All Forum Posts by: Bryan L.

I got started in a similar way in that my wife and I bought a house to live in. And buy luck or whatever, it was a foreclosure. And we fixed it up and got some equity, and I started reading and studying on the internet to learn how to make a living at this. I didn't get off to the flaming start that you did, but I'm loving it.

Bill B. Most of my investing is done with MLS-listed REO properties. They are vacant (no people). Often I can make an offer over the internet. And when I go to sell them, I can list them with a Realtor if I want to (even though I am a Realtor myself). This may be a segment of REI that may be perfect for you.

Is there a "like" button on here for Ryan B's answer?

Actually, there are some depressed small towns around me that I avoid. But the truth of it is, if I lived there and new the markets, there would probably be good opportunities in those towns as well. Most of my investing is done in a county with a population of about 25,000 (for the whole county). And an unemployment rate of 10%. But people still need a place to live.

I don't understand the reluctance of investors to either invest or lend in "small" towns, or "rural" towns. We are normal people down here in fly-over country. Yes, many of us go to church every Sunday, and most of us have guns (and some of us even carry our guns to church). And yes, we drive trucks and say "thank you" and "please". And many of us grow our own food, cut our own wood, pick our own cotton, or whatever, but we are just normal people. We believe in God and country, believe in the Biblical teaching on creation, don't believe in catastrophic man-made global warming (nobody has proven it to be true), we eat dinner at Granmas, play golf for 10 bucks, catch cat-fish on a trot-line, and teach our children to shoot guns. Sorry, I guess you hit a sore spot with me. We're just normal people.

I bought a house for 7K one time. A couple of others for less than 20 each. I don't expect that you can do that in Hawaii, but I don't know, maybe you can. You've been given a lot of good options in the thread above. Partners, sub-2, lease-options, etc. or buying a personal residence that needs work and gaining equity that way. And Ned is right about paying off the loans. Guaranteed 7-8% return.

I generally use the 70% of ARV - repairs rule. With a minimum desired profit of 10K with conservative numbers.

To some extent, the answer will depend on your market. For example, are you only looking to buy MLS-listed properties? If so, there will be other rehabbers doing the same as you. If there are several who are willing to make a minimum 10K per deal, then you may have to work with that. Or, change markets and go after pre-listed properties.

In my opinion, you would be better off to put money into real estate instead of stocks and mutual funds. I spent many years in big-corporate America, and it's run by idiots. Don't trust your money to someone else.

Are you in a position where you can buy a house to live in? A personal residence? I got started by accident. I was looking for a house (not investing) and we found a foreclosure. Got a good deal on it, fixed it up, then took out a HELOC. Then I started investing with that HELOC. But like Ned said, debt has it's risks.

You can refer them to a Realtor. But, in some states you have to be a licensed agent in order to receive a referral commission. I am also a Realtor, so I take the leads that are not good enough for investing and try to get them to list with me, or I make a referral. Makes for some nice additional income. Recently got an $800 check that way.