All Forum Posts by: Michael Lee

Hello, Grant 

I would suggest going to a local Real Estate Investors meeting in your area and talk with investors in your local network and they will have great information on helping you get started in Real Estate you may even find a mentor to help. Also by reading the blogs here on bigger pockets will help tremendously, you never want to jump into something without knowing a little about it first. Just by reading on here will help you gain some valuable knowledge. If you are going to start wholesaling it's very important to learn your area and what investors are purchasing and how they buy because those will essentially be your customers, also type in the search engine direct mail letters and a ton of information will pop up as far how to market to motivated sellers. Anything you would like to know about real estate can be found in the blogs as well as the forums just type it in the search engine and learn 

Hello, Jazmin 

Well first you should decide on where you want to start there are a lot of entry points to real estate the great thing about that is you get to decide on which one you like the best and become a perfectionist at it whether it be wholesaling, rehabbing, renting, or becoming the best realtor in the area.

Once you know what type of investing you want to do in real estate then you can develop goals and plans to achieve it so start by deciding what you want to do or what's most appealing and everything else will open up from there 

Good Luck 

Hello, All 

I got a lead yesterday from a gentleman looking to sell his duplexes one is a 2/2 and the other is 3/2 so far from the conversation he is looking to get between $550,000-$575,000 now he bought them back in 2005 at the height of the mkt for $605,000 and only charging 950 and 975 for his units totaling $3,850 gross rent so I already know he is losing money on the property from that standpoint. 

After doing a rough analysis and checking current mkt rents which were 1400 for the 2/2 and 1450 for the 3/2 if I can get a purchase price of $400,000 @ 3.5% down I would be looking at a 21.5% Cash on Cash ROI and $443.55 in monthly cash flow with a purchase CAP of 8.65%. Now of course I would have to get him to reduce his asking price significantly but at that price would this be a good deal to pursue?

I would like to turn this potential lead into a deal and hold this property but I would have to bring in someone to finance this deal if I can negotiate him down to this price could this deal be done with no money down from me or is it too far fetched? The lead came in yesterday and I would like to move quick on this since I think it can be a good rental for a while any information would help 

You can simply use a template and write your own offer if you know exactly what you want your offer to be, it can be as simple as a one page contract that has what you want to offer or you can use the standard contract from national realtors association in your state. There are some really great templates and contracts here on BP you should take a look at them to get a feel for them and see if it's something you can do on your own.

I always think it's better to start in your own area first because your more familiar with the neighborhoods and it will help you get better hands on experience as far as analyzing a deal in person. Although doing it virtually can work you will just miss out on some valuable learning lessons such as dealing with motivated sellers in person, what is the neighborhood like, what type of work does it really need other than the pics you will see, all of those things with help you become a better investor

Ok thanks everyone for your input I wasn't sure if it was even possible to do but I guess it depends on the banks and the size of downpayment I am willing to put down 

Hello, Warren 

I am interested in acquiring my first rental I would like to apply the BRRR method so I would like to find a lender that would provide financing and try to avoid the hard money lender route because of the high interest and points needed to get the deal financed is this a possible situation?

Hello, All 

I am interested in acquiring a duplex or triplex as my first rental property what I would like to know is will I be able to have the property financed based on the numbers of the deal? or am I just wasting time normally you would present an offer like this to a hard money lender but the points and interest rate that comes with using their money I am trying to avoid if possible. I figured I could possibly target smaller banks or credit unions who could be slightly more flexible rather than a big bank any advice would help 

Thanks, 

Hello, Tony 

Well as a beginner I would say focus only on the things that will give you the biggest return on your time ,  there are many ways you can get off the ground for example building a buyers list with certified investors ready to purchase and just partner up with wholesalers who have deals that need to be marketed. It can cut out the time of you finding a deal for yourself which would cost cash in marketing and additional time negotiating. A very strong buyers list will go a long way. Also ask your "mentor" if can shadow them analyze a potential deal which would cut down on time and the learning curve. These are just two ways that can help and they only take effort by going to meetings and learning the players in your area will help get you off the ground. 

Also read up on the blogs here on BP they have tremendous information here everything you need to know getting started is here and if you have questions you can receive answers from people really in the game so read up on everything you can here and keep going the hardest part is always the beginning hope this helps 

@Martha Blumel I sent the sellers an offer based on a 3BR/2BA home because there wasn't anything to justify the work was permitted I am currently waiting on their response so we will see I will keep you updated