Confessions of a Motivated Seller

Confessions of a Motivated Seller

La Puente, CA · Member since 2016 · 102 posts · 21 votes

BP is great place. The world in general is not. Over the last year I have listened to all the BP podcasts, those guests who succeed are showered with praise and emulation. That's why we are here, we want to be like that success story, we want to learn, network and grow. While an investor may strive for the most profitable deal, it comes at an expense to the seller.

As I write this post a women has lost her wallet. It's a Coach wallet and looks full. I lost my wallet as a kid walking to school. I had $43 dollars to my name. Two weeks went by, I got a call from a house wife asking if I was Michael. Turns out she lived, ten minutes away from my childhood home and told me my wallet was ready to be picked up. I'm 41 now and never forgot the honesty displayed when my wallet, ID, and all my money was still intact. I offered the lady a $20 reward. She declined, so we agreed on two Peach pies her husband liked.

As soon as I discovered the Coach wallet from a window, another woman walked by, picked it up and started to walk away from the store with it. Not so fast riff raff. I notified the store manager about the wallet. It's safe and so that women's identity, credit cards, and cash. Hopefully she comes back to the store and inquires about it. She'll never know it was me, but hopefully good karma will never let her forget to pay it forward. Back to my confession.

I used to be a motivated seller. I had a low paying job, that didn't pay my mounting credit card debt. The typical motivated seller isn't savvy about real estate, doesn't value property correctly, spends too much and earns to little.

I made a few mistakes that led to my losing six figures off my list price.

1. Not selling in 2007 when the market was up. I sold in a down market instead.

2. Poor budgeting. I spent too much, earned to little, deep in credit card debt. I didn't earn enough to qualify for a loan.

3. I made the mistake of becoming HOA president and remaining so for 8 years.

4. I didn't educate myself about real estate. How banks low ball LTV when no recent comps exist.

5. Financially illiterate. I didn't educate myself about loans and DTI ratios, credit hard pull vs soft pull.

6. My list price was too high. Lower list prices attract bidding wars.

I'm homeless now, loosely living out of my car, and back to spending too much. In two years I'll be broke. Robert Kyosaki was also homeless for one week along with his wife, but he managed to get through it and come out ahead. Phil Pustejovsky was also homeless at one point in his life and got through it. I endeavour to do the same.

I most likely would benefit from having a mentor to guide me in real estate. I've setup a website in hopes of having something to show for my efforts toward gaining financial freedom from poverty and homelessness. While most "mentors" or "gurus" will be more than happy to take my money, I'm offering myself freely in exchange for free guidance. Perhaps that guidance is here on BP and technology can transcend the traditional barriers I've been conditioned to accept as gospel.

I already reached out to a guest on BP. He said I have nothing of value to offer him on his marketing for deals. He's right; why should he spend his marketing dollars on my training wheels? So I've assembled a few options for myself along with an about me. I'm interested in the vicinity of Walnut, CA, the Inland Empire to the Antelope Valley.

I've been listening to several real estate podcasts for several years without taking action nor getting my real estate license. Before me are various paths and I could use advice on.

First I need the lowest barrier to entry. A very high chance I'll get traction and make an income right away.

I've considered several career paths to give me an immediate stable income without a four year degree including:

Escrow assistant, agent or officer

Title officer

Real estate note investing

Buying and selling raw land

Wholesaling

Certified Apartment Manger (CAM)

That's my initial plan. Eventually I want to leverage time and interest, contracts and processes to become wealthy. I believe in myself, but I lack a good guide and an immediate living wage.

I could just get a real estate sales person license, pay the the expense and seeming futility of not earning enough money with listings, promoting the brokerage, while I network with title, escrow, home inspectors, real estate attorneys, brokers, REIA, and self help books until I stumble upon success or fail.

Podcasts are great but don't provide income unless I start my own podcast and promote my own products or affiliate links. No affiliate links are posted below. Here's what I've listened too so far.

http://realestateguysradio.com (generic real estate podcast)

http://www.richdad.com (rich dad poor dad, cashflow quadrant, 2 other audio books)

http://www.thenorrisgroup.com (real estate notes)

http://michaelquarles.com/author/michael/ (http://www.yellowletters.com (Whole tailing)

http://www.biggerpockets.com (real estate podcast with niche guests)

http://www.thelandgeek.com (buy and sell raw land, finance land notes for passive income)

http://www.amazon.com/Think-Grow-Rich-Napoleon-Hil... (personal growth, a positive worldview attracts other to you)

http://www.grantcardone.com/the-10x-rule/(Inspirat... speaker with no specific guidance)

http://www.amazon.com/ONE-Thing-Surprisingly-Extra... (success is sequential)

http://www.amazon.com/gp/aw/d/031623673X (personality types)

http://www.smartpassiveincome.com

Recognizing real estate is the best industry to succeed without a college degree, which may not be worth incurring student loan debt, looking for entry points into real estate, how quickly I can enter the industry and network, and weighing the return on value with various real estate pathways and strategies.

I need traction, income and advice. It could be worse, I could be a cripple or a junkie. I am neither, just a former motivated seller trying to get a fresh start in life, to learn to be the hunter rather than the hunted, and never again be a desperate motivated seller.

Before anyone gets teary eyed on me I'm sure the world is full of selfish don't give damns who are out for themselves. I have no illusions of finding gold here. Just reaching out just in case I'm off.

Respectfully,

Michael

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Wholesaler · Chesterfield, VA · Member since 2016 · 8 posts · 5 votes
10y

I am a new investor just getting started.  All I can say is NOTHING HAPPENS FOR NOTHING.  Always remember that.  Just get back in there, learn as much as you can and always ask questions until forever.  We are here for you as your real estate family and although I am not skilled enough to give you real estate advice I am here for you emotionally and that is half the battle.  I agree with Angelina as well, start small, building your income back up and get to a place of some type of comfort, but do what you can while and when you can during the process and things will fall in place just stay positive.

Keta

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  • Investor · Jasper GA · Member since 2015 · 1k+ posts · 1k+ votes
    7y

    @Michael M.  Good luck.

  • Flipper/Rehabber · Montgomery, NY · Member since 2016 · 2k+ posts · 1k+ votes
    7y

    You really need a job, any job to start making money. You can find all these examples of famous/wealthy people who were once homeless. For every one of them there are probably 50 who will remain homeless. I know it is terrible trying to find a decent job, however isn't having some job better than having no job/income? I would be looking to relocate if I were in your shoes. You are in the highest cost of living area... it's probably time to figure things out with the GF and get yourself into a position in the short term to prepare you for success in the long term (I.E. employment making some income, real estate or not).

    Good luck!

  • La Puente, CA · Member since 2016 · 102 posts · 21 votes
    7y
    Originally posted by @Bob B.:

    @Michael M.  Good luck.

    Thank you. I forgot who said this, but it keeps rattling around in my mind "do the right thing, then do things right". He was a guest on the Kevin Bupp show on Mobile home park investing. Shiny object syndrome aside, its been a journey browsing the million different ways to get rich off real estate. Often I listen to Grant Card one Power Players segment where he interviews people that despite adversity " made it". Truth is stranger than fiction and all is not as it seems if you peer into it deeply. I'm hoping someone will either give me a chance or most likely I'll have to build my own boat and crown myself captain. More often than not I've found leveraging professionals more reliable, accountable and consistent than my own damn self. My last fall back is to get a job, live below my means and give my last pinch to a REIT and just say to hell with it....

  • Real Estate Broker · Bakersfield, CA · Member since 2018 · 269 posts · 597 votes
    7y
    Originally posted by @Michael M.:
    Originally posted by @Bob B.:

    @Michael M.  Good luck.

     My last fall back is to get a job, live below my means....

    Your "last fall back" is the starting point of just about every financially stable person I know.

  • La Puente, CA · Member since 2016 · 102 posts · 21 votes
    7y
    Originally posted by @Jeff C.:
    Originally posted by @Michael M.:
    Originally posted by @Bob B.:

    @Michael M.  Good luck.

     My last fall back is to get a job, live below my means....

    Your "last fall back" is the starting point of just about every financially stable person I know.

    The key is to have something left over after all expenses. Its all relative. When I had my condo free and clear, I could live off as little as $24k a year. Gradually my debt to income (DTI) was beyond the 42% more banks like to see. That ruled out a chance to wipe out unsecured high interest debt with a secured low interest debt. That's why I've been picky about the math with accepting any new job. When you say yes to something, it usually means saying no to everything else. Living off $1,600-$2,000 a month navigating the concrete jungle in a 40' or most likely 45' bus was a daily challenge. I got stories...and thankfully few scars from it. One bus driver I knew lived in a trailer at the bus yard. I've been wanting to write a book about it all. I wonder if anyone would like to read it on Amazon if I ever self publish. Some passive income came my way, once, like manna from heaven and that $18.12 of Amazon affiliate income was memorable, but short lived. But again I digress. Bad habit I have of wanting to connect with the reader. I need to be a money making machine like Grant Cardone...

  • La Puente, CA · Member since 2016 · 102 posts · 21 votes
    7y

    Just in case, I wanted to thank everyone for reading this post. I know I don't meet the typical demographic here, wealthy real estate investor picking up deals at the court house steps. I apologize, my biological father was semi famous in the film industry. I am his unmentioned love child. The product of a broken family as he skipped out on us when I was 18 months. I met one of my brothers for the first time when he was imprisoned at a facility I was offered employment nearby back in 2007 when I was working towards being a correctional officer. I was a year into it, P.O.ST certificate training, when the State of California had a hiring freeze. I guess this brother didn't have a good fatherly influence and fame isn't everything... That brother has since not re-offended thankfully and we have an uneasy understanding between us. Being related by blood, my brother from another mother. Pappa was rolling stone...

  • Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
    7y

    @Michael M.  you sound like you are on a downward spiral. Please reach out for help  ->

    National Suicide Prevention Lifeline

    Available 24 hours everyday

    They will be able to offer you ideas of who to contact.   If I am off base, maybe this number will help someone else. 

    Please remember that each life is precious and that even tho you are at bottom, there are ways to come back up. Focus on the next step. Maybe that is calling the above number.

  • Rental Property Investor · Chandler AZ and Sylvania, OH · Member since 2009 · 708 posts · 561 votes
    7y

    @Michael M. So if I read your updates right you haven't worked in 2 years?  Have you just been living on your savings?  

  • Investor · Oxnard, CA · Member since 2014 · 438 posts · 187 votes
    7y

    @Michael M.

    It sounds like to me you need to have a little more realistic expectations.

    You wrote "Where's the big money? Where's the payday that helps me get to financial stability?" What do you bring to the table to get that big payday? It sounds like your experience is in truck/bus driving. What is the average salary for that line of work? Why would you expect to earn more than the market pays for that skillset. It sounds like you are hoping to make it big without working a regular 9-5 and reading too many "rags to riches" stories that may or may not be realistic. In this economy, I'm having trouble understanding why you are unable to find a job. Yeah, it may not be what you ideally want, but something is better than nothing.

    I don’t think your lowball offers are going to get you very far in this market. I think real estate investing is going to be a tough nut to crack in your area until the market changes. As you mention, not much reason for sellers to sell at a discount now-a-days. 

  • La Puente, CA · Member since 2016 · 102 posts · 21 votes
    7y
    Originally posted by @Mary M.:

    @Michael M.  you sound like you are on a downward spiral. Please reach out for help  ->

    National Suicide Prevention Lifeline

    Available 24 hours everyday

    They will be able to offer you ideas of who to contact.   If I am off base, maybe this number will help someone else. 

    Please remember that each life is precious and that even tho you are at bottom, there are ways to come back up. Focus on the next step. Maybe that is calling the above number.

     I certainly have gotten the gamut of responses, and by far yours is the most extreme. Part of the motivation I have in writing this post is in raising awareness and humanizing homeowners from real estate speculators / investors who seem to prey on the equity of others for personal gain. Real estate sales under duress are already illegal. However once the ink is dey no one really checks up on people after the fact. I'm here to journal the aftermath. I have absolutely no intention of losing my life or endangering another. Yes you are way off. I am a professional driver of many accomplishments. I am not a one dimensional, one trick pony at the end of my rope. I will succeed. I came here to have a constructive conversation with adults. I don't welcome any further discussion of this tone.

  • Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
    7y

    @Michael M. If I offended you, I am sorry...  wasn't my intention and as I said in my post, if I am off base maybe someone else can use the info.    Good luck in all your pursuits.

  • La Puente, CA · Member since 2016 · 102 posts · 21 votes
    7y
    Originally posted by @Stone Jin:

    @Michael M. So if I read your updates right you haven't worked in 2 years?  Have you just been living on your savings?  

     Partially correct. In the last four years I have had only one job. Incidentally I passed probation, having worked very hard in a production environment. I started at $12/hr and they loved my work and I got a raise to $15. Management was extremely demanding. I never worked so hard to remain employed and I inquired several times to make a lateral move in the company, however, no positions outside my own department ever opened. It was rough, a few people quit before I quit as well. I later discovered my manager left the company as well. Karma is such a funny thing.

  • La Puente, CA · Member since 2016 · 102 posts · 21 votes
    7y
    Originally posted by @Stone Jin:

    @Michael M. So if I read your updates right you haven't worked in 2 years?  Have you just been living on your savings?  

     I'm not sure if you have a team, or work alone?

  • Rental Property Investor · Chandler AZ and Sylvania, OH · Member since 2009 · 708 posts · 561 votes
    7y

    @Michael M.  I guess the answer is complicated, I have two jobs (real estate and IT consulting), in real estate I have no employees but I have a team of realtors lenders maintence handymen contractors property managers that work with me to make the magic happen.  In the IT world I'm an individual contributor but generally as part of a larger team.

    The point that I wanted to share was that in 2009 I was unemployed in my consulting for about 9 months.  In hindsight I should have taken a job that was beneath my high expectations and for those 9 months I could have made 30-40K lets say.  If I had an extra 30-40K to invest in 2010-2012, I would have being able to buy 2 additional houses which would have yielded an additional 200-250K in appreciation in today's market.  

    I just hope you don't look back on this period of your life and say hey if I just worked the bus driver job I'd have gotten an extra 30-40K in extra dry powder to invest.  I think the smart money all think a correction is coming and are building up their war chest for the coming buying spree, I just hope you are building up a war chest too.  Good luck with your future endeavors.

  • La Puente, CA · Member since 2016 · 102 posts · 21 votes
    7y
    Originally posted by @Cornelius Charles:

    @Michael M.

    It sounds like to me you need to have a little more realistic expectations.

    You wrote "Where's the big money? Where's the payday that helps me get to financial stability?" What do you bring to the table to get that big payday? It sounds like your experience is in truck/bus driving. What is the average salary for that line of work? Why would you expect to earn more than the market pays for that skillset. It sounds like you are hoping to make it big without working a regular 9-5 and reading too many "rags to riches" stories that may or may not be realistic. In this economy, I'm having trouble understanding why you are unable to find a job. Yeah, it may not be what you ideally want, but something is better than nothing.

    I don’t think your lowball offers are going to get you very far in this market. I think real estate investing is going to be a tough nut to crack in your area until the market changes. As you mention, not much reason for sellers to sell at a discount now-a-days. 

     "It sounds like to me you need to have a little more realistic expectations."

    > That's always true of anyone. We could all lower our expectations. But where would that get us? No disrespect, for real bro, but Rosa Parks wasn't realistic, she was bold, and she made a difference for everyone. Much love.

    "What do you bring to the table to get that big payday?"

    > I get that. It depends what table we are talking about.

    I have a class B CDL airbrake with passenger endorsement. I started out driving school buses. The pay was awful. Translation, I can drive a bus 40' or 45', cement mixer, limo, etc, three axles or less for hire. Pay for these jobs is poverty level. The only "decent pay" I've seen is driving a bus as a city employee, not an easy gig to get, I've tried. My millionaire acquaintance who refused to mentor me BTW, commented I could drive around a bus load of investors to browse properties, when prices adjust, as you alluded to

    "It sounds like you are hoping to make it big without working a regular 9-5"

    > Name one person who made it big working a 9-5 job? Unless you hit the lottery, a 9-5 will just keep you in the shrinking working class poor.

    "Reading too many "rags to riches" stories"

    > I stand guilty as charged. Success is not a destination but a journey. The constructs of which you either accept or design of your own accord. BP would not exist with guests who've proven success despite adversity is possible.

    "In this economy, I'm having trouble understanding why you are unable to find a job."

    > Obama did one thing well; create demand for more part-time employees that don't qualify for health coverage. There are laws in California against nepotism, and yet in the city I left behind, one counsel member on the dias just happens to gotten lucky when his wife got the job as city clerk. Same city, another counsel member has been on the dias 34 years and his son just so happen to make sergeant of the Police department. Same city another council member on the dias has a cousin who just so happens to have not only walked my condo when it was on the MLS and not make a written offer, but trespassed again on a different date on the property while I was visiting the mayor's house. Who knows what he was looking for and still no offer was made, nor appointment recorded. The Lock box record doesn't lie. I arrived to the condo to find the door unlocked and wide open. I took it as a message. The door was locked when I left. This same person is supposedly an "ethics attorney" and not only landed a job in the same city as chair of the planning committee, but was able to lateral to the position of city treasurer before stepping down amid rumors. Strange bed fellows, I think not. These two are allegedly related and said counsel member had to disclose a preexisting relationship. Hold on, same city another counsel member on the dias just happened to have per campaign manager appointed to the planning committee as well, she also happens to be her lover. Small world. Nepotism runs deep in southern California. Part time jobs are plenty. Many of them the product of the affordable care act provision whereby fulltime employees must be provided medical coverage. So guess what happened to those full time positions that have a living wage? They got cut way back to seniority. New hires most everywhere are part time, no benefits. It's rough starting out.

    "I don’t think your lowball offers [aren't] going to get you very far in this market."

    > Your right. MLS deals are thin, and any investor worth two sh*ts knows it. That's why I have taken a real estate class, passed, have my pre-license certificates in hand and may get my sales person license, as most agents are not interested in helping anyone make low offers. It simply isn't worth their time. Or so I've heard from them. When I get my license I can write my own offers. Until then a real estate attorney will do just fine. Less disclosures. I'll arrange the rest for now.

    As of now I can bird dog for an investor, drive for dollars, speak well or so I've been told, communicate by email, text, etc., drive, make deliveries, act as a resident manager for a 16 unit apartment complex as I have onsite property experience, assist at a property management office, perform computer duties such as website, graphics, printing, photography, technical support, customer service, video editing, and speak in three languages. The challenge in southern CA is Hispanic nepotism, La Raza movement is alive and well, or not speaking Manderin Chinese, its increasingly a requirement sadly.

    So yeah, I won't quit looking for the right opportunity in sales, like solar, or getting a cushy government job with benefits, but the private sector has a big fat target on human labor due largely in part to the Affordable Care Act requirements. California is working its way to a higher minimum wage and I fully expect corporations to respond with more automation, outsourcing or the favorite tactic: CUTTING HOURS.

    Of all the jobs I ever had, being a web developer was the most stressful at times, but financially rewarding at $28/hr. Sadly our biggest client left to Atlanta and you can guess the rest.

    I just got done listening to Grant Cardone power players podcast. His guest was inspirational. A local to boot, just a few miles from where I am this very moment. I'm not delusional, but accepting certain realities is just not going to help me reach my full potential.

    Somewhere out there there is either a unique opportunity for me to get ahead, or for me to create for myself. I've been lucky enough to meet a few good people in my life that didn't accept abject poverty as the norm. They rose above the hype and stacked paper. Again poverty is a mindset and it's your choice to stay at a dead end job or strive for opportunity. Wealth is transient.

    Skate to where the puck is going, not where it has been.” - Wayne Gretzky

  • La Puente, CA · Member since 2016 · 102 posts · 21 votes
    7y
    Originally posted by @Stone Jin:

    @Michael M.  I guess the answer is complicated, I have two jobs (real estate and IT consulting), in real estate I have no employees but I have a team of realtors lenders maintence handymen contractors property managers that work with me to make the magic happen.  In the IT world I'm an individual contributor but generally as part of a larger team.

    The point that I wanted to share was that in 2009 I was unemployed in my consulting for about 9 months.  In hindsight I should have taken a job that was beneath my high expectations and for those 9 months I could have made 30-40K lets say.  If I had an extra 30-40K to invest in 2010-2012, I would have being able to buy 2 additional houses which would have yielded an additional 200-250K in appreciation in today's market.  

    I just hope you don't look back on this period of your life and say hey if I just worked the bus driver job I'd have gotten an extra 30-40K in extra dry powder to invest.  I think the smart money all think a correction is coming and are building up their war chest for the coming buying spree, I just hope you are building up a war chest too.  Good luck with your future endeavors.

     I'd say that a good read of the tea leaves. I'm trying. I have family near you and your accounting sounds familiar. Sage advice indeed. Thank you.

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