Successful real estate investing

[andviv]

Rates may stay in the crapper for awhile...

I expect the same.

How are you seeing this impacting RE investing?

 

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[Rickson9]

I expect the same.

How are you seeing this impacting RE investing?

That's a good question. I don't really know. Normally I'd say that low borrowing rates would fuel speculative buying by the public, but that's already happened and the results are well known. My next guess would be that low borrowing rates will fuel RE entrepreneurs who are taking advantage of the fallout such as those who are involved in fix/flip and PM. It would also prompt investors who were sitting on the sidelines to pick up land and property as well.

 

[andviv]

It would also prompt investors who were sitting on the sidelines to pick up land and property as well.

I am getting the feeling that REI is picking up in volume and price...

Phoenix's news about properties are well known.

I am seeing lots of activity in the DC area as well.

FL still seems to be lagging, but they really fell hard, so that is expected.

Actually thinking of getting back to the game in FL and TX...

 

[Rickson9]

Here's another business that might get off the ground with cheap available financing:

Home Builders Don't Have Enough Workers to Meet New Demand - CNBC

 

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[andviv]

Funny, and we keep talking about high unemployment...

 

[Tony71]

I have several properties with tenants in them and it real comes down to locations. Most of the properties I have are within walking distance to town centers so that is a plus and I hire a property manager to take care of the background checks and the rent.

And like cashflowdeopt says 50% is not a nice website or the team, its how you sit down at the bargaining table and see how desperate they are to sell.

 

[CashFlowDepot]

No money is just an excuse to not get started.

The reality is, you don't need money if:

1. Get an option on any property, then wholesale it to a rehabber

2. Get a sandwich lease, lease from the owner then sub-lease to a tenant

3. Get an option on a nice house that the seller will sell with seller financing or subject to the mortgage, then sell your option or even better WRAP the underlying loan so you get the down payment PLUS monthly cash flow

4. Get an option on an old mobile home, then find a buyer who will pay 2 - 3 times more if you offer seller financing. Use their down payment money to buy the mobile home, then collect monthly payments from the buyer for 3-5 years.

5. the list goes on and on.

the best deals are made when you approach the opportunity as if you had no money (even if you do) and USE YOUR BRAIN to make the deal instead of money.

Money is not needed to make a fortune with real estate.

 

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[jsi808]

I expect the same.

How are you seeing this impacting RE investing?

It's really an interesting time in REI. In the past 20 years or so, it usually went high interest rates, low prices or high prices, low interest rates but rarely do we see dirt low rates and dirt low prices. As far as impacting REI...you can bet a lot of the guys are jumping into the market and or refi'ing pulling out cash from their properties to go on a shopping spree for deals. It's reducing available inventory which eventually lead to price increases (if it hasn't already). Again, each market is different so to each his own.

 

[andviv]

its how you sit down at the bargaining table and see how desperate they are to sell.

OK, agreed. The price war is won at the negotiating table....

I think the real point is, how are you bringing them to the table?

How are you finding these desperate sellers?

 

[andviv]

rarely do we see dirt low rates and dirt low prices.

True that. In the Washington DC area those days are long gone.

It's reducing available inventory which eventually lead to price increases (if it hasn't already).

It all goes back to how local REI really is.

I keep seeing good numbers in Texas (Houston, Dallas areas) but I am not local so can't really say if that is true or just my perception from a thousand miles...

What other areas are showing interesting trends and numbers?

 

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[Rickson9]

How are you finding these desperate sellers?

This is the key.

CashFlowDepot's techniques work and work very well, but the entire key to the kingdom is to facilitate constant and continuous deal flow.

An investor needs to farm for desperate sellers by marketing marketing marketing and then find interested buyers by marketing marketing marketing and in between they need to sell sell sell until they set up a reliable system for deal flow - deals in, deals out, rinse and repeat.

That's too much work for me, but I can see it working extremely well for those who are motivated.

Attention home owners...
DO NOT SELL YOUR HOME!
Here's the deal, I'm a firm believer in selling your home FAST and for TOP DOLLAR and when I say Do Not Sell Your Home, I'm talking about not selling it to anyone else because I have a KILLER deal for you if you decide to let me buy it from you.

In full disclosure "I will" make money if you sell your home to me, but if you sell it to me I'm going to hook you up BIG TIME.

Here's what I mean...

Attention real estate investors...
WHEN WAS THE LAST TIME SOMEBODY SHOWED YOU A REAL, HONEST-TO-GOD, AMAZING DEAL?
The reality is that most realtors or agents don't know what a good deal looks like if it hit them in the face. If you're tired of screening through dozens of garbage deals looking for that diamond-in-the-rough, you are going to LOVE what I'm sharing with you today! I've developed a PROPRIETARY SYSTEM for finding and packaging exclusive, never-before offered deals that will blow your socks off!

ABC DEAL MACHINE

If you are a busy, on-the-go investor, with our ABC DEAL MACHINE...

You'll make a ton of money!
You'll stop wasting time!
You'll be on the INSIDE TRACK for finding fantastic deals!
You'll get up-to-the-minute updates on FRESH deals the second they hit the market!
You'll get CUSTOMIZED deal screens that will find deals catered to your needs!
...


Now doesn't that sound appealing?

 

[MNentre]

Hey Rickson, how are you marketing marketing marketing? bandit signs, cold calls, ads, networking? What have you found to be the most successful way?

 

[andviv]

Now doesn't that sound appealing?

Heck yeah!
I am not sure what you are selling me, but I want two of those. To go, please.

 

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[MakeItHappen]

I really have to say nice thread!
There are some really nice posts and a lot of truth in the thread.
Since i was a teenager i was dreaming about getting into real estate investing big time. I love the idea of owning a lot of real estate and making big deals! However i never did dig deeper into the topic and thougt that without capital real estate investing isn't possilbe.
Seem like this isn't the case.
However i am committed to building another business right now however REI would be something i would love to get into in a couple of years.

 

[CashFlowDepot]

You need to use a variety of ways to find motivated and desperate sellers. When I was buying a lot of houses (not so now) I used direct mail to the type of deal I was looking for ( wholesale or seller financing), recruited property locators, internet marketing to drive traffic to my 15 lead generation web sites, identified types of sellers who would be most motivated and mailed letters or postcards to them, read craigslist ads looking for signs of motivated ( out of town number, must sell, etc), probates, code violations, VACANT houses, eviction court, etc etc.

The more ways to market for motivated sellers, the more deals you'll do.

 

[andviv]

You first said this...

Sorry, I have to disagree. With almost 17 years of real estate investing experience, I can tell you that 50% of your success does NOT rely on a slick web site presence and 50% does not depend on your team.

The secrets to success are tenacity and the ability to put together creative deals.

Then said this....

You need to use a variety of ways to find motivated and desperate sellers. When I was buying a lot of houses (not so now) I used direct mail to the type of deal I was looking for ( wholesale or seller financing), recruited property locators, internet marketing to drive traffic to my 15 lead generation web sites, ...

So which one is it?

Marketing
or
Creative deals

Slick website
or
No website, "only 15 lead gen websites"

Does not depend on your team
but
recruited property locators

These may easily be seen as contradictions.

Contradicting statements like this are what make newbies' lives harder...

 

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[GuestUser8117]

No money is just an excuse to not get started.

the best deals are made when you approach the opportunity as if you had no money (even if you do) and USE YOUR BRAIN to make the deal instead of money.

Money is not needed to make a fortune with real estate.

Okay, then how do you find the killer deals? Do you have any strategic prospection method to share? Let's say I have 15 000 dollars in my bank account(which is not the case yet), should I start with appartment buildings or would it be better with wholesaling condominiums or single family homes?

 

[wade1mil]

So which one is it?

It's whichever one that entices you to buy the courses for sale.

Excuse from student...excuse from guru.
Another excuse from student...another excuse from guru.
Another excuse from student...another excuse from guru.
Another excuse from student...another excuse from guru.
Repeat until you've grown tired of paying for "advice" from guru and move on.

 

[Rawr]

Great thread guys, thank you to all for input. Is there something for total newbies that you can recommend on getting started hustling, with emphasis on deal structure?

 

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[Crumbs2Bricks]

Great thread guys, thank you to all for input. Is there something for total newbies that you can recommend on getting started hustling, with emphasis on deal structure?

Try this website DealMaker's Guide to Commercial Real Estate by Ray Alcorn


For development: Real Estate Development Made Easy

 

[andviv]

Try this website DealMaker's Guide to Commercial Real Estate by Ray Alcorn


For development: Real Estate Development Made Easy

Have you, personally, used these?

What do you like about them?

Have you successfully applied what you learned from them?

I'd definitely love to hear about your experience with them, both look very interesting.

 

[CashFlowDepot]

You don't need web sites to get a consistent flow of leads. And a slick willy web site is not necessary at all

You can get leads by driving around looking for vacant houses.
You can get leads by getting a code violation list then marketing with postcards or even knocking on the door

A long time ago I built a web site for my REI business thinking it would give me more credibility. I get a lot of leads for the site, mostly leads for areas where I didn't live ( this was before they had geo-targeting), so I came up with a way to monetize the web sites by licensing them to other investors. I now have offices nationwide.

There are free and paid ways to get traffic to a web site, and yes, you will get leads, lots of leads, but it is not necessary to have a web site to do real estate investing. Targeted marketing is more effective than leads from a web site. Targeted marketing is deciding exactly what kind of deal you want to do or what you need -- chunks of cash or cash flow -- then only going out to find that kind of deal.

Buying the real estate the traditional way, working with a real estate agent then getting bank financing (with lots of fees) is NOT the best way to buy houses or make money with real estate. It's much better to find motivated sellers then come up with a way to solve their real estate problems without getting bank financing. You can buy with seller financing. You can work with private lenders. You can just get an option then wholesale or sell the property to some one else.

Creative deals are always much more profitable than deals done the traditional way. Plus creative real estate deals do NOT require money ( down payment) to get started. Try that when working with a real estate agent and you'll get the cold shoulder.

Your "team" does not need to be a real estate agent, lender.. you can find deals and structure financing all by yourself. The only team member you absolutely need is a title company or attorney to close your deals.

For FREE you can recruit people to drive around looking for vacant houses for you. they only get paid when you actually buy a house. I usually pay them $500 for each deal I buy. You don't need to use property locators but it's a good way to duplicate yourself.

My business doubled when I recruited stay-at home Mom's who took their kids to the Mother's Day Out program at our church. Every Tuesday they drove around finding deals for me and $$$$ for them!

The bottom line, the only thing you need to make money with real estate is YOU and some training about how to buy and sell real estate creatively, then ACTION. Anything else you add on like a web site, property locators is not necessary.

 

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[Crumbs2Bricks]

Have you, personally, used these?

What do you like about them?

Have you successfully applied what you learned from them?

I'd definitely love to hear about your experience with them, both look very interesting.

I'm sorry Andviv,

I've only talked with both course owners. I'm not a real estate guy. But the good part is, both of them are not "seminar sellers"......they're real R.E. guys. If I had a interest in R.E. I'd have to go for both of them.

 

[DeletedUser2]

Try this website DealMaker's Guide to Commercial Real Estate by Ray Alcorn

good book

Have you, personally, used these?

What do you like about them?

Have you successfully applied what you learned from them?

I'd definitely love to hear about your experience with them, both look very interesting.

I know ray from years ago. his stuff was spot on because he focused on a lot of fundamentals in deal making. his stuff works pretty well. I didn't read his stuff until I had already bought a lot of properties.

I met Ray at a seminar, and we chatted. he is a real down to earth guy, and does RE full time. the book was more or less a byproduct. his passion is real estate, not seminar slinging. I would give it a solid 8-9/10 for a good place to start.


Z

 

[Crumbs2Bricks]

good book



I know ray from years ago. his stuff was spot on because he focused on a lot of fundamentals in deal making. his stuff works pretty well. I didn't read his stuff until I had already bought a lot of properties.

I met Ray at a seminar, and we chatted. he is a real down to earth guy, and does RE full time. the book was more or less a byproduct. his passion is real estate, not seminar slinging. I would give it a solid 8-9/10 for a good place to start.


Z

Thanks for sharing Z.

 

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[GuestUser8117]

Do you guys think that you have to set up a LLC or an other form of proprietorship to get into real estate? Maybe such measures would help avoid a little bit of taxes...