Getting Your Ducks In a Row When Getting Started - by Becky Sanders

I know, I know, when you went to the bootcamp, they told you to go home and make some offers right away and everything will fall in place. But you probably forgot a lot of the details that you were taught over the weekend because it was information overload and, as you know, we only retain I think it's 30% of what we hear the first time (or maybe it's less). :) You all know what I'm talking about.

So while you're making those offers, or even before you make those offers, read the back section of your W/R bootcamp manual that covers what you should do next because you will need to refresh your memory. Write down your plan. Plan out your day, plan out your week, and plan out your month.

Some things you need to do first is develop a network and a "team". If you're planning to wholesale, then start developing your buyer's list now (no time like the present). Call investors you know or have met and dig out those business cards you collected at the association meetings and call them. Also call those other "We Buy Houses" ads in the paper. Find out what they're interested in and in what areas. Find out if they have financing lined up and how long would it take them to close when you bring them a deal. Find out what kind of profit margins they're looking for. (You should be okay with the WMAO formula, but ask anyway - you might just be able to make more money!!) Talk to other wholesalers, if you get stuck, they may be in a position to help you by tapping into their buyers' list.

Whether you're planning to rehab or wholesale, you should know where you're going to get your money (because there's always a possibility that you won't find a wholesale buyer).

If you're going with hard money, get preapproval with a lender or two (you're going to need them if you're bidding on REO's anyhow because they often require proof of funds or a preapproval letter with your offer). If Statewide or www.rehabfunding.com don't work for you, post your question here and maybe Cameron or someone can help you, but at the same time, you can run a search on yahoo.com with the keyword "hard money" and you'll get all kinds of hits. If you have private lenders lined up, then you're pretty much set. This is one of the best ways to go. Getting private lenders is uncomfortable for most of us (I need to work on this some more, too), but you have to seek them out - they don't know to come to you because they probably haven't even considered this type of investment. You can get some interest by asking people you know whether they have investments and, if they do, what kind of return on investment they're getting. If they tell you, offer them a better return secured with real estate as a first mortgage and reassure them that the whole deal is always handled/closed by professionals, and then hammer out some details from there that will fit their needs and yours. If there is true interest and you sense that they want to take the next step, find out how much funds they would have available and then bring them your next deal.

Another way to go is a money partner. These are actually pretty easy find, especially among investors. Spread the word at your REI assocation meetings that you are looking for a money partner, and they will come to you.

Then, of course, there's always your money. What about your IRA? You can switch it over to Mid-Ohio Securities into a self-directed IRA and then you'll have access to those funds for your RE deals (and, my, how your retirement funds will grow!!!). You can also borrow against your assets, including any whole life insurance policies.

Find an attorney. My first choice is to get referrals from other investors, but you can always use my outline which is posted on this board (do a search or check back through the posts). You WILL NEED a good attorney now and later, so get your homework done now. I use all of Ron LeGrand's contracts, but because all states have minor differences in their real estate laws, have them checked out to see if the attorney recommends that you change anything or add to the contracts. Furthermore, you will need an attorney for some closings (maybe all, it depends on your state), and to handle any legal problems you might face down the road, whether it's a lawsuit, a title problem, or evictions, etc.

Find some good realtors. I don't feel qualified to speak about this because I still haven't found somebody good to work with (and I've been through a few). Just don't get your feelings hurt when a realtor says your offers are outrageously low. They probably know more than you about market values, but they certainly don't more about investing unless they are investors themselves, and even then...well, you know what I mean.

Find some good mortgage brokers. These are easy to find through referrals, and some of your local mortgage brokers may even offer hard money, so check around. I can't stress enough the value of networking and developing friendships with other investors who are active in this business. They are your lifeline and your business will not grow and succeed as well if you operate as an island. Cameron's board is invaluable for networking on a national scale, but you really need the local contacts, so go to your REIA meetings every month and get to know the investors who are "doers". If your meetings are at a hotel (as the ones here in Chicago are), don't leave after the meeting. Go into the bar and if you see any faces that were at the meeting, go and introduce yourself and buy them a drink and sit down with them. This where a lot of wheeling and dealing happens, and you'll probably learn more in the bar than you did in the meeting.

If anyone has any more ideas or advice (or questions), post it here. I didn't cover making offers, because you already know that. But when you do these things, your business will be ready to take off.

Good luck and I wish you all much success.