MrPink said:If you don't know what you are doing then you are going to fast.
With all due respect to Mr. Pink, ALL of our big deals were situations where we didn't know what we were doing when we found the deal.
We learned as we went along, before close of escrow.
That's what due diligence is all about.
It's also how to move FAST.
If you wait until you have experience, you will never do your first deal.
You gotta start somewhere!
That being said, all of the cautions here are correct-- you really need to do the numbers, and bounce them off a seasoned investor to determine if this really is a "deal" or not. We've already had a few fastlane members buy condos and other RE props that did not cashflow positive after taking vacancies, maintenance, prop taxes, and other items into account.
Don't make that mistake.
Figure out a good way to finance the property (one may be having the owner carry back part), and then lock it up under contract. While it's under contract, work your butt off to get inspections of the property, the books, and the title.
THEN (and only then) will you know if it's worth doing.
Good luck. We were terrified when we did our first big deal ($1.275M) back in 2003.
Just a few months ago, we pulled a million in CASH out of this property.
It does get easier. :banana::banana::banana:
And more fun!
-Russ H.