All Forum Posts by: Account Closed

David,

It is not a disaster...you have a great investment property that will increase in value over time and you do not have negative cash flow.

Now it is time to move on and look towards your future investment properties, Arizona is a great area for real estate investing. The three P's of investing are location, location, location or location, jobs and population and Phoenix area has all three.

Before you do anymore investing here are the questions I would ask myself.
1. How much cash do I have to invest?
2. How soon do I want to reach my monthly income goal from investing?
3. How much time do I have to put into investing?
4. If a home goes vacant how much do I have in reserves to cover the costs until I get another renter?
5. Do I want to be a property manager or do I want to just receive checks in the mail?

Asking yourself these questions will help determine the types of investments you get, the RE investment techniques you use and you will determine if your goal is realistic.

Be excited...the future is bright.

Marv Rousselow

Jaime,

That is a great amount to invest in real estate, however it is vital to ask yourself a few questions before you start.

Questions I would ask myself...

1. How much passive income do I want monthly from my investments?
2. How long do I want to tie the money up in those investments?
3. Do I want short term, medium or long term investments or all three?
4. Do I want to be a landlord or do I just want to get a check in the mail?
5. Were is the best place to invest?
6. What is the best type of investment? Residential or Commercial?
7. What time frame do I have to build my investment portfolio?

Once you have those answers you can move to the next stage of creating your real estate investing business model.

There are a lot of other investors who will tell you how to spend your money and how they can help you invest it but don't look at that until you review your own answers first.

This is a great time to start investing...

Marv Rousselow

That is a great question...You have your goal now you need an investment technique, plan of action and exit strategy.

First:
You have a great goal but based on the money you have to invest it is going to be tough to meet your goal so you are going to need an investment technique that will allow you to invest without using capital and due to the current market you will also need to use an investment technique that also will not require use of credit (investment properties need a lot of money down in this current market so credit is useless without the capital).

Second:
How much time and effort can you put into investing to reach your goal? not all investing techniques are the same regarding time investment, so based on your work and life schedule how much time can you commit to reaching your goal?

Third:
How committed are you to reaching your goal? Based on your history of following though on things in your life will this goal be obtainable or is it just another dream?

Last:
Why do you want to retire? If money is no longer an issue what are the things you want to do in your life?

I know it is a lot of questions but asking yourself these questions now will help you to create a clear picture of what you want, what you are willing to do to achieve it and will help you create a map to get there.

Good Luck.

Marv Rousselow

I am not a big fan of hard money loans due to the amount of risk involved, is this your primary residence or investment property? Depending on your goals will decide your strategy.

Marv Rousselow

The key to success in real estate is to invest using techniques that will allow you to earn a good income without investing a lot of cash, also using a technique that will allow you to earn a good income and move on using lease assignments based on your current situation.

I would also recommend finding good partners that you can team up with to make additional profit, the key is to make money while you sleep and partnerships can provide that.

I invest using Lease Assignments to make immediate cash and I invest with partners using sandwich lease options to build a monthly income and a future income.

Stay safe and prosper.

To be success using the lease option strategy it is important to make it a win-win for the landlord, the tenant/buyer and for you. There are two strategies I use one is the sandwich lease option and the other is the lease assignment.

I am a full time investor, I do not sell books, tapes of do seminars. However, I am always looking for partners because to be successful I need others and I am always glad to share my knowledge.

Knowledge is not power, it is only potential power and is only power if you apply it.

Marv Rousselow.

Ryan,

I would not invest in a property that is less than three bedrooms, 2 baths due to the limited type of renters.

If you are getting into to a property that is multi-unit to help pay your payment on the property I would look for a four-plex this is for rent and do seller financing or lease option.

There would be less risky, you may be able to get into the property without any money down and if one tenant moves out you still have two others helping to pay the rent also it would give you time to build your down payment, it would allow you to lock in a price on the property and if you decide in the future not to complete the purchase you could sell it and make a profit but if the property does not go up in value and you decide not to buy you can walk away without any risk.

Good luck...

Marv Rousselow

Ryan,

If you want to start investing but are limited in your funds and/or credit I would recommend starting off using investing techniques that don't require money or credit.

There are many types of investing methods to use such as wholesaling, lease options, lease assignments, sandwich lease options, partners etc...

I would recommend finding a mentor to teach you how to invest in real estate to avoid costly mistakes and save you time from trying to learn on your own.

Also the investing technique you consider will need to be determined by how much time you have, how motivated you are and it is vital to know why you want to invest.

I don't invest because I like to work, I invest to create financial freedom to do the things in life I have passion for such as spending time with my family and not having to worry about money and the stress it causes in my life.

If there is anything I can do to help you get started please let me know.

Remember anything the human mind can conceive and believe it can achieve. Norman Vincent Peale.

Good Luck!

Marv Rousselow

How to stay safe as an investor...

I have found the best way to stay safe, protect the property and save a lot of time and effort is to add a lock box to the side of the house on a meter.

I market the property and when someone wants to view the home I have them take a picture of their license with their cell phone and text it to my Google Phone Number (I never use my cell phone number in advertising to buyers), once I have received their license I send them the address and lock box code to view the home.

I have never had a problem with something being stolen because I have their personal information and license, many other agents will tell you not to let people view a home unattended but if the home is vacant why not, when most agents meet a potential tenant at the home they don't get a copy of their license so they don't know if the person was just meeting them their to scope out the home. Also I don't give the address or the lock box to code to anyone without a copy of their license, some agents have gotten angry but I don't know them and not all agents are honest but if I get their license they will think twice before being dishonest.

Using a lock box with a code and getting a drivers license keeps me, those on my team and the owner safe, the person looking at the home honest and it saves me driving time to meet people at the home.

Stay safe and prosper...

Marv Rousselow

Focusing on sellers can be a lot of work and time consuming, many owners have not gotten to the point that they are willing to do unconventional methods of selling their home and many need the cash to move. Also most owners will want their payment, taxes, insurance, HOA, maintenance and profit and the payment they want is far above the rents in the area.

I would focus on landlords, many have gotten discouraged with trying to sell their property so they are renting it and the payment they will be asking will usually be the going rent in the area. Also it is much easier to help them move forward with Rent-to-Own. Also this is a great business model for investors, it gives them the term to fit their exit strategy and the profit margin they desire, it gives them a long term tenant that will take better care of the home because the tenant/buyer feels like it is their home.

Also there are many sources to find landlords for free, and only market to those who may be interested in hearing from you.

Good Luck!

Marv