Review: Entirely POSSIBLE but use EXTREME Caution
Rating: 3 out of 5
Date: 12 25, 2012
Oh boy!  There are a ton of agents that won't do the double close any longer.  There's also a ton of real estate agents and investors that don't want to see any more 'subject to' deals.  Why?  Because if the buyer suddenly stops making payments, the original seller is still on the hook, and so is his credit and his finances.  That didn't get mentioned in the book.Don't get me wrong what Sean Terry is talking about, profiting in real estate without cash, credit or a license, can be done. It certainly can.  The problem is it's a LOT HARDER than what he's making it out to be.  Lots of cities don't allow bandit signs so you have to find someone who can put them up on Friday night and take them down on Sunday.  (How long do you think it takes to put out 300 signs? --hours)  He mentioned internet marketing for your leads.  Yes, it works, but he didn't mention that Google Adwords is expensive!  Take a look at the PPC category when you're putting in some of those keywords.  You're going to pay that up front.  You'll get hundreds of leads, and MAYBE 1 is something you can work with.  Oh, and by the way, you need to be certain that you have the seller sign all of your contracts BEFORE you talk to anyone else about the deal, or you're going to be in trouble with the state for 'dealing without a license'.  Be prepared for a boatload of crack pots in the city to call about your sign too.  I've seen more than my share of dumps in bad neighborhoods that the owner is absolutely sure is worth $350K.  (Not even during the bubble honey!)Most beginners end up with lots of contracts they can't assign. By the way, if you can't find a buyer -- guess who has to go back to the seller and tell them the deal is dead BEFORE the deadline in the contract.  Beginners don't know the market well enough to be sure of what the ARV really is, and they know repair expenses even less.  If you don't have those numbers solid, you're going to be in hot water.  Worse, newbie expenses on lead generation is infinitely higher than their profit margins.If you're going to go into real estate investing, do yourself a favor and join your local real estate investment club.  Find someone in the club that's been doing it for quite a while and see if you can start working with them.  There are always investors out there looking for 'bird dogs' and it will give you a feel for what the business is really like rather than the excitement someone else makes it out to be.  If you don't have a local real estate investment club or can't find it, call your local HomeVestors franchise.  These people are real estate investors with a real estate license, they're going to know where the local investors are and what clubs they belong to.  Get with an experienced investor and learn in the field instead of from a book.