Is this the correct way to look at real estate basics?

2 Replies

Hey BP! I've been spending a ton of time studying up on real estate and what I've come to form in my mind is this. For starters, you're going to have to find a good deal(with a motivated seller), then get it under contract(with the assistance of a real estate attorney) so you are the sole proprietor. Next, you get loans from hard money lenders by showing them you have a good deal.  Then you decide whether to rehab the place and sell it off or tenant it...or to just wholesale the contract off to a buyer. You find the buyer or tenant and then you it under contract with non refundable escrow(or money that shows commitment). Then close! I know this was overly simplified but I'd appreciate the insight!

As far as basics go most probably skip the wholesale part and go straight for the ownership, as in rental or flip. That would be the basic way to look at it IMO.

@Aaron Nguyen  

Hard money is much more expensive than a regular mortgage. Get a regular mortgage if you qualify.

Also, you lump a bunch of options into your narrative (flipping, renting, wholesaling...). I'd pick one thing that appeals to you the most and do that the best you can. If you're not sure (or at least mostly sure) going in what you're going to do, you're going to run around like a headless chicken. If you want to flip you're going to be looking for a different house than if you are doing buy-and-hold or wholesaling. Figure out first what you're going to do with a house before you go and buy it. Indecision and uncertainty will eat any profits you were hoping to make.

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