All Forum Posts by: Ryan Urban

I spoke with an experienced realtor today, and he told me something I thought I would pass on.

He told me that here in Colorado, part of the recent foreclosure increase has been homes owned by inexperienced real estate flippers.

He said that many people are rushing into the REI business, spurred on by the various infomercials and TV shows that feature flipping homes. They're not doing their homework and they're not prepared financially if the home does not rent within 45 days. One or two months of having to make the house payment sinks them.

Incredibly, he says there's a NEW REI business - swooping in behind these failed investors and buying their homes on the cheap. Amazing.

I'm new to REI, but I'm not new to business. No matter what business you choose to pursue, you absolutely must plan ahead. Do your homework. Do your research. Don't jump until you're ready.

I've written many business & marketing plans, and sometimes at the end of the plan it's clear you should not do it. That's one of the great benefits of planning ahead - avoiding disaster!

And by the way, from what I've seen, this message board is an awesome resource for REI newbies like me, so read all you can and ask questions.

Just a friendly warning, best of luck to us all!

More great info, thanks!

It's clear to me that this business is like any other - the first big key is how you buy. Whether you decide to rent them, flip them, go single family or multi family, you won't enjoy consistent success if you can't buy them at the right price.

Today I started the process - I'm in touch with a broker who specializes in bank owned, foreclosed and HUD homes. First I'll meet with him and make sure I'm comfortable with him, his background, his approach.

I'll also ask him for any referrals (people he knows and trusts) of professionals who can help me fix distressed homes (painters, plumbers, electricians, etc.). I'll then assemble that group.

Next will be locating a mortage broker (I'll bet the realtor knows a few, he's been doing this for 30 years) and get my finances set up.

I may buy & hold, I may flip, but I'll probably do a combination of the two. I'll be patient & careful as I look for the right deals. And right now I'm leaning toward single family.

Again, thanks for all the great input - what a great, motivational site!! :rock:

Great stuff, thanks very much.

Your points make sense, and illustrate why the more successful investors seem to be those who know how to buy at a significant discount. The key seems to be starting with a low enough buying price that a standard down payment will create an acceptable cash flow.

Thanks again. Who needs "gurus"? This site has been a great find.

:clap:

What an excellent site. I've seen the infomercials, and I've read some books, and the collection of real-life experiences I'm reading about here has much more value for me.

I'm just getting started, and I'm stuck between single family and multi family. Right now I'm thinking I'll go with buy and hold, whichever type of housing I choose.

From what I've seen, about half of investors start with single family and half have started with duplexes or fourplexes. My concern is that, when you buy a single family home, you're usually going to be starting off with no tenants and the risk of going months before you find one. At least with a fourplex, one vacancy is only one-fourth of the risk.

Those who prefer single family cite better appreciation vs. the cash flow of multi family. So I'm stuck!

Your thoughts?

Hello Everyone:

What a great site. I just read the comments in a "how did you get started?" thread and gained so much insight that I had to join and get involved.

I'm just now entering real estate investment for diversification. I've looked at multi-family, single-family, flipping, even mobile homes, and at this moment I'm most interested in buy and hold, either multi-family or single-family.

I look forward to sharing ideas with all of you. My background is primarily sales & marketing (I have a public speaking book out, and a sales/marketing book coming out in October 2007), and I'm always happy to provide input and ideas in that area. Ask my wife - I'm just FULL of it!!

:lol: