Hello, I am John and I am new not only to Bigger Pockets, but to real estate investing as well. I have gotten into the idea of investing just 6 months ago. I haven't done any deals as of yet. However, before I jumped into this head first TN I at TN least wanted to get some idea of what to do. I have read many books on various topics of real estate investing from doing "subject to" deals all the way to doing a typical fix and flip you see on HGTV. And of course I habe attended a an few seminars in the Reno area and they are all like those late night infomercials that say "if you pay only $19.99 you roo can have this life". But no one tells you u that it cost a lot of money to even get a sniff of what that person is really doing. Shortly there after these seminars and seeing how much they cost I turned to looking at just building my education and looking at everything that is free. I mean why not, there is a ton of resources on the internet. Thus led me to this site. I haven't been a member on here for very long but of all that I have looked at there seems to be much information to go into and it is all free. I have read through most of the free book from BP and plan on finishing it later tonight or tomorrow. And in that book it said that if you don't interact you will never move forward. So, here I am breaking out of my shell and posting here to get my story and intentions out for others to see.
I have read much about creative financing to get a deal funded, whether it is owner or seller financing to subject to and even hard money, which I discovered that really is not the way to go unless there is no other way to fund the deal. Anyway, I have done research around the area and there are lots of FSBO and there is lots of possibilities there, just I haven't worked up the nerve to call them and just see why they are selling their property. Also, there is this lingering in the back of my mind: what if they say that they will sell me their house, well how do I get a contract to tie up the deal and get it going? Or what if I can't find someone to rent it or even find a tennant buyer. However, with the lack of knowledge and being a complete newbie, I'm sure that everyone went through the same thing. Since I am here I may as well ask, When I do find someone that is willing to sell their house with seller financing fn and I just pay them a monthly payment for equity, how do I begin the process? And once I do get it under contract then what?
Thanks, I look forward to learning a lot from this site and all the different personalities here.
Sorry, my phone hates typing sometimes. This sentence doesn't make sense;
"However, before I jumped into this head first TN I at TN least wanted to get some idea of what to do."
What I ment to day was "before I jumped in head first, I at least wanted to get some idea..."
Thanks auto correct :-)
@John Cannon I think getting educated is absolutely the best first step. Kudos to you for recognizing that need and welcome aboard to Bigger Pockets. As far as what to do once you find a motivated seller, that depends on what your strategy is. Are you looking to flip? Buy and Hold? Wholesale? Lease Option? All of the above? Once you figure that out, that will help determine what you should do next. After all, different strategies will require different actions. Run the numbers and figure out what makes the most sense for you. Also, I would strongly recommend finding a mentor. He/She can help you fill in the gaps. Good luck!
Well I am not really interested in doing a fix and flip becuase there isn't a lot of room for error, plus just getting into investing I feel isn't the place to start. I am looking at doing buy and hold becuase there is a stronger market for renting here in Northern Nevada, but I have also ben looking into lease optioning as well. If there isn't a way for me to stay in the deal I don't have a problem finding the exit strategy and getting out.
Let's say that I found a motivated seller that will use seller financing and they want to do a lease option. I don't have the down payment that they require so then I tell them I want to find a person that will rent to own and I don't want to close on the deal until the seller and I agree on a tennant buyer. How do I get this deal going? Do I go to the seller and have them sign some documents or do I go to a lawyer first? This is my delimma and right here is where I am stuck.
Welcome! I am new here, but not too new to the REI world.
My experience has been that you want to find the people and the property that works for your desired outcome first, so you are dealing with an actual situation, then do appropriate paperwork. You have to have the deal figured out first, before the paperwork can be crafted. In the scenario you described, you would hammer out the details, then work with your attorney to wordsmith the agreement. If you don't have an attorney that specializes in RE transactions, let me know.
You can look online for templates that will give you some ideas as to what is included in the T&C's.
@Scott Madans Thanks for the insight, that really helps me out a lot. I think that was I needed to know and of all the books, blogs, videos, and seminars that I have looked at, not one said that. Again thanks.
Welcome to BP John sure you're going to enjoy the experience here in this forum I know some very experienced real estate investors that are semi retired and have been in the business 30 40 + years that are looking for people like you that want to learn and might be able to exchange a little bit of your time or maybe experience in other areas to learn real estate investing and to have a pro looking over your shoulder.
I would be happy to put you in touch if you decide you'd like to meet somebody like that
Steve, that would be great.
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