Fri, Jul 03, 2009
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phil0155
15 Posts
Member Since: 07/10/2008
Chicago, IL
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Posted: 13:52 on 09-11-2008
Could anybody tell me the best way to begin investing in real estate. I am brand new to real estate investing. I do not presently own any properties. My credit score is fair. My biggest credit obstacle is a hugh student loan obligation. Any ideas, or suggestions.
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omicron3000
116 Posts
Member Since: 08/18/2007
Abington, PA
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Posted: 20:33 on 09-11-2008
Well, I am also dealing with student loan debt. The key thing to understand, is that investing in real estate is holding real estate, this includes estates and that is how dead people make money in real estate.
True real estate investing
By holding property, you need to make sure you have a solid plan on how long you will hold it, and whether you are obtaining some sort of positive cash flow. You can also hold land, as well.
Real Estate Dealer
Real estate dealing is when you are buying and selling actual real property, for retail/wholesale sales. Many call this term flipping(I hate that term) houses, which can be highly speculative as well, since you are never completely guaranteed to sell the property. This is real estate developing, and the government gives you incentives in which you will be fix up and sell property tax free.
Real Estate Contract Dealer
Another part of this business would be real estate contract business (or the assignment of contracts). Many people call this Wholesaling real estate, and it is not Wholesaling Real Estate, since you are only assigning the contract, ways to do this:
Sell Contracts at Wholesale Value
1.) Property Locators for Rehabbers
Find a rehabber, assign contracts for ugly or light rehab property they are looking for, be specific with the type of property they are looking for, including minimum sq footage, zip code, whether the home is detached, what neighborhood,
2.)Assign land trusts after getting short sale approved
for preforeclosures
Sell Contracts at Retail Value
3.)Assign contracts, by selling contract for luxury homes at highest bidder
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On 2008-09-11 13:52, phil0155 wrote:
Could anybody tell me the best way to begin investing in real estate. I am brand new to real estate investing. I do not presently own any properties. My credit score is fair. My biggest credit obstacle is a hugh student loan obligation. Any ideas, or suggestions.
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phil0155
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Posted: 13:31 on 09-12-2008
Thanks for the response omicron 3000. It seems as though you have been investing for a while. How did you get started? And what would you recommend I do to get started?
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omicron3000
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Posted: 19:07 on 09-12-2008
Well, my start was mainly working with a hard money lending company, which was also a real estate hedge fund backed by IRA money. Working in that field gave me upfront expertise on how the lending industry works. Without the lending industry, real estate would not be a great investment. In addition to that, my great grandfather, was a carpenter and landowner in the early 1900's as well, so this has some personal significance as well.
How you get started depends on you, and mainly your finances, and credit (very hard to get loans with at least a 600 or higher score). The assignment business which many call wholesaling is not, you can sell the contract at a close to retail price (works with luxury homes). I am trying to perfect this method.
Are you more a dealer who wants paychecks, or are you more conservative, in obtaining buildings with positive cashflow? Apts are very popular, but you will not only need some down pymt, but at 6-8 months expenses ready usually in a credit line, available just in case anything unforseen happens.
You may just want to find a partner (equity or debt) for your real estate deals acquistions or resale property.
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On 2008-09-12 13:31, phil0155 wrote:
Thanks for the response omicron 3000. It seems as though you have been investing for a while. How did you get started? And what would you recommend I do to get started?
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[ Edited by omicron3000 on Date 09/12/2008 ]
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phil0155
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Posted: 13:37 on 10-09-2008
Thanks for the reply. I have a question, do hard money lenders charge a higher interest rate than do private money lenders? And, what are some good sources for both?
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