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Posted over 9 years ago

From Lurking to Doing.

I have dreamed and read about real estate investing for years, always waiting until the time is right and I had enough capital to begin. I have decided the time for waiting is over. I have capital, but even though I  know I still don't have enough I know from what I've read that it isn't always necessary to have a lot of capital to begin. And some have started with no capital so I'm ahead of the game already.

Why do I want to invest in real estate? I've spent years as an computer engineer building my 401k to something I know we can live on frugally for a long time but I always felt like having all my savings in stocks and bonds was like having all my eggs in one basket. One major world event can dump the value in ways I have no control over. But if I diversify my portfolio by adding rental real estate, I have more control of that. I can raise or lower rents based on circumstances. There are risks, I well know. And I don't come into this a total newbie as I have had one rental house several years ago (and still wonder why I sold the darn thing!)

I have reserved my company name within Texas, JoinGoes Properties, LLC, but need to complete the LLC filing. I have retained a real estate agent who has dealt with investors and told her the criteria I'm seeking for the first property. Initially, while still working full time, I plan to fix and flip at least two houses to build my capital stock before beginning to build my rental property portfolio. I plan to visit some forums to ask some questions along those lines, but my goal is to be in contract within two-to-three weeks and start as soon as funding occurs. 

As far as flipping experience goes, I have remodeled my own kitchen, tiled multiple floors, Im an Army trained electrical installer, though I'll contract electrical out. But more importantly, I have a friend, Dave, who's been contracting for years including multiple flip jobs and has agreed to contract for my first house along with my brother, Kenny, also has been in the contracting/house rebuild field for years as a laborer. I have been a manager and project leader for world wide projects, making sure tasks occur when and where they're needed to fit the flow of our job and I believe that translates well to running a flipping job. With Dave's help, we will tackle my first house flip and I'll deal with problems as they arise. 

The only thing I am not sure of, is whether to use a conventional rehabbing loan, or to use private or hard money to finance the deal. Either way I plan to demonstrate I have skin in the game either by putting some of my own capital at risk in the project, either via the down payment on the conventional loan, or by using my funds to pay for the rehab and limit the hard money to the purchase price.

In later posts I'll describe my general business plan and goals for real estate investing.

John Gossett

Cedar Park, (Austin) Texas


Comments (4)

  1. John, welcome to the forum, sir! 

    I have to agree that you are well ahead of most rookies, with both your project management experience and access to contractors, as well as the approach of proving your commitment with your own finances. My business partner and I have zero experience but are in the midst of  finding a GC with some good credentials and hopefully plenty of referrals. We share the same perspective of adding some of our funds to the financing aspect to show our lender/investors that we are here for the long haul. 

    I wish you the best and look forward to your success and the stories that follow!


  2. Thanks for the good luck wishes Joshua. I'll be posting more frequently as I gather steam in my endeavors.

    Sue, as much as I've studied, I know the experience of doing beats studying hands-down. I'm not there yet but as I do more, I'll post more about my experiences and realities of real estate investing. One thing I have done over the years which puts me in position to invest now is to always live within a budget where savings come out first bills next then comes family and food. I watched my parents not budget and constantly battle through financial difficulties because they spent their earned income money on themselves before anything else. I chose not to live that way. I hope you can exercise the discipline to put some small amount aside for savings and investment - which involves sacrifice. But the discipline to sacrifice now and the courage to step into the real estate investment world (with education (mandatory) and mentor assistance if at all possible) I believe can turn the sacrifice into abundance with determination and persistence. 


  3. Hi, My name is Sue from NM. It really sounds, (to a novice like me), that you know what your doing John.  I also am new to the game. I've been reading and watching videos. I'm financially challanged, so I'm trying to learn on a budget. I have 2 partners, 1is very handy and he and I both have varying home improvement skills. The second, has financial resources and credit. I keep reading about people who educate and vasillate, and don't want to be one of those people. We've started looking at properties, but haven't found the right place for the right price yet. I still have the fear that maybe we're not prepared enough, but I don't know if we ever will be. But I am looking forward to the journey. I'll keep reading and occasionally posting our progress. I appreciate everyone's support in advance.


  4. Welcome to the game, John.  Be sure to post any questions you've got on the forums and the community will jump in to help you out!  Good luck!