How do I start?

[SteelCowboy676]

I have been looking into RE for quite some time now. I've been VERY interested in getting started in investing. I've read books, ebooks, and things online, and still unsure where to start. I had seen an awsome opportunity a while back. My wife and I were looking into buying a house shortly after my return from Iraq in march of '05. It was a bank owned property selling for 85,000. We looked it up for the property value and it was listed at 500K. We thought....WOW!!!! Along with some other words I'll not repeat. However, it was a home my wife wanted to live in, unlike myself who wanted to get my huge profit from it. Either way, there was a Real Estate agent who was listed as the contact for the property, and we got hold of him. He said wow, and he'd get back to us with an appointment to show the house, and said he'd not noticed it was there. Never heard from him again, and he refused to return our calls. Soo, long story short, we missed that one by a mile.

Anyway, back on track here. I have been talking with my wife for something like 5 years about getting into this business, all the while gathering as much inexpensive and non committal info as possable(why put much money into something you may not do...right?), and all the while, she's been adamantly against doing any such thing. All the excuses she could muster, we can't afford it, what if we don't sell it, we'd be stuck with payments we can't pay, etc. the list is long. I personally am fairly close to just doing it and not telling her till after I make my first deal (I won't, I'll not stay married that way), but still have no clue where to start, and reguardless don't know what it's REALLY like to do this type of work. So my question to all of you is, how DO I get started, what is it like in the beginning, is it hard to get going, and how do I present all of it to my wife so she'll at least allow me to do this, although I'd rather she be with me on it. Thank you for your time.

Pat

[ericmedem]

If you have been "thinking about getting into real estate" for more than a month or two, you are no longer "thinking about getting into real estate" but instead you are "thinking of reasons why you should not do real estate"

Real estate investing is really easy ill lay it out here, every thing you need to know:

Flipping

1. Buy a home
2. Sell it for more than you paid

If you want to wholesale

1. Find a buyer
2. Find a Home
3. Use your buyers money to buy the home your going to sell to him.

If you want to get into rentals

1. Buy a home that rents for 1% or more of what you paid.
2. Check what most homes rent for in the area and be sure that the one your buying is nicer than them, and you can afford to rent it for $50 to $100 less than them.

I know that it is a hare more complicated than this but its definately not rocket science. Im an idiot and I do a ton of real estate.

"Thinking about buying real estate" is like wanting to shoot a deer but never bringing your gun to the woods. You could be the worlds best tracker, best scouter, and have the perfect place to hunt, and the perfect blind, but if you never bring your weapon out to the woods, more than likely you wont shoot a deer.

Eric Medemar

[ANTHONYMD]

Hi guys, I'm thinking of getting in as well. actually I've made up my mind to do so. I'm looking for advice as well. I'm leaning towards flipping. I'm in maryland and homes are fairly expensive here. I'm building my sec. home and renting my first for a year. I have gained approx. $300k in equity in 10yrs. I pulled out $150 for dp on the new and also for investing. what should I look for as a guideline when purchasiing a flip?

thanks,
Ant

[Swirlaze]

..

[gccre]

Yeah that is rather ironic isn't it?  I've noticed to alot of first time posters all asking the same general type of question....and then you never hear from them again.
Then I think they go to another RE forum and ask the question again. Then on to another RE forum until they're comfortable with the answers they've received thinking "I've heard the same answer to my question on 4 different RE forums now so it must be right" and they're reassured all is well in the land of plenty....but they still don't get off the couch and do anything about it in most cases.

[ANTHONYMD]

I know it's my first post but it won't be the last. I'm very serious about doing this. I've already opened a LLC in preps for it. I own a HVAC company so getting off the couch is not hard to do. If you don't want to give advice say so and then we rookies will move on. What is knowledge if you don't share it.

knowledge is power,
Ant

[TMCG]

steel,

what you're faced with, in terms of dealing with your wife, has nothing to do with real estate.  approach your relationship with her, keeping that in mind.

it's about emotions.  FEAR and ANXIETY.  

she does not understand rei and what do people most commonly say about things they don't understand...they fear it.

the problem here is, she's probably feeling so much FEAR and ANXIETY, that trying to educate her will be difficult, because she doesn't want to hear about it.  

i don't know you  or your wife.  is she a generally stable person?  or is she a high maintenance crazy "chick" that flies off the handle when her make up smears?

IF IF IF she's somewhat understanding, and you guys have a solid relationship - be HONEST with her.  tell her what YOU feel, inside. don't tell her how you want her to feel.

also, i do not know about your financial situation - but if you are an average middle class family, living basically check to check, 401k, yada yada yada -

look at this way - if she reads or likes to read, get the book
RICH DAD, POOR DAD. AND THE PROPHECY, by Robert Kiyosaki.

Read them.  Read them a few times (or listen to them on audio - great!) - library.

break it down like this:
you can risk living your lives middle class.  take the risk that both of you will remain healthy and be able to not be thrown into the street when you can't make your mortgage payments and take the risk that your retirement funds of 150,000 (if you're lucky) when you retire will last you until  you die (middle class retirement funds won't cut it 20 years from now unless they're well over 1 million dollars of total assets - hello inflation).  take the risk that your children will possibly inherit your debts.  take the risk that you'll end up on the gov't dole - depending on Social Security and Medicare.  take the risk that your "great benefits" now, WON'T BE THERE WHEN YOU RETIRE, or get cancelled when you really need them.  take the risk of just settling to play it safe.

or

take the risk to put the control of your financial lives into your own hands.  you probably have kids.  you probably have a mortgage or plan to have these things.  rei can be risky - if you rush into it and start going crazy trying to buy no money down, maxing out CC's to buy real estate and personally guaranteeing loans before seeking all the information and seeking out all the various ways to invest in rei and be successful - that's risky.  LIFE IS A RISK.

and i would also add, that if YOU served in IRAQ - (thanks by the way!)  i would be HONEST with her and tell her...after you try all other avenues of empathy, understanding and compassionate consolement and trying to let her into your life and feelings about life - if this fails...and i mean put forth a genuine effort...

you are a man.  a man must do what he must do.  period.

i will NEVER let anyone tell me what to do, unless i pray on it and GOD tells me i'm wrong - and HE will do this.  

if i know in my heart that what i am doing is righteous and good for my family - i do it. period.  and my other half understands this, supports it...doesn't quite understand it, but at the end of the day - that's THE WAY IT IS.  PERIOD!!!!!!!!

negotiate with her - start with a stance that is COOPERATIVE.  then move to COMPETITIVE, only after the COOPERATIVE has failed.

ALWAYS be honest.  don't be passive aggressive and get into a fight and then go out and buy a condo.  don't damage your relationship with the person you love.  be honest and the truth shall lead you home brother.

[dscwmitchell]

Great advice!!  I applaud you TMCG!!   Standing O in the office!
 
Cliff