it sounded better "then the one your parents have". since its hard to tell from an infomercial I got online and found this site :)

my husband would love to get something that we could just mow and paint (even if we had to paint the inside with primer or something). I think this sounds like a great idea.

so 'tieing up' is what you do to make it worth something? I guess I still dont see why someone would pay you $4000 to do something they could do. even after you show them they could just wait the 30 days and then get it themselves for cheaper right?

Matt H · Answer

Tash....You got a lot to learn. You might start by going to ebay and getting a copy of "Carlton Sheets No Downpayment course" buy it and listen to it in your car as you drive around. You'll quickly start to learn how this business works.

To answer your question...have you ever watched TLC those shows like "flip this house" and "property ladder"? They buy a house, do some fix ups and then sell for huge profits? Thats' one way to flip a house. Some people buy a house, mow the lawn and spend $20 bucks for a gallon of paint to repaint the front of the house and then relist it at $10k or $20k more and sell it. All the properties I've flipped I didn't do a thing to any of them and flipped for as much as $140k net profit in six months. So flipping properties is an easy way to make huge winfall profits with little to know work.

So yes you can easily tie up a property and then sell the contract for a few thousand dollars profit to a REI by going to your local REI club and letting them know that you have a contract for sale. That's one way to flip stuff without doing much work and when you only have $1500 to work with. It happens all the time.

Mark Beekman · Answer

Anyone know where to find tax lien properties? Are they county or State owned?

N/A N/A · Answer

thats intresting.... I still dont compleatly understand though... so the realtor would just find you something that could be done like that? and then some other rei would buy it from you and you make a profit of $4000? why would they just go and give you $4000? couldnt they talk to that same realtor themselves and save that money? and for that matter if it will sell, why doesnt the seller do it?

Matt H · Answer

Depending on how much houses go for in your area there is a chance you could get started on that amount. You'd start by flipping paper contracts.

So you find your local real estate investment clubs. Go to them and feel them out. Then you find a realtor. Go out and buy a house, townhouse, duplex or condo. When you go to buy the contract will need to read:

Buyer: You....and or Nominee
Purchase price: $100,000
initial deposit: $1500
Additional deposit: $5000
First Mortgage: $75,000
Balance: $18,500

All the "subject too's" for 30 days.

Then you take that contract to your local REI club. There you let everyone know that you're selling the contract you have on a specific property. Sell for 2-4% of the listing price. So on a $100,000 property that means you make up to $4000 plus your deposit money of $1500

If you can't sell the contract by the condition removal period then you just do not remove conditions. that means the house will end up going back to the seller and back up for sale, at which point you'd get back your initial deposit, and you'd just have to go find a different building to buy.

That's one way you might be able to get started on $1500. 
Flip some paper
then flip some houses
then eventually flip and or hold apartments.