So here is how I've mapped out my learning and home work so far. Anything else you guys see missing that should be investigated?
The Real Estate Investment Map Out :
*Generating Leads :
Direct Mail, cold calling, online advertisement,
Driving for Dollars, For sale by owner, distressed houses / vacant.
Foreclosure Searches, Preforeclosure searches, liens on real estate,
out of state home owners, inherited houses.
*Creating a Network / Team -
Network with real estate agents, other investors, contractors.
Potential whole sales listing, partnerships.
*Determine Type of Investment :
Flip, House Rental / Apartment Units, Whole Sale, House Hack.
Computing rehab coasts ( Consult with General Contractor ),
Determine AMV ( After Market Value ), second opinions,
inspections, appraiser, insurance, attorneys, escrow, other.
Understanding the market and economy. Banking on the future,
safety net, minimizing risk.
*Types of Lending :
Hard Money Lender, Private Lender, Bank Loan,
Crowd Funding, Owner Financed, Other. Are you prequalified?
*Making The Offer :
Owner Financing options, 3 5 10 15 30 year fixed rate? ,
section 2 / lease to buy option, down payments, earnest money.
*Closing The Deal :
Escrow, Attorneys, Potential Liens, CC&R's Covenants Conditions & Restrictions,
Zoning, Closing coasts, Transferring Utilities, Current Tenants / Eviction Notices,
Let me make a slight change in what you are looking at that can have a huge effect on your investing. Instead of a 4-plex, start thinking just a little differently.
My biggest success over the years came from buying GROUPS (5-8 houses) of older homes on a single parcel, in older, blue collar parts of town (not slums). Because banks will not finance these types of properties, 90% of the time I got seller financing (on over 250+ rental homes I had at my high point). The seller knew he/she would be taking back the financing. I did not have to talk them into it. My down payments usually were around 10%.
I suggest you read up on a few kinds of investing you are interested in and then pick the one you think would be the best for you, and one that will not require a boatload of cash to start. Then find the best mentor or expert you can in that kind of investing. Learn from that person and stay focused on their kind of investing. Find some of these mentors on a Google. See how many pages of results pop of for them.
I have many related blogs on my website. Go to the website address in my BP signature or profile (fixerjay.com), then on top right side of page, see the search box, type in "PLAN".
I also just started a BP blog and will be posting many ideas for newbies,
Fixer Jay DeCima
Hi Kenneth - I would narrow the focus of investment you want to concentrate on then build a plan based on that investment. What works for generating leads & who needs to be on your team will be somewhat different for each type of investment. Become an expert in a specific investment type and market. Once you are proficient in that skillset you will be in a position to add additional acquisition and investment vehicles to your strategy. Good luck!
Thanks Ryan. Its just that whole what if I mess up the deal part - what are my back up options etc. I think I want to start with some basic flips so that would be my main focus. I figured having a basic understanding of the entire process would boost my confidence. On the other hand I don't want to get so absorbed with information that no action is taken for sure. I should at least get a mentor maybe?
I'd echo @Ryan Cox 's comment. I think its valuable to understand at a high level the different types of investing strategies, but ultimately start with one focus and master it. That is what @Brandon Turner and @Joshua Dorkin have said many times on the podcast and what I am trying to do now.
Best of luck,
Good Advice. Thanks @Pete Perez