I recently was asked for a little help and a few suggestions from a new investor. The response I sent was similar to the following. (Hopefully, I've corrected the spelling errors, oops.)
I realized as this year draws to a close that the letter was aimed at not only the newbie, but toward myself.
I need to preface this with, I should have found at least one or 2 more part time or another full time job(s), I tried and failed at that and gave up on it so I could have more time at my main job and my real estate endeavors
'THAT SURELY, WERE GOING TO PAY OFF' (ugh)
So, here's my letter to ...[Cory.]
Hey, [Cory]. I've been doing this for a while. But, if you've ever seen Rudy or Pursuit of Happiness my movie still has another hour to go. [Watch those movies]
I've [had] virtually no financial success.
I'm no guru or mentor, but I think I am becoming a decent tutor.
What I'd suggest is:
2) Get a free, spare, or inexpensive extra phone number. I got mine years ago through Google Voice. I can access it through another phone, or by an internet connection. It's my virtual cell phone. These numbers are getting harder to find but do some research.
3) Make several flyers or business cards at least 10 to 30. You can make them yourself, have a friend help with free software, or can get a professional. "[Cory] buys houses! Ask me how" or most anything that is true and fits your style "[Cory] wants to buy some houses! Call today!"
Oh, part of the 'how' is knowing the Traditional way:
Example putting $7000 down and leveraging that with your income and a loan from the bank to help purchase a $200,000 home....[esentially using other people's money...and some of your own]
And knowing Non traditional ways;
like owner financing, wholesaling, private and hard money loans... [Again, using other people's money (OPM) but not necessarily using a bank or much of your own money in the deal]
3b)"I am networking with investors and use OPM-other people's money"- Learn this!
4) Find your local real estate investor association and start going to the meetings. Register ahead and pay $20 or whatever, or [if] you can afford to- get a membership.
This will prepare you emotionally, educationally and [help] you network with other investors, lenders, Title agents, Data analysts, wholesalers, rehabbers, birddogs etc.
5) Network- introduce yourself and exchange cards/ flyers with others. Find out what they do, and what they're looking for and take notes on this.
*Don't be surprised to find many there eager to help you, and encourage you.
6) Keep studying: I am only just beginning to understand what a tremendous resource BiggerPockets truly is-
**Learn a little. Ask a little. Do a little. Network.Then live a little. Repeat. Then check your results. Then refine and repeat that entire process!
Kind of like "Look before you leap... BUT then LEAP!"**
7) E-mail those you exchanged cards with and thank them. Try to be clear on the type of properties, location, condition, ARV etc they prefer.
8) Look up flex options on the internet and get comfortable with using them. These can be used with the actual seller, another investor, even another Wholesaler! Also, understand Option, Option Consideration, Purchase and Sale Agreement, Assignment-
"and or assigns".
This flex option allows you to fund the deal or find someone else that will, and you can do this for little or no money down within so many days.[I suggest $10 or $50] You may wish to record it. [If you find a buyer, great! If not, your option just expires and you may have-and this is valuable- received good contacts for the next deal(s) you come across]
It also allows the seller to take a higher bid if you do not find the funding or end buyer during your 10 days or however long your time period is. Unfortunately, I only did this twice this year. I should have done this twenty times.
9) Meet with [and go to Public Auctions], Title companies, Investors, and Real Estate agents, RE Attorneys- you're seeking only those friendly towards investors! [Maybe find local mentors-Learn the processes at play.]
10) Even from the oldest, outdated, or new improved but not-so-good courses have something good in them.
If you go to a seminar, leave your money at home. Learn what you can and see if it applies in your area. If so, look them up online.
But, beware there are even very good mentors that get the Guru-osis and will constantly try to upsell you when all you really want is to get your first Danged Deal!
So, more courses and books and seminars are in your future just be cautious of the uberhype! $100-300 should be fine for any course. Not, $30,000! [Not to start, anyway.]
I recently came across a local education group that lets you and a partner join for $1000. That actually seemed reasonable although just out of reach to many would be students.
[I think there's an education to income expense ratio. Something like 10% after your first $100 and/or 100 hours of studying. After that, every $100 dollars should get you $1000 or something is going wrong-BPers should correct me on this but I think that's a good ratio 1:10]
11) Put up flyers and or bandit signs on the weekend in neighborhoods your investors want to be in. Here's a magic number 100! I was trying with 10 then 20 then 30 then didn't get much traction. I later heard that "100" is the magic number, ugh.
12) Advertise on places like Craigslist and BiggerPockets. Most all "must sells" on Craigslist in my area are wholesalers (or some guy named Brad) and some of them are agents. Get their info, cull those who constantly say they "just sold that one", (unless they can verify that) and those who tell you you can market without a contract... Just at least be aware of those as they can mess everything up.
But, try contacting landlords also. (I didn't do much of that) Your best bet is to see the person and contracts involved especially starting out. [But Start]
13) Get out of your head that this will happen overnight. You can become very prosperous in a few years, but those promising you it is easy are generally trying to sell you something.
Well, I hope these thoughts will help you. It will take time, education and effort and yes, a little luck.
Now, put out those ads, "[Cory] is in business and he buys houses. Call ....! "
PS:You may want to get a real estate license along the way, or at least get that education.
I'm not a wholesaler by any stretch, but enjoyed and learned from your post. To provide such an in-depth response to a new person says something about you @Cory Baker ! I hope Anita was appreciative. Cheers!
How about learn how a real estate transaction works
Learn your State Real Estate Licensing Laws
Find a REAL real estate investor and learn/mentor under them
Don't buy into an program marketed by a "GURU" or Real Estate Coach