Help!! My Wife Only Gave Me $10K
Millbrook, AL · Member since 2015 · 20 posts · 12 votes
Help!! My Wife Only Gave Me $10K
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Dawn AnastasiPro Member
Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votesI think you're approaching this the wrong way. Rather than have to "prove" to your wife something, maybe you should involve her more and talk with her and make it a project both of you can get into. Otherwise it seems like a "you versus her" thing.
125 Replies
- Rental Property Investor · Phoenix/Lima, Arizona/OH · Member since 2012 · 4k+ posts · 4k+ votes11y
So - you're consulting doctors about how to set up their money-making machines, and you're worried about not having enough to invest with?!?!
Your wife is right, dude. You got NO game...hahah How long have you been on BP. How come you're not learning :)?
- Bedford, NH · Member since 2012 · 2k+ posts · 1k+ votes11y
Making $2500 on a $10,000 investment is actually quite easy to do. Just not in real estate. And not in anything that scales well (i.e., just because you make $2500 on $10,000 does not mean you can as easily make $25,000 on $100,000.)
But $10,000 is more than enough to get you through the real estate agent's class, pay your testing and licensing fees, etc. etc.
- Specialist · O'Fallon, MO · Member since 2010 · 148 posts · 46 votes11y
Joel,
I thought it was pretty unreal as well. A lot of people want to get as close to 100% financing as possible. I wouldn't of even mentioned it if I thought the person sharing info was me was being dishonest with me. I'm the last person who wants to share false info. So I do apologize if you think I was trying to give bad info. Wasn't my intent by any means :)
- Real Estate Agent · Carmel, IN · Member since 2014 · 74 posts · 35 votes11y
Hi Jon,
My husband and I got started in wholesaling with a few thousand dollars. Has it taken time to build capital? Sure. But we have been in this business just over a year and are steadily building our capital. It can be done but like others have mentioned, don't let the 10k burn a hole in your pocket. Take some time to go to REIAs, learn your market, and go from there. Most importantly, find a mentor in your area who will take you under your wing and show you the ropes.
Wholesaling sounds easier than it is. It takes a lot of time to market, answer calls, analyze properties, etc. My husband has been running our business while I work full time. We are very grateful for such an opportunity as many others are trying to juggle real estate while working a full time job. I know that some people use a virtual assistant to take calls during the day, so maybe that would be a possibility for you, if wholesaling is the path you choose.
If you are passionate about real-estate, know that inevitably this will affect things at home because you will be spending a lot of time at REIAs, a lot of time talking to other investors, a lot of time driving neighborhoods and learning your market, and hopefully a lot more time on BP. I am hoping that in time, your wife will change her mind and see what a great opportunity real estate has to offer for both of you. If you only have six months to generate a return, then don't start the clock for a few months, until you've had some time to learn and grow.
I'd love to hear your story of success in six months.
- Millbrook, AL · Member since 2015 · 20 posts · 12 votes11y
Thanks Christy!
It sounds like Wholesaling is more of a job, though, as opposed to investing.
Would you agree with that?
Investing seems like you have (to use an overused term) More Skin In The Game.
- Millbrook, AL · Member since 2015 · 20 posts · 12 votes11y
Before going to bed I wanted to review what I have so far:
Wholesaling – Sounds more like a job. But also sounds like something that can be done at your own pace. The key seems to be to hook up with the right rehabbers and investors. That would mean a lot of networking, which can be fun. Seems to require more time than money, which isn’t a problem. Money (any amount budgeted) can be used for marketing. Still not sure how much you can make at this.
Commercial – Sounds really technical. Seems like trigonometry compared to basic math.
Buying notes – Like commercial, this sounds really technical. It’s like you have to crunch tons of information before coming to a solid conclusion. I looked at a website and got blown away.
Mobile Home Rehab – How big can a mobile home really be? Then again, how well can it be constructed in order to rehab it?
Rentals – Use seller financing, partner up with a rehabber, partner up with a hard money lender, go for sub 30K properties, and really know the market inside and out.
Unknowns – Reg D – This is something I never heard of.Expired listings – I'm not sure where I would even find them without having access to the full MLS.
Lots of advice about She Who Must Be Obeyed. All appreciated.
Thanks and hope to hear even more.
- Investor · Vancouver, WA · Member since 2014 · 270 posts · 111 votes11y
Jon,
You can definitely do this with wholesaling. We have been very fortunate and had 2 wholesale deals within the first two months. I am skeptical that this might be luck but we had those deals done with less than $500 of marketing. We have since used the money made to ramp it up.
We do not count on making money and do not use this to live on, all our real estate profits go solely to more real estate. So now we our playing on the "house's money". My wife and I do this together and we love it. We both use our strengths, she is great with finance and the computer and I am good with people We spend time on nights and weekends addressing envelopes, looking at house on the computer, driving neighborhoods, and talking about the future. Any money made is just a bonus because the best part is doing this with my wife!
Elliot
- Spanaway, WA · Member since 2015 · 1 post · 2 votes11y
I think you should be greatful! My husband never paid me back the 12k I lent him 5 years ago. We are divorcing. I'm a single mom with 2 boys and I'm starting RE with nothing. Don't complain just do it. I wish I had the money I lent him but it is a lesson learned. A lot of people have made it with absolutely nothing to start. It's the attitude of never giving up and persistence that wins the race. So count your blessings and keep your head up.
- Investor · St. Louis Mo · Member since 2015 · 211 posts · 129 votes11y
@Dawn Anastasi I love your responses! And you are all over BP!
- Real Estate Agent · Carmel, IN · Member since 2014 · 74 posts · 35 votes11y
The bit about wholesaling being like a job: for us it is but that's because we choose to do it full time. Our end goal to own rental properties so we are building our capital, learning the marketing, and learning about flipping and land lording all along the way (by reading, talking to others, and listening to a ton of podcasts). We feel confident enough now (after a year) to start doing small flip projects and are looking into one now.
We love wholesaling because the risk is minimal. We send out about 200 letters a week, get a handful of calls, and land on average 1-2 deals a month. Could we be doing more deals? Yes. But honestly, the amount of work we have now is perfect for us. The number of leads and deals you get is all based on the numbers. You can typically expect a response rate of about 2-3% for every batch of letters you send out. Some of the deals give us small profits (3-5k) while others end up being much larger. If you happen to find a flip among the calls you get, you're in business.
If letters doesn't appeal to you, there's always the website route. Hire a good website guy, have him set up your SEO, and let the site generate the leads for you. We've recently started putting more into our site and are hopeful this will bring a few more leads our way.
Our first deal was actually the best potential for a big profit, but we were too new to take on the flip ourselves so we wholesaled it. We got the lead from... Craigslist. It was a free ad. Now that's a return on your investment! If nothing else, maybe you could show your wife that you can make a profit in this business with zero down! haha To this day, we still post Craigslist ads 1-2 times a week and still get calls from it. We even have gotten calls from fliers we posted in laundry mats.
- Rental Property Investor · San Marino, CA · Member since 2011 · 398 posts · 144 votes11y
as @Ben Leybovich said - you are talking to doctors (rich people) for your consulting job. There are your investors right there!!!
- Philly Burbs, PA · Member since 2015 · 338 posts · 133 votes11y
Originally posted by @Joel Owens:
Just due diligence alone is tens of thousands of dollars and then you have title, attorneys fees, lenders fees, and on and on.
I've put weeks of 12 hour days of due diligence into commercial, only to find out that what looked good at first is a total loser. So many angles to think of. Reading until my eyes blur. waiting on phone calls and going to meetings.
Traffic counts, fire sprinklers, parking areas, zoning, storm water, handicapped accessibility, traffic patterns, future development in the area, politics. It goes on and on
- Aurora, CO · Member since 2015 · 11 posts · 6 votes11y
I was hoping that after reading all of the posts, you would have answered the questions. It seems your goals are lofty from the responses. Oh well, that's what day jobs are for.
A fun way to invest is motif investing (www.motifinvesting.com). With dividends and the current market, I'm pulling around 7%. Not 25% but I don't do any work for it. Literally nothing. And you can invest in REITs, the rental market, commercial real estate, new housing, Etc. I prefer oil and tech. Good luck.
- Real Estate Agent · Carmel, IN · Member since 2014 · 74 posts · 35 votes11y
For those making jokes about divorce court and searching for a new wife, don't listen to them. It's pretty tacky to crack jokes about divorce when you're already feeling some pressure.
I'm a skeptic by nature and honestly, it's good she cares enough about your the future you both have not to let you blow it on an expensive hobby. If I didn't already love RE, I would most likely be suspicious, too.
I believe in time, when she sees what a rockstar you are at this, she will come around. Just do your homework so you don't make us all look bad! Haha
- Specialist · Las Vegas, NV · Member since 2015 · 50 posts · 14 votes11y
Originally posted by @Jon Carter:
So here's my challenge. I want to start investing in RE but my wife isn't so thrilled. She says I can have $10K to start out with. If I can make some money using that she says I can have more. (Guess who pays the bills?)
So, I said to her, "How do you expect me to do anything with that?"
She says, "You're always on that Bigger Pockets website. Why not ask them?"
So here I am.
What do you all think? She says I have to do this alone. No cheating with Clubs, partnering up, etc.
Would you go for a mobile home? Vacant land? Can you make any money with $10K?
Something I learned long time ago from Robert Kiyosaki at a Real Estate seminar in L.A. back in 2004... said that if you're starting out and have $20k to invest, invest it in education. Then take action on that knowledge you gain. If you go in without knowing what you're doing, might as well kiss that $10k goodbye. Give yourself the best odds to succeed and earn the trust of your wife by knowing what you're getting into, doing it right, and showing her your results. Educating yourself is vital. Along the way, you'll surround yourself with the right people(it's happening now) who can help you take steps towards your goals in the right way.
- Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes11y
I do not understand why most people believe the spouse has to be involved with real estate.
I have many clients whose wives could care less about it. The husbands of course confer with their wives but they are not actively involved. There are other situations where the wife is the active one and the husband cares less.
Sometimes there are partners who makes 300,400,500k a year with their corporate job and tell the other person to go find an investment for them.
My wife knows what I do and I talk to her about it. I even take her around to look at potential commercial investments for fun and we grab a bite to eat. She doesn't want to know all the minute details. She enjoys decorating the house, being with her pets, and going to see her mom for lunch outings.
I do not believe you have to convert your spouse into this real estate mogul and cram real estate down their throat. If you show it to them and they want to get very active then fine but if they say after words it's not their thing then the partner needs to respect that. Being involved in real estate doesn't have to be down just one path that is absolute.
- Wholesaler · Manning, SC · Member since 2012 · 94 posts · 16 votes11y
First of all I'd like to say congratulations on making the decision to get off of the sidelines! Secondly, we minimize (not eliminate) our risk of losing our entire initial investment by not jumping into things that we don't know much about. So I suggest your ground zero be 'education.' I think one of the most cost effective ways to break into the real estate biz is 'wholesaling.' You can get started in it for about $2000 tops and this includes your education (Steve Cook's 'Wholesaling For Quick Cash'- very affordable and highly recommended), legal entity setup (if your going to make your investing a business), initial marketing, and basic office supplies. You'll also learn a lot about real estate in general via your on the job training that comes as a side effect. Likewise the knowledgeable real estate professionals that you will inevitably began to network with will prove to be one the best returns on your investment. And last but not least, you can take all of the cash that you generate from working hard buying and selling your wholesale deals and reinvest it into some easy passive income producing assets. Like Jon said in an earlier post, wholesaling is indeed a job. However it is absolutely one of the most rewarding jobs I have ever had!
- Real Estate Investor · Pryor, OK · Member since 2015 · 46 posts · 12 votes11y
Millbrook is a small town,I find cheap property's all the time in areas like that.
If you talk to enough people and look at enough places,you will come across something for less than 10k including repairs . It may not be fancy but if you find the right folks to rent it it's a sweet deal
Or try to talk an owner into a couple thousand down and $200 a month or best deal you can arrange.Did one that rents for $650
I don't really count them as assets,wife considers them trash LOL
But they bring in more money than the nice ones.
- Wholesaler · Manning, SC · Member since 2012 · 94 posts · 16 votes11y
Wow ditto Tony! I wish I would have stopped and read your post before skipping to the bottom to write mine. It would have saved me some time and energy. lol
- Investor · Whitttier, CA · Member since 2015 · 405 posts · 110 votes11y
@lisaphillips
As far as your cash limitations listen to the podcast regarding sub 30K properties. I wish I could recall the woman's name who did that one but she is making that work in her area and she is a positive person that is fun to listen to.
Lots of opinions here. Some say sub 30k won't work. Others do it every day. Find a starting point.
I would focus on inspiring your wife to see what you see in real estate. Success is much better when it occurs because of someone's support rather than despite their roadblocks.
You have my support! Stay the
Course.Good luck!
- Investor · Hubbard, OR · Member since 2014 · 62 posts · 37 votes11y
@ Jon Carter,
I see no problem with your wife's challenge on your first deal. I'm an investor. I want to see a return on my investments. I see no problem with challenging yourself to make 25% in 6 mos with $10,000. However, to say that you can't make it as an investor if you don't meet the challenge shows that she isn't an investor.
My investing started in and continues in the stock market. Today, after 15 years, my odds of making that kind of return and more are much better than in my first year. That's after learning a lot about the market. While I agree with the people here who talk about high risk in the ventures that would make you that much money, I think it's more about temperament. In the stock market, a widely made claim is that, if you can't stomach the ups and downs of the market (such as a 50% loss), you don't have the temperament to be a good investor.
It doesn't bother me, in the stock market, to take a great loss because my experience shows that if I continue trying I will do better (far better) than putting my money into safer investments.
Real estate is generally lower risk than the stock market therefore your returns in RE tend to be lower.
People have suggested that you invest the $10,000 in education. I've spent that amount in education but I haven't started really learning until I've got my feet wet. I guess I prefer the higher risk of investing to see how it goes. That's what your wife's challenge is without acknowledging the higher risk of the attempt. But you need to be able to learn from that and, even if it doesn't succeed, try it again until it does. If you or your wife can't stomach not achieving that 50% annual return on your first try, perhaps real estate is the wrong investment for you.
I am also a big believer in leveraging what you have to do anyway into a real estate (or other) investment. Ideas are to buy a home with income potential. There are so many ways to do this I can't list them all. Some we've done have been to buy a very large home and rent rooms either monthly or shorter term as in for Bed and Breakfast income. We've bought a farm and put cabins on it creating a farm bed and breakfast. Our current home pays us back more than $3000 over our mortgage payment.
Bottom line is that you can succeed as a RE investor but not if you set yourself a tough challenge with the penalty being you can't try again if you don't achieve those lofty goals.
- Rental Property Investor · Phoenix/Lima, Arizona/OH · Member since 2012 · 4k+ posts · 4k+ votes11y
Originally posted by @Joel W.:
I'd buy a new wife.
Hahaha - I was gonna say - would $10k cover a divorce attorney? hahahah
Reg D - you don't need to worry about what it is if you only have $10,000. Minimum buy-in into mine is $50,000, and that's on the low side. So keep your $10,000 and go buy a duplex.
I've written several times about it on the blog - check it out if you want to know more specifics.
- Millbrook, AL · Member since 2015 · 20 posts · 12 votes11y
Good Morning Everyone!
Thanks for the responses so far.
Questions -
Where can I find the best information on Bigger Pockets for educating myself regarding Wholesaling?
Is there a link someone can provide regarding the sub $30K?
Any thoughts on trying to buy a condo/mobile home at a tax deed sale in order to generate income? Or buying vacant land at the same in order to flip?
- Contractor · Pittsburgh, PA · Member since 2014 · 885 posts · 359 votes11y
If you and your wife are serious about investing, and want to dip a toe in for $10k, do not spend one sent on advertising or buyer's lists. Please look up a Real Estate Investment Association (REIA) in your area and immediately begin attending events there. Try and figure out what kind of investor you think you can be in the area that you're interested in, and go from there.
I do think it's important to mention that there have been times where it's taken me six months to close just one deal, and you could easily spend six months just locating a deal that meets your investment criteria.
Good luck!
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