Forums: Discussions for entrepreneurs and small business.

I am thinking about doing a 2 property deal tomorrow and would like to hear what you think about it. The properties are in extremly desireable areas of the Phoenix metro area(3,000 sqft. in Chandler & 1700 sqft. in Gilbert). Chandler property is a sale price of $515,000 and the Gilbert property is a sale price of $360,000. I will get a total of $65,000 back at the close of both properties. I will live in one and rent the other out. I plan to use the money to do a couple of rehab projects. I can borrow from hard money and use my 65,000 to do the repairs. These type of projects are hard to find but still can make $10,000- $15,000 profit off of each. Also I want to invest in some pre-construction projects but will have to make some quick cash first to pay my 2 huge mortgages. My problem is I am scared to do this deal. What if it goes wrong? I have never even owned a home before. I am young and have never invested money in anything. I make decent money but not enough to cover this mortgage for to long if my plan does not work out. I do know a good deal about real estate, I am a mortgage broker with a background in construction. I think this will all work out but like I said I am afraid to think what will happen if it don`t. Please give me any words of wisdom you may have. Thanks from th bottom of my heart.

If I were you, I`d try to find another investor who`d be interested in taking the deal and you work something out to get a piece of the pie...in the industry, the term used to describe what I just mentioned is a "Bird Dog".

Theres a lot to know when it comes to real estate investing, with one of the cardinal rules being "Thou Shalt Not Own Property in Your Own Name", for some of the reasons you just mentioned above --- if the deal falls through, you have a lot to lose (especially if it`s in your name)...There are ways of constructing the deal where your name stays off, but allows you to still `Own and Control the property 100%, if you`re not familiar with these strategies, then I`d suggest you learn more first.

I would say pass...now, if you`re able to cope with the losses if things did go south, then take the chance. I made some stupid mistakes myself in the past which ended up putting me on the streets twice --- but, I learned from my mistakes and if I had to do it again...I most likely would !

Cartess

Any Investor whether it be real estate, stock market, etc. needs to visit this site before jumping into the world of investing. It can get quite hairy at times. If you are scared now? you are in for quite a ride. Real Estate investing isn`t all its cracked up to be for A LOT of people. Most jump into it because of the success stories, having no real clue what they are doing out there thinking that its fool proof...There are many fools in Real Estate.

One quick statement...Those who invest don`t become wealthy with the "low risk" investments. High risk pays high dividends! Low risk pays a salary!

You can`t be scared to loose. Sometimes putting it "ALL" on the table makes you work that much harder to become successful and in turn will make you SUCCESSFUL! If nothing is on the line, you have nothing to loose and 9 times out of ten...YOU GAIN NOTHING!

Check out the site www.getrealrei.com. It will give you the confidence you need to go into Real Estate Investing! Good luck!