I started this blog to help other investors around the globe to relate to an every day, ordinary investor. I am not some Guru that thinks he knows everything about the world of real estate investing. This is my opportunity to rant, promote, comment and encourage others.
I have been investing for several years and managing property for over 3 years. I have taken my lumps over the last year just like many investors I know. However, I have adapted (and still do every day) my business to meet this new business climate.
One thing I have learned over the last year is that we all have to adapt to change no matter what type of business we are in. This applies to any business, not just the real estate business.
My business model is not locked into any one method of exit strategy or buying strategy. I do a mix of different strategies including wholesale, lease option/rent to own, land contract/owner finance, and retail.
When I started out several years ago I decided to rehab. Well, that first rehab took much longer to finish than I expected. Then I decided I would just rent/lease option that first property because it was closing in on winter and I did not want to hold the empty property through the cold winter. So far, I really like Lease Option/Rent To Own because you tend to get a much better quality tenant because they come into the deal with the intent to own the home.
Over the last several years, I have bought and reviewed many, and I mean tons of real estate home-study courses. Some REALLY are better than others. Some are OK, and some are just downright awful. One thing I really don’t like is the whole concept of “Virtual Investing”. I think the term is a nice catchy phrase, but I think it gets people excited to go out and start putting offers in when they don’t really know the area they are investing in.
This is a major problem for someone getting started the regular way, let alone if you think you can do this without seeing the property. I know I have read in several books that you should look at 100 different deals before making your first one. That is a great rule of thumb because you will no doubt really get to know your target areas and may even decide quickly that where you thought would be good maybe isn’t that great after all and you may decide to pick a completely different farm area.
I can’t tell you how many times I have had an “Investor” from out of state call me and say they had a house to wholesale and they could make me a great deal on it. Usually, they wanted about $20K to $30k more than I was willing to pay. It all boiled down to them not knowing the area and relying on online appraisal systems.
Bottom line, I think you need to be on the ground in the target areas or you better really know the area if you are going to go “Virtual”. For the most part, this is a false expectation. You know what they say, “If it sounds to good to be true, it probably is”. I believe that to some extent.
With that said, I believe some of these “Virtual” systems have some great ideas on how to streamline your business and get some of the minutia off your plate. Just know what is critical and what is not critical. Outsource what you can, but know what you are about to put under contract.
That’s it for tonight.
-Marshall
P.S. I have a few sites that I do recommend taking advantage of this week, if nothing else just for the free reports.
Check the following websites out for some great videos and free reports.
http://www.MyBulkReoSecrets.com – If you would like to try to tackle bulk REO deals in your area, you Must check this report out. Susan really lays it all out for you here. She has some very cool videos and a great report as well.
