A few things from Dean's Book...

I have a couple of ideas for you. Do you rent right now?

No. I came out of the military and live with my parents. I personally think renting is dumb. Donating a check to pay for someone's mortgage is not my style. Why do you ask though?

First of all thanks for the time you have served our country in the military. By the way, just by telling me that has uncovered the fact that you are a vet. You can buy a home through the VA and they have special provisions where they will help you with 10% of the down payment. You also sound like a first time home buyer which should give you the opportunity to buy a house with no money down and/or have the closing costs paid for! Take it easy on people that rent though, it has its place and in some situations it is actually better to rent than buy. I have a lot of tenants who are very thankful for a great place to live with no worries about ever paying for a major appliance or mechanical breakdown. I hope you are paying rent to your parents? Some options for you on the house is to buy it and live in it as you are rehabing it. Then when you are done rent it out or sell it. I recommend renting it out, then you could refinance out some equity if it is available and will still cashflow. Take the refi money and roll it into the next property then repeat process. Oh, by the way, sell the car and drive something without the high payment. I think high car payments are dumb. Losing a lot of money every month on car interest and depreciation isn't my style. (Got you on that one!)

Each deal is unique. Check to see if the VA has any REOs available. You may also qualify for programs that not available to the public. Buy your house with lessons you have been learning from Dean. Then you will see how you can purchase more in the future.

Is your goal to be employee or a investor? If you want to be an employee keep the car and go slow with your investments. If you want to be investor think and act like an investor. That means how much a month that you pay in car payments could be used to buy more rental properties? Bankers like to see sound money decisions. Look we all want a hot car or truck, but I want my tenants to be making the payments though positive cash flow on my rental properties.
Go for it!!!

Don't take my over abundance of information negatively, but I just wish Dean was more focused on a concrete structure of his program. I am glad he is a bit hyper and bounces around, but so does his program, it shows a bit of unorganization...not to be offensive or a jerk about it. Just my .02. This will be my first house. I have excellent credit and I do not want to rent. As I said, nothing towards renting, but it is not for me. If someone has to do it, that's fine. It is great for the landlord too, to make a few bucks. I would like to be an investor, but continue my job until then. I am looking into getting rid of my car, but I need an AWD car, but prefer an SUV. Any ideas? I need it for the weather here...Chicagoland weather/winter.
I would love to fix and flip, but the market here is a very low/down market. There are a lot of properties for sale, but they sit there for a long time.
I would also like to buy my first property, fix it and rent it. Pulling the equity to leverage another house? Is it that easy though?

One more thing, how do you know when a good deal is a good deal? Good enough to jump on or to continue to find another one? Or it is a good deal, but not good to waste time on. I know to try and get comps, etc. What else do you use? What makes you have the strong enough feeling to do it? Or the fear of sitting on it?

A good deal is a good deal when you see a property for sale or a property that is in foreclosure and you say WOW that's not BAD and then you check the COMP'S for the area like: the MLS,ZILLOW.COM,HOMEGAIN.COM,PROPERTIES THAT ARE NEWLEY LISTED(ASKING PRICE). And then you see the SUPER SPREAD as i like to call it, after you account for expenses, then you can see what the property will NET, if it's a SUPER SPREAD ( $40,000 AND UP ) NOW THATS A GREAT DEAL!

Go look at 100 single family homes in the next 4 weeks. Literally walk thru them. Then you will know without a shadow of a doubt.

By the way, what do you suggest Dean do to improve the structure of his program? This is a serious question. Please include as much detail as possible. This is important if he is going to push the program to the next level.

Great questions. Sully and cbrpower are right on the money. From what you are telling us that could be a great area to be buying and holding as rentals. Take the equity increases to buy more and repeat if your system is working.
The first course I ever bought I must have listened to 20 or 30 times the first 90 days. Each time I listened to it I got more out of it. If you have the book keep rereading it while you look at the 100 houses. The more you study it the more information will come out. Check the other forums on this site.
Real Estate is great because the people that are in the game love to talk about and share ideas. Keep asking questions and be open to the answers. Remember your learning a new language and it is going to take some time. It is important that you get the basics down because it will become a lot easier as time goes on.
Just start looking for deals. If you are fearful of talking to people at first use the net. You have more access to information available to you then you may realize.
I hope this helps.

Well I work full-time and go to school full-time. Luckily and thank God, I graduate in a few weeks. I ordered this program, was so excited, but I had so much work, school work, travel in between. I would try and stay up or wake up early to read or go on DG's site, or even his manuals.

I was looking at a few houses locally, that's how I learned a ton. I think (for me anyways)I learned a lot more in so little time, compared to just reading. I am glad I read before, it is like preheating. I am also not saying to not read and go in blind either, but it helped me a lot.

Any ways, I think Dean's program would be a TON easier if it was like a cookie cutter program.

Step 1, do this, then this. Go to step 2.
Step 2, do this, then look for that, and don't do this.
Step 3, etc.etc. Do's and Don'ts.

I also wish he helped with the business side of it and business structure or organization. I know there are a ton of programs for Real Estate and some are fair, good and some are a waste of time and money. I completely understand. But, I personally think Dean is a top notch guy, and I am impressed with his communcation skills, his marketing, his intelligence, but the program seems to bounce a lot. I would hope he can redo it or just tweak it a bit and make it easier to follow. I think that's where I am a bit thrown off. If it would simply flow, it would be a bit easier for each student. I also think a few of his ideas are a bit vague, maybe a strategy from him on purpose or maybe he just overlooked it. I am not sure, but I do hope it gets improved.

Just my take on it.

Also, a lot more members would be great. I hope this forum can grow into a family of investors or future investors to help each other with everything. From color choices, to appliances, to the hardships even. We will see, time will tell.

Part of the forum is to pick up where the book leaves off in filling in the very small details through feedback from other members. Also, the I'm sure he will be updating the book at some point to more or less create an investing bible. He's always trying to improve on everything he puts out and stay one step ahead of the game. The conference calls, forums, emails, audios, etc are supplementals as well, to be used almost like an appendix.

Also, others may have different opinion, but real estate investment IMHO is one of the most dynamic and non-cookie cutter practices to be involved in. Every deal is different, every house, every person's means and ability to secure money, every seller, etc. When you take into account all the factors, from the investor, to the seller, to the locality, to the laws, to the house itself and everything in between, there may be literally hundreds of different scenarios in which it could play out.

You can develop a cookie cutter strategy that is unique to yourself, but your exact strategy would only apply in the same exact way to those in your same situation, with the same goals, risk level, etc...

-DGadmin

Thanks for sharing your thoughts Nednarb3.

Hello there!

anyone can answer this, please. i am trying to complete mmy first deal with someone that has a home and wants to get out of it. i don't have good enough credit to work the deal myself. looking to do some creative financing, where maybe i can find an investor and do the deal like so. again this is my first, have a bit of the jitters and want to recieve any positive feedback own following the instructions Dean's book has on locking the house.

Please help anyone!

Thanks in advance!

I do also agree with you. I mean the structure of a business or say not just have everything thrown in. It seems as if there is a lot in the mix, but it is all thrown together. I am not trying to mock DG, his company, the staff, forum, etc.etc. but I guess I expected a little bit more and better of a program from him. I do expect a lot from him based on his knowledge, stories, experience, it seems as if there is a lot he wants to say, but at times doesn't come out and say it. It seems as if he is hiding a lot of it or only giving a part of it. I also feel that this system/program could be put together to be more smooth. I also know a few people with this course and they were not only lost, but overwhelmed. I am not saying that this is bad or a waste or anything, but I really do wish that it was more structured (cookie cutter if you will) on structure and finding properties, or deal making or finding them, etc. Anyone can say to read my book and that's it. I understand that, and not make a forum or calls, etc. but it is not up to par as least for DG...

There is a lot of repeated info. in the book and should be a bit more to what to do. Maybe it's just me (and the people around here that have read it) I don't know.

nednarb3,

dgadmin is right. There are so many variables!! That's what I love about real estate "adventures"! Each story is unique. Even though you apply tried&true principles (which I am still learning about), and can, with some confidence, predict most outcomes, you just never know what new scenarios you'll come across. It's so exciting!! you might overhear someone saying so & so wants to sell their house, or drive a road you haven't in a year & notice a sign. Just driving around keeping your eyes open, I think you subconsciously absorb information about properties, people, areas. And this info, along with the things we're studying consciously, just keeps building our skills in what we do and love.
And believe me, you also learn from each little mistake and stupid question.
If it doesn't kill you it makes you stronger.

Rina

nednarb3 (can I call you ned?)
I don't know if you have signed up for the coaching/training Dean offers. I know it's expensive but just hearing your motivation, I think you might be a good candidate. (dgadmin, let me know if I'm out of line here) I went ahead and took the plunge because I am 100% certain I'll do way more than the 5 deals necessary for the reimbursement. After getting into the course, I find it to be VERY, VERY structured ,assignment by assignment (almost annoying to me since I am more of a free spirit), but I am learning SOOOO much, and they DO tell you do this, then do that, not only the written curriculum and the online segments, but live coaches to guide you. you might want to look into it. Anyway, you sound determined enough that I think you'll make any deals you go for work. Don't be afraid to start SOMEWHERE. When I first started 15 years ago, I hauled around my 4 little kids to every house I looked at, carried a TV and VCR to empty houses I was painting so they would have something to do. Waited years to finish our own house so I could invest in our (and their)future with what little cash we had. It has very much paid off. Don't be afraid to start!

Sincerely,
Rina

I've got tears in my eyes. I'm so passionate about this.

I did start and I had to stop because of another ship date. Luckily for me, I am done with the military. I will also have a lot more time to do this. I purchased this program in October of 07' (I think, maybe a bit earlier or later) and couldn't do much with it. I have started the manuals, but since I wasn't actually doing anything, it went out the window. I also go to school full-time so in a few weeks I will graduate and be done. So, no military in my way, no school in my way, just cash money!!! I need a few stepping stones. Where do you get your leads from? I know, go to the town assessor, (is that a waste of time though) paper, online, word of mouth, realtor, realtor.com, etc.etc. What I am looking for is, what are your best leads or ways to find properties? I would be interested (at first) to buy a few properties and rent them out, and take the equity for another home. What do you think? What sites are your best options-paying or free sites.

nednarb3,
Hope I didn't offend you.
Here's what I know. I've only learned from trial & error so far.
We've bought houses we've found in the local weekly shopper, through the local classifieds, from a friend who inherited her Dad's place, through foreclosure sales, through realtors, and by driving past a sign in the yard. In the last 4 months, though, my greatest leads have come from being connected to my realtor's e-mail. Any new MLS listing or price change in a listing comes immediately over my e-mail as it is entered (by any realtor), could be late at night, early in the morning, or mid-day, usually days before a realtor's sign is placed in the yard of the property (I'm not sure why they wait). Anyway, if it's a really good deal I have first dibs if I act on it immediately (that day or the next, depending on what time I see the e-mail). I look at it right away, offer immediately if it can't be passed up. The last couple we got I offered cash on, even though I didn't have the financing lined up yet. I'm not saying everyone can do this. We have established a pretty good relationship with our bank, and we have other properties to refinance. If it seems like the price should be lower I offer lower. If rejected I just wait. most of the REOs in our area come down fast. When the e-mail comes across at near the price I was waiting for I jump on it immediately (or someone else will). If someone else does get it first, Oh well. There will be another one.

Another really good place to find deals is at the sheriff's sales. foreclosure auctions. (I've only bought 1 so far)I don't know if you have them in Illinois. If you do, go to these auctions and observe. I have also met other investors there that I have gotten good tips from. Sometimes only 1 or 2 people will show up for these, sometimes tons. You may not have ANYONE bidding against you. One drawback is you have to have cash (literally) the day of the sale, usually 10%. Another negative about the sales is that you can't view them before you buy them, and you don't have any idea what shape they'll be in by the time you get the deed. But still, it might be worth the risk. Ours was.

I haven't done any short sales yet, but I'm open to trying. We'll see what happens.

Anyway, I wish you all the best.
Thanks for listening.

Rina

Thanks for your kind words and great job so far. Do you mainly look for FSBOs? It seems that Dean recommends it. It also seems that your realtor or theirs won't let you barge in a talk to the seller to find their magic buttons. Also, if you take the private consulting with PMI or NMR (Dean's consultants) they teach you a bit differently from Dean. Dean says go out and find a seller's button(s) and the consulting threw me off a lot by just playing the numbers game. Maybe that's why I am mixed up now and thrown off completely.

Finally, site participant.

Oh yeah, almost forgot, no you didn't offend me.

Good questions. Anytime you buy from the MLS you will work through the real estate agents. Which is fine because they will be able to do your dirty work. It is the leverage of "other peoples time". You can put in a lot of offers quickly that way. If you look for FSBO's you will work through the seller directly. That is where you will have to find the sellers "hot buttons". YOU CAN FIND GREAT DEALS BOTH WAY. The reason the coaching gets you started working through the MLS is because it is the path of least resistance which is great when you are just getting started. Once you get your feet wet try using the techniques Dean talks about in his book. THEY WORK. Many times you get your best profits that way. Remember, in Deans book he talks about there being a ton of different ways to source properties. Keep it simple and just pick one and get good at that. Pick a neighborhood you really like and master that neighborhood. Be the first one to notice a house for sale there, send out letters to the owners of vacant houses there, call the banks of those houses, there are just so many ways to make money it unreal.
Good luck.

Thank you very much. Since school is almost done (so excited) I will go full blown within a week or two. I am going to get my ducks in a row.

I would be a first time home buyer, but was advised because of the economy, there is no 'no money down options' right now. What do you recommend? I do not want to save 10-20% to start. I want to start now. I also have excellent credit (better than 750). I also looked at several foreclosures, but there is a lot of hoops. I also looked into HUD, but because of seasoning, paying HUD back if I make a profit or leave too early, etc. etc. I didn't do it. What else do you recommend???

Maybe HUD is a good place to start. I know they offer some deals only to owner-occupied, investors can't bid. How long do you plan to stay in your area? If you get your foot in the door with a HUD property and get a good enough deal, maybe you could take some equity out to start investing with.
Just a thought.

Im sure there are exceptions but it seemed to me that HUD did not have great deals lately. Used to.. but not longer. Same with VA foreclosures (though their appeal was mostly in the vendee financing anyway.)

Mark,

There's a HUD-owned home in our town that's down to $76,500, open to all bidders. HUD started at $90,000, FMV by County is $108,600. I know you can't go by that, but just from my experience I know it's worth it. It really is a beautiful home. The only thing that's stopping me is that the neighborhood it's in is not bad, but not great. I really only like to buy the "special" ones. What do you think? It might not hurt for someone starting out to check into something in their area, especially if there are bonus helps for first-time home-buyers.

Rina

So I took your advice and checked on it. I heard about the VA is such a pain and the options are horrible. So, I looked into the HUD options. I was advised that I would have to hold the property for at least 6 months (not too bad) and ask for a concession. (If accepted by seller) If I also get help with an agency HUD or AmeriDream, I may have to repay some or all back. Also, if I make a profit, or ask for a higher asking price, I need to show receipts and why I am asking for it. I also have to pay back some $$$ if I make money. I was advised this of several people and found some info. online. It doesn't seem concrete though. If anyone can confirm this or prove it's wrong, let me know. I also found out if I use an agency, I can't rent out if needs be. Also, show that I am occupying the residents. What do you think?

Do you still see 0 down, or not anymore. Here seems a bit scarce for that.

When a HUD foreclosure goes onto the market, the first two weeks are for owner occupied, after that it is open to investors. The listing will tell you if it hasn't been cleared for investors yet. As soon as it has been cleared for investors put in an offer for 93% or better and you will get it as long as no one else bids on it. With HUD as soon as you put in your offer and it is accepted, you bought the house. You can have it inspected but if anything shows up as bad, you still bought the house. No escape clauses. It is a very cumbersome process compared to buying other foreclosures, but still very easy. Don't be afraid. Once you buy it, you can flip it, rent it out, or whatever. You must present proof of funds with offer. I bought a HUD foreclosure in November 2007. I bought it sight unseen. It was listed wrong. It was listed as only 800 square feet and 2 bedrooms with a extra small lot. In reality it was 1400 square feet with 4 bedrooms and almost an acre of land in a prime area. I offered 93% of asking price and this is what the HUD listing agent said and I quote "that should be enough to buy it". I bought it 2 weeks on the market. What a steal. I learned the 93% thing in my "Think a Little Different" kit. Don't make foreclosures difficult, there not. Don't listen to people who give advice that don't have the results you want.

Zero down is much harder than it was "thank goodness" but still possible. Why does that make me happy? Because the "you can't buy property with nothing down" people are weeded out. Be creative and win at this game.

My realtor told me that. She told me that it was more like a good luck. I was going to offer the 93% and was advised from her, good luck, I doubt that will do it. I understand she is commissioned and get's a %, but she was normally really good and on my side. Now, it seems like she wasn't. I wonder if it's time to realtor shopping. I like what you said and agree with you said. Is that anywhere or just in certain states or nationwide? I thought I would have to repay it, if invested and I couldn't rent. Are you for certain??? I learned it from the HUD website.

I have read numerous books on REI and I think this was the easiest book to follow. I am not sure what ned has read in the past, but perhaps you should read other REI books and then compare and contrast the different styles of writing. Plus, what dean includes in his book is content that you WILL use as a beginning investor all the time if you want to profit off of your first deals.