All Forum Posts by: Sophia Maler

Sophia Maler has started 10 posts and replied 43 times.

Hi Jeffrey, this is a fine idea but doesn't really address my original question of how to invest my extra cash...

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The latter.

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I'm really curious about pre-foreclosure wholesaling because my exceptional computer skills can be of a major help here. I guess I just need to start looking for a partner rather then a mentor!

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Thanks much for encouragement and advice. I think my contact mostly needs help preparing offer letters. He also mentioned that if he had more cash he could afford selling via online auctions rather then wholesaling and get better profits this way. In any case crawling under buildings is not involved here :lol:

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Hi, I'm moving my question from another thread because it really belongs here.

I'm new to REI but have some cash to work with and want to learn the business. I made a contact with a local pre-foreclosure wholesale investor in CA who has more business that he can handle and is willing to take an apprentice. Can someone please tell me what mentors are typically looking for to make it worthwhile for them?

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Another question - I looked into pre-foreclosure wholesaling and made a contact with a local mentor who is willing to take me as an apprentice. Can someone please tell me what mentors are typically looking for to make it worthwhile for them?

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I'm in CA - will follow your suggestion and try to locate a REIA near me.

Thanks!

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Thanks for a quick response! Will try to Google these up and post back at this thread if find anything! :D

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Originally posted by Jon Holdman:

Minimal risk, little time investment, little cash investment and an output of $2000-4000 a month. Sorry, its not going to happen. You don't say if you have cash to put in, but if you do, there are number of avenues.

You don't say where you are, but that are many locations in the US where you can buy very cheap houses, manage them yourself, do most of the maintenance your self and clear $200 or more a month per house. 10-20 houses would meet your goal. If you pay cash, you can do it with less than that. $20K houses that rent for $500 is feasible in a number of locations. If you don't have a payment and do your own management and maintenance, ten of those would spin off $3000 a month. But you would need the $200K to get there.

Wholesaling might generate that much a month. Not entirely sure, since it seems that most people who try it give up without ever doing a single deal. Guru's often offer this as a quick and easy way to real estate riches. As far as I can tell, the people who have success are the ones who bust their humps.

If you have cash, loaning money to rehabbers can return pretty good money, with less work than landlording. Generating a 12% return isn't too difficult. So, a $200K investment would return you $2000 a month. Unfortunately, its not that simple, because the deals are various sizes. And you have downtime between deals. Its impossible to get every penny of $200K invested every day of the year.

Fix and flipping can generate money, too. Again, though you need some of your own cash into the deal. The rule of thumb is that a purchase plus rehab cost of 70% of the sales price will return about 15% of the sales price as your profit. If you can borrow 70% of the sales price, and have about 15% of your own cash to put in, you can double your money with each deal. Its risky, and you have to know what your doing, and it will take a lot of work on your part, but its possible.

Generally I find that to be true. I've known a few CEOs and other high-ranking executives, and they are ALWAYS very hard working people. The idea that real estate or any other business can spin off lots of cash with no investment of time or money is guru hype. That's a story told by people with something to sell.

Hi Jon,

Thanks for your very detailed post and sorry if my post mislead you into thinking that I don't want to work hard or I don't have much to invest. Both of these assumptions cannot be more far from truth about me. I'm very hardworking person and earned every penny of what I'm now going to invest with my own hands.

Money actually is not an issue for me at the moment... but I don't want to risk it too much in exchange for aggressive profits. I do have cash AND great credit score and zero debt. Time is more of an issue for me because of my current (very demanding!) corporate job. I'm not looking for get-rich-fast-no-work kind of things and don't want to get such reputation on this forum.

My question was really about possible strategies and you answered it very well and in great detail.

Thanks again, from what you recommended I liked the idea of loaning money to rehabbers, but I don't know how this works, and will definitely look into this.

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Does anyone know what states conduct tax lien auctions online? Thanks a ton for any leads...

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All Forum Posts by: Sophia Maler

Sophia Maler has started 10 posts and replied 43 times.

Post: New investor with cash

Post: What mentors are looking for?

Post: What mentors are looking for?

Post: What mentors are looking for?

Post: What mentors are looking for?

Post: New investor with cash

Post: New investor with cash

Post: What states conduct their tax lien auctions online?

Post: New investor with cash

Post: What states conduct their tax lien auctions online?