New Forum Idea - New Investors: How to get started, how we got started, a Mentor for everyone, etc.

Wow! I really feel stupid for asking that now! Thanks again, Mike, I am also new to the computer thing too! HaHa!!

John

No worries, you gotta start somewhere. There are no stupid questions!
-MikeHutch

I am also fairly new to the website , but I've read so many helpful comments from you all that my brain is saturated with knowledge and now all I need tois get some courage to get started . thanks to all of you

Hello All.
Moved from the My Deals forum. Went to the bank to see about a HELOC today. 80% LTV is about $147000. Amount still owed on our house is about $146000. They also want an appraisal payed up front and unofficially use Zillow to get an idea of value. We have refinanced twice since buying our house in 1999. Still keeping an eye on the property outlined in my first post.
This has brought up another concern. I added up all our mortgage payments from day 1 to the current refinance date. Even using the current (and probably lower) Principle plus interest I get that we already payed around $44500 + another $22000 since the refinance. Our refinance paperwork shows a HIGHER 30yr loan than when we started 10 YEARS AGO. Where did all that money go?. I feel like we have been ripped off! I know this is elementary and you are laughing. But it sounds like refinancing is a ****. You lose 10's of thousands of dollars when you do it.
Meanwhile I wanted the HELOC for at least a downpayment on the property, to get in to Deans Academy, maybe payoff the kids braces etc... How do I improve the HELOC siuation? Thank you.

DFand3Kids

Congratulations on being part of the DG website. You are going to find the information you desire on this site. I can recommend the following items that may help. Get a plan and a rountine down each day. Plan on how much time you want to devote to your real estate learning. In regards to funds available, create a budget for yourself to see where your money goes. This will benefit you in the long run even when you are making big bucks.

Therefore, get organized, get a plan and work the plan. I see real benefit in learning as much as you can to better prepare you for this journey. Also, I would recommend joining an investment club. You can meet some great people and maybe other investors to partner with or assignee deals to. It only takes one deal to get going, so do your best and success should follow!

It is my pleasure to provide a little advice, I just hope it helps and works out for you. Dean covers the "Bird-dogging" on Page 209 in the Profit From Real Estate Right Now Book. It is nothing more than telling everyone you know that you are an investor and if they find a property for you that you in turn purchase, you will give them say $100 or $250 referral fee. It is just that easy. You can even have this printed on the back of your business card.

So, talk to everyone in town from the mailman, to the ice cream truck driver, to friends and relatives. These people only get a referral fee when you close on a deal so there is very little risk for you, but a chance for a great return. The more deals you do, the more the word may spread. Good luck with all your deals. Believe and Achieve! - Joe

Congratulations on reading the books and being a part of this site. That is a great start. You also may need to make a plan and schedule what you may do each day to learn or get closer to that first deal. It is always good to network and meet other investors and future people on your REI team. Thus, the investment club is a great option. You can also practice calling real estate agents and and questions. You can make up a question list and then just run through the standard questions each time you call. You may make changes to your questions as time goes on.

The other approach is email. You may be able to contact twice as many people in half the amount of time. After a while you will have the questions down and have gathered more information and confidence. Then the sky is the limit! Good luck on all your future deals! Believe and Achieve! - Joe

Thank you for sharing the goal of buying a home for you and your family. The home and the family is the "WHY" you are doing this and to keep motivated do not lose sight of that.

I would recommend when you talk to a few of the top real estate agents in your area and ask about a good mortgage broker. The mortage broker can assist you with questions and maybe help with a plan. There is an $8,000 credit for first time home buyer incentives and FHA may require little if any money down (reference the DG website for threads on these items).

A good option for you would be to have a real estate agent maybe even help you with a FHA/HUD foreclosure property to be owner occupied by you. These homes are offered to owner occupants first before investors. In some areas there are even not-for-profits that buy these homes for a discounted price and assist people to be owner occupants. The information is out there, just keep looking for the answers and do not forget your driving force of "WHY" you are doing this. Good luck. Believe and Achieve! - Joe

Thanks for the positive comments and insight. I will try to tackle a few of these questions at a time over the next few days. I believe the most important thing that you can do are the following to start:

1. Get organized! - your daily routine, paperwork and allocation of your time
2. Create a list of daily goals and update each night and roll forward the goals you do not comeplte today to tomorrow
3. Gather as much information as you can about your local area - what's selling for how much, who's buying, who do you need to get to know, you should be on your REI team, etc.
4. Reread Dean's books because most concepts are clearer the second and third time though. Think of a movie you watch once, I bet if you watch it again you will see new things in that same movie. The same is true about rereading the books
5. Create the action plan and work the plan.
6. Join an investment club and network, network, network
7. Find cash partners from investment club members, to your doctor, dentist, etc.
8. Build a buyer's list
9. Build up cash by assigning deals to buyer's
10. Continue to learn and enhance your REI knowledge everyday.

I hope this is a start and helps. Good luck with all those future deals. Believe and Achieve! - Joe

I think it is great that the two of you can be investment work out buddies. Dean had stated that if we get "investment buddies" just like the gym, we can hold each other accountable and push and motivate each other. So, please be sure to share your progress. As I read this thread, I can see that you guys are learning already about REI and the website, etc. Way to go keep it going. Good luck. Believe and Achieve! - Joe

Another newbie!! I've read both books and some parts two and three times. Still trying to familiarize myself with all the real estate jargon. I have a HELOC of 25K but intend to raise it to possibly 80K. I'm looking at some REO's, driving around neighborhoods and just snooping around, trying to get a feel for things.

Hello all: First off I am a newbie. I have some questions for those of you that have made your first deal or deals. I signed up for the foreclosure alert site. My question is how do I use the info in the listings so I will know which ones are "Killer Deals"? The prices shown for the properties seam to be gibberish to me since I don't know anything about RE except what I read in Dean's books or what I is posted on this web site. I found many pre-foreclosures listed in my area. The prices they advertise are just a little bit lower than FMV they list. How do I know which ones to look at that I can send in an offer on and make $ ? I like Matt's ( I think his name is Matt) 25:1 plan. I need to make up some flyers to send to real estate offices to get a RE realtor or more to work with me. Sorry if I sound like I am all over the place in my questions here but I am not afraid to take action. Should I look at Pre-foreclosures, REO's ect.? Joe I thank you for starting this thread to help us "no money, want to better our lives newbies". Take care everyone, Johnny D

Congratualtions on taking the first step to change your life. You just need to find the "WHY" you are doing this. Dean stated that once you know the "WHY" the rest will be easy. Also, think of the lion fromn the movie "the Wizard of Oz", he had the courage all along, he just needed to realize it. Good luck on all your deals. Believe and Achieve! - Joe

Thanks for sharing your story. I would try to simply if possible reduce your spending and increase your revenue. Only you know what you may be able to do to save a few extra dollars but the dollars can add up in a hurry. Even today, I do a few odd jobs and help out a few friends to make a few extra bucks to pay a few bills. Every little bit can make a difference over time.

One tip might be if you have a 30 year fixed rate simple interest mortgage and are able to pay at least one extra payment (of principal a year) to reduce the outstanding debt, you will shave at least 8 to 10 years off the length of the mortage. Now that is a deal worth looking into! Good luck with your REI. Believe and Achieve! - Joe

Congratualtion on reading Dean's books and taking action. If you learn about the REOs in your local market, I am sure you will find a deal. Just be patient and learn the values in your market. If you intend to keep the home as a rental, you could pay all cash and then find a local bank to do a refinance that does not require seasoning (owning the property for certain period of time such as a year). Good luck with all your future deals! Believe and Achieve! - Joe

Johnny D,

Congratulation on starting your REI. Yes, the person you speak of is Matt Larson and he is truly amazing and financiall free of the day job. I met Matt at the live event in April and he was so great to answer questions and speak to anyone and everyone at the event. Matt had a great 25 to 1 strategy that he discusses in Dean's book "Profit From Real Estate Right Now" on pages 138-140.

The best advice I can offer is create a plan of action and start working that plan. Good things will soon follow. Good luck on all your deals. Believe and Achieve! - Joe

You hit the nail on the head Indiana-Joe. Anytime something new comes along, there is some form of anxiety. I experienced it, so to the newbies, it is okay, your DG family is here to help. Read, network, communicate and make it happen. Good Luck and God Bless.

Sandra

Thanks Joe,Rina and everybody else that helps all of us newbies out. I'm kinda in the same boat as most, lost my job the first of the year. I do have some money saved but not alot. I know what everyone talks about when it comes to fear, I have the same problem but I'm fighting hard to work through it. I'm in the process of getting business cards and finding a realtor and attorney for assignments. I saw this ad on Craigslist tonight, "INVESTOR NEEDED FOR MULTIPLE INVESTMENT PROPERTIES!" She sounds motivated as she stated she needs to sell NOW. So I'm going to respond and see if she is willing to work with assignment contracts. If someone wants work together or as Dean calls it investment work out buddies, I'd be willing to do that as well. Thanks again Joe..

Hello Indy: I am at Page 134 of Dean's new book, "Make Money Now". It is becoming very clear what I need to do. I saw Matt on one of the videos on DG.com. I need to finish reading the rest of the book to become . I will look for a realtor by making up a flyer using Dean's ideas in his book. I can email around to real estate offices locally. and post at stores and other places around town. I need to start a buyer/seller list, also. I will read Matt's strategies before I go to bed tonight. Can you use an LLC to buy properties around the country or only in the state you incorporated in? I have at least two states I would like to buy in. I will assign most of the first deals I make to build some working capital. I can see where this could snowball very quickly. Thanks, Joe you are an inspiration. Johnny D, That's Me !! Ha Ha

hi, joe I have been on this site for months now and even joined the academy but i still am having trouble making $. I have a huge list of cash buyers the problem is that they want deals 65% of FMV/ARV and I am having trouble finding sellers truly motivated enough to take such low offers....what can I do??? also my BF just paid $400 to a financial consultant ...i have a feeling it was a waste of money...well the consultant is going to "help" us get a loan for 250,000 well a unsecured line of credit, do you know much about lines of credit???? is it wise?

What I wanted to say on one of the sentences I stated in my last thread should have read, I need to finish reading the rest of the book to become more knowledgeable. Johnny D.

Thanks for your input and your support. It is great how there are so many DG Members here to help. As you stated we have all been there. Heck, even today, I made an offer on an REO and as I left the real estate agent's offcie, I thought maybe I should have offered a little less...? So, everyday we have concerns, or doubts, but we learn and that's what makes us all better investors.

The great thing is we all can learn together and continue moving one step closer to all of our dreams. How great is that? Good luck on all your deals! Believe and Achieve! - Joe

Way to take action and move forward. Look towards tomorrow because it is a new day with good things coming your way. Just be sure to run the numbers on your deals and look for a great deal. The first great deal can propel you into 2-3 others. If you find a partner and you make a good deal, the partner may be motivated to get other properties with you too. Glad to hear your progress in your REI search and keep up the good work. Believe and Achieve! - Joe

Thanks for the input and motivation and to everyone else who has been posting as well....After reading through the posts I am truly motivated to wake up tomorrow and make it happen. A little tidbit on a situation I encountered today: I am a licensed agent in NY and my broker referred a client to me. She is looking to rent with an option to buy and is a part of section 8. I am helping her look for properties but I mentioned to her that I am also an investor as well and while I will help her look for properties, I might come across a property that I can invest in and then she can possibly rent it from me with the option to buy 6 months to a year from now. She actually looked at a house this past saturday that she really like but it needed some work, so I figured I would look into it and if the work is not too much, I will try to purchase the property, she can rent it and then buy it later on.

Sorry if I got a little confusing there but basically I have a client whom I will be working with to find her a property to move into and I figured If I can get a property myself, I already have a tenant and possible future buyer lined up. I'll be keeping my fingers crossed that I make the right moves and everything works out. This has given me a nice kick in the @$$ and has motivated me to get a move on.

Thanks again to all whom have posted and I appreciate all the information. Also, I will keep everyone posted on the status of this situation.

-Tim-

Well thanks Joe for the support, I appreciate that. Maybe I was confused, I meant not in my area but on this site. Like you said kinda a work out for us newbies but no matter where you are. Say one is in Cali and one in NY, does'nt matter, but work together in ways, challenge each other. I think that might help. We all have kinda same goals. I just thought that some of us newbies working together would understand things better. What do you think Joe?

Congratulations on reading Dean's book and being a part of the DG website. Sometimes the process can take a while and then it will click. It is like being prepared for what ever comes you way. It is great you have the buyers list, what I might suggest is try to find deals at least at 50% of FMV. Make low offers as Matt indicated in the 25 to 1 strategy. If you get 1 out of 25 that you can assign you will begin to start to be on a roll. Just keep looking in your areas and ares that are close by. Just make sure of the areas your buyers want.

Lines of Credit can be effective tool if there are used properly. Such as using a line to get a deep discount to buy a property then being able to flip it or keep it as a long term rental and refiance it with a local bank that does not require a length of time for you to own the property. Soemtimes when you have to pay the fee up front, just make sure they can deliver. In today's tight credit market it is very difficult to find unsecured lines of credit. Even the credit cards are limiting convenience checks or cash withdrawals. Make sure you completely understand what you are signing, such as interest rate, fees and early pay-off options. This is where an attorney as part of your team may be helpful to review a line of credit contract. Good luck with all your deals. Believe and Achieve! - Joe

Thanks for the posting and a nice way to think outside the box. The opportunities are all around you, sometimes you just have to be looking to find them. It is just like that dollar bill on the street, how many people may walk by it, but when you notice it and pick it up 3 others wish they had.

In regards to the section 8 program, I believe each state may be a little different with rules but make sure the property would be approved by HUD or the local section 8 provider and run the numbers for revenue to expense to see cash flow. Also, I believe there is even a special section 8 program to help residents purchase homes. You may be on to something that will work well for you.

Good luck on all your deals. Believe and Achieve! - Joe

Yes, you are right. If the newbies work together soemtimes you can learn and accomplish more as a group then by yourself. So if you share, ideas, information and concepts you can all learn from each other. No matter what part of the country we are from we all have the passion for real estate investing and are on the journey towards financial freedom. Each real estate market may be a little different but the overall approach is the same. Good luck on all your deals. Believe and Achieve! :)- Joe

Hello All.
We just joined the Academy. Have read all the pros and cons. Thank you all for the huge amount of information available on this site. We can do it ourselves but you know what; it will be much faster with help. Just like college. Was referred to the "Why Coaching Works" thread and that was the final straw. cbrPower is so honest! - that whole thread is excellent. Our adventure begins. Hope to make it to the next E.D.G.E conference. Thank you.

DFand3Kids