Actionable Steps while in the Saving Phase?

Question

Hi BP,

Say you find yourself with a year to save.  In addition to reading, podcasts and studying your local market via listings on the web...

I would really like to hear about actionable steps that one could be doing during this phase.  What do you do to keep yourself focused, motivated and productive, while in a holding pattern?

Thank you.

Karen Margrave · Answer

Michael Spindler and Elizabeth  Colegrove  Have either of you considered studying to get your real estate license? Learning the Real Estate Principles (which is usually a required class for a license) gives you a good foundation on which to build. You will learn the general information on real estate law, contracts, financing, escrow, title, etc.You might even be able to begin working as an agent and help grow your nest egg.

Another thing you might do is learn the process of buying and selling property, if you don't already know it. Do you know what they do at a title company? The process of obtaining and funding loans?

Also, get to KNOW your local market, different neighborhoods, what is listed and selling, and what you get for that price. Go to Open Houses, look at appliances, finish work, how high are the ceilings? How big is the lot? Is there a HOA, if so, what are the costs?

Do you know about the process of remodeling? Plans, permits, fees involved, etc.? Go to the Planning and Building Depts. in your town and get whatever handouts they have, and get a fee chart.

Sometimes you need to get past the "theory of how to do real estate investing" and actually get out there and see how it's done. There's so .. many things you can do other than read. Good luck!

Michael Spindler · Answer

Elizabeth  Colegrove

Thank you for that perspective.  You and I will be in considerably better positions when it does come time to buy...  vs. the guy with $50k to spend with no knowledge.

Are you physically going to properties to evaluate?  Kind of a warm up...?

Thank you and best wishes.  I have no doubt your first will be profitable.  : )

Elizabeth Colegrove · Answer

Michael Spindler we are in the same place as you. We are not buying for at least 10 months. In addition to what everyone else said. I am also looking at places that fit my criteria as they come up. Yes it is a little frustrating not to be able to buy. My goal is to know exactly what is a "great" deal in the current time frame. So that way when I go to buy we know when to pass something up and when to put an offer on it.

Michael Spindler · Answer

Deborah B.

Hi,

Thank you for the clarification.  I have been reading your blogs, regarding your experiences with the tenants. You are an incredibly patient person.  My hat off to you kind soul.

That said, it is another brick in the wall for going with a property management company, for me.  Though I have read a number of equally disturbing horror stories regarding PM's.

I will definitely be researching this angle very thoroughly before picking one.  With as much care as screening a tenant. : )

Best wishes and continued success to you.  Can't wait for more blogs from you.

Deborah Burian · Answer

Michael Spindler - you will need a plumber as well, lol.  As far as automation, I'm thinking in terms of a seamless process for receiving applications and processing background checks, some kind of built-in follow up system for late rents, the same for handling maintenance or update requests, etc.  If you're working on saving, I'm assuming a day job.  These small tasks can be unbelievably time consuming if you're not thinking in terms of systematizing and automating.

Michael Spindler · Answer

Mehran Kamari  This is twice in one day I get to say "Thank you" to you.  : )

I guess that is what I needed to hear.  Confirmation that doing what I am doing is what I should be doing until I have the bank in place.

It is easy for me to get distracted by articles, books, or posts of other people achieving goals using OPM.  Which I am unsure of how they are doing, if they have no experience.  Personally, I am not comfortable with OPM, which is why I am saving.  No one said it would be exciting.

Thank you for the suggested reading, there are a couple of titles I have not read yet.  Ordering now.  : )

Mehran K. · Answer

Michael Spindler Some things that helped me motivated during the almost 2 years I was saving/going taking care of my ill father.: Read every real estate book I can get my hands on, listened to self development & goal setting audiotapes (Brian Tracy specifically), and spending time here on the forums.

I believe it you have to develop a burning desire to succeed in this business, and there are ways to cultivate that with goal setting, affirmations and reading/learning about the principles of success.

Check out this list of  The Best Real Estate Books Ever

I hope that helps!

Michael Spindler · Answer

Deborah B.

Hi Deborah,

Can you clarify what tasks would need to be automated?  And what procedures I should be thinking about?  I've already built my own .xlsx for crunching numbers (CAP, CCR, NOI, Returns, Mortgage, expenses, etc...) to evaluate a property.

If it helps in your feedback, my short term targets are going to be 4-plexes in need of minor rehab or already occupied.

I have my painter, HVAC, and Buyers Agent lined up.  Researching candidates for electric and carpentry.  Waiting for the next REIA networking event to find leads on PM company, CPA and Legal.

Thank you.  I do appreciate your reply.

Deborah Burian · Answer

If I knew enough about what I was buying, I would also be working on automation/procedures as well as attending the local REIA and interviewing contractors.

Actionable Steps while in the Saving Phase?

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