From The Bag
Thanks for coming to the site, and Welcome to The Real Estate Mailbag! Why would we put a site together that is strictly for answering questions from users? Simple - today's real estate world is ever changing, and a full - time on duty mailbag is waht people need. Didn't you know that? I mean, imagine if it is 3 AM and you and your spouse just had an argument over money and finances. You think you have no one to talk to, but wait: the mailbag is always available! Consider this letter that recently came in:
Dear Bag:
Hey, I am glad you are up - I feel like you are my only friend right now, it is 3 AM and my wife and I are having an argument. My wife says that, to be a real estate investor, you need cash or credit, which both of us don't have. But, we want to get out of debt and stop worrying about finances and bills. Is this possible? Or is real estate investing limited for only the chosen wealthy few?
Looking For Answers
Dear Looking:
The fact that you are up at 3 AM is good: you are obviously concerned about your finances and that is step one. While many people want to think that you need cash and credit to get into real estate investing, that is simply not true. One of the simplest ways to get into real estate investing is through wholeslaing of houses, whcih is where you find greatly discounted properties and resell them to other investors who are looking for deals. Without getting into too much detail, a wholeslaer can make anywhere from 2k - 10k per deal if they structure it properly. The only problem is that you need to study with some good wholeslalers if you want to try this approach and be effective.
Other ways you can get started with no cash and no credit is through 'bird dogging'(finding deals for investors for a nominal fee), property management(you can rent houses for an upfront fee plus monthly residual, although you may need a license) or buying and selling 'notes', which are mortgage paper secured by real estate. Check out charterfinancial.com for a great home study course on note buying. Additionally, you could just find a 'money partner' to assist with your finances while you are getting on your feet and trying to buy your first imvestment.
The most important thing is to join your local REIA, or Real Estate Investor Association. Eductaion and exposure to more experienced investors is the path to success.
Hope This Helps!
The Bag
