What am I missing? 9 monthes, 1 deal...

52 Replies

I've been interested in real estate for over a year. In that time I have read God knows how many books. I have "partnered" with  a friend who has hard money connections.  I've been going through the pre-foreclosures for multiple local counties and trying to find numbers to contact the owners. The people I contact either don't want to talk about their troubles (classic denial) or have another avenue they are working on.  

Every book, website, forum, blog I read, makes everything seem easy.  Find a good home at a good price, make an offer, then sell to an investor for a profit. How hard can it be? Except for the part where I talk to someone who wants my help.

 I have been financially in trouble for a year.  I work 55 - 60 hours a week trying to make ends meet.  In my spare (lol) time I have been working the real estate. 

Here is my plea. I am motivated. I need help. A coach, a mentor, a partner.  I am willing to  do all the work. To learn. In return, I will split profits 50/50. I am open to terms. I just need to fill in the blanks. I want to be successful.  

Please help.  My family is counting on me.

Thank you.

Hey i'm running out the door but don't want to forget this post. Send me a PM and lets talk about how you're approaching the marketing. I may be able to offer some help.

@Henri Meli Are you saying that 9 months and one bird dog deal is not being patient? How long before you started making deals?

The only people that "make it seem easy" are trying to sell you something. The only time RE is easy is when you have a ton of liquid capital. Doing deals without money or experience is hard... which is what you are trying to do.

Have you joined Real Estate Clubs and Real Estate Meet Up Groups?

Where do you stand with House Hacking and a FHA 3.4 % mortgage?

Originally posted by @John Baker :

@Henri Meli Are you saying that 9 months and one bird dog deal is not being patient? How long before you started making deals?

I invest mostly in SFR. Took me about a year to close on my first SFR. Less than a year later, I did my second deal. For you, things might be different. But, I think in general, when starting from scratch, RE takes time to gather knowledge, resources, build relationships and customer base, create habits, go through a few failure scenarios, ... etc.

9194343132 | http://wouri.net

If you are a "one trick pony" and only trying to wholesale or fix and flip with 65 % LTV, and have very limited money to invest in marketing, it is not unusual to go 9 to 12 months with very little to show for it, maybe longer

If you are a transaction engineer, with a full toolbox, helping sellers sell and maximizing their equity, you can buy on "sub to", wraps, lease options, and installment sales on free and clear properties.

You can jv with sellers on minor rehabs that do not fit traditional numbers.

See @Dev Horn s marketing video "the rule of 7" which means it takes seven mailings to one list to get a meaningful result

Where I live in Los Angeles it's not uncommon for people to spend five to $10,000 every month when searching for wholesaling prospects

Wholesaling is not for the faint of heart. 

If you can do anything to help you learn wholesaling, talk to

@Dev Horn

@Jerry Puckett

@Michael Quarles

Medium banner reiskills 997   copyBrian Gibbons, REISkills | [email protected] | 818‑400‑3046 | http://MyREISkills.com

@John Baker

I agree with Joe B in that the only people who make it seem easy are probably trying to sell you something. if you listen to the podcasts on this site, you will see that most (if not all) of the successful investors will tell you how much hard work it is, especially starting out. Most of them state that starting out with little to no money is possible, but it takes lot of hard work and will not happen overnight. As the saying goes, if it were easy, everyone would be doing it.  Keep your head up and stick with your plan. You have to be consistent with whatever means you are using to generate your leads. 

I appreciate everyone's comments.  Thank you. @Brian Gibbons You asked about a one trick pony.  I have been focused on foreclosures. That was my initial focus. In my reading (many, many books) I have read about probates and abandoned houses. By adding these to my daily endeavors, is that what you were referring to?

Originally posted by @John Baker :

I appreciate everyone's comments.  Thank you. @Brian Gibbons You asked about a one trick pony.  I have been focused on foreclosures. That was my initial focus. In my reading (many, many books) I have read about probates and abandoned houses. By adding these to my daily endeavors, is that what you were referring to?

https://vimeo.com/channels/934729

PM me if I can help.

Medium banner reiskills 997   copyBrian Gibbons, REISkills | [email protected] | 818‑400‑3046 | http://MyREISkills.com

Originally posted by @John Baker :

 I have been financially in trouble for a year.  I work 55 - 60 hours a week trying to make ends meet.  In my spare (lol) time I have been working the real estate. 

Here is my plea. I am motivated. I need help. A coach, a mentor, a partner.  I am willing to  do all the work. To learn. In return, I will split profits 50/50. I am open to terms. I just need to fill in the blanks. I want to be successful.  

Please help.  My family is counting on me.

You're not going to like it.

Truthfully, in order to get started, you need either Time OR Money.  Your post makes it fairly obvious that you aren't in a position to contribute much of either at this time in your life.

My advice would be to focus on your primary career.  Once you are more established, able to support your family and make ends meet on a regular 40 hour work week (or whatever is normal in your field), then you should look back at RE.  

You can do RE with a lot of money, with no money and a lot of time/effort, or with some money and some time/effort.  But trying to do RE with no money AND little to no time/effort is a losing venture.  The simple reality is that you aren't in a position to contribute enough to earn the 50% of the profits that you are pleading for.....

If your primary career choice is not financially lucrative, I'd suggest trying to find a full-time job with a RE company or investment company.  At least then you'll be learning and making significant contacts for down the road, when you're better situated to actively invest.

@Robert G.

That is awesome advice

I would add go to every REI a meeting and change cards and have "I buy houses"

Real estate is a team sport and if you have a good team you don't need a lot of time

Medium banner reiskills 997   copyBrian Gibbons, REISkills | [email protected] | 818‑400‑3046 | http://MyREISkills.com

Originally posted by @John Baker :

I've been interested in real estate for over a year. In that time I have read God knows how many books. I have "partnered" with  a friend who has hard money connections.  I've been going through the pre-foreclosures for multiple local counties and trying to find numbers to contact the owners. The people I contact either don't want to talk about their troubles (classic denial) or have another avenue they are working on.  

Every book, website, forum, blog I read, makes everything seem easy.  Find a good home at a good price, make an offer, then sell to an investor for a profit. How hard can it be? Except for the part where I talk to someone who wants my help.

 I have been financially in trouble for a year.  I work 55 - 60 hours a week trying to make ends meet.  In my spare (lol) time I have been working the real estate. 

Here is my plea. I am motivated. I need help. A coach, a mentor, a partner.  I am willing to  do all the work. To learn. In return, I will split profits 50/50. I am open to terms. I just need to fill in the blanks. I want to be successful.  

Please help.  My family is counting on me.

Thank you.

Wholesaling is hard work. Almost hard enough for it to not be worth it. Who wants to be told no and piss off repeatedly? No one. I can think if few other professions that this happens on such a frequent basis. (Doctor? Teacher? Waitress? Start-up entrepreneur? Not nearly as much and not in the same way to all). And putting in an offer on the MLS, with it being rejected is not the same thing. That doesn't feel nearly as bad.

I would save the money you make at your current job until you have enough for a down payment, and go from there. Feel free to shoot me a PM if you want to chat further.

And PLEASE, don't spend money on marketing, that your family doesn't have.

@John Baker

not sure how your trying to attack pre foreclosures .. however I have done many many of them in the day... I had a team of 6 3 couples that knocked on every single NOD in my tri county area. now that is coverage.. We did some direct mail and of course if you spend enough you can get some leads... But here is the thing with pre foreclosures.

1. owner in denial..

2. owner will get a minimum o f 50 to 100 yellow letters.. sob story letters etc. to the point they disregard them because they all say the same thing.

3. No money and trying to bail out a pre foreclosure right there is a non starter..

4. not many folks with decent equity in foreclosure these days.. so your HML is going to want to see equity most likely.

5. You need significant cash.. because in my experience in doing this for many years and well over 150 homes bought pre foreclosure.. is the deals happen within 48 to 72 hours of the actual sale.   And most of the folks will need 15 to 50k to bring it current and keep the sale from happening.. there is no time for a loan.. you need to be able to stroke a check. you need to know how to deal with the trustee companies you may need to send a driver with a cashiers check into the company to stop the foreclosure etc. This is when the deals are made and one of the reasons we were so successful at it. so many of the competition really did not have any real money or liquid capital they could tap on a moments notice.

that's the reality of NOD buying.

Medium ksqoekox 400x400Jay Hinrichs, TurnKey-Reviews.com | Podcast Guest on Show #222

@John Baker

 You need to have faith brother, I started out about 9 months ago with my first unit, then dry for a few months, now I'm almost rolling on 6.  All this was done without paying for any marketing (although I'm getting ready to start marketing now).  Successful real estate investors have the guts to take calculated risks.  I'm a long believer that your best marketing system is WORD OF MOUTH.  I bought 2500 business cards and I've been handing out about 5 a day.  Talk to everyone, you never know where the next deal will come from and just remember 1 deal can pay for possibly years of marketing.

If you haven't listened to all the podcasts, listen.  If you've listened to them all, listen again.  You'll pick up on things that you missed or possibly with new experiences you can learn something new.  Hands down the best resource on the internet.  Drives to work, drives to the gym, while in the gym have all turned into podcasts times.  Keep up the AWESOME work Josh!

@Joshua Dorkin

Real Estate Guru Promotions !!!!

Real Estate can be done by anyone from anywhere without money or credit !!
Buy our course and we will show you how !!

Make millions in real estate from your couch, from on the beach, without effort 30 minutes a day !!

Reality: You cannot own real estate or buy it without money , period

Those that get involved in real estate with little money out of pocket have to offer the time and do the work other's need such as applied to 

. Due diligence, establishing accurate and real ARV (after repair value)

. Obtaining real and reliable repair costs

. Being able to identify code violations and structural issues with a building including soils data and conditions

. Ability to identify possible drainage problems with a property

. Knowing city and or county requirements for buildings and permits

. Knowing where to obtain tax info and verify existing or non existing liens

. Obtaining reliable property comps

. The Ability to get a property under contract and avoiding an act or practice that requires a real estate license.

. Ability to get enough properties under contract to market to other investors or buyers

. Ability to professionally establish a strong marketing campaign for lead generation and actual deals to offer other investors or buyers

Note: You are selling a service and a product so you cannot afford to run out of product and your service has to be competitive and outstanding

. Ability to understand and effect good deal structuring

Note: 

Does all of the above sound like you can do it with little or no effort from sitting on your couch at home or from on the beach? Certainly not at first. You will have to wait until you build your way up to that, and that will take an awful lot of work. 

I read a post on here from someone who was succeeding at wholesaling and they stated their past marketing campaign had cost them $67,000.00 and that their up coming Marketing campaign would be costing them around $100,000.00. Does that sound like they are doing something without money? That is just one marketing campaign and did not mention anything about all the hours and other expenses it was taking them to run their business. No mention was made about the time and effort or cost to meet owner/sellers or hammer out contracts or time and expense to meet with and assign contracts to other investors or buyers. Sound like they are doing things from on the beach 30 minutes a day to you?

I have seen videos by other successful wholesalers claiming to have budgets of around $400K, still think this can be done effectively without money?

GET REAL PEOPLE ! YOU EITHER HAVE TO HAVE MONEY OR A COMBINATION OF TIME AND MONEY, PERIOD. 

NOT SO MUCH MONEY? THEN ALLOT OF TIME AND HARD HARD WORK

LIKE ANY BUSINESS REAL ESTATE INVESTING REQUIRES KNOWLEDGE, INTELLIGENCE, IMAGINATION, DEDICATION, DEVOTION, FORTITUDE, PERSISTENCE, AND A LITTLE OR ALLOT OF LUCK  AS WELL AS ALLOT OF EFFORT AND YES SOONER OR LATER MONEY AND ENOUGH MONEY OTHERWISE YOU JUST ARE NOT GOING TO LAST. 

CAN IT BE DONE? SURE, IT JUST DEPENDS ON HOW BAD YOU WANT IT KNOWING THERE IS NO GUARANTEE FOR ANYONE WHETHER THEY START OUT WITH OR WITHOUT ALLOT OF MONEY.

From what your saying it sounds like Pre-Foreclosures are giving you a hard time which is probably because the owner is already REALLY upset about their homes being foreclosed.

What I would do is look at FSBO that is where I'm having the most luck besides Probates and Absentee Owners.

Good Luck I can see your trying to make it happen.

So you think 9 months and 1 deal is bad? Let me share with you a little bit of my story. I started working in real estate in 2008. I got sucked in to one of these guru presentations that made it sound SOOOO Easy! After spending $31 Thousand!!! Yes THOUSAND dollars on these classes and 7 years with NO successful deals I am still here and I STILL believe real estate is the best thing going!

Have a little patience. Look at what you are doing I bet if you look hard enough and are true to yourself you will find that there are some areas that need improvement in your business plan. As for me I found a mentor in a rather peculiar way. After trying for years to wholesale properties only to find out one of my colleagues was nearly arrested for wholesaling I decided to get my Real Estate License. I picked a brokerage firm that offered a mentor as part of my training. That person has been the best mentor one could ever ask for!

RE is not a get-rich-quick game....you built wealth over time and it takes patience, diligence and comitment to achieve success.

Keep the spirit up and never give up.....

However, If you wanted a quicker route to wealth, may be you should look elsewhere..

My one cent!!

@John Baker I'm surprised no one else brought this up so here goes... please don't take this the wrong way, but real estate investing isn't the solution to your financial problems.

If your working 60 hours a week at any kind of job, your problem isn't income, your problem is spending. You have to get your spending under control before you can even think about taking on any investments. As has been pointed out, real estate takes time or money, and usually both.

Do you eat out? Stop.
Do you have more than 1 car? Sell them.
Do you have more than one phone? Get rid of them.
Do you have cable? Cancel it.
Do you have a big house? Downsize.

Cut out everything besides absolute necessities and get your spending down below your income and keep it there.

If you or your family refuse to be satisfied with the basics while you get things in order. Then it won't matter if you increase your income 100x with a massive real estate business. You'll just find ways to spend it all and be in the same position you're in now.

Sorry if this sounds harsh.

@Doug Pretorius

  good points.. I guess I should never have bought that airplane I certainly did not need one much less two of them :)... along with many other creature comforts.  But I hear what your saying.

but the reality is.. this is a TOUGH game if you don't have the time to put into it.. you can cut all the expense's you want but if you can only work it 10 hours a week well then your going to have to hit some luck deals.  Many many folks would be far better off doing what you talk about and Dave Ramsy does .. get debt free first build up cash then move into the game when you have some capital and time to devote to it.. or make a career change and get into it full time... for me I stated at 18 and did not know any better its the only job I have ever had.. a great one.. some great times some bad times ( 08 to 2010) but all in all a very satisfying career

Medium ksqoekox 400x400Jay Hinrichs, TurnKey-Reviews.com | Podcast Guest on Show #222

Apparently, I can't explain my life in one post. So here is some clarification.

1. I work a 45 week job. I also have a 15-20 hour week "hobby" as a karaoke host which brings in a couple of dollars.

2. I am/have been committed to RE.  I spend 15-20 hours a week on this. 

3. I have tried door knocking, multiple mailings, and now deep research to find working telephone numbers and calling to owners

I never meant to imply I thought this was get-rich-quick. I am looking for hints to help, little things I might be missing to help me. A good book to read, a good script, a direction to go. @Brian Gibbons  suggestion of not being a one trick pony was very helpful. @Account Closed  thoughts about absentee and probate. 

I have been searching BP and have taken advice form here....but its so BIG!!  and when one is starting out, you're not sure what to search for.

That being said, Thank You All, for your help, thoughts and concerns.

you may want to consider expired listings that's what I coach people to work with sellers have already tried to sell with real estate agents

Being licensed and going after expired listings exclusively helps you keep your marketing costs down

You assist seller and use tools such as subject to existing financing or sub two, wraparound mortgages, and lease-option assignments as acquisition strategies

If it's sub to or wraps, you need a quick exit so either reselling or leasing to own with a good tenant buyer

Lease-option assignments for pretty houses with little equity are also a good strategy

@Dev Horn  

"Don't be a one trick pony cash or terms or list the house as a licensed agent" is a way to have a complete tool box and make money more of your leads

Medium banner reiskills 997   copyBrian Gibbons, REISkills | [email protected] | 818‑400‑3046 | http://MyREISkills.com

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