RE investment: newbie with questions

newbie79 said: "Hey. Maria here. New to the RE investment biz and could use some sound advice. I'm in need of some motivated seller leads and have been sending out newspaper ads in hopes of getting some responses. But no such luck so far. I've already spent more money than I can afford and haven't even gotten one lead. A real estate friend of mine suggested using the affiliate program at the we-buy-and-sell-homes website, but I don't know. He said that he's used them and had gotten some really good leads from them. But still, it's the first I'd heard of them and I'm a little skeptical. I was wondering if anyone's ever heard of them. If so, what did you think? Are they credible? Provide good service? What did you think?"

AlfredSokol said: "I've never heard of them, but using the internet might prove worthwhile. You can always try driving around and looking for signs too."

chahinemm said: "look for private exchange, century 21 and site of major real estate company website as they are open house visits, online for sure it will reduce ur costs but usually the word of mouth being the best strategy, ask friends and ask them to pass it on,,, let us posted on what strategies u use and what happensm,good luck chahine"

bigp said: "You have many options here. What about mailers? Have you checked pre-foreclosure lists? What about finding properties out of your area? There are plenty of areas in the country with great cash-flow properties. What are your investment goals? Do you have a business plan? That's your first step. Please ask if you have more questions..... ;)"

mhdirect said: "[QUOTE=bigp]You have many options here. What about mailers? Have you checked pre-foreclosure lists? What about finding properties out of your area? There are plenty of areas in the country with great cash-flow properties. What are your investment goals? Do you have a business plan? That's your first step. Please ask if you have more questions..... ;)[/QUOTE] THIS IS STRONG ADVICE. WITH ALL THE CARLTON SHEETS PROGRAMS OUT THERE, IT IS EASY TO END UP PAYING MORE FOR PROPERTY THAN YOU CAN GET OUT OF IT IN FIVE YEARS. WE HAVE ABOUT TEN "FLIPPER" PROPERTIES THAT WE ENDED UP MAKING RENTAL PROPERTY OUT OF IN THE CHARLOTTE,NC AREA, BECAUSE RENTAL PROPERTY IS MORE VALUABLE THAN BUYING TO RESELL. ONE PIECE OF ADVICE I WOULD OFFER, NEVER, NEVER , NEVER TAKE A MORTGAGE ON YOUR INVESTMENT PROPERTY THAT IS LONGER THAN 15 YEARS, BECAUSE IF YOU GET STUCK WITH IT , YOU CAN RENT IT IN MOST MARKETS AND BUILD EQUITY VERY QUICKLY . .. ALSO,, THE FAMOUS"FIXER UPPERS" END UP BEING A CASH DRAIN UNLESS YOU ARE A LICENSED CONTRACTOR THAT CAN DO THE WORK YOURSELF, BECAUSE MOST OF THE US NOW HAS VERY STRICT BUILDING CODES BASED ON THE IBC. YOU CAN SPEND MORE THAN A FIXER UPPER IS WORTH GETTING IT TO THE POINT WHERE YOU CAN SELL...........ONE OTHER THING THAT IS MOST IMPORTANT: LOCATION, LOCATION, LOCATION................I AM MOVING MOST OF MY RE INTO OIL AND GAS, BECAUSE THE LONG TERM PAY OUT IS ABOUT TWENTY TIMES HIGHER!!!! BEST OF LUCK PRAY A LOT MHDIRECT"

AlfredSokol said: "Those are some valid points you make. Especially the part about not taking terms longer than 15 years for investment properties. You can killed if you're not careful. Watch out for ARMs too."

bigp said: "I'm with you on the ARMs Alfred. People are going to get slaughtered pretty soon if they're not too careful with ARMs and other "risky" loans. How's your plan coming MHDIRECT?? Have you sorted everything out yet?"

HappyHarry said: "If people have been using their homes like ATMs are going to be in real trouble. For people with "110% Mortgages" and ARMs, the issue could be catastrophic, especially if they ran the credit cards back up."