FAQ: Answers To The Most Asked Questions - Start Here

I've just finished highschool and I'm a bit nervous on how to start, I'm just not sure what the first step should be. Should I just go out and find property's or find a real estate agent or what, im just a bit lost and nervous and could use some help.

I am really new at this. Just read Deans book and I am really wanting to turn things around. I filed bankruptcy in 04 and had a foreclosure in early 03. What is my best option to get started in as a successful real estate investor. There are a couple homes in the immediate area, one is a short sale, and one is a repo, ( I think) I would like to try to get these. What should I do? is there hope or should I be looking at something else?

That's exactly what i did. i offerer the seller $10k more than his asking price if he would bring me a cashier's check for $10k at closing. of course upon his agreeing to this, i had a lawyer draw up a specific contract agreement to lock in the deal. the hitch is, the buyer had some cash laying around, not alot of people can fork out that kind of money.

Does anyone know about if the seller has the right to cancel the assignment or iee contract at any time? If yes, then whats the point of the contract? Please help me with this question I'm a little confused.

In deans book, he says to contact the PROPERTY OWNER and lock in a contract to use Instant Equity Exchange. What if I have a buyer thats interested in a home where it's not occupied by a resident but instead it's empty. Can I use the IEE with the realtor listing the home? If not, what strategy can I use to profit from a deal such as this?

Hello everyone,

I need some clarification on POF. I know you can go through Coastal-Funding to get the POF. But if I'm making muitiples offers, do I have to request a POF with Coastal for each deal? Reason I'm asking this, is because Coastal ask for an address when you request a POF letter.

Thanks.

Hello,
We are new at this , and would like to know how we may gain access to a copy of the agents letter.

Thanks,

Deb & Frank

I am a newbie. Please don't laugh?
I have plans of targeting my first contract. I'm looking for the calculator to figure my profit. I believe I can do this.

I am a bit worried though. I am worried because of all the news concerning real estate scams. I have been the victim of a scam. Thank goodness it was an amount I have gotten out of my system. You never forget though.

I just finish reading "Profit From Real Estate Right Now" I have a meeting with an agent at the end of this week. and I have a potential seller. What contract do I lock up this deal with if I'm passing it on to another buyer. I need help.

When you lock up a property, you're just signing a purchase agreement. Depending on what state you're in, there may be a standard that most people use, but typically they all say the same thing. The important thing is that the agreement says that the seller can't sell the property to anyone else while they're dealing with you. Dean's got a bunch of these forms on the site. If you search you can find the link.

In looking for a Realtor, and according to Matt in the book, i need to screen the realtor but how much comission am i supposed to offer them?

Can anyone elaborate a bit more on this process of " using hard money lenders ?" Any info or insight would be helpful.

Thanks......

Randy

i want to know how to get started in real estate with bad credit and no money to start. dont you have to have money to start investing? if not whats the best option to get started?

Standard commission is usually 6%. That is split between the seller's agent and the buyer's agent. Commission is negotiable, so i wouldnt offer more than 3%.

I just got the books, but did not get my password or user name, how can I get it now. I am ready to start but can get connected

thanks

Bill Poe

Hi, everyone I'am a newbie I just finished reading dean's how to be a real estate millionaire and still alil confused as where to start because my credit is bad and i have no money I have a job that just pay's my bills I am a single mother of 4 and always wanted to become an investor that's why i bought dean's book i go around looking at houses and take the numbers down but when i pic up the phone i dont know what to say lol like (stage frieght)I get a lil scare but i do have the cofidence to talk to people when i know what i'am talking about can someone pls help this distressed, motivated, investor thank you.

I am a newbie. Currently I'm in a short sale of my own. Do I have to wait for this to resolve and my credit to improve before I can get started in investing?

Hi Pat;
I have 3 llc's on 3 properties in Florida. Each llc is my name followed by a number 1, 2 and 3 to indicate and differentiate one for another. I do not believe that one's primary residence can be an llc unless you are renting some portion of it out and for protection purposes, you make it an llc. I did seek the advice of an attorney and allowed them to do the work to set it up. I have never set up a corporation entirely by myself and I propably would enjoy the process. So Pat, I hope this was a little helpful to you.
John

Anyone in colorado with some good resources to finding homes. not the best credit and only a couple thousand to invest...any ideas?

You should use either the IEE, Instant Equity Exchange or an Assignment contract. You can look it up in the book... You may want to have a real estate attorney help you. Do you know anything about Mortgage Brokers and how they get paid?

ok im a college student trying to help my mother with my own income. i order the program but didnt get it yet. but ready to start working. any advice for me where and who do i talk to get a great start. im also in the north florida area any advice is welcome!

new on the business,how u decide to either sell a house 4 a profit or keep it and rented 4 a cash flow

Hi,
I just ordered Dean's book. I have been wanting to invest in Real Estate for over 15 years but never had the courage to take the first step. I happened to see Dean late one night on TV when I was flicking channels. I have been reading through all the forums since then. I have never seen another site that offers so much support,information and help. It was amazing to see that so many people out there are going through what I am going through.
Anyway I am still waiting for the book but the information and knowledge that I got from the site was all it took to get me to at least call a realtor and make an appointment. I am ready to meet her with over 2 pages of questions. I live in Phoenix which was one states which got hit the hardest with the real estate crisis. I will keep you posted as I go along. I know it is the right time to get started.

Hi,
I have read both of Dean's book, attended a free 3 day seminar, and have read several ebooks on wholesaling REOs. I am feeling a bit frustrated because I want to get this thing up & running, but need someone to show me step by step the process, what to say & do in contracts, how to get proof of funds, where to get Earnest money deposits etc. I don't want to make a preventable mistake because the lack of proper guidance and instruction.However, people don't want to be charitable & offer free mentoring. They want hundreds if not thousands of dollars. What I don't get is if you have no money and/or poor credit, how the heck could you even afford "mentoring" when you can barely pay your bills? You cannot afford to make a mistake. What's the deal with that? It's so selfish.I hope to find a charitable person to take me under their wing. I am willing to pay 20% of my 1st couple of deals to them, but I just can't pay anything upfront. I think I am just going to have to keep reading all the free material I can & take the leap of faith, praying that I don't screw it up & cost myself money I don't have. If anyone knows someone who is willing to do free mentoring, meaning if I can shoot an email over to them or give them a quick call about a question i may have for free, please send me an email at khrowejayne@cox.net . Thank you.

I'm new and very green. I'm excited and motivated about starting my real estate investment journey. I've read Dean's 1st book, and starting the second, and ordered the edge kit. How did some of you get started? It's a little uncomfortable and uncharted territory. So, just looking for some support and suggestions.

I would like to thank everyone for so much wonderful advice about REI. Without you guys and gals i would still be trying to do this alone.

What i would like to know today is the best (money wise), place to form a LLC, and is there a difference in forming one in your hometown vs somewhere else.
Haywood

STAY FOCUSED OR LOSE SIGHT!!!!!

Hi folks
I've just finished "Be a Real Estate Millionaire" & I've reviewed many of the posts here, but still have a few questions. Like others just getting started I don't have funds to spare & my credit isn't exactly an asset right now. Based on those factors using the assignment strategy to get started seems like my best option.

I understand the idea of assigning the deal to a buyer, what I don't know is whether I need to be at the closing with the seller & buyer (assignee) or whether the buyer pays the assignment fee at the time we sign the agreement--thereby relieving me of having to be at the closing & also ensuring the buyer will more than likely complete the deal as drawn up in the purchase agreement. Also, if I am required to be at the closing, is the closing process what’s referred to as a “double closing”. Can someone clarify?

BTW, what’s the best way to find transactional lenders/funding for double closings?

It's me again. I wanted to split my questions to avoid a very long post
I've reviewed Dean's Agreement to Purchase form & am not quite certain what a couple of the paragraphs below mean. Some clarification would be a great help.

1)
“THIS AGREEMENT entered into on the _____ day of _________, 20____ by and
between,
______________________________ or his/her/their assignee(s), hereinafter
referred to as "Buyer", and __________________________________,
Hereinafter referred to as "Seller". “

==========================================

2)
“The Buyer agrees to pay ____Dollars ($_____________) as the down payment on the property. From this down payment shall be subtracted the Earnest Money previously paid, and the amount required for repairs agreed to be done by Seller.
In addition, the Buyer shall deposit monthly with an escrow agent
designated by the Buyer the amount necessary to make the payments to
the following mortgage and lien holders and none others. Included is
the mortgage to the Seller:
Holder Of Mortgage And Address
Amount DueMonthly PaymentYears RemainBalloon If AnyInterest
RateTax/Ins Account
A.
B.”
------------------

For item #1, is that sufficient for specifying that the contract could be assigned to a different buyer?

For item #2, I'm all confused! Is the down payment taken care of at closing? No where in that paragraph does it specify when the deposit is required. What's the reference to monthly payments? Especially the part that says "Included is the mortgage to the Seller".

The agreement doesn't have recommended statements I've read in previous post (cancellation & ability to aquire financing clauses), but I can probably figure out how to get those inserted.

Thanks again for your help

We have a rental we bought from HUD and rehabed. It is now rented and we have had it 6 months.

We are looking to our money back out of it with a regular mortgage.

Two options:

1) Conv. mortgage at 5.875 with $2500 closing costs. Amount baised on 75% of apprasial amount 30 yr fixed

2) In house mortgage with bank. 7.5% with minimum closing costs. Amount is 80% of tax value. 30 yr amort/15 yr balloon.

My concern is the apprasial not coming back at a decent amount and having to put money up. The 2nd option is higher rate but we would get all our money plus about 5K more if we wanted.

We don't know how long we will keep the property. Just depends on market, etc.
Any thoughts?
Julie

Can Dean's real estate strategies help an 18 yr old high school graduate with literally no money to my name?