Reserves and Business plan
Hello, I currently have 3 questions to ask.
When starting out as a new real estate investor do you absolutely need reserves? I was talking with a local investor and he was explaining how I need about 20k in reserves of course that would take me forever. I understand it helps just in case something goes wrong. I do not want to wait until I have 20k in reserves which could take years in your opinion is this an absolute necessitate?
The second question when it comes to getting hard money should I be sending these people deals that I know make a decent profit to show that I am out here looking at deals with positive cash flow?
The 3rd question is are the homes on realtor or Zillow not the way to go when finding deals should I be really out to look for worn-down homes throughout the neighborhood? I heard I few opinions explaining you can't find a good deal through those websites I just wanted more opinions.
Thank You for your input and opinions.