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

I believe the key is to build a buyers list to know what your buyers are looking for and then work on finding those types of deals with enough potential profit margin for both you and your assignee (buyer). There are several very useful tips of building your buyer's list on the DG website including Jeff Jensen's post with the link below

http://www.deangraziosi.com/real-estate-forums/marketing-buyers-and-sell...

Good luck with investing and building those lists. Believe and Achieve! - Joe

Joe,
Thank you for all your insights. For a moment, can we revisit the topic of getting a prequalification letter. You suggested contacting Coastal, a RE attorney, CPA or personal banker. I assume this is not something they hand out like candy just because I ask for it. Wouldn't I have to actually qualify to get one? (Let me remind you of my bad credit situation.) Or are you implying there may be someone out there willing to "forego the formalities"?

Also, when doing an assignment, do you typically increase the purchase price of a property to an investor/buyer from the amount at which you locked it down or do you just add a flat fee or percentage to the same price you got in the assignment contract? Is there really any difference? And if you add a fee or percentage, how do you determine that amount?

Thanks,
Chris

You put your request so eloquently and precisely what we need as beginners. I'm finding contacting a realtor in person and saying that I'm an investor wouldn't work. I intend to be an investor but haven't made my first deal. If I pretend to be one, my face is way to easy to read; it wouldn't be believable. I need an approach that I feel comfortable with. I have an idea now of one or two that I want to contact (FEAR!AGH!). I just found them online tonight. Any ideas on a way to approach a realtor that won't end in that disgusted look of another person who is wasting my time!

I have taken some action, I know what I want my first investment to be. It isn't the usual foreclosure or preforeclosure. It is a motel/restaurant that has been vacant for 2 years, has back taxes owed, and is fsbo. Because it isn't a single family home and there aren't any comparable properties I am having trouble figuring out a fair market value. I know that if I don't wait too long I can get this property. I have a plan to run a program for single moms to help them get a college education or technical training and live at the hotel. I plan on purchasing with grant money, and also renovating w/grant money. Sometimes trying to figure out what is the highest priority to achieve my goal is overwhelming.

Glenn,

I am new also, I ran across a live call dated june 18 I think. It was very helpful it is 45-60 minutes long worth listening to. It tells you how to start and which direction to go.

Hope it helps

Ed B.

Hello to all!

I just finished reading DG's books "Profit from RE Right Now & Be a RE Millionaire" yesterday evening (got it on Friday). Since i got the books I could not put them down. The more I read, the more interested i got. I've always known that i wanted to go into RE since the i bought my first house. I do have a Massachusetts RE Salesperson license (9/06/08) but I since have relocated to Kissimmee, FL. I AM VERY, VERY, VERY CONFUSED......

Here's little of my history from the last past 3 years. In 2007 i had to declare Bankruptcy (Debt was forgiven)because i got myself in a mess i could not get out of. So i promised myself that I would always educate myself first before i take action. I have not given up my dream, which is to own rental properties and to buy a home for me in the future.

Back in January 6, 2009, i found out by accident that i was a candidate for layoff but for some reason the company decided to keep me on. I became extremely sad and depressed so i quit my job(after 10 years with this company) and opened a small residential cleaning company. That didn't work for me either due to back problems. Then my dad became ill and passed away in May. So I decided to take out my 401K, what little was left of it, and relocate to FL, with the intentions of finding a job. Well being 50 has many rewards but job hunting is not one of them.

So with that said, I have no money, no job, credit is bad but my credit score was 680 back in May 2009. I say I have a bankruptcy on credit and people run. The money I have is for the rent and living expenses until May of 2010. That $$ I can't tap into. My biggest fear is approaching people and speaking out. I'm not shy, I just don't like rejection. It brings me down all the time. And I don't like it when people give a look of "what are you talking about?". So for me knowledge of what I am doing is a big thing.

I have made me a promise to at least try this out but not to rush into just yet. I have been researching Dean's website and all the sites he mentions in his book.

Sorry for the long message but wanted to share my story with you all and hope that some of you can bring courage out. I did read the email about the lion for the Wizard of OZ. I know i have courage its just hidden.

Looking forward to hearing from you all with words of encouragement.

Ada - Kissimmee, FL

Hello I'm Eric,

I have all the same questions about getting started as most here. I live in the Detroit area. Are there any other DG investors in this area? The mood here is so depressed but I need to get a dose of reality from someone who knows this area and what my focus should be.

I have bad credit and no money due to some life crisis.... It will not keep me down however...

Very motivated... Needing knowledge...

Thanks in advance for any help any of you may offer.

Eric

In regards to your prequalification letter question, a key to any real estate deal is having an exit strategy. Thus, if your exit strategy is trying to assign the deal, you want the seller to have confidence the deal will be closed. If the seller accepts your offer they just want to get the proeprty sold. As the buyer, you desire to tie up the property and assign it. Most buyers that buy assigned properties are cash buyers, thus most deals get closed timely with cash. Coastal fundign can be utilized if you are looking at doing a double closing. Soemtimes people prefer to do a double close because they do not want their end buyer to know what they paid.

In regards to the POF letter, a relationship with a banker or a RE attorney would assist you if you know you are going to close or assign this deal. These professionals will not just give anyone a POF letter. This is based on trust, a prior relationship and being credible of doing and completing what you claim to do. Thus, if you line up your end buyers and explaing the process you should be able to get the POF letter. I hope this helps.

In regards to assigning a deal, you want to ensure there is enough profit potential for you and your assignee. If you give the assignee a greta deal they will want more and this builds trust and a good solid business relationship. Most people say a flat fee of say $3,000 or $5,000 may entice enough buyers if there is ample profit margin in the property for the end buyer (assignee). Good luck with your future deals. Believe and Achieve! - Joe

Good luck with your plan to run the program to help single moms. This can be very beneficial for the community and sounds like it would provide a great service. You may be able to colloborate with another not-for-profit in the area to provide services.

You may also want to meet with your CPA or attorney to setup your not-for-profit organization and apply for 501c3 status with the IRS as a not-for-profit. If you acquire real estate under the not-for-profit's name, check with your local county to see if you could apply to qualify for tax exempt status. If you utilize the buildign for 100% not-for-rpofit activities you may qualify based on the rules and guidelines of your local county. The process to qualify for tax exempt status for property taxes for not-for-profits can take time, effort and money but will be worth it over the long run. Keep us updated on how the deal and your new business venture goes. Believe and Achieve! - Joe

Thanks for sharing the information about the live call from June 18, 2009.

The link to the DG website June 18th conference call is below:

http://www.deangraziosi.com/content/conference-call-thursday-june-18-9pm...

Good luck with investing. Believe and Achieve! - Joe

Congratulations for getting Dean's books and being part of the DG website. There is tremdendous opportunities in Kissimmee and Osceola County as a whole. There are many second homes in this area and I have seen a great many condos that are very affordable (under $50k). Thus, you want to create an action plan of what you believe you may need to do.

If you need to be more ocmfortable with public speaking consider getting a part time job as a greeter at Disney or one of the entertainment companies. This may also provide you with benefits and a little extra cash for investing. As you gain confidence and network you may want to meet more investors from your area. If you are able to find good deals with great equity you may be able to assign them or find an equity partner. You can do this! Just take one step forward each day and watch you progress. Good luck with investing. Believe and Achieve! - Joe

You may want to join a local investment club. network with other investors and contact professionals such as real estate agents, title companies, bankers, RE lawyers, etc. These individuals should know th market and where people are investing and potential why. The more you leanr about your local market the better you will be able to finalize your action plan. I hope this helps. Good luck with investing. Believe and Achieve! - Joe

Thank you to all of you who have provided us insight from the more experienced investors out there. I love this site, and I love the books. I have been calling and I have a handful of cash buyers that want to work with me. Now, for my question, what about doing assignments on REO's. Is it possible or should I not even go for that? I want to get to the pre-foreclosures while the owners still have a chance of saving themselves from alot of headache. What is the best strategy for this? Please feel free to PM me...I look forward to passing my knowledge on to other people when I get enough.

Destrie
KDI Investments

Joe,

Thank you for your comments, you are truly an inspiration to all of us that
visit Dean's website. You seem to really care whether or not we make it as
successful investors, and that says a lot about you as a person. With your
encouragement, Dean and his wonderful team and my strong faith in God, I know
I'm going to do this, (once I manage to get my feet out of the concrete) LOL!
By the way, my husband and I own a small cement business, that's why the references to concrete.

I'm going to find an investment club to join, I'm hoping this will be the
springboard I need to get me moving. Thanks again.

Myra

Have faith in God, for He has faith in you!

Most banks will not accept offers in whioch you can assign the deal. Thus, there could be smaller local banks where this could be possible. You may have luck on a case by case basis. If you find some cash equity partners, it may open up other possibilities for buying REOs with cash. In any event, you may also have more luck with short sales. Good luck with investing. Believe and Achieve! - Joe

Thanks for the kind words. I know you and your husband will do it. Just keep the faith and work your plan each and every day. Dean has inspired us all to be educated real estate investors and I am glad others continue to be inspired. We look forward to reading about your progress and future successful real estate deals. Believe and Achieve! - Joe

I read a lot on another thread about the how-to's of Bird Dogging. I've decided that this is the safest way for me to get my feet wet AND gain experience in the process. In that thread, Anita does a wonderful job explaining which forms are necessary to protect yourself from having the investor you're passing your property off to from going behind your back and buying it on their own and/or not paying you for finding it for them. (I asked this question on that thread, but did not receive a reply, so I apologize for being redundant but I'm going to ask this on here, as well.)

When I looked on the Forms and Docs section of this site to print a sample Promissory Note, the only one available is aimed towards "delinquent renters". Being new to this, and all too aware of the legality of what we are trying to do, can a more seasoned DGer please either direct me to where I can find a copy of a promissory note that WOULD be used as a bird-dogger OR type a quick sample one for me to use...

Thanks very much!
Suzi : )

I've read both books through twice now. I've gotten a call from Don-whose last name I don't know but I put it him in my phone as Don Freedom because of the hope he offered me. I've downloaded and printed most of the forms to look over. I've done some homework and have 8 properties that I'm compiling data on. We have really bad credit and my husband got laid off two months ago. Things were looking pretty bad but after ordering Dean's books at 3:30 one night (morning) and reading them straight through and then getting Don's call-I have hope for a future that doesn't include wearing a red vest and opening the door at WalMart (not that that's a bad thing and I will if I have to, but I'd really rather not). I'm trying to find a little bit of extra money to get started. Tried to have a garage sale and car wash (I have cute daughters) but it rained every time we tried to set up this weekend. That didn't work so well but not to be deterred I'm heading to the Plasma center this afternoon. (I've never done that either-but hey-it's my own personal renewable resource-right?) It's going to take a lot of "blood, sweat, and hopefully not too many tears" but I'm not going to give up this opportunity for my dreams to become realities. I'm closer than I've ever been before. Pray for me, next week's meals are riding on this!

Greetings all,

Indiana Joe, I think you hit the nail on the head. It is fear. I am only 1/2 way through Dean's first book, but I already have the knot in the stomache and the rising blood pressure just thinking about doing some of the things he suggests! "What me ring someone out of the blue and ask a question - aarrrhh - nooooo" But for us it has become make or break, and I know I can do it - I just have to start the process and once the wheel is turning, I'll just keep it going. It's the getting onto the wheel.....

I am really new and have not yet explored this website fully (I'm an information person - need all the facts first... or perhaps it's called analysis paralysis? )
Cheers
Michelle

Attached below is a link to an example of a promissory note created by one of the DG Coaches, Nstreet:

http://www.deangraziosi.com/node/11711

I hope this helps. Believe and Achieve! - Joe

Congratulations on reading Dean's books they are packed with information and inspiration. It sounds like you have a positive, "can do" attitude. Confidence and a positive attitude play a major role in investing. Good luck with real estate investing. Believe and Achieve! - Joe

Keep the faith and keep moving along through Dean's books. Dean's books are packed with tips, techniques and strategies that will assist you in preparing your action plan for success. Also, be sure to continue to explore and contribute to the DG website. There are a lot of great DG members here to help and even more valuable information throughout the forums on the DG website. Good luck with investing. Believe and Achieve! - Joe

Hey everyone, WOW, nice to see all the communication. I just finished Deans book, almost done tweaking the website he offers, on friday I will submit the site for search engines,...then I make flyers and here we go! I am excited to see everyone sharing info on the process....I'm nervous , way out of my box, yet here I am. Thank you "Inner Circle" for your thoughts.

Chas

Good to see you out here. This site will be a good source of knowledge and insight. Everyone out here is helping each other with Real Estate, you are going to love this site.

Good luck on your deals.
Carpe Diem :0) Stacey

Congratulations on getting and reading Dean's book, it is packed with great information. It sounds like you have your action plan in place and your ready to go. Keep us updated on your progress and future deals. Good luck with real estate investing. Believe and Achieve! - Joe

“Mentor: Someone whose hindsight can become your foresight” - Unknown

I have noticed that many newbies are expressing fear when it comes to approaching a realtor to find deals and present offers. I have over 20 years experience as a realtor/investor. There are many realtors who think it is a waste of time to work with newbies. Most of them are no longer active realtors. Good realtors never pass-up an opportunity to do a deal. When you speak to realtors who say they are not interested in working with you, ask them if they know one who does work with new investors. Those of us who are still active are ready to work with everyone who wants to do business in this market.

Thanks for the comments andd the insight about workign with realtors. As with any profiessional, try to find people yo ucan work with and always ask for referrals of other professionals. This is a great way to find others when building your real estate team. Believe and Achieve! - Joe

Good afternoon everybody. My name’s Anthony. I just finished reading deans How to be a Millionaire and already have a deal lined up. Only thing is I’m a little confused and was hoping that maybe someone could help me out? If anybody can I would greatly appreciate it. Here’s where I don’t know what to do.

I have a buddy that owns a home in Miami, Florida and has been trying to get rid of his home for some weeks now. He said the home is paid off but the people living in it renting it out also said it’s in foreclosure. Ok here’s the deal he gave me. When the house was bought it went for 612,000. He said right now the surrounding houses in that area are going from 415,000 to 562,000 . Now he has the home posted on MLS for 550,000 but told me because I am family he would sell it to me for 450,000 even if I found another buyer. The home is in excellent condition and is move in ready.

Now I have two individuals who are investors and are waiting on me to give them my leads. One even said that he buys houses cash no matter how big the amount.

What should I do now? I suggested reassigning to the owner of the home but he said that we didn’t need to do that. That he would just give it to me for 450,000 and to try to get a bigger offering. I don’t know what to do can someone help me please?

Hi all, what a great wealth of info. I've noticed lots of DGR'S back east, south west, but not so much north west. ??whats up!! Is all the action in other places...or has the narth west just not onboard yet. Would love to here from DGR'S out here. Thaks Rina, I-Joe, Anita, and others..don't stop. I'm reading all I can, got my website almost complete, getting bus. cards, trying to find REI out here. Just keep driving for the goal.

The best advice would be to make sure you verify all the information presented. This would include the following items:

- go to the local county and see if there are any liens or other options recorded against the property. This will tell you if a bank or other creditor has an interest or lien on the property. It will also tell you if any other party may have an option to buy the property.
- contact a local relator and see what the comps are in the area of other similar homes that have sold in the past 3 months

Once you have this information you will then know your next steps,. If everything looks good and checks out, you may want to run a preliminary title insurance check. If there are no issues, based on all the information you gathered then get a contract on the property and then line up a buyer to potentially assign the deal. Good luck with this property. Believe and Achieve! - Joe