Where to start? Seems impossible to break in to this

Naperville, IL · Member since 2016 · 49 posts · 11 votes

It seems like this is an impossible task with both limited funds and time. I work full time and with a kid in day care, how do you have the time and money to buy, rehab, and rent a multi family building?

What’s the best way to become financially independent?

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Anna CatronPro Member

Fort Worth, TX · Member since 2017 · 207 posts · 87 votes

As far as I can tell, the answer is OVERTIME. To get ahead, we're going to have to work overtime and give up sleep, time with family, alcohol etc. But it is worth it. I fill my head with stories about people who put in the time and made it big. I just listened to THE WEALTH CHOICE. Made me feel like a spoiled brat and helped me get up earlier in the AM to get s%&$ done! Essentially, all the podcasts tell us to be Buddhist. "Life is suffering, it has a purpose, learn to deal with it, it will be worth it".

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Corby GoadeBusiness Member
Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
6y
It's not impossible- lots of people do it, but in order for gurus and authors to sell books, they have to make it SEEM easy. The truth is, it's not complicated, but it requires lots of time and attention, especially as you are getting started. You have to sacrifice your free time and your family time in order to make it work, and you aren't likely to reap any real rewards for a few years. Everyone wants a quick and easy buck, but many people are willing to make the sacrifices that are necessary to put them in the position to do so.
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Rental Property Investor · Twin Cities, MN · Member since 2019 · 122 posts · 150 votes
6y
@Jeff Adams listen to @Anthony Dooley.
Find an investor looking to offload properties.
- a word of caution though -
Don't buy a deal because of seller financing. Buy a deal because the numbers work, you have diminished risk and the property is a wise investment.
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Justin Bartram
Rental Property Investor · Ashland, KY · Member since 2019 · 16 posts · 5 votes
6y
@Jeff Adams
I’d recommend you look into some of my blogs I’ve written lately. I’m working full time swing shift, going to college online full time and about to have our first baby.
It is definitely possible. I won’t say that it’s easy but it is possible. We’ve utilized creative financing and have spent 400$ out of pocket on our past two houses, with the exception of gas to and from.
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Nick Tran
Flipper/Rehabber · Alexandria, VA · Member since 2014 · 47 posts · 7 votes
6y
@Anna Catron so true. I started listening to buhdism also. Mostly patience and suffering is key.
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OP
Naperville, IL · Member since 2016 · 49 posts · 11 votes
6y
Thanks @Corby Goade
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Sam Martin
Cumming, GA · Member since 2020 · 16 posts · 8 votes
6y
To give encouragment,
10 years ago I finally made a move and with my FIRST offer I made a Fantastic purchase. To be honest I have been dabbling into this real estate area of creative finance since I first saw these concepts 25 years ago. I basically took ideas I gleaned from that course and was able to find the right "seller". I met this man that had a Duplex in Keizer, OR. He had purchased it originally for $85k and was having trouble selling it in 2009. I had NO money. I was able to buy the property with NO MONEY DOWN only paying for the $400 appraisal. The deal was a 3bd 2 ba with a 1 bd apt above the detached 2 car garage on 1/3 acre. The rent on the house brought in $1200 per month and the apt brought $600. the seller wanted $160000 for the property. Now the hard money would NOT loan anywhere near the actual appraised value which was $235000. They offered maximum $120000. I had the dilemma. HOW do I come up with $40000 to pay for the rest of the house???? I had NO money. So I got creative and explained to the seller my situation and how I was going to finance the purchase. Because I already KNEW he bought the property for $85k I knew what he had in it. So I just asked him... "will you carry a note for 1 year for $40000 so that I can have time to get a refi???? He agreed and it was DONE !!! The mortgage from the hard money was $1200 per month at a high 13% interest. I bought a $235000 property for $400 and had an immediate GROSS cashflow of $600 per month from day one. It all happened because I searched for a property that had been for sale for an extended period and I contacted the seller just to meet with him and make him an IMPOSSIBLE offer. If you DON'T ask you will never know.
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Phil Wells
Real Estate Agent · Spokane, WA & North Idaho · Member since 2017 · 135 posts · 170 votes
6y
Nothing is impossible.
Go to your local REI meet ups, talk to people - who knows maybe you'll find an older guy looking to retire who wants to offload his multi-family property portfolio and just wants a monthly paycheck. Who knows maybe he is willing to seller finance, maybe it doesn't even require rehab! This is obviously a dream scenario but you get my point.
Maybe you could house hack your existing property. Maybe you could start a weekend side hustle, for example, as a wholesaler, real estate photographer or real estate agent to bring in extra cash and get to know your local real estate market a little better.
Where there's a will there's a way.
Good luck on your path to financial independence!
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OP
Naperville, IL · Member since 2016 · 49 posts · 11 votes
6y
@Phil Wells great insight, brother!
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James Fraundorf
Investor · Seattle, WA · Member since 2019 · 47 posts · 18 votes
6y
@Justin Bartram
I need to connect with you! I’m working full time and in grad school full time and trying to get in to the game with RE. Good on ya man. Gonna read your blogs
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OP
Naperville, IL · Member since 2016 · 49 posts · 11 votes
6y
@Sam Martin how did the note work. Just signed an agreement and paid him monthly?
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Ahmad Shah
Member since 2019 · 14 posts · 1 vote
6y
@Ronan Donnelly hey, I am interested in wholesaling properties, the issue I am having is learning the contract process, like what fees the seller pays and what fees the buyer pays etc.. is there a book you can recommend that teaches the process of, not necessarily wholesaling but, buying and selling real estate and how to come up with an offer.
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Joshuah Mundy
Fenton, MI · Member since 2017 · 26 posts · 9 votes
6y
@Jeff Adams
Look up Alan Cowgill. he has a system that teaches you how to find private money from Friends family and associates. He also teaches you what the rules and regulations are to advertise and find private lenders that way. But really if you find a person or a company's system and you like it, buy it and only do that. Obviously check reviews. If you stay consistent and persistent I believe anyone can become successful.
I hope this helps. And I wish you luck on your future success!
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Jorge Perez
Residential Real Estate Broker · Miami, FL · Member since 2017 · 31 posts · 18 votes
6y
@Jeff Adams You are probably going to get a million replies to this post on strategies and tactics but the most important thing in my opinion is mindset. You have to find your WHY(purpose) to be financially free through REI, set a definite goal and put your head down until you achieve it.
Start by saving, then start researching a 1-4 property that you can live in and rent the rest.m as a first investment.
With that confidence you can move on to bigger properties that ironically you won’t have to manage because a property manager does that job.
Doesn’t matter when you start, just take the first step.
Best of luck.
1 Reply
Sam Martin
Cumming, GA · Member since 2020 · 16 posts · 8 votes
6y
@Jeff adams

The note was simply deferred for one year with no interest and no payments . $40000 carried by the seller.
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Jason Robinett
Real Estate Investor · Kirkland, WA · Member since 2011 · 18 posts · 1 vote
6y
@Jeff Adams
Jeff we were all in your shoes at one point. Limited time and capital is tough, however the best thing you can do is buy a duplex, triplex or fourplex. Is this the only way to get financially free? No.
However your can buy one with only 3.5% down, possibly negotiate a seller credit at closing for “repairs” and put even less down.
Assuming you purchased the property correctly, it will appreciate while the mortgage is paid down and cashflow. You could implement the BRRRR strategy or 1031 into a larger property.
Appreciation and equity is the single best way to gain capital to invest. Start with one and go from there. There will be a snowball effect overtime as you gain more and more properties!
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David Dachtera
Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
6y

The answer to your questions and to learning is education.
I know - there's a LOT of skepticism around paid education. After all, the FTC just put a BUNCH of the gurus out of business for deceptive practices.
There IS education available without any gurus at all.
Yes, a key skill is learning to find and attract people who need to invest their money in SOME thing. Real estate deals provide safer investments without the volatility and risk of the stock market. You can them provide an alternative once you learn how to do that, and do it the LEGAL way.
Also, through education, you'll learn how to let go of the "do it all yourself" mindset and learn how to build a business that runs without you, and learn how to protect yourself, your family and your personal possessions from the risks of your real estate business.
Working harder is just spinning your wheels until you learn how to work smarter.
My $0.02 ...
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Brian Mackey
Real Estate Agent · Baton Rouge, LA · Member since 2019 · 84 posts · 33 votes
6y
@Jeff Adams
Jocko Willink?
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OP
Naperville, IL · Member since 2016 · 49 posts · 11 votes
6y
@Brian Mackey haha yea.
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OP
Naperville, IL · Member since 2016 · 49 posts · 11 votes
6y
@David Dachtera we should connect. I’m interested in the yorkville area
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Ryan KellyBusiness Member
Real Estate Broker · Austin, TX · Member since 2018 · 1k+ posts · 1k+ votes
6y
@Jeff Adams Buy and Hold is the clear path to long-term wealth. The other strategies are for building cash, like flipping. Rehabbing and then keeping as a rental is simply another buy and hold strategy. With your limited time and resources, I recommend not getting in over your head and keep it simple. First, continue to educate yourself. Second, consider something east like a single-family home as a rental. Get your feet wet, make your mistakes in something small, and then decide how or if you want to scale up. Good luck!
[email protected]512-674-5478
Ryan Kelly Group - Keller Williams5112 Reviews
Website View Page
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OP
Naperville, IL · Member since 2016 · 49 posts · 11 votes
6y
@Ryan Kelly. Thanks brother! I was actually thinking the same strategy as your post, after all of the replies here. Great way to sum this up! Cheers
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Aaron Taylor
Olathe, KS · Member since 2018 · 148 posts · 207 votes
6y
Even before you start investing, you have to get your finances and time management in order. Like these things:
1) Get your finances in Mint or Personal Capital
2)  start working on cutting your expenses
3) start trying to find ways to save up more time in your day. Like maybe work from home to save commuting time, etc.
4) while saving this money (now a higher rate due to the better income/expense gap) you need to start getting educated. Podcasts, books, researching markets, etc. Books like Set for Life, the Millionaire Next Door, the Millionaire Real Estate Investor, Rich Dad Poor Dad, Cash Flow Quadrant, etc. You need to have this education so you know make smart choices.
5) Start looking for real estate locally. Analyze different deals so you can figure out what a good deal looks like. Do it over and over.
6) When you have enough saved up, pull the trigger. I wouldn't even do a rehab for your first one, just buy one that cash flows right out the gate and is setup to have minimal problems for years (i.e. newer roof, furnace, etc).
After you have that one, things will start snowballing. You just need that first one. After things will get a lot easier because of the confidence boost it will give you.
All of these guys touting syndications, that's great if you make a crapload of money each year. Most people don't, and would be better being more active, at least to start. Basically, if you have more money than time, do passive, and if you have more time than money, do active. You have to decide how bad you want it as well, you have to make some sacrifices if you want to get ahead financially.

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OP
Naperville, IL · Member since 2016 · 49 posts · 11 votes
6y
Thanks @Aaron Taylor. Another very logical response.
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Pete Storseth
Investor · Houston, TX · Member since 2019 · 274 posts · 61 votes
6y
@Jeff Adams
You got it man, no analysis paralysis bud.
Buy the brrrr book. No strategy is better. If I had the m ok ney I'd start there. Instead I will be house hacking... no biggie
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