Where do I start?

[Tomiyo Williams]

Hi!

I'd like to do wholesale deals but I don't know where to start in order to secure my first deal. I have done an enormous amount of research and I feel as I am ready to start but I don't know where to start. I think I am suffering from information overload. How do I find the contracts needed for the State of Georgia? Any information or guidance is greatly appreciated.

Thanks in advance!

[Rob Rice]

Hey Tomiyo, Glad to hear that you are interested in finding out about Real Estate Investing.

I would strongly recommend going to a GAREIA meeting.

Just go here.

http://www.memberize.com/clubportal/Calendar.cfm?c...

They have the monthly meeting this Monday starting at 5pm.

Then look into getting some for of training.  I myself paid thousands of dollars to learn this stuff back in 2004.  I bought everything I could afford, and once I did my first deal, I bought more stuff about the different kind of deals.  Fortunately today most of the same information is right here on bigger pockets, or online.

Figure out what area fits your immediate needs first.  There is no bad place to start.  Here are the most common areas that people start out with.  (There are a lot more.) 

Lease options:  Find a property, take over their mortgage, and sell the property to a retail buyer for an Immediate, monthly, and/or Back end profit.

This can be done with very little or no money out of your own pocket.

Buy and hold:  Purchase a property, and rent it out for a monthly cash flow.

Fix and Flip:  Purchase a property, do the needed repairs, and sell to a buyer for a profit.

And then there is my favorite, because it takes very little if any money to get started.

Wholesaling:  This is were you find deals that you can put under contract, for a low enough price that you can immediately pass on to another individual for more than you have it under contract for.

Example: House is worth 100K in good condition. Meaning it is in a condition that you could retail sale it for around $100,000. That is called the ARV (after repair value)

You are able to get this property under contract for you to buy it at $40K.

It needs about $10K in work to put it back in good condition.  Lets say Paint, Carpet, New Garage doors, Landscaping and an updated kitchen. 

You have it under contract, and immediately try to find a buyer for more money than the $40K..usually $5,000 more.  It can be more..a lot more.  It depends on the deal.

You market it to a buy and hold person for $45K.  They buy for all cash.  This doesn't work with a traditional mortgage.

They pay the $45K, you get $5K, and the seller gets $40K.

Done deal. 

This it what I do on a monthly bases.  I will rehab, or buy and hold sometimes.  It just depends on my needs at the time.

Anyhow.

Go to the meeting.

Connect with wholesalers, rehabbers, landlords, hard money lenders, private money lenders, contractors, and look for mentors.  Either way.  Get educated.  You will either pay now, or pay later, if not both.  The key is to figure out if you want to make cash immediately, like in 30 days or less, or you can be more passive for a long term investment.

Remember, everything I mentioned is going to take some learning, and some dedication.

Also try to be as honest and ethical as possible.  It will serve you better in the long run.

Good luck to you.

Rob.