All Forum Posts by: Edmund Ricker

@Maggie Nickerson

Find out what part of the negotiation is the most important to the seller and try to give him that on the condition that he will be flexible with the rest of the terms, so the deal is a win-win.

Try being very frank with him and laying all the cards on the table.  Let him know as much of your plan as you can without ruining your negotiating power.  Let him know that you love his home and want to make it your own.

If you can't strike a deal that makes both of you feel good about the purchase, then you have to walk away and move on to the next one.

Hope this helps.

Ed

@Caroline S.

Personal finance is not rocket science, so don't over complicate it.

I can give you some basic tips to point you in the right direction:

1.  Create a budget based on what you currently make and where/how you currently spend.  This will help you identify areas where you could cut back expenditures and increase savings.

2.  Avoid debt for consumer items if you can.  Consumer items depreciate and eventually are cast to the landfill.

3.  Live below your means and try to establish an emergency fund as soon as possible.

Don't spend a fortune learning personal finance.  Use your local library as much as you can.  You should be able to find plenty of books on personal finance.  As some others have suggested, Dave Ramsey and Suzy Orman provide some pretty good basic advice.  Just don't be upsold into buying their programs and packages.

The biggest part of personal finance is DISCIPLINE!  We as Americans are a consumer society.  In general a great deal of our society are more worried about having the latest phone, biggest TV, etc.  Don't spend all you make and save.  That is the basics of personal finance.

If there were one book that I would suggest you read, it would be Rich Dad Poor Dad, by Robert Kiyosaki.  

Good luck on your journey!

Ed

@Heidi Hughes,

Try looking for an advisor at www.cfp.net

As @Lance Lvovsky said many advisors will not be supportive because they are looking for commissions.  However, a fee based advisor may be a better option. 

A good tax advisor that specializes in real estate could be helpful as well.

I am a Certified Financial PlannerTM, so I can say that a good advisor will point out that being heavily invested in real estate lacks diversification.  That being said, a good advisor will also recognize that real estate seems to be where you are comfortable and experienced.

You will know when you have found the right person because they will take the time to get to know you, your goals,  and your current financial picture.  Then they should come up with recommendations that can help you to achieve your future goals.

I hope this helps and good luck on your journey.

Ed

@Bret Rubash,

It's never too late and failure is an EVENT...not a person.  You only fail when you quit trying!

It sounds like you are no stranger to hard work, so time to roll up your sleeves.  Here's what I would do:

1.  Find a couple part time jobs and work like crazy to get my financial footing.  Pull your credit report for free online and see what bad debts you have lurking.

2. Create a budget so you know where your money is going.

3.  Simultaneously pay off old debt and build an emergency fund.

4.  Live below your means so you can set yourself on solid financial footing.

5.  Set some goals.  Short term and long term.  Be realistic with your short term goals and shoot big with your long term goals.  "A man cannot hit a target he cannot see" - Zig Ziglar

This is all general advice because I don't know your individual circumstances, but if you can do these things, it should help get you going in the right direction.  

I have been in your situation and it wasn't that long ago.  When I was 27 I was flat broke, divorced, and in a pretty crummy situation.  YOU and you alone have the power to change your situation.  It won't be easy, but nothing in life worth having comes easy. 

@Rafael Pacheco

With limited information, that is a hard question to answer.  In general, all of the costs associated with rehabbing the flip would go into the basis of the property and would reduce the gain at the time of the sale.

There are many factors that impact your situation so find a qualified tax preparer that specializes in real estate to give you advice specific to your situation.

Ed

@Rousner E.,

Before investing in real estate stocks or real estate trust funds, have a clear picture of what you want the investment to achieve (appreciation, cash flow, and/or both).  Also, think about if this is the highest and best use of your money.  Does this get you closer to a specific goal?  What brought you to the conclusion that this is the direction you want to take?

I am not trying to discourage you.  Quite the opposite.  I praise you for thinking of investing your money rather than spending it.  Without knowing your specific situation, I cannot render appropriate advice, but speaking generally, if you are carrying credit card debt or have no emergency fund, you may consider applying some or all of these funds to one of those areas.

Hope this helps.

Ed

@Account Closed,

Let me qualify my post by saying I live in Maine so my area is very different from yours, but I looked at a property in similar shape recently so I have been crunching numbers on a gut job.  If I were you, I would make sure that the after repair value would be worth making such a large investment of both time and capital, and that the amount of monthly income you could expect to receive would support the numbers.

The project you are looking at seems like a huge undertaking from the pics you included.  I am not saying it may not make sense, but I think that your budget of <$75k is too low.

I would get a couple contractors to give you a rough ball park estimate and that should confirm whether or not this is a realistic project for your budget.

If this deal doesn't make sense, don't get discouraged.  Keep looking and you will find something that makes sense for your situation.

I have looked at several properties lately and have not found one that makes sense.  It can be frustrating, but think of all the good experience you are gaining everytime you analyze a potential deal.

Hope this helps.

Ed

@Carlos Rios,

My first piece of advice is be determined and don't let setbacks knock you down and steal your dreams.  Bigger Pockets is a great place to start.  There are over 200 podcasts filled with FREE knowledge.  I have only been a BP member for about 9 months and I recently went back and started at number one.

Get your finances in order.  Make a budget and find out where your money goes.  I have three kids and I know most of my household expenditures are to support them.

The library is another great place to get free knowledge.  Rich Dad Poor Dad is a great book for beginners and you should be able to find it at the library.

Look for a local real estate investors group to join and attend their meetings.  Here you can let other investors know what you bring to the table and you might be able to find someone willing to show you the ropes.

Hope this helps.

Ed 

@Ari Archer

You can go to the official Certified Financial PlannersTM website at www.cfp.net

There is a link in the upper right hand corner where you can search for a pro in your are who meets your criteria.

Hope this helps,

Ed

Thanks @Marylin OShea for the kind words of encouragement!

Ed