All Forum Posts by: Derek Guyer

Jeffrey,

Wesley is right, this is the place to be. There are several tricks to locating good properties:

1. You have to know how to run the numbers on them.
2. You have to have the buyers for them or know where to get them.
3. You have to be good at networking.
4. You have to spend quite a bit of time in the market.
5. ...and on and on and on.

This may seem overwhelming, but it's something you can do. I would take some time to buddy up with an experienced investor and ask them if you can tag along with them to help them while they are in the field. Offer to help for free. This allows you to focus on learning and not on what you are making. Pay for their lunch or find some way to make it worth their time to help you learn.

Learning from someone with experience is invaluable. You learn the market, the numbers analysis, how to network, and you get that time in the market.

Don't try to rush in and make stupid mistakes. Work hard to learn. This time will profit you more in the long haul than you could ever imagine.

Derek

Hello and welcome from another birddog. Enjoy yourself and shoot with questions. We love to help!

Wesley,

Welcome to biggerpockets.com. We're glad you're here. The networking, learning, and opoortunities are amazing on here and the positive and objective will gain a lot.

Again, welcome!

Derek

You have to remember that most times when you use sites like that to get leads, they are already picked over numerous times (most times before they are ever even sent out). If you have the time to pursue those types of leads on your own, you're probably better off doing that independently if you want very solid opportunities.

Wow. That's a pretty amazing amount of appreciation. Congrats on such an awesome start!

I never suggest purchasing something at full market value unless the appreciation is very strong.

Exit strategies. Exit strategies. Exit strategies.

Anything can happen at any time and if you're fully leveraged, you lose your ability to sell quick and move on without having to dip into your own pockets or hurt yourself. This plays into the whole investor psychology piece...if you purchase a property and get into a bind and have no exit strategies built in, you stand to lose a lot and hate investing because of it.

Why purchase at full market value when you can buy for less and save a world of struggles?

There are some exceptions to this, but they strongly relate to the need for appreciation.

I would be interested in hearing more about the deal.

Crackin' me up.

Victoria, becoming a real estate agent can be good and bad. As an agent, you have access to the MLS and therefore tons of market comparables and information that is very helpful and vital to you as an investor. But, you don't have to be a Realtor to get that information. Developing a good relationship with one should be good enough. I'll email you more about that when I get a chance.

As for your second question, I would say that buying and holding in a buyers market is almost always the best suggestion. Renting it depends on the market and what that will do to the value of the property, your cash flow and so on as you wait for the market to turn and prepare to sell it back off.

Does that make sense?

The reason I'm investing in Indianapolis right now is because we have over 1,000 new foreclosures per month and 1,000 new bankruptcies as well.

We're buying duplexes, triplexes, and fourplexes for 50%-80% of their value and after all expenses are paid, they're cashflowing $200-$500/month. We pay a property manager and let them deal with the crap.

This is a buyers market and I don't expect to be buying cash flow properties for much longer than the next 4 years or so. By then, the market should be headed way up and I'll be pulling out.

I love the market here.

Wow, unwelcoming is not how I would describe this place at all.

Classie, and Gladhatter, welcome to biggerpockets.com. We're glad you're here and can't wait to see what you find and learn.