I'm a bit bummed that I have't gotten some better leads, now that I have put out the call for birddoggers. Hopefully something will come soon. I'm just impatient.
The good news is yesterday I received another payment from the foreclosure investment company I first wrote about almost exactly three months ago. This time, the check was for just over $1,500. Nice! That brings my return in this second LLC to just over 18% annually.
The bad news is my car is in the shop getting $1,600 worth of repairs. Oh well. Easy come, easy go. But this does really illustrate the importance of cashflow. That investment just covered the cost of repairing my car, saving me from having to take a chunk of cash out of my checking account.
Tuesday, January 25, 2005
I Love Passive Income - Part 2
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4 comments:
Thanks for the kind words! I think the fees you are referring to would be in step 5 - a preliminary title report. The reason I say preliminary is that it is not an actual, full blown title report. If you pick a title company to work with and get to know someone there, they should be able to run a preliminary title search for you at little or no cost. If you bring them business consistently, they will be happy to do this for free. Alternately, you can learn to do a basic title search yourself by checking documents at the county recorder's office. You can also just tell your investor you haven't verified the title. The investor will likely have the resources to do this.
Oh..and regarding incentives to the seller. The only incentives some sellers may need is for someone to buy the place! Each seller's needs are different, so find out what they need and then worry about how to get it. If the deal is good enough, money will come to you.
I wouldn't bother with real estate agents. There is no money in it for them if they hook you up with an investor. You can try, but I wouldn't get my hopes up. (But if you can get one to send you the expired MLS listings, they can be a source of potential houses for you.) Try looking in the classifieds for "We Buy Houses" ads. Look for similar signs and call the number. Seek out real estate investors clubs in your area and attend one of their meetings. You can also place a classified ad yourself, saying something like "Investors wanted." When they call, you can say you don't currently have anything, but you can then find out what types of properties and what areas they invest in.
I'm not familiar with that book. There are many ways to make money in real estate and short selling is but one of them. I do know people who use that method almost exclusively.
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