There is minuscule chance, an average Joe who wants to be successful in Real Estate, other than borrowing money from family, having many friends, raising capital via syndications, creating a Corporate Entity, ( which necessarily don’t impress me, there 100 unit apartments, over leveraged, I could do in my sleep!
Back to average Joe! If you buy a 50 k property, put 20% down, which is 10k, you must paint, do some Sheetrock, save on sweat equity, in the beginning!! “Joe”, learn all you can, get that first Deal under your belt!!
Example: I just had a punk move out, trashed my doors!! This is old house, door frames old school, etc
150 bucks for a carpenter to cut in hinges, Mortis in strike plate etc ( I think it’s mortis)
Long story short, I saved a thousand bucks today, I learned!!! And, I have finances to pay!!
My point!! Average Joe!! You guts to be hungry brother!! If you get into house for 10k, and it needs 20k in repair, you guts to learn and be a lion
Not to mention all the electrical work I fixed!! But, I’m Electrician by trade!! Plus, a master communicator 😂
Let’s write a book!!!
Definitley dollars to be saved doing things yourself and having relationships with other skilled guys to avoid replacement, especially old school construction.
I saved about $4200 skirting a t-111 sided house with rolled 10" flashing to satisfy an earth to wood appraisal sub2 on a sale a couple weeks ago. Paid a buddy $150 to excavate by hand for me and help feed the metal. Saved $600 in 3 hrs cleaning and tightening up 4 dead or smoking wall heaters instead of replacing, and that didn't include install labor... could go on. I try and save $150/day, which is like earning $200 after taxes for me.
The big bucks are saved negotiating and solving seller problems, of course. My estimation over a 1hr $8 lunch with a 93 yo seller is I saved myself $187k locking in an extendable 3yr option to buy $1M worth of duplexes until his passing + will save $24k in borrowing costs and the PITA 4 separate loans would be because his heirs will be seller financing them. These savings don't include the $300k less in taxes his estate will pay by letting his heirs inherit at the stepped-up basis.
I will still stick to my $150/day goal vs taking the next 20 years off LOL. Another good discussion, Daniel!
Steve, your right!! Of course, making the deal and making 187k is thee way to go!!
If I were younger, and trained with proper mindset, of course the syndication and raising of funds is smart thing to do!
When I bought my houses in downturn, I was buying homes from 25 k to 40 k. I was ahead of the hedge funds and Corporate minions. I was very tempted to raise 1 million and buy the sub divisions, maybe 20 to 25 more houses!! Of course that is way to go!
My heart is to the average Joe!! He can’t read books, he hates his job, he wants out! Let’s not subjugate him to the whims of the stock market, excessive information with really intentions of selling books, let’s be the real deal to Joe!
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing