Getting Started + No Money...

[Guest Mr.Distracted]

Does anyone have any reccomendations about how to get started investing with no money. Well, not NO money, but lets assume I have a 200 dollar budget for advertising my business. How shall I spend it? Should I just calls ads from classifieds? It seems with how easy it is to sell houses right now calling ads could take some serious time before a deal falls into my lap.

Also, does putting an ad in the paper work out well? Iwas thinking about putting an ad in the paper and keep it running for something like a year. They have discounts for that. It would be later down the line though not now, but do ads in the paper draw well?

It seems if I am to be spenging time investing I should not be wasting my time driving down to the court house to get listings from them. Seems like its not a very high paid activity, expecially with gas prices right now, and my distance from the court.

Any input would really help. I would love some help from someone who started in the same shoes as me so I know what to do. I have Peter Contis course, and I like to think I know my fair share about LO, but I still am not that good at filling out the paperwork, etc... Also I dont have alot of experience talking with potential customers because I have not dont so yet. THanks!

[JerseyJeff 0]

Mr. Distracted,

 

Welcome.

 

It all depends on what type of investing you'd like to get into. For a newbie, LPing seems the way to go versus buying foreclosures, but that's just my opinion.

 

Here's some advice from someone who just started out 6 weeks ago.

 

Take $97 and buy MichaelC's course on Lease Purchases available on this site.

 

Take your wife out to eat with the remaining $103 because you won't need it.

 

Follow MC's course, call FSBO's/FRBO's, make offers, meet with the sellers and use the agreements MC provides, place a tenant/buyer, collect your fee and use it as working capital to market anyway you'd like. Placing ads in the paper is a good idea, but not if you've never spoken to a seller before. The responses from the ads will be somewhat decent leads, so you don't want to stutter your way through your pitch; call FSBO's/FRBO's and practice (There will be leads here too as well).

 

Any questions you have will be answered by the fine members of this forum.

 

Jeff

[transactionsengineer 0]

Mr. Distracted,

 

Welcome.

 

It all depends on what type of investing you'd like to get into.  For a newbie, LPing seems the way to go versus buying foreclosures, but that's just my opinion.

 

Here's some advice from someone who just started out 6 weeks ago.

 

Take $97 and buy MichaelC's course on Lease Purchases available on this site.

 

Take your wife out to eat with the remaining $103 because you won't need it.

 

Follow MC's course, call FSBO's/FRBO's, make offers, meet with the sellers and use the agreements MC provides, place a tenant/buyer, collect your fee and use it as working capital to market anyway you'd like.  Placing ads in the paper is a good idea, but not if you've never spoken to a seller before.  The responses from the ads will be somewhat decent leads, so you don't want to stutter your way through your pitch; call FSBO's/FRBO's and practice (There will be leads here too as well).

 

Any questions you have will be answered by the fine members of this forum.

 

Jeff

<{POST_SNAPBACK}>

 

Since you mentioned that you have Peter Conti's course, you have already expressed an interest in Lease Purchase so you should always go with what you are interested or have a grasp of. I got into real estate via Simultaneous Closings and have not gotten started with Lease Purchases. The best advice I can give you is to start with what you feel comfortable and stick to it.

 

Having a script and some practice at what message you want to convey to people is important.

 

You can find sellers, they are out there looking for you. You can find buyers, they are looking for sellers. You will become a seller once you have contracted.

 

On the comment about spending the $103, put it aside. It is always more comfortable to have a comfort cushion. Besides printing contracts cost money.

 

Please do come back and update us on your progress.

 

Daniel Ng, JD/LL.B (Honours)

[happyardy 0]

I got into real estate via Simultaneous Closings and have not gotten started with Lease Purchases.

 

Daniel Ng, JD/LL.B (Honours)

<{POST_SNAPBACK}>

 

 

 

Hello Daniel,

Since you say you havent gotten started in LPs, could you please explain how you do your Simultaneous Closings ?

I mean the contract that you make with the seller, is it just 1 option contract to buy the house ? And then you find another traditional buyer(not a T/:glare: who has or can get the reqd. funds ready to buy the house ? Before your option period with the seller is over, your Buyer closes with you(with all cash ?) the same time you close with your seller ?

Please let me know if my understanding is correct and if it isnt then could you briefly elaborate on how you do it ?

thanks & regards

- Ardy

[Gordon Holtner 0]

Hi Distracted

 

I totally know what you are going through I don't have the best cash situation either

but I have come up with a plan. I agree with Jeff that you should buy MC's course it is the best straighforward no frill easy to understand and down to earth manual I've ever read. Here is my Plan in a nutshell 1. call fsbos and frbos 2. Ask for e-mail address if they say no for now you'll get a lot of nos before you get a yes 3. sent them a marketing flyer to give them a more detailed explanantion of services with link to website (for a free site try esmartstart.com the ad banners are very small) 4. If they say yes go and get the deal and market like crazy. The point is that you need to make it easy to contact you if they change their mind. I hope this helps.

 

Gordon Holtner

[transactionsengineer 0]

Ardy,

 

  Since you say you havent gotten started in LPs, could you please explain how you do your Simultaneous Closings ?

I mean the contract that you make with the seller, is it just 1 option contract to buy the house ? And then you find another traditional buyer(not a T/:glare: who has or can get the reqd. funds ready to buy the house ? Before your option period with the seller is over, your Buyer closes with you(with all cash ?) the same time you close with your seller ?

Please let me know if my understanding is correct and if it isnt then could you briefly elaborate on how you do it ?

 

I use a real estate contract, not an option, to tie up the property. I sell the property with the contract because the contract gives me sufficient interest in the property.

 

When I sell to a traditional buyer, I arrange for his financing through a mortgage broker that I get a referral fee. I get to know what the buyer's FICO score is, what he can afford, if the loan is 100% or 80/20.

 

The closing attorney handles the simultaneous closing.

 

Dan

[<Steve> 82]

Hey Dan-

 

This Simultaneous Closings sounds like a cool technique and something I need to educate myself more about.

 

Two weeks ago I picked up a property on a Sandwich Lease Option and was thinking that I would place a tenant/buyer; however, I remember an investor that this property would fit well. Also, I knew they had some cash. So, I sold them the property and all three of us will close the 21st of this month.

 

I guess the is kind of like a simultaneous closing using a lease option, and I'm sure a pure option would have work just as well. And all I had to do was make a phone call and with no money down Mr.Distracted.

 

Steve

[transactionsengineer 0]

Hey Dan-

 

This Simultaneous Closings sounds like a cool technique and something I need to educate myself more about.

 

Two weeks ago I picked up a property on a Sandwich Lease Option and was thinking that I would place a tenant/buyer; however, I remember an investor that this property would fit well.  Also, I knew they had some cash.  So, I sold them the property and all three of us will close the 21st of this month.

 

I guess the is kind of like a simultaneous closing using a lease option, and I'm sure a pure option would have work just as well.  And all I had to do was make a phone call and with no money down Mr.Distracted.

 

Steve

<{POST_SNAPBACK}>

 

Good job, Steve.

 

Keep up the good work.

 

Dan

[JerseyJeff 0]

I arrange for his financing through a mortgage broker that I get a referral fee.

The closing attorney handles the simultaneous closing.

Do you use your attorney as well, or is it the buyer's attorney?

 

Seems to me it would be easier if you brought your same team to the table every time. No surprises.

 

Jeff

[transactionsengineer 0]

I arrange for his financing through a mortgage broker that I get a referral fee.

The closing attorney handles the simultaneous closing.

Do you use your attorney as well, or is it the buyer's attorney?

 

Seems to me it would be easier if you brought your same team to the table every time. No surprises.

 

Jeff

<{POST_SNAPBACK}>

 

In a simultaneous closing, my attorney is the closing attorney because my team is the neutral party between the buyer and seller.

[JerseyJeff 0]

When I sell to a traditional buyer, I arrange for his financing through a mortgage broker that I get a referral fee. I get to know what the buyer's FICO score is, what he can afford, if the loan is 100% or 80/20.

What if they don't want to use your broker, or if they're already preapproved through someone else?

 

Jeff

[transactionsengineer 0]

What if they don't want to use your broker, or if they're already preapproved through someone else?

 

I think it is quite obvious that if the buyer is already approved, you can close the deal. If the buyer does not have enough, refer him to the brokerage that you deal with for a better amount, rate, terms, etc.

 

Dan

[Doug Pretorius (ON) 9]

Here's another little newsflash: If you assign your contract to the buyer and get paid upfront, it doesn't matter to you how the buyer finances the house or even if they're able to.

[JerseyJeff 0]

Here's another little newsflash: If you assign your contract to the buyer and get paid upfront, it doesn't matter to you how the buyer finances the house or even if they're able to.

Doug,

 

That's true, but we're talking about sim. closings where you'd actually go to the table.

 

I think it is quite obvious that if the buyer is already approved, you can close the deal. If the buyer does not have enough, refer him to the brokerage that you deal with for a better amount, rate, terms, etc.

I know, I realized after I sent it. Sometimes the brain works too fast.

 

Thanks,

Jeff

[Sold ! 0]

Dan,

 

What's your escape clause? Morally and ethically, if you tie the house up with a S&P contract, you really should be prepared to close on it yourself if you can't find a buyer for your simultaneous closing.

 

That said, what's your "out" if you can't find a buyer in time?

 

And do you contract to close in, say......, 90 days? 120?

 

Thanks,