New member from Mid-Michigan
Now 31yrs old, I have been interested in real estate since I was 20 but never looked into it or got educated. I thought I needed a decent job and had to get my ducks in a row first. Now married with a 1yr old and another on the way. I am a home owner, but not yet an investor. I have read enough books, listened to podcasts, etc., to know that this is what I want to do. Personally, I know 1 person who invests in real estate. I called him up early in January and my wife and I took him and his wife out to dinner to talk about what he had done. He has a system that seems to be working for him and it is exciting to think I can do it to. He buys foreclosed or HUD homes in "nice" areas for $18k - $25, spends no more than $5k on rehab then sells them on a "Land Contract" as we say in Michigan which is a lease to own. He claims it is easy to get 20% down and get the property quickly occupied. In addition, he and his wife will refinance and pull a HELOC out and basically cookie cut or rinse/repeat this strategy. Any thoughts or advice on this strategy?
Now, I made contact with this person who I consider a friend who I would like to mentor me enough to get started. So here I am trying to save 20k which I will have this year but I just don't see finding these homes for that cheap in good areas here in mid-Michigan/ Tri City area (Saginaw, Bay City, Midland). I know the Saginaw area very well and can figure the other 2 out easily.
Since my eyes have been opened to this strategy, I got excited and that's when I got a couple more books on the topic. Then just a few weeks ago I found Bigger Pockets. Now I am torn on how to start since I have been learning of all the different avenues I could go down. I do believe in keeping my focus on 1 thing just like Gary Keller's book teaches, and I believe I am close to honing in on what I want to do but I am still undecided. The buy and hold land contract strategy is very interesting and exciting. Can anyone share their stories or experience on Land Contract strategies? How did you finance it? rehab? What type of area? I plan on doing my first deal (whatever that may be) by the summer time.