Ever wonder why people cut corners on the most important things?  I own a property management company that deals with the very issue of making important decisions for clients and tenants alike.   It never ceases to amaze me at how many times I had to explain to a homeowner that a house does not always rent on the first day it is listed.  Take it from me - you have to spend money to make money and renting out your house is no
exception. 

For example, let's say you decide to go with Noobsville Property Management Company.  They say that you have to put some sod in your front yard so it looks like you have grass.  "Oh no I don't!  The last renter didn't have a problem with the lawn!  Matter of fact, they stayed in the house for two years and it looks like this."  You walk off shaking your head, thinking this new owner has some real issues parting with their money even when it may get their home rented faster. 

Another example is when you tell the owner that they are going to have some out of pocket expenses for marketing and they instantly think that the management company is responsible for paying all of the marketing fees out of their pocket.  Ha. What if you have to pay a $200 finder's fee to the agent that brought you renters?  Who pays that cost - the owner does. 

Ultimately, who bears the burden?  The owner.  Keep that in mind the next time you're out buying houses. 

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Tracking the leads and following up on the calls are daily routines for a successful investor - but how do they get people to call them in the first place?  How do they find these great deals and make all the cash we hear about?  Here's a few great ways to get started with little or no money.

Bandit signs - one of the most tried and true methods for getting distressed sellers to call you is by using bandit signs.  Not only is it the most cost effective way to get the word out, it is also the most popular.  The real key to  using bandit signs is consistency and volume.  If you are placing only a few signs out there to entice sellers to call, you may get a few calls, but not enough to warrant the work.  You need to be putting 20, 30, or even 50 signs out at a time to capture a large enough audience to make it worth your while.

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You do not need credit to buy houses.

Contrary to what your dad told you, you may still be worthless, but at least you can own a home.

I won't argue that having good credit can help you buy a home.  It's not a must though.  It can make things easier, and certainly help you if you have to have lender financing, but having the lack of credit should not stop you from finding and getting deals.

Credit scores are evaluated the follow way:

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"Found the perfect car and just had to buy it", a close friend said to me today.  I just nodded and went back to telling him how he was a noob and would not amount to much.

Quite seriously though, he thought he was buying an asset.  Told me it was a classic and with a little work, it was going to be worth tons.  It's a depreciating asset, I told him.  Silly noob just kept denying it.  Cars are depreciating assets, so are boats, jet-ski's, and even tools. 

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Winning a bid on a home with 30-40% equity is like pwning a noob in Call of Duty:WAW.  It's fun and all, but without some real competition, it's just plain easy.

Later Noobs,

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