I currently work as an estimator for an Architectural Site Furnishing
Company in Southern California.  I have been working in the
construction/building industry for about 8 years now, and have
recently made a decision to make a career change.  I am 27 years old,
and would like to become a Real Estate Investor, mainly in ?flipping
properties, and buying foreclosures.

My question is; I really don?t know where to seek knowledge to begin
my new career.  I am not sure where to learn the skills required to
become a successful investor.  I would like to know what would be the
best route for education and knowledge.  I thought maybe I could buy
some books(recommendations welcomed), and or taking classes to obtain
a Real Estate License, then the Broker license to help eliminate costs
when buying and selling properties.  I would like to stay away from
?seminars?.

Please help!

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Request for Question Clarification by cynthia-ga on 23 Apr 2005 05:44 PDT

Actually, a $10.00 Answer is possible, however I think you are
limiting yourself, by prejudging seminars. You may be misinformed.
Some of them are incredibly informative, and I have personally gone to
two. Why are you not interested in seminars?

~~Cynthia

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Clarification of Question by want_to_sell_online-ga on 23 Apr 2005 07:19 PDT

Cynthia, are you an RE investor?

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Request for Question Clarification by cynthia-ga on 23 Apr 2005 17:28 PDT

No, I am not an investor, however, I know investors and my brother has
been buying and selling real estate for 18 years. Seminars would save
you a lot of time. If you ignore all the hype you see on TV about
becoming wealthy overnight, they do give you a roadmap to follow, and
greatly shorten the learning curve, for very little money. You don't
need a Real Estate License or Brokers License to avoid costs, although
that is certainly an option.

I ask again, why are you not interested in seminars? After going to
just one $500 seminar, I was able to buy a home with no money down, no
credit check, no income verification, (I didn't even show ID until
closing), live in it for 18 months, and sold at a nice profit. That
seminar was worth every dime I paid, plus, I still have all the
seminar books and forms outlining the steps to take. I could do it
again very easily. Anyone can.

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Clarification of Question by want_to_sell_online-ga on 23 Apr 2005 19:54 PDT

Cynthia,

Now that you put it that way, I welcome your advice.  Its just that I
have been to other seminars that were not cheap (ebusiness), and for
that price I thought I would great solid information, tips, advice,
etc.  I was blown away when they started to up-sell during the seminar
of other services and information they offer, all the stuff I thought
I was going to learn for the price I paid.

I know all seminars are not the same; I just do not want to be
disappointed again.

This is my first time using google answers, so I apologize if the
price I set was low, I still can leave a tip though!

P.S. any information you would like to share about "no money down, no
credit check" information will be good too!

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Clarification of Question by want_to_sell_online-ga on 23 Apr 2005 19:55 PDT

Cynthia,

Now that you put it that way, I welcome your advice.  Its just that I
have been to other seminars that were not cheap (ebusiness), and for
that price I thought I would get great solid information, tips,
advice, etc.  I was blown away when they started to up-sell during the
seminar of other services and information they offer, all the stuff I
thought I was going to learn for the price I paid.

I know all seminars are not the same; I just do not want to be
disappointed again.

This is my first time using google answers, so I apologize if the
price I set was low, I still can leave a tip though!

P.S. any information you would like to share about "no money down, no
credit check" information will be good too!

---

Request for Question Clarification by cynthia-ga on 24 Apr 2005 03:10 PDT

Thanks for explaining your hesitation, I can certainly understand it! 

I have a double shift Sunday and work dayshift Monday, and all my
windows are being replaced on Tuesday, so I'll be unable to compose an
Answer for you till Wednesday at the earliest. In the meantime, I will
locate my seminar books.
I also recall that I sent away for some info a few years ago that
specifically pertained to foreclosures and distress sales, I'll look
for that too. From what I recall, that would be particularly helpful.

....If another Researcher (or Commenter) would like to help, ...please
don't think I am "claiming" this Question. Anyone is welcome to Answer
as I have a lot going on right now.

~~Cynthia

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Clarification of Question by want_to_sell_online-ga on 27 Apr 2005 20:18 PDT

I will be waiting Cynthia!...

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Clarification of Question by want_to_sell_online-ga on 03 May 2005 20:18 PDT

Still waitng Cynthia...

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Request for Question Clarification by cynthia-ga on 04 May 2005 02:23 PDT

So sorry, I have been overwhelmed by the death of a close friend on
Thursday, April 28th. Today is the first day I have felt anywhere near
normal. Read this:

Man run over by truck is remembered as generous, gregarious
http://seattlepi.nwsource.com/local/222456_wake02.html
With the exception of the owner, I was his favorite bartender.

              ~~~God Bless Jim Stevens~~~

He will be incredibly missed. I thought I could make it a whole day
without tears,  --WRONG.  I am quoted in the linked article. Read it,
the man was incredibly kind and generous, and a very good friend of
mine for 13 years.

I'll try to concentrate on this Question again soon, ...and I must
repeat, if anyone else would like to take this question, please feel
free to do so!

~~Cynthia

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Clarification of Question by want_to_sell_online-ga on 04 May 2005 07:08 PDT

Cynthia,
I am truly sad to hear about your friend.  I can understand what you
are going through, since I have lost a close friend recently as well. 
Please take your time in answering the question, I am in no hurry. 
Again, I am sorry to hear about your loss.

Alex

---

Clarification of Question by want_to_sell_online-ga on 10 May 2005 18:36 PDT

Still waiting....

---

Request for Question Clarification by cynthia-ga on 11 May 2005 03:11 PDT

I've been filling in --someone got fired. I have tomorrow off, but I
am exhausted, for instance, I just got home from work... I will
probably sleep till mid-afternoon, catch up on the house, and my son
is coming to visit...  I also need clean clothes --Eeeek! I am hoping
someone else can help you.  I see the question doesn't expire till the
22nd, I'll search for the books before then, but I'm afraid I am not
going to be much use to you for a few more days.

I have the Don Lapre books, and Al Lowrey seminar info.  Don Lapre had
some legal trouble, but that does not negate the validity of his
foreclosure information.  I also have some valuable "Buyer's Purchase
and Sale" agreements with some interesting fine print VERY slanted to
the Buyer.  Finding the info is not as difficult as re-reviewing it
and selecting how to present some pertinent info.

~~Cynthia

It seems to me that you might want to increase the price a bit. It
sounds like a little in depth of a question for 10 dollars.

Yes, get started on fulfilling the requirements for RE license. Talk
to your state's RE Association and the state real estate dept,
whatever it may be called.
There are books on buying foreclosures, at least there was one many years ago.
Don't know if it was good or realistic, since it was, of course, all
in favor of the subject.

....If another Researcher (or Commenter) would like to help, ...please
don't think I am "claiming" this Question. Anyone is welcome to Answer
as I have a lot going on right now.

~~Cynthia

Hi WTSO,

I don't give a rat's rectum to what anyone says with the exception of
Cynthia's and Myoarin's advice to you. Seminars are a good learning
curve (as long as you have managed to avoid Henry Kaye et al) to sort
the wheat from
the chaff. You're 27, you have lot's of time to test your own talent.

Flips and renovations are OK as long as you buy right. Leasing on a
long term ownership angle for your tenant is another angle. That is,
part payment is rent, the balance contributes toward an increasing
percentage of ownership. It allows your tenant an increase in
ownership whilst supporting your cashflow for further investment.
Listen to the age old adages of buying the worst house in the best
street, keeping that house for future borrowings, leading to
commercial investment; buy when "they" are selling and sell when
"they" are buying. Go against the crowd, but watch the market. If
negative gearing attracts a mindset of tax deductions, you are
limiting yourself. You will eventually hit a brick wall in regard to
your borrowing potential. If you can source positive cash flow
properties, you will have passive income for life. This occurs usually
though only in an increasing market value of the property market. As
interest rates rise, you will be in the fortunate position to sell off
some of your properties to maintain your cashflow, unless of course
your multitude of positives flip over to the cost of negative gearing.
That's when you will need to flood the market with your properties
quickly, or a few at a time slowly, to regain your edge. You will need
to draw a break-even X-Y graph to calculate which ones to sell off.

Consider other sources of income also. Shares, derivitaves and
contracts for difference (CFD's) as not just an alternative, but also
act as an accelerator to your positive cash flow. Bear in mind the tax
advantage end of the scale, the write-offs of profits against losses
on shares. Ensure that your timing is correct. This is where you will
need the expertise of your accountant.

Phil

That is great advice Phil, Thanks.  I think it?s a great business to
get in.  I know there are many opportunities in Real Estate.  I am
anxious to start!

Just a word of caution from my senecal side:

Buy low and sell high... notice that the housing market is by far at
an all time high.  I know that in very short term (several months) the
housing market shouldn't fall at all, but there is always that
potential at this peak price market.
Notice that what you put into a house is a very large amount of money.
 Hopefully you will be able to cover those expenses when you sell the
house, but if it doesn't go up in value... or heaven forbid even loses
value then you will be stuck with the house or you will have to sell
it at a considerable loss (thanks to the costs of buying/selling a
house).

I do wish you the best and I hope you are very successful!

I totally agree JOAT.  That?s where rehabs, foreclosures, etc. come
into play.  I know of other ways Real estate investors are making
money through "creative investing".  There is just so much information
to grasp and digest.  I just need to learn the basics, and find
someone to "show me the ropes".  I hope to join a Real Estate
investment club in my area here soon.  I hear that?s the best places
to network and learn from other investors.

If you're feeling especially entreprenuerial then you can start a
non-profit group and take advantage of HUD's 10%-30% discount on their
forclosed homes (10% is the normal, 15% if you buy 5 homes at once,
30% for slummy houses).  You get the discount and then the only rule
is that you're not allowed to make more than 10% profit on any house.

I used to work with a group who did this and was doing a great job
rehabing the houses then selling them to lower income families.  We'd
pay the down payment and closing costs (the lower income people
couldn't afford the home without the help) and then we'd pocket a
couple grand per house to pay expenses/employees.  It was a great
system that fixed up houses, kept houses occupied, helped poor people
own a house and kept us well employed.  But HUD unfortunately counted
our gifts to the buyers as our profit and they shut us down for going
over the 10% mark.  So if you go this route, just be aware that giving
money to the buyer for a down payment, closing costs, or anything else
is "profit".

Okay, Cynthia, here is your answer.

First, know that serious real estate investors spend lots of money on
their education. So be prepared to read good books, and, yes, go to
seminars.

But you are right -- some seminars by well-known people are simply a
gimmick to get you in the door to sell you expensive stuff you don't
need.

So here's what I recommend: there's a new program out that's ideal for
investors, and they give you a 9.95 30-day trial. Excellent quality,
solid step by step information. You can find it at
realestateinvesting.com. I don't make any money by recommending it.

Next, go on over to flippinghomes.com. Steve Cook is an excellent
instructor, very ethical. I attended his seminar in February, and it
was one of the smartest things I've ever done. Check out the
newsgroup, and print out all the free information. The people who hang
out there are tops. You'll learn a lot.

There are other online communities and courses, but I'd start with these two. 

Education first, action later. Have fun learning as much as you can!

- VK

The best single site I know of is http://www.creonline.com . Excellent
information, lots of links to local clubs, lots of articles by some
very reputable people. Then get involved in one or more real estate
clubs near where you live. The ones in my area (Washington DC) charge
around $100-$250 a year, and they're well worth it. I belong to
http://www.realestatecng.com -- they put on weekly programs plus extra
programs (field trips to houses being rehabbed, for instance), there
are lots of networking opportunities, and more.

Get a good basic grounding in the principles, then select a technique
or two that you feel comfortable with. For example, some people love
wholesaling (or "flipping,") while others are very much into
rehabbing. Some specialize in lease-options, others in finding
pre-foreclosures. Each has its own plusses and minuses.

Not only do you not need a real estate license to do this, but in some
cases a real estate license will restrict or limit what you (as an
ordinary real estate investor) can quite legally do. On top of that,
some real estate investors pick up deals specifically because the
sellers don't like dealing with real estate agents.

I'm not bashing real estate agents; there are some excellent ones and
most real estate investors work with them from time to time. It's just
that you don't have to be an agent in order to be an investor.

Hope that helps.

I have been a full time investor for 14+ years. Your best money would
be spent joining a local non-profit real estate investor's club. Look
for one in your area at www.nationalreia.com   Let me stress the
non-profit. Some clubs are privately owned and newbies are abused.

Seminars come in different flavors. Some are educational, some are
"dog-and-pony shows" that are just about selling. Start cheap. There
are plenty of shows out there that have admission of under 100 bucks.
Leave your credit cards at home. Real estate education is
unfortunately full of hucksters who are great at selling, lousy at
teaching. The best real estate educator I know is Vena Jones-Cox. She
is great for a beginner, low-cost, easy to understand. I don't know if
I can give her web adress here as it is a commercial site, but a
google search should find her.

BTW creonline is a decent place but owned by a nasty women with only
profit on her mind.