Best Strategy for beginners????

Most investors are going to be looking for that kind of discount on properties. Look for more investors by attending a local investment club. Find a deals anyway you can. Don't just focus on one specific thing when looking for deals. Find motivated sellers and that will give you the best chance of getting a low offer accepted.

use the internet, lot of good sites to network..try ****

The most important thing to do is build a huge buyers list. I have found some investors to be rude and unhelpful others to be more then happy to educate me and willing to work and look at any offers I got. They are people and all different. Make sure you find as many as you can so you can be more selective with which ones you work with. Craigslist.com is a good place to start by placing ghost ads. I did one yesterday saying 3beds 2baths for sale owner is desperate RE agent says house is worth 400000 I'll take 260000 I just want it gone carpets not changed in years house needs to be repainted and needs a new stove . All floors are level and it's structial sound. I can not afford to hold it much longer and do not have time to repair. Bring all offers.

If the the investors pay a certain percentage of the appraised value, I don't understand how one can make a profit out of that kind of deal. i don't understand how it works.

(correct me if I'm wrong PLEASE)

*let's say my cash buyer only pay 60% of the appraised value....

ie: i find a house for $100,000 and make an offer to a "distressed" seller for $85,000 and he/she agrees. I turn around and sell it to my cash buyer for $105,000 but pays only 60%. Does this mean he/she only pays me ?$63,000?? I'm confused....

I have found that true investors that are actually involved in buying and selling real estate for a living DO NOT limit themselves to something like 60% of appraised value. They look at ROI. Return on investment. They will also pay more for a property that they see they can get a good return on by adding a bedroom or bathroom or for a house that is in bad shape in a good area and a reb/remodel will bring a great return. Most that I work with buy on what the ARV (after repaired value) will be, not what it appraises for in it's current condition.
Here is why people that make blanket statements like 60% of appraisal can go wrong. The house is a wreck and appraises for $100,000. It will sell for $150,000 after it is fixed up. It needs $45,000 rehab remodel. 60% of appraisal is of course $60,000. Rehab is $45,000. There acquisition costs are $105,000 That is 105% of appraised value. That is why real investors look at what the property ARV and work there numbers from there. Appraisal means nothing unless you are buying as is and selling as is. Who does that?

Michael Mangham
MD Home Acquisitions LLC

Contrary to what most say, the best option is to understand what you are doing first.

The reason behind so much burnout, exhaustion and overall frustration with real estate is not that realtors are crushing your dreams, or that no one wants to work with or that people don't see the big picture; the reason is most think if they just read a book, do exactly and say exactly what someone else says will lead to untold riches is farthest from the truth.

You have to understand first what you're doing; you're not going to get a job as a football defensive coordinator if you've only played tennis your entire life so how can you expect to consistently win in RE???

Great deals and closing tables will always be there; you won't if you treat it as such

Although I am new at this; I am seeing too many people take the book or what is written at face value. It can work, but it requires a lot of work. Don't think that this will be as easy as the book says. They are trying to motivate you, but you've gotta live in the real world and do your homework. Read, study, network, and just keep on learning. It is not something that you will learn from reading a few books. I am sure that even seasoned investors will tell you that they are always learning. I guess I am saying that I wouldn't expect that things will go as quick as what you've read. It all takes time.

The following is true in ANY business start up. You must first know how you will make money with the product or service you plan to sell. You must know where to get it, what it will cost you and how much you can sell it for. What good does it do to have 50,000 buyers when you don't know how to provide the product or service you are offering? If you can't find and control deals that your buyers actually want, what good does it do to have them??
When you know what you are talking about and can produce, agents and buyers won't run from you like the plague.

Tammy, you are right! Never stop learning and watching your marketplace.
You MUST know the basics however, they never change. Here they are:

1. Determine what the property will SELL for TODAY fixed up the way you (or your buyer) are going to fix it up for retail.
2.Know what those remodel/rehab costs are.
3.Make your money when you buy.
4. If you are wholesaling, know how to present the deal to your buyer, from their perspective. This is where beginners need to start if they have no money. Dealing with unlisted properties directly with the homeowner, no agents involved.
5. Build your buyers list WHILE learning how to supply your product (houses)
Never stop building your buyers list.

Any new investors fell free to PM me with any questions on this subject.

Michael Mangham
MD Home Acquisitions LLC