Slow Motion!

6 Replies

I have been working on creating a real estate portfolio with a partner for the past 4 months.  So far we have wholesaled one property and have two under contract to buy as rental properties.  Looking back it seems like we are well on our way to a successful real estate investment business!  But when living in the present it feels like everything is moving at a turtle's pace!  We currently have steady calls coming in from a DM campaign and both work full time jobs.  I guess I am a bit anxious to get our business rolling to eventually work full time in real estate.  But I do understand it takes time, money, and leads.  I currently work full time in sales and each sale we make takes roughly 30 minutes to 1 hour to close a deal..  With real estate usually 1 deal can take 1-2 months to close.  But the reward is much higher and so is the rush!  How do you deal with the slow pace of the real estate process??

Funny, but I think you'll find that once you get some momentum, "slow" isn't the word you would use to describe it.  What type of calls are you getting coming in from your DM campaign?

Joe Villeneuve
REcapSystem
A2REIC

@Joe Villeneuve    We target absentee owners with high equity for the most part in desired areas.  We actually have a couple leads we are working which are promising for hold and wholesale opportunities.  But we are limited by capital to wholesale most of the properties we come in contact with.  Long term we want to focus on holding properties for cash flow.

@Joe Villeneuve  

The two properties we are buying for 46k to rent:

2/1 880 sqft. and 1/1 700 sqft.

1/1 will rent for 600 and 2/1 will rent for 750 for a total of 1350.

Principle and Interest: 250 per month

Insurance for both: 46 per month

Taxes for both: 100 per month

1 month vacancies: 112 per month

Property management: 135 per month

Maintenance: 100 per month

1350 - 755 = 607 cash flow per month

We are working on 3 properties to buy and wholesale.  They are under a trust and we are working with a attorney to negotiate a deal.

1. 2/1 700sqft. ARV 75k needs 30k in work, house is condemned and needs everything!

Offered 5k

2. 2/1 850sqft. ARV 75k needs 20k in work, house is a time capsule and needs a facelift!

Offered 10k

3. 4/2 1660 sqft ARV 160k and not 100% of what it needs, has a family member living there who is not cooperating with the trust. She dont pay rent and is not communicating with the attorney or family.

We offered 30k because we dont know what repair cost would be.

Ryan,

So you're working on 5 deals at this time?.  That's not what I would consider slow...although I/we usually are working on at least 25 at a time...if you include all the deals we are analyzing, offering, closing and marketing/filling.

Joe Villeneuve
REcapSystem
A2REIC

@Joe Villeneuve

Yes.

The 2 rentals are in the process of closing within the next 2 weeks.  

The other properties are just prospects we are making offers on.  We have others we are working on as well. 

Our goals are to be full time investors and financially free from the rat race!  Looking forward till that day when those goals are a reality.

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