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NOOB real estate investor looking for partner

Discussion in 'General' started by redciv1, Mar 29, 2007.

  1. oldguy

    oldguy NC novice old dude

    Can you spell SBA? Make sure she owns the business and you're on your way to millions. Minority enterprise rules. Check with your local college........ ours partners with the SBA to run classes on how to suck money out of the government.
  2. MV

    MV Well-Known Member

    I'm sorry...but this seems strange. You come on this forum looking for money. I smell a rat
  3. Have you or your wife spoke to any lending firms, banks, as to what you need to buy investment property from their standpoint? I would think she would be able to apply for some sort of a business loan to get her business kicked off. Now they may not give all of what you would need but that is where you find the money elsewhere...there is no rule that I'm aware of that says you couldn't use some of your own money as an outside investor coming into the deal along with your wife's company. So now maybe between the business loan, and what you could apply for as a personal loan you two could purchase an investment property and get enough turn around to pay yourselfs back and then some. This way now she has a bit of money to turn around and not have to borrow as much the second time...eventually, you continue to gain enough where you began to profit and not having to invest the entire amount you previously made.
  4. Photo_Chick

    Photo_Chick Leo's Wench!

    We have 3 rental properties. Was going to go that route and decided that it really wasn't what we wanted to do. We still have the properties. They are all self supporting so why not keep them.

    Anyway, I agree with what Steve said. You have to have the money to make the money. Especially in real estate. They do ask for a lot of upfront for investment properties. Then you have your closing costs, then the fixing up, then the cost of finding a renter and so on and so on. The property may sit there for months with no one renting while you are still paying the mortgage. You have to have funds available to be able to get you through those times. If you don't have anything why should a bank give you some?

    I think the best scenerio would be for your wife to go back to work and you guys save some money for this and do it when you really are ready.
  5. redciv1

    redciv1 Well-Known Member

    Thanks MV for watching out for everyone however I don't think I would come to a forum for racing where I know some of the people and try and take money from them.

    I will have her check out the SBA and see what happens. I understand that you have to have money to start, however I, we refused to give up so easily.
  6. worthless

    worthless Well-Known Member

    Sorry if this is too obvious, but, have you tried to get a home equity line of credit on the foreclosure where you currently reside?
    Also, if your wife isn't already licensed, might be worth her time to get her real estate license. If someone's gonna get the commission when you buy/sell, might as well be you (her), right?
  7. redciv1

    redciv1 Well-Known Member

    Worthless, MCR is the one that bought the foreclosed home. I wish it was us because that would be a good thing.
  8. ClubRacerToo

    ClubRacerToo Active Member

    Some thoughts:

    start with OPM type deals to avoid the need for money or good credit until you have both.

    Don't need RE license either unless you want to do that full-time. Later on when/if you need it you can always find REA's in your area to work with you.

    Look at "For Sale By Owner" and Wholesale flips and certain Lease Options where Hard Money can be used.

    Lots of good books on Amazon dirt cheap.

    And you don't need someone to be local to you to work with them... in some ways its better if they're not as the more markets you can operate in the better.

    Best of luck to you both.
  9. SteveThompson

    SteveThompson Banned by amafan


    My wife got her RE license as the first step for us moving into investing. I think it is one of the smartest things we have done. It has made us quite a bit of money and it puts all of the information at our fingertips. It also has you running in the right circles.

    As far as money goes... we have found that we make LOTS more money when we have cash. Money talks. just like anywhere else in life. You can't even buy something at Sheriff's Sale on a mortgage.

    It might be a good way for you guys to start for her to get her license. She will learn a lot plus be able to make some money.


  10. Steve...it's redciv1 that you meant that advice for. My sister-in-law is a realtor down in St. Pete hopefully moving here in a year so I too will have that point at my fingertips as you mentioned...it helps to be in that circle!
    I think that may be a good idea for his wife to do...like you said it could bring in some much needed income for them to sock away until they find property they are interested in and then they'll have the cash flow in hand to drop on it and move on it quickly. As you know...these good deals you come across go quickly...we are not the only investors out there looking. If you snooze you loose on foreclosures, and For Sale by Owner, Lease to buy situations.
  11. SteveThompson

    SteveThompson Banned by amafan

    Hey... my advice is for everybody. I'm that freakin' smart! haha

    Markets are so different that in some ways it is hard to discuss RE investing with people across the country. St. Pete is going to be VERY different than Muncie, IN. Plus, different people have different strategies. I have a very good friend who is in about the same position as me as far as investing goes, but he is taking a different approach. I think we will both be successful.

  12. redciv1

    redciv1 Well-Known Member

    I'm sorry ClubRacerToo being a NOOB I do not know what OPM means.
    She has been focusing on FSBO's. Haven't really found any Lease deals which would be perfect for our situation. So far the property we come across the investor is usually trying to get out of the property entirely. Good advice from everyone thanks.
    Hmmmm, It does seem like a good idea to be in "the circle" however we will investigate a little further especially with the money situation.
  13. ClubRacerToo

    ClubRacerToo Active Member

    OPM = Other People's Money -- arguably the most important concept in investing.

    If you're a billionaire it might not matter to you, if you're not, it probably should.

    and becoming an REA is certainly an old tried and true approach that works but
    remember that it has its limits, namely 6%. The other approaches have no limits.

    remember also that it's always better to control than to own.
    Last edited: Mar 29, 2007
  14. For sure the markets are different. In St. Pete it's nearly haulted and they can't give away property...no one is buying. When her and my brother came up for the 1st of the year to look around, we stopped by the Keller office in Canton and she asked how many Cap realtors they had...the woman told her 6. So she was happy to hear that because it means they have sold a lot of property meaning the market is not a stand still. Forclosures in our area are frequent because so many people move in and out of Atlanta area so sometimes they have to just up and leave and forclose on their homes.
  15. TuesdayHugh

    TuesdayHugh Four Day Weekend Dude

    Doesn't Jeff Lever do this stuff?
  16. SClark

    SClark Righteous Indignator!

    First: The Reviews of the Scam Artists... I mean the pro's:

    A D Kessler is the latest one that I researched. His concept is the "Take Control, Not Inventory" method using Lease Options. But, you have to be either very good at moving the properties, or accept the fact that you might screw over someone if you don't find a buyer in time before the option expires. He is the reason why you see the "We Buy Homes" signs all over the place.

    2nd: I started a Rental business by putting my primary house into hoc. Put 10% down on a condo, and suffered through the PMI for 2 years. They removed it after that. Put another 10% down on a Townhouse, but got another couple to go halves with us, so we didn't have to do the PMI on the Mortgage.

    We still have both properties, they're both making money each month, and there's about $100k in equity in them.

    This is where I'm stuck. My choices are to sell the condo, then take the profits and buy a couple more, or take out short term loans to do the buy and flip. I can't make the decision.
  17. JamesG

    JamesG Architeuthis dux

    Rule #1: Never describe yourself as "NOOB" when talking to other people about money. You will attract the wrong kind of "partners"...
  18. tony 340

    tony 340 Well-Known Member

    You can't drive 5 minutes in SE Michgan without seeing 3 of those signs all from different sellers.

    What is the scam?
  19. SClark

    SClark Righteous Indignator!

    You find people trying to dump a house. You offer them a 'Lease Option', knowing that you've done your homework and have potential buyers waiting behind the scenes. Typically, people with bad credit who will Rent to Own. (So, look in the paper for the "Rent to Own" ads, they're the same people polluting the highways with the other signs.)

    IF you find a buyer willing to entertain this concept AND the buyer actually gets their act together and secures a loan, then you have a viable transaction. Otherwise, the Lease Option expires, the renter is booted out, and the home owner still has to try to sell the house.

    It can be a Win-win situation, but a lot of stars have to align to really make it happen.


    Their other "Creative Method" include pre-purchase lots from developers, and yanking the land.

    Again, they are all viable methods to Transact real-estate, as long as you want to be in the "Control, Not Inventory" business.
  20. redciv1

    redciv1 Well-Known Member

    Very true JamesG about calling my wife and I a NOOB, found that out last night on a conference call. My wife is focusing on the Lease option part right now, we just have to find the people out there willing. Found out about the FSBO(For Sale By Owner) site last night. So we are going to work on that today.

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