I have been thinking a lot lately on what I would do differently in starting to invest and what I would tell new investors if the were thinking about getting started.
In looking back I think the biggest change I would have made is to have stayed in the wholesaling stage a bit longer so that I could have built up a larger supply of cash before purchasing some buy and hold properties.
In reading some forum entries on this topic here are some of the top suggestions from others:
Right out of the gate a person should pay down their bad debt, improve their credit score and then save cash. That alone is going to make investing a whole lot easier
Find your local real estate club and find someone doing what you want to be doing in your area. Become really good at some service that might be of benefit to people and use what you got to get what you want
Keep your day job as you get started in Real Estate
Read Dan Auito’s Great Book
There were many more posts with a lot of great information that I read. I am curious - what would you do differently or what would you tell new investors to do if they are just starting out today? Please post and share your tips and information
2569 Richwood, Memphis, TN 38134
Location: Bartlett Meadows
It is not often an investor can buy a 4BR 2Bath home in the elite suburb of Bartlett for such a phenomenal price, however, here is that opportunity. Not only does this property posses the type of curb appeal that speaks for itself, but it also has potential to be one of the best performing houses in your ENTIRE portfolio. The purchase price alone makes this a deal worth purchasing as this house’s ARV is at least $120,000 dollars!! This house is also equipped with an updated kitchen, a two car carport, a formal dining room, a fireplace, an oversized master bedroom with a walk-in closet, and superior rentability in a highly rented area. This is a FANTASTIC opportunity to own an investment that holds substantial equity, produces GREAT cash flow, and is located in the highly desirable neighborhood of Bartlett. Don’t MISS OUT!! The rent range on this property is $1,150-$1,250 a month.
Information
Pricing
Price: $72,900
Flexibility: Firm
Additional Pricing Information: NOTE: Appraised values reflect the date of this posting. Due to continually changing market conditions, appraised values may change slightly based on the time of refinance, changing market conditions, and/or the individual appraiser performing the analysis. Real Estate Success Link takes NO responsibility for variations in appraised value at the time of refinance relative to the values given in this positing.
ARV: $120,000-$125,000
Annual Taxes: $2165
Cash Flow: Positive
Projected Rehab Cost - A: $13,200
Property Location
2569 Richwood
Memphis, TN 38134
View Map
Features
Bedrooms: 4
Bathrooms: 2
Parking Spaces: Carport
Year Built: 1971
Subdivision: Bartlett Meadows
Lot Size: 2430
Garage Size: 2 Car
Square Footage: 2114
Agent Name: ———————
Broker: ———————-
MLS #: ———————-
Exterior: Stone / Frame
Air Conditioning: Central Heat & Air
Vacancy Status: Vacant
Photo Gallery
I wanted to start something new this week and that is to share some of the top blog posts on other blogs I have read as well as some of the top Real Estate News that I have for the week.
Top News Stories I have browsed this week
Freddie Mac Posts $25.3B Loss in Third Quarter
Mortgage rates down for 2nd week
85,000 homes lost in October
JPMorgan expands rescue plan
HUD: New RESPA rule out this week
Inside Real Estate- covers three spots that show signs of life
Top Blogs I have read this week
JP Moses has a great blog that I read frequently at reitips.com/
I like John Adams too - he has some great info at www.money99.com/
Real Estate Mentoring had a nice post this week on Improving Yourself as an Investor and Business Person
Invesmint.com provided a great post - Real Estate Investing for Newbies
I hope you found these links helpful. If you have any other news stories or blogs that you have read and find useful please feel free to post them here.
Have a Wonderful Week-end
Stefanie
Posted in
General | September 8th, 2008
Happy Monday -
From time to time I come across articles on the web that although may not be directly 100% related to working your business they are valuable.
Here is one that I think is valuable and applies to not only people working a business but to everyone.
I am sure that by now everyone realizes that we are seeing a change in how credit is given in the US - it is no longer as readily available. Here is a short article from Entrepreneur.com that gives 5 quick ways to control your cash flow during the credit crunch:
Control Your Cash Flow - Entrepreneur.com
Tags: cashflow, credit crunch
I wanted to share a bit of positive news today for the market.
Unfortunately, over the last several months there has been a lot of doom and gloom over the housing market, unemployment, business conditions and other economic issues.
So — today it is time for some positive news:
U.S. Consumer Confidence Improves to 51.9 in July
Tags: postiveeconomic news
I am sure by how you have heard that there is a mortgage bill on the table to help deal with what is being called the foreclosure crisis. I have seen a lot of speculation on what will be included in this bill and when I first heard about it I had some serious concerns on what message this would send to the homeowners that weren’t in trouble - would they feel slighted, etc.
Today I came across this article on CNN that did a pretty good job of overviewing the bill on the table. I still have mixed feelings on if it will have an impact or not, but I believe it is structured properly so that homeowners that have kept current on the mortgage don’t feel slighted.
How the housing rescue bill can help you - Jul. 23, 2008
I would love to hear your thoughts
Stefanie
Tags: housingrescue bill, housing bill, foreclosure bill
This week I have been monitoring a lot of threads on where the market really is and trying to get a pulse on the best strategy to use right now.
In a lot of markets I see that now is the perfect time to buy and hold and reap some cash flow if you can. In fact I have a two contacts that over the perfect turn key products for this:
On in the Denver Market - buy at 80-85% fully rebhabbed, rented and cash flowing
Another in some other markets - buy for $5,000 down - they will rehab, rent and then refinance you into an 80% loan and handle the property management on a rehabbed and cash flowing property.
What I have found though is that the information in the market goes back and forth on if now is the time to buy or is it the time to shy away. Here are a few of the stories and other blog posts I have found on this:
Real Estate’s Perfect Storm - Are you Ready ???
Feds Come out of Comma and Say Mortgage Crisis Worse Than They Thought
Are Renters Doubling Up To Prepare For an Economic Down Turn ?
Foreclosure filings surged 53 percent in June
Six Months, 343,000 Lost homes
Fannie Ups Investment in Multi-Family
Where are Home Prices Headed NextT
Top 10 Highest Rental Markets in 2nd Quarter, 2008
Real Estate: Flip or Rent?
As you can see there is a mix of both negative and positive comments on the market. We have personally tempered our activities, but not stopped all together. We believe the market will improve, when is the question and if it will decrease more is a factor as well.
Tags: investing, real estate investing, real estate market, foreclosures, market recovery
Just came across some interesting posts on Shaq O’Neal wanting to jump into the foreclosure investing arena. Apparently he is already in the game but wants to know jump in and help out homeowners facing foreclosure.
According to the Orlando Sentinel this is what Shaq said:
“I want to come in not to kick them out, but to work with them and save them so they can stay in their homes,”
The government temporarily suspended a 5-year rule that required you to hold title to a property for 90 days before it could be resold using a government loan (FHA). This is a result of all of the foreclosed properties out there.
Here is the article:
Government suspends property-flipping rule - Jun. 13, 2008
What isn’t 100% clear is if this applies to properties that are acquired via a short sale too or just those that have been foreclosed on and therefore are bank owned. I am hoping it is both.
If this is both - this is wonderful for investors and will allow you to find, fix and flip these homes to first time home buyers with an FHA loan.
Happy Investing
Technorati Tags: fha, property-flipping rule suspended
