agame

I have all this information and it's like i still dont know where to start. I reall want to go out there and make my first deal. Any suggestions???

Hi, Agame,

You asked:

hey cactusbob,

I am a first timer in this forum. I was reading yor bio and finds it pretty interesting. Any suggestions for some one who want to start doing some serious investing but have no money and bad credit?

thanks,
Agame

Well, that was pretty much how I started out, with nothing but ideas and faith. I was familiar with the real estate market, and I had digested some books by successful investors, but Dean's book (B.A.R.M.) is the best I've read.

I'd suggest starting out by setting aside a certain amount of cash every payday, in a credit union or bank account. While an operating fund is accumulating, digest BARM and become familiar with each chapter, reading it 2 or 3 times so you catch onto the jargon and concepts.

While you're doing that, read the classifieds under property for sale in your area and start getting familiar with the price levels of listed properties. Contact some of the advertisers and ask more questions about the properties, such as the condition, assumable loans, motivation of the sellers, quality of the location, that sort of thing. FSBOs (For Sale By Owner) are often good, but not always. Advertisers of property are like advertisers of used cars - they may not divulge all the problems.

When you become familiar with the market, you may find something that is obviously priced to sell. Then you may be able to help the seller get rid of something he doesn't want at a price and terms (seller financing) that are good for you.

Institutional lenders may be pretty gun-shy about doing anything creative now, but REOs may offer the best possibilities because the lender isn't in the business of owning property and wants to sell. Contacting a broker who deals in foreclosures may be a good source of these properties.

One caution: When you find something that seems right, make sure you are in a position to handle it financially. Project the operating costs realistically and estimate the rents based on the current market conservatively. Decide if you are going to hold it for renting, or to fix it and sell. It is better to pass on a property than to get in over your head.

Don't let your status as a novice get in your way. Read, learn, inquire, and take notes on the various properties you investigate. You needn't be a novice for long. Good luck.

cactusbob

Agame,

You can start changing the bad credit matter by making sure you are never late with any payments. Having a credit card and making sure it is used every month and the balance is paid off every month will help repair bad credit. Don't co-sign for anyone, and always keep aware of your obligations.

You should get your free credit report yearly, just so you know what is on the report. Anything that is not correct should be questioned, so it can be removed or corrected.

cactusbob