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POLL: If you studied a book/seminar/course, did you get Wealthy from Real Estate?
- Thread starter rcanfiel
- Start date
Quote from OldTrader
One of the first things I learned in real estate was the principal "Make your profit going into the deal". :
Definitely important to buy cheap.
But the most amusing negotiating tactic I read in the books was, going into a seller's home, sniffing around and saying "do you have animals???"
I suppose you could do a variation and ask "are you a zoo keeper?" lol
One of the first things I learned in real estate was the principal "Make your profit going into the deal". :
Definitely important to buy cheap.
But the most amusing negotiating tactic I read in the books was, going into a seller's home, sniffing around and saying "do you have animals???"
I suppose you could do a variation and ask "are you a zoo keeper?" lol
Quote from rcanfiel:
Quote from OldTrader
One of the first things I learned in real estate was the principal "Make your profit going into the deal". :
Definitely important to buy cheap.
But the most amusing negotiating tactic I read in the books was, going into a seller's home, sniffing around and saying "do you have animals???"
I suppose you could do a variation and ask "are you a zoo keeper?" lol
You really don't need "negotiating tactics" when you have located the right situation. This could be a guy who can't sell to anyone else because his property is in such lousy condition. Or, this could be a guy who is going to have his property sold on the court house steps in 3 days. You won't have to persuade this guy through some type of false tactic.
That's the point really. You're not looking for a house per se. You're looking for a seller who is in a situation where he has to sell, and he may need to sell on terms that not everyone can provide. For instance, if it is a house that you can't get a loan on because of it's poor condition, it will require a cash transaction. Not everyone can do that. If he needs the money quicklly because of his personal situation then he may not have alot of time searching for a better deal than you can give him.
These are the types of deals that you can buy cheap. They don't require "negotiating tactics".
OldTrader
This thread needs another option. Became wealthy doing real estate, but I didn't pay alot of money to do it. I jumped in first, then refined what I was doing by buying books, reading up, and learning from others.
Now, I gotta say that "wealthy" is a relative term. I'll never be "wealthy", because that target keeps moving. But I have more than I ever thought possible. For me, chasing a "wealthy" status is like a mule pulling a cart chasing a carrot on a string.
Ok, enough about me. Regarding the topic...the problem with the books I've read is that while they are inspiring, and provide good GENERAL ideas, you have to do research of your own locally. You have to figure out what banks offer what kind of loans, how to get good deals on investment properties locally, where they are, and also...different types of investors find that different types of properties work better for them. For example, I rent upper end townhomes. I know folks that prefer to run some really low-rent apartment houses. Still others will only do very small commercial properties, etc.
But I can tell you that real estate investing absolutely can and does work and can make you rich over time if you are patient, keep at it, and never stop learning.
SM
Now, I gotta say that "wealthy" is a relative term. I'll never be "wealthy", because that target keeps moving. But I have more than I ever thought possible. For me, chasing a "wealthy" status is like a mule pulling a cart chasing a carrot on a string.
Ok, enough about me. Regarding the topic...the problem with the books I've read is that while they are inspiring, and provide good GENERAL ideas, you have to do research of your own locally. You have to figure out what banks offer what kind of loans, how to get good deals on investment properties locally, where they are, and also...different types of investors find that different types of properties work better for them. For example, I rent upper end townhomes. I know folks that prefer to run some really low-rent apartment houses. Still others will only do very small commercial properties, etc.
But I can tell you that real estate investing absolutely can and does work and can make you rich over time if you are patient, keep at it, and never stop learning.
SM
Quote from Smart Money:
This thread needs another option. Became wealthy doing real estate, but I didn't pay alot of money to do it. I jumped in first, then refined what I was doing by buying books, reading up, and learning from others.
The focus of the thread was the experience following a book/seminar/course.
This thread needs another option. Became wealthy doing real estate, but I didn't pay alot of money to do it. I jumped in first, then refined what I was doing by buying books, reading up, and learning from others.
The focus of the thread was the experience following a book/seminar/course.
Quote from rcanfiel:
Quote from Smart Money:
This thread needs another option. Became wealthy doing real estate, but I didn't pay alot of money to do it. I jumped in first, then refined what I was doing by buying books, reading up, and learning from others.
The focus of the thread was the experience following a book/seminar/course.
Yeah, I got that. If you read between the lines, I'm telling you (as the voice of experience) that the content in those seminars has to be generic to appeal to a wide audience. FWIW, I was able to pick up the whole Carleton Sheets, No Money Down course on video tape for $10 at a flea market. Watched the whole thing. My impression is that some of the stuff could work, but the market would have to be just right, and there could be specifications on what the banks will allow that scuttle the deal and cause you to lose your earnest money.
Wanna know the easiest way to actually start? Here are some simple steps that worked for me.
1. Buy your own house. Put down a lot or a little to procure it, but buy one you can borrow against. (See step 5-b).
2. Build up equity.
3. Start looking for a "bread and butter" home for a rental property that you personally would be OK living in. Something like a small house, or a nice townhouse. Make sure it has 2 bathrooms.
4. Drive through those neighborhoods every day and count for sale and for rent signs. Learn the prices. Become an expert on rents and prices in those neighborhoods.
5. When the time is right, (if you must) borrow against your own property to buy that rental property. Be prepared to subsidize it a little with your day job.
5 (b) If you need to, get a generous paint and carpet allowance written into the deal. If you need to, you can even get them to pay some of the 'gray area" closing costs like the appraiser or the title company. This helps you pay almost nothing at closing. They are allowed to provide you with up to 3% of the value of the house in the closing costs if its a owner occupied or 2% if its a rental. Sometimes you can offer to pay their entire asking price if they agree to this and the appraisal comes out OK.
6. After purchasing it, calculate your tax break, then go to your human resources department at work and change your W-4 statement to reflect the tax break's value. This will put money in your pocket now to help you with cash flow.
7. Rent out the new property. Screen the background of the tenant tenciously. This is probably the most important step. Run a credit check, call their old landlords, call personal references and ask them "Hey, where did this guy live and where does he work?". Check their former addresses against old phone books. Look them up on an on-line clerk of court database if you can.
8. Eventually, you'll have enough equity again in either your house or the rental property to buy another one.
9. Do your own home repairs, or find someone good that isn't expensive. Do your own painting and cleaning if you have to.
10. Repeat as necessary.
And, for fun, put some assumptions about the growth rate of this method into a spreadsheet. Be amazed at the outcome even with conservative numbers. Realize its a long-term plan.
Most importantly, start off small and slow, so that you can (literally) afford to make mistakes until you learn what to look for. And perhaps get with experienced landlords first for help before you even start.
SM
Quote from Smart Money:
Yeah, I got that. If you read between the lines, I'm telling you (as the voice of experience) that the content in those seminars has to be generic to appeal to a wide audience. FWIW, I
I had the experience (13 years as a landlord), and find trading much more appealing