Formulating an Aggressive Game Plan Mastermind 🦄

8 Replies

End Goal: Save the family farm

I've been studying Real Estate Investing since 2002 but have yet to actually get into it. I'd give reasons why, but they'd all sound like excuses. I've been devoted to raising my three children and most days (especially recently as we've made the decision to homeschool during this season with COVID) it's a struggle to get through the day unscathed just to get up early and do it all over again the next day. A recent visit home has relit a long held desire to prepare for the inevitable bail-out of my family's multi-generational farm. I'm estimating it'll take 2M, not including cost to rehabilitate and start fresh operations. It's located in Virginia, but my husband and I are currently raising our family in Phoenix because of his work. He's told me if I can replace his income, he'd quit and we can move back to Virginia. Having been a stay at home mom for over a decade, he knows I've got little hope of that happening. I guess my question for the most experienced investors out there would be, if you had to start from scratch to build either a 2M nest egg or a big enough nest egg to afford a 25% down payment and cash flow from investments enough to cover the debt service and do this rather quickly (2-5 years), how would you do it? I may miss the mark and the farm could be forced to sell before I can actually bail it out, but maybe I could purchase it back after-the-fact. I know you're not supposed to mix emotion with business, but emotion can be a great motivator. This year I've been getting started as a Realtor, thinking that since my youngest was supposed to be in 1st grade this year, I would have time to focus on that business, but Covid turned me into a full time homeschool mom instead. I get up at 5 or 6:30 most days (depending on if I'm too tired and sleep through the first alarm) and we work on school until sometimes 5 or 6 at night with an hour break for lunch. We're planning on homeschooling for the 2021-2022 year as well, but plan on sending them back to school after that which will free up my time substantially. I am serving buyers and sellers in the evenings and on weekends and keeping up with business aspects between working with the kids on their assignments. The housework is not getting done, though I do keep up with the laundry, and while our meals are lacking in the quality of time, preparation, and presentation than what we were used to before Covid, everyone is still getting fed, so I'm counting that as a win. While my husband's income is more than enough to cover all of our household expenses and budgeting needs, he's not comfortable using his 401k or our home equity to acquire real estate. Obviously, I don't have a track record and he doesn't want to risk our family's financial security, which is understandable. I am not sure if I would be able to convince him to sign with me on loans. I have no assets of my own other than $1,000 in my personal savings account, but plan to add more with every sale from my pursuits as a Realtor. I do have an LLC set up that I could use as needed. I don't know how inter-state businesses work (if I were to purchase RE in Virginia, do I need an LLC in VA? How are taxes paid? How do you manage a company with holdings in two different states? I'd like to focus on buy and hold in VA since I plan on moving back permanently at some point in the future, but I guess these days that doesn't really matter as I could have investments here in Phoenix and use them as a tax write off when I fly back to visit. The world seems smaller than it used to be. I need to set up appointments with a RE Lawyer, CPA, and who do I talk to about estate planning and the like?). I probably haven't got started because getting started just seems so overwhelming with trying to juggle everything else. Any solid advice on how to set up a game plan would be greatly appreciated.

Thank you so much!

Erin Estes

PS if you are ever Mountain Biking in the west Phoenix area, look me up! 🚵🏼‍♀️

@Erin Estes to make your long story short your plate is full for the time being and it sounds like your husband is not comfortable investing at this time. Where is he on the idea of rescuing the family farm? If you replace his income as a relator and move to virginia, what happens? You have to build a new client base in VA. You really need to decide if you want to invest or you want to save the farm because they may not be the same thing, when you decide then try to bring your husband on board for the idea.

The best thing I think you can do to reach either goal is develop your real estate business and analyze deals along the way to recognize what a good one looks like so you are ready to jump with a down payment. If you weren't living on your income before you became a relator don't live on it now. Put it aside for an investment down payment. There really aren't any short cuts. 

I understand the notion of trying to save the family farm. My husbands family went through it and in the end they sold some off to retain something smaller. Now my family tried to keep my parents home in the family and it was a bad idea. Thankfully mother nature intervened and blue acres bought it. Retaining a heritage doesn't necessarily align with investing and it is a road full of emotional and financial pitfalls so think seriously about what you are trying to achieve. 

Thank you so much @Colleen F. ! You are so right.  It’s definitely difficult focusing on one thing at a time when you’re demanded in a lot of different directions.  A Jack of all trades is a master at none.  I recognize the attempt to save the farm would potentially cause more problems than not.  I suppose I’d better put my head down and plug away.  I’d like to try to replace his income with passive/rental income (either with properties in VIrginia or Arizona or, more likely, both).  My income from being a Realtor will all be going to that endeavor!  I suppose I ought to focus on bringing that up for now.

@Erin Estes   and I hope you are enjoying the arizona sunshine! I am in Apache Junction some of the year.   Have you considering renting or selling off some of the farm if your family can't sustain it.  I don't want to discourage you but it finding a property in your backyard now may be the best way to get started. 

They’ve whittled it down over the years but there are management issues and too many names on title, some of which would like to be bought out, I think.  It’s a mess.

Erin, it seems like you have a situation similar to my own. I've been raising my family and investing in real estate on the side, setting myself and my husband up for early retirement. I also have a similar goal of buying the family lake house. It might be worth chatting and starting a mastermind to problem-solve? 

Originally posted by @Erin Estes :

End Goal: Save the family farm

I've been studying Real Estate Investing since 2002 but have yet to actually get into it. I'd give reasons why, but they'd all sound like excuses. I've been devoted to raising my three children and most days (especially recently as we've made the decision to homeschool during this season with COVID) it's a struggle to get through the day unscathed just to get up early and do it all over again the next day. A recent visit home has relit a long held desire to prepare for the inevitable bail-out of my family's multi-generational farm. I'm estimating it'll take 2M, not including cost to rehabilitate and start fresh operations. It's located in Virginia, but my husband and I are currently raising our family in Phoenix because of his work. He's told me if I can replace his income, he'd quit and we can move back to Virginia. Having been a stay at home mom for over a decade, he knows I've got little hope of that happening. I guess my question for the most experienced investors out there would be, if you had to start from scratch to build either a 2M nest egg or a big enough nest egg to afford a 25% down payment and cash flow from investments enough to cover the debt service and do this rather quickly (2-5 years), how would you do it? I may miss the mark and the farm could be forced to sell before I can actually bail it out, but maybe I could purchase it back after-the-fact. I know you're not supposed to mix emotion with business, but emotion can be a great motivator. This year I've been getting started as a Realtor, thinking that since my youngest was supposed to be in 1st grade this year, I would have time to focus on that business, but Covid turned me into a full time homeschool mom instead. I get up at 5 or 6:30 most days (depending on if I'm too tired and sleep through the first alarm) and we work on school until sometimes 5 or 6 at night with an hour break for lunch. We're planning on homeschooling for the 2021-2022 year as well, but plan on sending them back to school after that which will free up my time substantially. I am serving buyers and sellers in the evenings and on weekends and keeping up with business aspects between working with the kids on their assignments. The housework is not getting done, though I do keep up with the laundry, and while our meals are lacking in the quality of time, preparation, and presentation than what we were used to before Covid, everyone is still getting fed, so I'm counting that as a win. While my husband's income is more than enough to cover all of our household expenses and budgeting needs, he's not comfortable using his 401k or our home equity to acquire real estate. Obviously, I don't have a track record and he doesn't want to risk our family's financial security, which is understandable. I am not sure if I would be able to convince him to sign with me on loans. I have no assets of my own other than $1,000 in my personal savings account, but plan to add more with every sale from my pursuits as a Realtor. I do have an LLC set up that I could use as needed. I don't know how inter-state businesses work (if I were to purchase RE in Virginia, do I need an LLC in VA? How are taxes paid? How do you manage a company with holdings in two different states? I'd like to focus on buy and hold in VA since I plan on moving back permanently at some point in the future, but I guess these days that doesn't really matter as I could have investments here in Phoenix and use them as a tax write off when I fly back to visit. The world seems smaller than it used to be. I need to set up appointments with a RE Lawyer, CPA, and who do I talk to about estate planning and the like?). I probably haven't got started because getting started just seems so overwhelming with trying to juggle everything else. Any solid advice on how to set up a game plan would be greatly appreciated.

Thank you so much!

Erin Estes

PS if you are ever Mountain Biking in the west Phoenix area, look me up! 🚵🏼‍♀️

 Wall of Words...(the secret word for today is "Paragraphs").

Hi Erin,

There are some people who can get 100% loans to buy farms.

Here are some links:

https://www.fsa.usda.gov/programs-and-services/farm-loan-programs/farm-ownership-loans/index

https://www.fsa.usda.gov/programs-and-services/farm-loan-programs/minority-and-women-farmers-and-ranchers/index

And some inspiration: https://www.youtube.com/watch?v=2gzTRwnFmFM

Good Luck!

Originally posted by @Jamie Beltran :

Erin, it seems like you have a situation similar to my own. I've been raising my family and investing in real estate on the side, setting myself and my husband up for early retirement. I also have a similar goal of buying the family lake house. It might be worth chatting and starting a mastermind to problem-solve? 

LOVE this idea!  @Brandon Turner can we form groups (or chat rooms? Are those a thing anymore?) to collaborate? Just an idea for the BP website!

 

@Scott Mac You are so right! 🤣🤦‍♀️ I get fussed at for doing the same thing in my Christmas newsletters! 😬 Don’t tell my English teachers!

Thank you so much for those links!  I will look through them.  I think they’d probably want a business plan and I haven’t thought that far ahead, but it’s good to know those options are out there if we needed to move more quickly than I’m anticipating.  I understand business principles, but I have no idea how to run a farm, so I’d definitely need to collaborate or exchange stock in the business for services from a successful farm manager or something.