OfflineShalom! I am new to this. I have had Dean's book for some time now and am just now wanting to get started. I have found two prospects and have only gotten to the second cd of Dean's book, "Be a real estate millionaire." So I am continuing to listen to the cd and also checking out the web site and seeing what info I can get. I wish to get the houses in order to rent them out. I would like feed back though on if I should sell them or rent them out? I checked them out on zillow and the estimated rent are not so bad. One the estimated value was $198,500 and rent was estimated at $1,018 a month. The second was estimated at $108,500 and rent $573/mo. So feed back would be great and any suggestions on how to start. If I ask a bank for loan can put the houses up for collateral? Thank you.
Just getting started
Posted on: Thu, 06/09/2011 - 22:04
Welcome Ezra to the D.G. family. You'll find alot of good information out here and a bunch of new friends. And the best of Success to you.
Regards;
John Lewis
Thank you and I look forward to making a lot of friends.
I too am just starting in RE investing. I have been driving neighborhoods,contacted a few agents, looked at a few places, getting my feet wet so to speak.
Be sure to read the journals there is a lot of information just waiting there for you to tap.
I am completely dedicated to this new business, I hope you are also.
Sincerely,
Stacy
Dream High-Strive for the Stars-Let no one steal your Dreams
StacyKae
congratulations on taking your first steps; I recommend that you finish reading DG's book and then read threads on this website taht will provide you all the information you will need to become a real estate investor.
Wishing you success,
Valerie
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
I am kinda sorta have relastate how do I get the money? How do I use others peoples money ? How do I find buyers to fis up with sellers? With out having to deal with a lot of people?
Hello to all. I am a rookie and if anyone responding to MikeCusic question Please let me know...
good one mikecusic
Build a buyers list. Find investors out there that love good deals and you can find properties for them. REI clubs in your area are great, auctions at the courthouse, classifieds. Let everyone you know that you "buy and sell" houses...everyone knows someone who knows someone who is wanting to buy or sell. Good luck always!
Ezra - welcome! There are lots of different strategies out there so you need to define your specialty for real estate. It sound like you want to buy, hold, and rent out properties. That's the path I've taken and here are a few pointers:
- As stated throughout this website, buy at a substantial discount.
- You can go to a bank for a loan. For an investment property, you will need good credit, a good job, 20-25% down, and cash reserves.
- If you don't have those, there are options like owner financing.
- Know your market!
- I believe those rental numbers you mentioned are not good. As an example, I recently bought a duplex for $70k all in (after rehab), and it rents for $1400 per month total. At those numbers, you'll have good cash flow.
Hope that helps and good luck!
- Tom
Thank you. That helps a wee bit. I do not understand the renting part. You bought the duplex for $70k and you rent it out at $1400? How did you figure the figures? I need to rehash on math because I do not use it enough heh.
Ezra - yes, you have to be absolutely sure of your numbers before proceeding with any deal. The duplex I bought was REO (bank owned). Purchased it for $45k, put in $35k for rehab, and put down $10k for the downpayment. So my mortgage was for $70k at that point ($45K + $35k - $10k).
The rents are determined by the market rents in your area. Check Craigslist for a good indication of rental prices. In my area, a 2 bedroom is going for $700. So $700 each side = $1400 per month. After mortgage, taxes, insurance and maintenance, it cash flows about $500 per month. If you include the tax benefits and mortgage paydown each month, the real increase in wealth is close to $1,000 for month!
- Tom
Thank you very much for the intel. I think I got it. So to seal a deal for rental purposes, which contract should I use with the owner selling it and what questions are good to ask? Sorry