Just starting out, what price range should I go for?

Just starting out, what price range should I go for?

Hi everyone I have recently just started up with looking at demographics of a new area and I am interested in some Single Living homes. I have been looking at many properties and foreclosures in the area, and the prices vary a lot. But I am just starting out with no money in my pocket and i have no idea what range to go for. I would think to go right for low end and cheaper houses since im new to all of this, but higher end houses would give more pay off and possible pay for themselves. Also i have been talking with some agents whom are willing to help me out and they really need to know what range i am going for, for them to really help me out. I would rather give them a definite range instead of asking them what i should go for. From personal experience what would you guys recommend me going for while just starting out. something like 74K-150K? Also im in a suburban area of RI so the market is a higher then rural areas. While starting out low end would seem strategic i don't want to be the landlord of the slums. Any help or tips would be great thanks =)



Congratulations on starting in real estate investing. You may want to choose your desired area and see what the average home is selling for. You want the type of homes that may appeal to the broadest amount of people. Try to detrmine your exit strategy. If it is to make some cash assigning homes, then you can have a larger price range. Try to do your furst deal and build from there. If you want to look into the $74K to $150k that should be ok. Try to offer lower and find the motivated sellers out of the group. Good luck on all your deals. Believe and Achieve! Smiling - Joe


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Joe Jurek CPA

WEll you have to build equity in the property for investors

After reading Dean's books I would build up your network first so you can start building a relationship with them. I would stay under 100k for your first few deals so you can get your fee wet. You have to have at least 30 percent equity before most investors will even look at it. So how you figure that is you build a good relationship if a real estate agent or two and ask them those questions on whats selling and if they can do comps in the area to give you an idea of whats a good price, and then when looking at the sell price, I always look at the Fair Market Value of the home and then figure out how much you have to get the house under contract for, so it has between 30 to 50 percent equity in the house.

So say that you find a house for 100k FMV, if you get the house for 60k you have 40 percent equity in the home. If you get the house for 70 you would have 30 percent equity in the home. If it was me I would bid 50k on it and not accept a counter unless its 60k or under. So that leaves you 10 percent equity for your self and the assignment fee and then your investors after your fee still makes 30k in the deal and has 30 percent equity to borrow against or to resale to retail buyers.

This is how this works, you have to make the investor money but you also have to figure in your fee as well. My rule of thumb is 3percent assignment fee on the sale price. But hey that is just me, you can do it how ever you would like. I hope I was able to help, contract me if you have any questions. Happy House Hunting@@


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John Sallmen III
Real Estate Agent

Starting Out

Find out what the average income is for your area,Look for homes that need rehab and are around twenty years old in blue-collar neighborhoods.Always look for multi-Family and then homes!

See if your agent can pull the data for the properties bought with cash...These will most likely be the buyers you are looking for.

Always keep an eye open for SUB2's!If you do not want it,You can bird-dog it for a nice fee!


Invest in yourself!

Newer then New !!!!

Hi All. I have just gotten password, etc. to come to this site and a I have to say WOW !!! I am very excited and I only read one book. I will read the other 2 and meanwhile talk to realators. I have found a mortgage borker to work with and a title company with a real, real smart lady in charge that will help me with stupid questions and get me going. I am thrilled with this site and see myself reading it daily. I stopped telling people what I am about to do because every darn one of them said, "you won't get financing in this economy, forget it." or, "even though you say no money to start, believe me, it will cost you and you can't afford it", or, "here we go, another pipe dream of yours to make money". !!!! Gee whiz, I don't want to hear that, so I shut my mouth. I'll just talk to you all as I know you will be positive and not step on my dream with a heavy boot!! Ok, I said Hi, now I am ready to spend a few hours reading this site. I have happy tears in my eyes as I antisipate what is to come and what my new life will be. Thanks to all of you that write in on this site and help the newbies. God Bless you all, and Dean. I have never found anything on TV or on line as honest and
as helpful. I like it when I see pictures, too so I know who I am talking to. I will post one of my own soon as I get one. Chow

Just Starting Out.

Hey everyone,

Well, I just got finished reading Dean's book. I'm very motivated to get started.. I want to start bird-dogging for other investors, and assigning contracts over to qualifed buyers. My question is this... Do I use a standard contract to "lock up" deals..and how do i protect myself within the transaction. Because, I want to have a way out if I'm not able to produce.

Plus, where would the contingency clause be inserted.

Forget the price

Hi, great job on getting started. Forget about the price range, just look at the deals and figure out comps. Don't get discouraged if a house is expensive, if you find a house for 300k and the fmv is 600k, find a buyer and assign it. You can make money in any kind of market.



This train, Dreams will not be thwarted
This train, Faith will be rewarded
Big wheel roll through fields where sunlight streams
Meet me in the Land Of Hope And Dreams

Bruce Springsteen