All Forum Posts by: Rachel H.

Hi Mike C,

It all depends on the area and the market. If you're in a "hot" area with a lot of demand for affordable housing, buying older homes can work.

On the other hand, if you're not in a "hot" area you have to be really careful - you need to know the market and know what people are looking for. Most times, you'll encounter 2 types of buyers - those who want everything new and in good condition - these people are more concerned with how the home looks, and those who don't really mind an older home with older carpet, a hole in the wall, etc. The trick is to distinguish between these two buyers and know which homes and which areas they'll be interested in.

All in all, it's the area and the market that will show you the demand and what people are looking for in the area. Hope that helps!

Usually, costs depend on the area. I find inspectors, real estate agents and especially property managers to be good sources for contractor referrals. I'd call and get estimates from a few and go from there. Hope that helps!

I enjoy the social networking aspect of BP - it's a good way to connect and stay in touch. Also, I like that this place is moderated - I get so much spam from some other sites, it gets a little annoying!

Thanks for putting the site together, Josh - it's great!

Yes, I think Lonnie does touch on this a little in his books - reading his books is a good start :D

It's basically structured the same as any rent to own - they may payments to you for x amount of months and can purchase/have an option to buy during that time period. Just be sure to check the laws in your area to make sure you're in compliance with the laws. Hope that helps!

Hi Aegis,

It's very important to get your personal finances first before you start investing - know how much is going in and how much is going out. From there, you can create a plan on exactly what you need to do to get to your financial goals. Learning about money and how you can have control over it (not money controlling you) is very important - most people let money control them. I recommend reading "The Richest Man In Babylon" - it's a good book to get you started learning more about money and personal finance. Hope that helps!

The local real estate group(s) in your area is the best place to start. Get to know the key players in your area. Talk to them, get to know them and let them get to know you. One point about networking, you have to keep coming back - just like coming back here on Bigger Pockets. You can't just go once - it takes time to get to know people. Hope that helps!

Good point, David. I agree - leverage is very powerful and can go either way.

Oh wow, that sounds like a great tip to use the drill, Jonathan!

Hi Tony,

It really depends on your comfort level. I know many people who have stayed in the residential business - it works for them. On the other hand, there are others I know who are more on the commercial side. If you're going to be learning a new system/business, it will take time to educate yourself and also build a network. If you've played the cash flow game, it will give you ideas on several different scenarios.

Most people I know start out small, and expand in the future. Though, there are some that just stay at their level. I know of one investor who started out like you investing in single family homes and then bought a multi-unit after 5 years. Turns out, this investor did not like the multi-unit business and ended up selling. Went back to single family homes. Again, just depends on your personality and comfort level.

Hope that helps!

Hi Chris,

Before you start looking for deals, it's best to have an exit strategy in place. This way, you'll know what you need to do once you get a deal under contract (i.e. wholesale, rehab, buy and hold, etc). In terms of criteria, that really depends on your exit strategy. If you're wholesaling, your buyers will tell you exactly what they are looking for and what areas to look. If you're buying and holding, I've found property managers in the area to be a great source of info to re-verify rents and also learn about the market area(s). Once you have a concrete exit strategy in place and know enough about the areas, it will give you more ammunition to go and ahead and pull the trigger once you spot a deal. Hope that helps!