OfflineObviously after i research my area and find a property i like, what do you experienced investors advise to someone like me who is new at this, given my financial status.
I currently put the national market in a down cycle, from my perception that is, but my local market i would consider to be in an up cycle (half and half in an up/bottom).
Houses in my area go for anywhere between 300-500k+. I was thinking of maybe signing up for one of those foreclosure sites to get a listing in my area (unless there are free ones, but i dont know of any).
I have zero money in my bank, some debt (8-9k) in which i am paying off aggresively, but one good thing is i have excellent credit (730+ last time i checked). What would be my best option to finance?
Also, whats the best way to go about building a "team" as Dean suggests? For example, where can i get a mortgage broker and all those good people? The only person i have is an attorney. I know this is probably a complete stupid question, but it would be even more stupid not asking it.
I am going to go google some things to find some of these answers hopefully, but i figured i would start here.
Thanks everyone! I plan on buying my first investment property within a year and i dont foresee anything stopping me 
I just want to get this first one out of the way to gain the experience. Its rough, but that wont stop me! Any help would be greatly appreciated!
-Michael
Hi
As Dean said the first step is building your team. You could call some local realtors and ask if they have done any investing themselves. This lnk will take you to the forum that talks about that. http://www.deangraziosi.com/node/5522.
You already know a lawyer so find out who he knows. Also verify the extent of his real estate knowledge if you plan to add him to your team.
You may qualify for one of the new FHA programs they have right now with your credit score. Some of these offer a 97/3 loan or 95/10. Try and look for FSBO (for sale by owners) because they may carry back a second on the property for the 3% or 5% etc. and you would not have to come up with that.
It you are looking to build your money until you have enough to start buying yourself, you may think about bird-dogging or wholesaling. Here are some links on those as well. Good Luck.
http://www.deangraziosi.com/node/3783
http://www.deangraziosi.com/node/5585
Anita
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Hey thanks for your help.
If i go with a say 97/3 program, that would mean i would have to come up with 3% of the down payment correct?
Would an ARM be of good value to me or even a 103% financing or something along those lines?
Basically, I want to find a nice house, fix it up and sell it without making a payment. My main concern is that i wouldnt be able to find a buyer and then i will be making payments that i cannot afford. Thats why i have to ask the expierenced ones on here.
What do you do in that situation? Should I just look for maybe a duplex or triplex?
Please help a confused newbie!
Thanks
-Michael
I am assuming that 97/3 is for owner occupants only. If you never intend to live in the property then getting a 97% loan (from an institutional lender at least) is problematic.
If you are looking to fix and flip then your best bet is to buy at 50% (or less) of FMV with a hard money loan. That will give you plenty of time and spread to do the deal.
In this case, I would look for a SFR. They are easier to sell than multis.
Hey thank you for your reply wmark. By SFR i assume you mean Single Family? If i have no money to use, will this option work for me? I dont understand quite fully.
Lets say a house goes for $350,000.00. You are saying to buy at 50% of that with a hard money loan? I will do some research (google, my best friend) but what exactly is a hard money loan? I think i just read about that in like chapter 14 or so in Deans book.
Any further help would be greatly appreciated.
GREAT SITE!
-Michael
Here is a link to some great posts on the subject from one of the coaches on the site.
http://deangraziosi.com/node/4080
There are other forums on the subject of hard money lenders. To find ALL posts on the site, type a key word ("hard", for example) into the search box. You should find everything you need.
Welcome to the site and good luck in your REI.
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
A hard money loan is an asset based loan. They don't care about your credit or income. In the past, they didnt even care about your down payment although that is changing somewhat.
They care about how much the property is worth and how much they are loaning. They will typically loan ~65% of the value of the property.
Hmmmm...so that probably wouldnt be best for me as I dont have any money to put down, so I woudlnt be able to come up with the other 35%, unless i'm wrong in saying this.
Thanks for your input everyone i really appreciate it!
No.. you are missing the point of HMLs... Here is how it would work for you:
Value of property: 100K
Your price: 65K.
Hard money loan (65% of 100K): 65K
Out of pocket: 0
Ohhhhhh i gotcha. So you would try to negotiate the asking price for around 65% of what its worth. Am i correct in saying this?
Hi Anita,
I just keep reading you, and cutting and pasting to my personal files. You are going to be part of my success story I see, along with others that are sharing info with me or encouraging me on this website. Thanks so much. Pas. Greg