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
- Dallas, TX · Member since 2014 · 517 posts · 106 votes11y
@Jon Carter you can buy homes in Baltimore for $1k. Go to zillow and take a look at them. Are you a handy man? Put $7k or $8k in and sell for $25k or $30kThis is what we did with our first property.
@Jon Carter my advice to anyone starting is always the same. Learn how to make money without money, before you start risking your hard earned cash. There are many ways to do real estate deals without using that $10k. The information on how to do that is readily available here and on other sites.
On a more philosophical note. I know getting into real estate is a very exciting prospect, but the reality is not particularly sexy or elaborate. You need to find a problem that people have in your area and then learn how to solve that problem in a way that helps them and earns you a profit. It's really that simple. If you can't or don't know how to find sellers who have problems that you can solve, then you won't make any money.
http://www.revenue.alabama.gov/advalorem/Transcrip...
http://www.revenue.alabama.gov/advalorem/sections/land.cfm
- Real Estate Agent · Burlington, VT · Member since 2015 · 108 posts · 46 votes11y
I like the challenge. You can definitely do it Jon!
BP: I think it is more fun if we come up with ideas for Jon. He and his wife have their relationship covered ;-) Let's help him with the investment advise.
Here's one idea. (I look forward to seeing others!) Buy an investment property with an FHA loan. With 3.5% down you can buy something up to just under 300k. Or if you go more conventional with your financing with 5% down you can purchase up to $200,000. Ask the seller to give 3% back out of the deal to pay your closing costs. In my market sellers do this all the time (especially if they have been on the market awhile) and if they won't then you can go above their list price and mortgage the closing costs in (assuming the property is priced well).
Make sure the property is cash-flowing. (Rental income - mortgage, insurance, taxes, water sewer ect ) Let's say you shoot for cash flowing $1K a month. This is a HUGELY important step. Use bigger pockets to help you learn to do the numbers and If this seems overwhelming use an agent to help you find a good deal. Don't sign a buyer broker with the first guy/gal you talk to. Interview a couple and find someone who is willing to take the time to walk you through all the numbers. If you use and agent I highly recommend using someone who has at least one rental property of their own.
Cash flow 1K and In only three months you have 3K! BAM!
Of course there will be expenses over the years for maintenance, property management ect , but in the short term on paper you are cash flowing a nice ROI.
Show your wife the numbers take her for a nice Sunday drive past the ole rental property (strategically forget to mention that it might need a new roof in 5 years) and voila she might just hand you 20K next time. ;-)
- Contractor · Land O' lakes, FL · Member since 2014 · 129 posts · 56 votes11y
Hi Jon. I'd agree with the sentiment that you need education and a local network of individuals that you can turn to for advice or be a source of contribution. Go to the meetings and talk with people at your local REIA (Real Estate Investor Association). Get phone numbers, ask to come and see how they are doing their renovations, volunteer some sweat equity on Saturday/Sunday, ask the buy and hold investors what criteria they look for. Develop an education and network.
I'm confused as to why you're not allowed partners. This can be a great doorway to getting into the game. For instance I have a partner that is 22. He's very young but exceptional. Yes he's a smart guy, but he learned the business and does what he says he will. This is a great source of value. Lots of people have money but few have knowledge, discipline and do what they say they will. Become that person and your value will be in high demand among your real estate investing peers.
He finds the deals and manages the projects and the sale. I basically just supervise and approve changes, finishes, confirm costs and values and the initial purchase of the property itself. He puts ZERO money into the deals and gets a large cut of the equity. This is a way you can do it with no money from a rehab point of view.
You can get into real estate with very little money in various ways. You can spend a few years and maybe a few grand getting the licenses and managing properties (You will learn a lot about real estate this way and people's nature as well). You can wholesale, you can buy a duplex like @Ben Leybovich suggested or a myriad of other ways. It's important to remember that there are two types of ROI. There's return on investment and return of investment. Both are a function of education and networking. You have to hit the books(visit the library on a limited budget). You have to go and see the houses, multi-family, strip centers, etc... that your new friends are looking at. Ask them at the meetings if they are looking at anything and if you could tag along. Call them up or text/email them a few times a month checking in and seeing if you can help with anything.
It may take 3 months, it may take 2 years but once you have a good overview of the different asset classes and what you want to specialize in then you can go to your new friends, old friends and maybe even the doctors to present the opportunity. You will have talking with them about it all this time anyway so they may be primed to finally hear about what could be your first deal. Ask them if they have questions and answer them eloquently and articulately and you will be amazed at witnessing the change in how they view you.
There are many calculators that can be used to present a nice report for your future investors. Creating and presenting these reports does not ensure a good investment or even that you'll get funds but it mitigates the chance of missing a factor or facing rejection from potential investors.
I'd save the $10,000 and let your knowledge and reputation do the talking for you. You'll feel better about yourself and eliminate a possible source of contention between your wife and yourself. If you have any specific questions or questions of a more general type I'd be glad to help you out when I can steal away for a moment. Have a great day!
- Investor · west seneca, NY · Member since 2014 · 376 posts · 211 votes11y
hi jon. all of this seems to be good advice. started with less than that $10k you are talking. my wife was not completely onboard either, but not against it either. since i have had some success, she is more on board than ever. she has mostly decorating input but has recently put input into the purchases of real estate also. she will get more on board as you succeed. i found my first house by going on hud.gov. i found a small house that started out at $8500. i went to look at it, thought i would probably get out bid anyway. i noticed the house next door was boarded up and hadn't been lived in for years. i enquired about it at the local tax office and found out that they owned it thru tax repossession. long story short, i bought it from them for $1700. no, i did not leave out a zero, it was $1700. i fixed it up with a total of about $8000 and a lot of work on my part, and i have rented it since. i have owned it for 11 years now. checking with this local authority, i have bought 3 houses from them and the most i paid for one was $4400. you need to look into the tax sale houses. whether they auction them or just sell them outright, this is probably your best approach. driving around and finding abandoned houses is a good approach also. you can make seriously great deals for pennies on the dollar just by finding the ugly duckling in the neighborhood that no one else wants. when you make your success, the wife will get even more on board
- New York, NY · Member since 2015 · 173 posts · 33 votes11y
Originally posted by @Rhondalette W.:
@Jon Carter you can buy homes in Baltimore for $1k. Go to zillow and take a look at them. Are you a handy man? Put $7k or $8k in and sell for $25k or $30kThis is what we did with our first property.
Is this in neighborhoods classified in C/D areas?
- Philly Burbs, PA · Member since 2015 · 338 posts · 133 votes11y
Buy a lot with a run down used trailer and rent it to some "party girl" type.
Go over there all the time to fix stuff.
When you get a late night emergency call, stay there until the wee hours of the morning snaking her pipes.
When your wife complains, tell her that you need more money to buy better properties.
That, is using leverage.
- Real Estate Agent · Carmel, IN · Member since 2014 · 74 posts · 35 votes11y
@Jon Carter, if you go the search field in the top right and type in "Wholesaling" you will get see different areas on the BP site where wholesaling was discussed. I'd personally start with the podcasts. Once you've listened to some podcasts, if you still have more questions, just private message me or call me! I think the best advice any of us can give you is to go to local REIA meetings.
I apologize if I didn't catch you are already going to REIAs or if others have already suggested the podcasts on wholesaling. This thread has gotten tons of activity that is hard to keep up with. You are a popular guy! haha
- 11yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
wait for the new crowdfunding rules to change if your not accredited .. you will soon be able to invest... stick 10k into one of the short term WEST coast debt deals. very safe and secure and you can show wife a cycle of success. All very passively.
- Real Estate Professional · Monsey, NY · Member since 2014 · 51 posts · 9 votes11y
Cost to take out a bp member to a nice steakhouse (with your wife) = $150
Cost to buy your wife Rich Dad Poor Dad (+dozen roses that you love her and appreciate how concerned she is about your financial future and that you don't mess up) = $50
That should leave $9800.
- Investor · Avilla, IN · Member since 2013 · 796 posts · 769 votes11y
I can buy $400-500k worth of deals with $10k....and I have.
Go through my past posts on seller financing (land contracts) and read up.
My last deal was a $345k 12 unit with $1500 out of pocket to close it. Granted that deal would eat your $10k but it's an example. My outlay at this point on it is about $16k-17k....my portfolio of other properties is covering it during the turnaround.
- Investor · The Colony, TX · Member since 2014 · 192 posts · 66 votes11y
Seems like everyone is more concerned with dishing out marital advice than RE investing advice. Since you've been married 30 years I'm guessing no marital advice is needed, and this sounds more like a fun intra-martial contest.
@joncarter
Wish I had some good advice for you but I don't. I've done a few deals with SFR but always with 30 yr financing or cash. These low or no money down ideas are where I would look, but they'll likely require some sort of hard money or owner financing - not sure if that's allowed. I would probably have her ease up on the "No REI club" rule. These are a great place for connections and sometimes finding deals. The same connections and deals you're looking for to make a great first deal, only all in one place... And the more I read and listen about REI, the more I see that a lot of initial success stems from these helpful connections. Technically, you're already cheating by being on here asking for advice! Lol
Best of luck!
- Investor · The Colony, TX · Member since 2014 · 192 posts · 66 votes11y
Originally posted by @Joe Cummings:
Buy a lot with a run down used trailer and rent it to some "party girl" type.
Go over there all the time to fix stuff.
When you get a late night emergency call, stay there until the wee hours of the morning snaking her pipes.
When your wife complains, tell her that you need more money to buy better properties.
That, is using leverage.
That's just hilarious. Unfortunately, for me, the price of divorce would be far too costly. Better to just throw the 10g out a window. Lol
- Dallas, TX · Member since 2014 · 517 posts · 106 votes11y
Originally posted by @Christopher Rodriguez:
Originally posted by @Rhondalette W.:
@Jon Carter you can buy homes in Baltimore for $1k. Go to zillow and take a look at them. Are you a handy man? Put $7k or $8k in and sell for $25k or $30kThis is what we did with our first property.
Is this in neighborhoods classified in C/D areas?
@jon they are not in "A" areas. That's for sure.
- Dallas, TX · Member since 2014 · 517 posts · 106 votes11y
Originally posted by @Christopher Rodriguez:
Originally posted by @Rhondalette W.:
@Jon Carter you can buy homes in Baltimore for $1k. Go to zillow and take a look at them. Are you a handy man? Put $7k or $8k in and sell for $25k or $30kThis is what we did with our first property.
Is this in neighborhoods classified in C/D areas?
These are not in the best neighborhoods but we survived...lol
- Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes11y
$10K? That's a fortune to start out with. As others have mentioned you need to get clear about what "Real Estate" means to you. Rentals? Rehab resales? Notes? Sales commissions?
Is there something you want to do in RE, what qualities are you looking for? Or is it all about the money?
Oh my there is so much you can do with $10K:
Purchase cash flowing rental property or property for resale with seller financing involving low/no down and minimal closing costs.
Buy seriously discounted non performing notes. Either get them performing or use the foreclosure sale environment to sell the property at a profit.
Buy cheap vacant land and resell with seller financing.
Use the money to get your RE agent license. Even a couple of sales where you are the buyer's agent (or even referrals to other agents) for friends or family can be profitable (without the hassle and cost of marketing yourself to get listings).
I could go on, but I'll save my list for the ebook I'm never going to write. :)
- Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes11y
Originally posted by @Joe Cummings:
Buy a lot with a run down used trailer and rent it to some "party girl" type.
Go over there all the time to fix stuff.
When you get a late night emergency call, stay there until the wee hours of the morning snaking her pipes.
When your wife complains, tell her that you need more money to buy better properties.
That, is using leverage.
Joe: I usually try to ignore you. But "snaking her pipes" and "use leverage" are some of the funniest metaphors I've read in a long, long time. Well done.
- Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes11y
Originally posted by @Kyle Penland:
I could buy a property cash for that and generate 450.00 a month.
Can you buy cash flowing property in Dyersburg or nearby areas for $10K? My Grandma was from Dyersburg. My Dad's cousins are still there. How far out into the boonies do you have to go to find a rental property under $10K?
- Millbrook, AL · Member since 2015 · 20 posts · 12 votes11y
Hi Everyone!
WOW!! The response has been overwhelming. I am trying to take it all in.
There is one thing though that makes me curious. I hear so much about no money down. Maybe it is just because at this point I am uneducated but this sounds so much like a late night info commercial.
I am currently reading Mr. Hicks' post regarding land contracts. Is there a link or podcast specifically for no money down scenarios where it explains how you approach a potential property with no money down and don't come off sounding like a shyster?
Thanks again. You all are blowing me away!
- Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes11y
Originally posted by @Jon Carter:
Hi Everyone!
WOW!! The response has been overwhelming. I am trying to take it all in.
There is one thing though that makes me curious. I hear so much about no money down. Maybe it is just because at this point I am uneducated but this sounds so much like a late night info commercial.
I am currently reading Mr. Hicks' post regarding land contracts. Is there a link or podcast specifically for no money down scenarios where it explains how you approach a potential property with no money down and don't come off sounding like a shyster?
Thanks again. You all are blowing me away!
"No money down" isn't typical of offers you make on properties listed on the MLS. It can be done with lenders and MLS properties, but it usually takes more experience and understanding of your market. You have to get a real deal on your buy.
However, no money down is a real thing when negotiating seller financing. It's a real thing when purchasing properties subject-to existing financing (taking over the seller's loan). It's a real thing if you use your cash and/or a partner's cash as the initial down and then refi out of the property, thereby getting your initial cash back.
- Developer · Saraland, AL · Member since 2013 · 93 posts · 52 votes11y
how far are you from Auburn? Summer is here and over the next few months graduating students will want out of their mobile homes, new students will be coming in late summer. Closer to campus the better. 25% return is not impossible. I'm not in that market becuase i am a little farther south, but it's worth looking into. I a have a close friend that graduated from Architecture there, and said its a popular student housing option.
- New York, NY · Member since 2015 · 173 posts · 33 votes11y
@Michael Meeks are mobile homes the only resident housing there? Or just the fan favorite
- Developer · Saraland, AL · Member since 2013 · 93 posts · 52 votes11y
@Christopher Rodriguez not necessarily a fan favorite, but a good option for the student budget, and this investors budget.
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