Newbie wants a better life

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Newbie wants a better life

Karen Coffelt
Real Estate Professional · Mesa, AZ · Member since 2016 · 38 posts · 6 votes

Hey everyone, I'm fairly new here. I signed up at some point last year, but I can't even remember when. Can't remember if I introduced myself.

Anyhow, I haven't really delved into this too seriously, probably because I don't have a lot of confidence in myself, but today I watched the webinar on the 45-day challenge. I was hoping to learn a lot more on there than I did, but it turns out I learned that I have a lot more to learn. LOL It did give me a good kick in the pants, though, it made me realize that I really have to put more work into learning what I need to learn if I want to get into this business of investing.

I'm sick of this business of living paycheck-to-paycheck and never having enough money for when things come up, or to go on vacations, or to buy gifts for friends and family on birthdays and such. I keep coming back to the fact that the only way I'm going to get out of this rut is to get into real estate investing.

I have bad credit and no money, so I will have to learn how to invest zero, zilch, nada. I wanted to sign up as a pro tonight, but I don't even have the $290. I seriously considered borrowing money from one of those title loan places, which I've done before, but with over 200% interest, that is just not a good idea.

I wanted to take advantage of the cheaper price, and get locked in for 20% off in future years, as the price is going up $100 tonight, but I'm just going to have to resign myself to the fact that it's not going to happen right now. I'll just have to learn as much as I can with all the free stuff on here, and get the different books that BP sells.

Even though I may not be able to get a deal by the end of the day, I am going to commit to putting at least 15 to 20 minutes a day or more into learning all I can about this investing business. For years I've wanted to get into this, so now I'm going to take it seriously. A person gets to a point eventually when they say, enough is enough!

Okay, I better quit here before this becomes a novel. I think it already has. Have a great night, everyone!

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Jon Holdman
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
8y

OK, give them up.  Today.  That's a couple hundred bucks a month savings right there.  Not to mention TV is just a big time sucker and you have better things to do with your time.  Buy a $10 coffee maker at Walmart and make your own coffee.

While I would say this as "spend less than you make" this is the absolute key practice to accumulate any wealth.  No matter how little or how much you make if you cannot save at least a silver out of each paycheck you will NEVER accumulate anything.

Real estate is full of shysters who prey on desperate people with visions of quick and easy wealth.  You must avoid falling for those.

There are two ways to make money with real estate.  One is a real estate job - agent, builder, fix and flipper, wholesale, property manager, etc.  Where you put your LABOR into earning a paycheck.  The other is investing, where you put your CAPITAL into earning a paycheck.  Labor and capital are ultimately the only two sources of income.  Since you have no capital, you have to supply labor.  Unfortunately, most of those RE jobs, even wholesaling, require some amount of money.  And jobs like wholesaling and being an agent are commissioned sales.  You only get paid when you close a deal.  You can put in a lot of time and effort and no small amount of money and never make a dime.  This is where many of the gurus really make me angry.  They sell a dream that you have very little chance of achieving.  They have no problem convincing you to spend thousands of dollars, usually on credit cards, to buy their crap. Don't fall for it.

Real estate investing is an investment.  You must have money to invest.  Until you accumulate some cash, this just is not an option.  Any more than buying stocks, bonds or a bank CD.

A real estate job may or may not be your best path to generating income.  You say you're driving, but have a lot of downtime.  Have you looked into alternative driving gigs?  Uber and Lyft are the obvious ones, but there are many others.  My son worked for a company that delivered prescriptions to nursing homes and similar facilities.  They were paid for wait time.  He worked at a different company couriering documents and such.   And then at a third company as a dispatcher.  So, you have numerous jobs similar to what you do now.

Think about getting a second job.  There are 168 hours in a week.  If you sleep for 56 of those that still leaves 112 hours.  Plenty of time for two full time jobs.  I've had tenants tell me, "Jon, call right at 5:00 because that's when I'm on my way from my first job to my second."  There are free, online courses like Coursera, Kahn academy, and many others. Wikipedia has a list with many entries. Spend some time poking around on these before spending a dime on education.  Spend some time on job sites to see what skills are in demand.  Find something of interest, where you can find some training, and that is in demand and spend a few hours (not 15-20) minutes learning.

You don't need a pro account to read any forum or to post in any of the discussion forums.  A pro account gives you the ability to advertise.  You don't need that at this time.

There is no miracle with real estate.   When you say "I keep coming back to the fact that the only way I'm going to get out of this rut is to get into real estate investing", you're already falling for the hype.  The is NOT a fact.   Real estate might or might not be good for you.  But I can guarantee it will not make you rich quick and easy.

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  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    8y

    The best advice given is change jobs. You are barley making minimum wage at 10 hr days, less if you work 12 hrs.

    You should be putting all of your efforts into finding the highest paying job you can find without spending money for education to get it.

    Find a job that has potential to move up to higher pay positions within the same company. This along with fixing your credit score will be your best option. I do not believe you will be able to retire before age 65 and may need to work longer to maintain your standard of living. Do not take on any personal debt.

    0Reply
  • Jim Sestito
    Investor · Cambridge, MA · Member since 2013 · 264 posts · 104 votes
    8y

    @Karen Coffelt AZ from MA is a big change - how are you adjust thus far?

    0Reply
  • Vince Mayer
    Wholesaler · Arnold, MO · Member since 2013 · 348 posts · 183 votes
    8y

    @Karen Coffelt Check out this link I got from Bigger Pockets today.

    https://www.biggerpockets.com/renewsblog/investing...

    0Reply
  • Liwen Gu
    Real Estate Broker · Salem, OR · Member since 2017 · 101 posts · 43 votes
    8y

    Hey Karen, if you are interested in getting a real estate license, you might be able to take an online course that costs a lot less than classroom training. I'm not sure what the rules are in Arizona, but I'm going through an online course right now in Oregon for around $300. If I go to the community college here for in classroom training it would have been $700. You'd have to be very motivated to do the course yourself (I find the course material to be quite dry so I'm struggling with that myself) but I think it will work better with your schedule and it sounds like you have the determination to do it. It's a long term commitment though...I hear that a lot of agents just break even the first year but I'm sure you can be successful at it.

    1Reply
  • Collin Schwartz
    Rental Property Investor · Papillion, NE · Member since 2017 · 398 posts · 1k+ votes
    8y
    Originally posted by @Jay Hinrichs:
    Originally posted by @Collin Schwartz:

    Karen Coffelt congrats for deciding on rei. I am new myself but can say that in less than a year it has changed my life. What I have realized through real estate is that for every problem there is a solution. Focus on education first, all sorts of great podcasts such as BP, cash flow ninja, Michael Blank, and others are free.. listen to them all. Every second in the car should be spent listening to these influential tools! Next if money is needed focus on additional income even if it takes another job... the goal is to get started in earning passive income. At the same time continue to network on BP. Although I like my pro membership as it allows me to post in the marketplace, I do not see it as a necessity right away. Best of luck and reach out if you need anything!

     I know this is a pretty stupid question but how can you listen to bp pod cast in a car while your driving. ?

     Hi Jay if you have an iPhone you can use the iTunes app or other smartphones have apps such as Soundcloud. From there you can either listen through the bluetooth within your car or the speaker on the phone.

    1Reply
  • Karen Coffelt
    OP
    Real Estate Professional · Mesa, AZ · Member since 2016 · 38 posts · 6 votes
    8y
    Originally posted by @Rachel N.:

    Karen,

    Thank you for sharing your story with us throughout this post. It sounds like you’ve been through some rough times, but I think your dreams and goals are reasonable, and you will figure out how to make them happen. Stay on the forum for knowledge, encouragement, and as questions arise - so when you’re in a position to make a move, people can help you evaluate any deals you will be looking at. I look forward to following your story and reading about future successes!

     Thanks, Rachel. Yes, been through some rough times, but I'm thankful for what I have, and I'm sure better days are ahead.

    0Reply
  • Karen Coffelt
    OP
    Real Estate Professional · Mesa, AZ · Member since 2016 · 38 posts · 6 votes
    8y
    Originally posted by @Thomas S.:

    The best advice given is change jobs. You are barley making minimum wage at 10 hr days, less if you work 12 hrs.

    You should be putting all of your efforts into finding the highest paying job you can find without spending money for education to get it.

    Find a job that has potential to move up to higher pay positions within the same company. This along with fixing your credit score will be your best option. I do not believe you will be able to retire before age 65 and may need to work longer to maintain your standard of living. Do not take on any personal debt.

     Thomas, let me clarify something about my job. Even though I may be on the clock for 12 hours, I probably have anywhere from 3 hours or more break time. Lately it's been closer to 5 hours or more, as this is our slow season. I still get paid the same even if I have lots of downtime. I can utilize that down time however I want, which means I can get on the forums on BP, listen to podcasts, watch videos, whatever. I just need to be available in case something comes up. They try to include as much downtime as they can for their drivers, because I know how stressful it can be if we work too hard. Driving can be stressful, especially here in the valley. Lots of aggressive drivers.

    0Reply
  • Leather Nix
    Longview, TX · Member since 2017 · 65 posts · 50 votes
    8y
    @Karen Coffelt what about if you moved in with your friend but rented out your mobile home? That would provide a stream of income (assuming you can cash flow it)...and you would reduce your personal expenses by living with the friend. And still work on your credit, of course.
    1Reply
  • Leather Nix
    Longview, TX · Member since 2017 · 65 posts · 50 votes
    8y
    @Karen Coffelt Also, I would focus on making extra money within the time you have, not necessarily another job. An example: I used to do some freelance writing. That's something that could be done during your down time at work. Think about some of the skills you have and what you can do to create extra income. (Knit baby blankets and sell them online...whatever.) There are other income streams available that you could do instead of finding a different job. Just make the time at your current job more valuable.
    1Reply
  • Karen Coffelt
    OP
    Real Estate Professional · Mesa, AZ · Member since 2016 · 38 posts · 6 votes
    8y
    Originally posted by @Liwen Gu:

    Hey Karen, if you are interested in getting a real estate license, you might be able to take an online course that costs a lot less than classroom training. I'm not sure what the rules are in Arizona, but I'm going through an online course right now in Oregon for around $300. If I go to the community college here for in classroom training it would have been $700. You'd have to be very motivated to do the course yourself (I find the course material to be quite dry so I'm struggling with that myself) but I think it will work better with your schedule and it sounds like you have the determination to do it. It's a long term commitment though...I hear that a lot of agents just break even the first year but I'm sure you can be successful at it.

     Thanks, Liwen. Arizona requires 90 hours of in class training. Not sure if I'll do it yet. There's a real estate school here that has all the classes needed I think for about $579. It includes extra help with math for people who need it, which I definitely do. Includes the 90 hours in class time, all textbooks and course materials.

    Here's what it includes:

    Everything you need to get your real estate license including extra math help and a contract course required by the Arizona Department of Real Estate.

    INCLUDES:
    • State-required 90 hours of Principles & Practices
    • All textbooks & course materials
    • Basic Licensing Review Crammer™Real Estate Math Review
    • CompuCram© Exam Prep Software
    • Career Expo
    • Introduction to Contract Writing Course
    0Reply
  • Karen Coffelt
    OP
    Real Estate Professional · Mesa, AZ · Member since 2016 · 38 posts · 6 votes
    8y
    Originally posted by @Leather Nix:
    @Karen Coffelt what about if you moved in with your friend but rented out your mobile home? That would provide a stream of income (assuming you can cash flow it)...and you would reduce your personal expenses by living with the friend. And still work on your credit, of course.

     I have considered renting out my mobile home, but not sure if I can get enough for it to cover the lot rent and utilities. The utilities are included in the lot rent, and I'm not sure if I can separate them out for the tenant to pay. I'll have to find out about that. It's definitely something I'm going to look into. Thank you.

    0Reply
  • Leather Nix
    Longview, TX · Member since 2017 · 65 posts · 50 votes
    8y
    I personally wouldn't do the real estate license yet, because, financially, you have other things that seem more pressing. You can probably come up with other ways to make money that don't require the upfront expense of school...then, you have to take a test...then, you have to actually get some deals. Not to mention, you don't have a lot of time, unless you're going to quit your job to become a RE agent, which I'm not really sure you can do just yet. I'm not saying not to do it, but maybe wait until you can become a little more stable financially.
    0Reply
  • Karen Coffelt
    OP
    Real Estate Professional · Mesa, AZ · Member since 2016 · 38 posts · 6 votes
    8y
    Originally posted by @Leather Nix:
    @Karen Coffelt Also, I would focus on making extra money within the time you have, not necessarily another job. An example: I used to do some freelance writing. That's something that could be done during your down time at work. Think about some of the skills you have and what you can do to create extra income. (Knit baby blankets and sell them online...whatever.) There are other income streams available that you could do instead of finding a different job. Just make the time at your current job more valuable.

     It's interesting that you mention that, because I've been thinking along those same lines, myself. I'm very good at photography, and I've always wanted to get into the photography business in some way or another. I'm trying to find ways that I can market my photos, and I recently picked up a copy of the Photographer's Market that's updated every year, published by Writer's Digest. Being a writer yourself, you may be aware of it. If you want to check out my photography, I do have a Facebook page. The name of the page is Wolf Moon Photography.

    0Reply
  • Leather Nix
    Longview, TX · Member since 2017 · 65 posts · 50 votes
    8y
    Originally posted by @Karen Coffelt:
    Originally posted by @Leather Nix:
    @Karen Coffelt what about if you moved in with your friend but rented out your mobile home? That would provide a stream of income (assuming you can cash flow it)...and you would reduce your personal expenses by living with the friend. And still work on your credit, of course.

     I have considered renting out my mobile home, but not sure if I can get enough for it to cover the lot rent and utilities. The utilities are included in the lot rent, and I'm not sure if I can separate them out for the tenant to pay. I'll have to find out about that. It's definitely something I'm going to look into. Thank you.

     Be careful about the numbers. If it doesn't cash flow, just sell it. It'll give you a little chunk of money to work with.

    0Reply
  • Karen Coffelt
    OP
    Real Estate Professional · Mesa, AZ · Member since 2016 · 38 posts · 6 votes
    8y
    Originally posted by @Leather Nix:
    I personally wouldn't do the real estate license yet, because, financially, you have other things that seem more pressing. You can probably come up with other ways to make money that don't require the upfront expense of school...then, you have to take a test...then, you have to actually get some deals. Not to mention, you don't have a lot of time, unless you're going to quit your job to become a RE agent, which I'm not really sure you can do just yet. I'm not saying not to do it, but maybe wait until you can become a little more stable financially.

     LOL! Again, I was thinking along those same lines. At first I was thinking, well, maybe I could show homes after hours at work and on weekends. Not sure if that would work. I really don't know how much time is involved. In any case, I don't have the money right now for that. It's just something I'm thinking about it this time, and it may be awhile before I could get into it. Thanks again for your input.

    0Reply
  • Liwen Gu
    Real Estate Broker · Salem, OR · Member since 2017 · 101 posts · 43 votes
    8y

    Sounds like you've already done plenty of research on it. Good luck with the course if you decide to take it. Also, if you need any extra help with math, feel free to ask!

    1Reply
  • Karen Coffelt
    OP
    Real Estate Professional · Mesa, AZ · Member since 2016 · 38 posts · 6 votes
    8y

     I'll definitely keep that in mind. Thanks.

    0Reply
  • Leather Nix
    Longview, TX · Member since 2017 · 65 posts · 50 votes
    8y
    Originally posted by @Karen Coffelt:
    Originally posted by @Leather Nix:
    @Karen Coffelt Also, I would focus on making extra money within the time you have, not necessarily another job. An example: I used to do some freelance writing. That's something that could be done during your down time at work. Think about some of the skills you have and what you can do to create extra income. (Knit baby blankets and sell them online...whatever.) There are other income streams available that you could do instead of finding a different job. Just make the time at your current job more valuable.

     It's interesting that you mention that, because I've been thinking along those same lines, myself. I'm very good at photography, and I've always wanted to get into the photography business in some way or another. I'm trying to find ways that I can market my photos, and I recently picked up a copy of the Photographer's Market that's updated every year, published by Writer's Digest. Being a writer yourself, you may be aware of it. If you want to check out my photography, I do have a Facebook page. The name of the page is Wolf Moon Photography.

     Photography is definitely an option. Keep thinking and see what else you come up with. I like to work when I'm at work in my downtime lol, but even if you're cooking for people when you're off or grocery shopping for people. Photography is kind of a saturated market where I am, but if you can make it work, perfect. Think in terms of tangible goods or services that will bring money in quickly. Offer a mini kids photo shoot somewhere that's pretty outside  (no expense of having a studio). Book as many families as you can in one weekend. That's just an idea, but you see what I mean.

    1Reply
  • Karen Coffelt
    OP
    Real Estate Professional · Mesa, AZ · Member since 2016 · 38 posts · 6 votes
    8y
    Originally posted by @Liwen Gu:

    Sounds like you've already done plenty of research on it. Good luck with the course if you decide to take it. Also, if you need any extra help with math, feel free to ask!

     Thanks for the offer. Math has never been my strong point.

    0Reply
  • Liwen Gu
    Real Estate Broker · Salem, OR · Member since 2017 · 101 posts · 43 votes
    8y

    Are you legally allowed to rent out a house in a mobile park community without you living in it? I was at a REIA meeting in Oregon a couple of weeks ago where they were talking about flipping mobile homes and it seemed like there are a lot of restrictions on renting them out.

    3Reply
  • Karen Coffelt
    OP
    Real Estate Professional · Mesa, AZ · Member since 2016 · 38 posts · 6 votes
    8y

     I definitely see what you mean. Thanks for the ideas.

    0Reply
  • Leather Nix
    Longview, TX · Member since 2017 · 65 posts · 50 votes
    8y
    Originally posted by @Liwen Gu:

    Are you legally allowed to rent out a house in a mobile park community without you living in it? I was at a REIA meeting in Oregon a couple of weeks ago where they were talking about flipping mobile homes and it seemed like there are a lot of restrictions on renting them out.

     That's a good point. I think it depends on where you are and if the park allows it. Also something to keep in mind.

    1Reply
  • Karen Coffelt
    OP
    Real Estate Professional · Mesa, AZ · Member since 2016 · 38 posts · 6 votes
    8y
    Originally posted by @Liwen Gu:

    Are you legally allowed to rent out a house in a mobile park community without you living in it? I was at a REIA meeting in Oregon a couple of weeks ago where they were talking about flipping mobile homes and it seemed like there are a lot of restrictions on renting them out.

     That is something I don't know and will have to look into. I know the mobile home next door to me was recently purchased by one of the residents here in the park, and she is going to be renting it to winter visitors, so I'm assuming it's legal, but I don't know that for sure.

    1Reply
  • Kimo Kalihi
    Centralia, WA · Member since 2017 · 5 posts · 2 votes
    8y
    Hey Karen, I think you should focus on your money management from the sound of it. Someone else mentioned Dave Ramsey's financial Peace University. That's a good start or even just reading his book The Total Makeover and listening to his podcast. Also, the book Set For Life by Scott Trench is really good. He shows you how to cut a lot of expenses and live on less, comfortably while saving half your income or more to build up enough reserves to cover all your monthly expenses for a year or longer so you can go out and try a new career choice or start a business and still be able to pay your bills if it doesn't pay as much initially.
    1Reply
  • David Marsceau
    Dallas, TX · Member since 2017 · 77 posts · 28 votes
    8y

    Hi Karen! It's great that you are motivated to better your situation and I wish you the best of luck going forward. Lots of great advice being thrown at you that's why this site is so amazing! I just want to say congrats on kicking Diabete's butt! I'm sure that wasn't easy just like this commitment to REI isn't going to be easy either. Keep using that same dedication you showed with the diabetes on REI and you WILL succeed, no matter how many obstacles you have to overcome :)

    Now for a little advice...

    like some others have already suggested, finding a side hustle is a great way to build some extra income.  If you find a way to get paid doing something you already do for fun that is the best kind of side hustle to me ! You said you like photography so I did a quick google and found this article ( and there were many more) titled " Sell your photos online: 5 webites that pay $100 per image or more" 

    https://www.thepennyhoarder.com/make-money/side-gigs/sell-your-photos-online/

    Check these out and maybe you can make some money off those amazing pictures you take!

    Also, have you considered trying to find someone that has money but not enough time to invest, to partner up with on wholesaling ?  For example, you find someone that is willing to pay for a direct mail marketing campaign and then you can use your hours of on-call time to return phone calls and set up appointments to view houses.  How good are you on the phone? Do you think you would be good at meeting with Distressed sellers ?  Just a thought, there are plenty of investors out there ( like myself ) that are dying to get into investing, and have discretionary funds, but not enough time. Or in my case just get moved around too much to get something going locally.

    I hope this helps :) 

    1Reply
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