I have studied real estate because I find it fascinating but I do not have experience in the realm. I am guessing with your knowledge you already KNOW what to do, you just need to DO what you know.
Success is 20% mechanics... 80% psychology.
There is never a "right time" to do anything. Especially going into business for yourself like you are doing. The economy is always bad, there is always too much competition, money is always going to be tight.
If this is your goal and you think it the best way to go about it, do it. The experience you gain from something like this will be far more valuable than the property itself will ever be.
With the housing market crashing it would seem be a perfect time to buy. Terrible time to sell.
Is staying with family still an option for a while? Why not purchase a home for rehab and rental and then build from there? From what I understand of the real estate world, "experience" usually equals your net worth. (correct me if I'm wrong)
Wouldn't be too tough to head down to the local Home Depot, pick up a "do it yourself" book and learn from that. Still having trouble? Ask the older guys that work there, they will tell you exactly how to do it and could give you instructions - they'd be glad to!
This thought is just silly. You should feel embarrassed about putting together your first deal? You will never act! It is not a handout, it is not a charity case, it is a profitable deal for all parties involved. There are lots of investors out there looking for places to put their money. You will be a match maker at first until you have the funds to create your own deals, but even then, fastlaners use other people's money to invest instead of their own, it creates a much higher ROI, if not infinite.
I sell safety gear and equipment out of my school. This amounts to about 2,000-3,000 in sales per month. Which is approximately 10% of my bills. Will I stop selling that stuff because it is a "small pittance" in comparison to everything else? No way! Every bit is just as important as the next. You're "small time" deal of 125k is just as important as your 10th complex will be.
While you have lots of knowledge and experience let me ask you this: Are you ready for this kind of deal? If you cannot answer YES confidently, start small and build your way up. You mentioned reserves being a problem, well you must also see reserves of information. I have only been in business 2 years and have already seen that everything I spend money on, weeks, days, or even minutes later I realize I could have done for half the price or free. But the only way you can realize that stuff is through experience first. Perhaps your first single family home will result in the experience it takes to save hundred of thousands of dollars in your complex deals later on.
I am a firm believer in the fact that you cannot run before you walk :smxB:
Hope this helps, best wishes!
Success is 20% mechanics... 80% psychology.
1) Do you think buying a home to live in and rehab is the best next step for me right now?
There is never a "right time" to do anything. Especially going into business for yourself like you are doing. The economy is always bad, there is always too much competition, money is always going to be tight.
If this is your goal and you think it the best way to go about it, do it. The experience you gain from something like this will be far more valuable than the property itself will ever be.
With the housing market crashing it would seem be a perfect time to buy. Terrible time to sell.
Is staying with family still an option for a while? Why not purchase a home for rehab and rental and then build from there? From what I understand of the real estate world, "experience" usually equals your net worth. (correct me if I'm wrong)
b) I have never rehabbed a home before so there is risk of me not making the right decisions.
c) Also, I am not good at “fixing†things, so I’d definitely need to hire someone to do the work.
Wouldn't be too tough to head down to the local Home Depot, pick up a "do it yourself" book and learn from that. Still having trouble? Ask the older guys that work there, they will tell you exactly how to do it and could give you instructions - they'd be glad to!
d) I’m embarrassed to find a partner if needed. It seems to me like I’d lose credibility if I needed to find a partner on a $125k deal because I don’t have enough funds to make it happen.
This thought is just silly. You should feel embarrassed about putting together your first deal? You will never act! It is not a handout, it is not a charity case, it is a profitable deal for all parties involved. There are lots of investors out there looking for places to put their money. You will be a match maker at first until you have the funds to create your own deals, but even then, fastlaners use other people's money to invest instead of their own, it creates a much higher ROI, if not infinite.
I sell safety gear and equipment out of my school. This amounts to about 2,000-3,000 in sales per month. Which is approximately 10% of my bills. Will I stop selling that stuff because it is a "small pittance" in comparison to everything else? No way! Every bit is just as important as the next. You're "small time" deal of 125k is just as important as your 10th complex will be.
2) Or would it be smarter to try and partner with someone and aim a little higher right off the bat? What about finding an under valued 4-plex? We could live in one unit, manage the building (possibly take a management fee), supervise a light cosmetic rehab. Then in 2011 or 2012 when we are able to raise rents, go ahead and do so. Then sell the building and roll the profit into a bigger one.
While you have lots of knowledge and experience let me ask you this: Are you ready for this kind of deal? If you cannot answer YES confidently, start small and build your way up. You mentioned reserves being a problem, well you must also see reserves of information. I have only been in business 2 years and have already seen that everything I spend money on, weeks, days, or even minutes later I realize I could have done for half the price or free. But the only way you can realize that stuff is through experience first. Perhaps your first single family home will result in the experience it takes to save hundred of thousands of dollars in your complex deals later on.
I am a firm believer in the fact that you cannot run before you walk :smxB:
Hope this helps, best wishes!
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