All Forum Posts by: Jonathan R.

The divide by 10 rule. Hmmm. While this post hasn't put new wind in my sails tonight, I do get what you are saying. I learned in real estate a long time ago that small deals with certainly feed you. I can't help but encourage you though to push the envelope a bit and not lose sight of your bigger goals. Certainly enjoy the milestones along the way. A 20 unit apartment building sounds like a massive deal to me, I don't think you are thinking small in that one. Figure out how big your appetite is and eat, even if it is one small bite at a time.

I wouldn't worry about the split starting out. 50/50 is fine starting out. If the brokerage is going to give you leads, they will be more than earning their side. They are also teaching you the business and providing an office. Fair deal all around.

Well, been there done that. I've worked a full time job as a part time realtor and now I'm an investor. I don't have any advice on what brokerage to go with, I'm sure you have plenty of great options. The good thing about your schedule is that many real estate company meetings, at least the ones I used to go to, were in the early morning. With your schedule, you should have no problem getting involved in the business. I learned a ton as an agent and think you are making a great decision by getting your license. I would suggest going with a brokerage who says they are willing to let you work some internet leads as they come in. The great thing about being a realtor is that clients will work with your schedule; if they don't, they don't need to be clients. I let my clients know when I could do showings and there was never an issue. I also applaud you for keeping your full time job, I think that is essential to take the pressure off of selling, it will also serve you well as you transition to investing. Do keep in mind that investing will yield you much better than selling, but, without my experience as a realtor, I do not think I would have been successful at investing. I spent countless hours searching the mls high to low and low to high. You'll know what a deal looks like after you do a few with others. Good luck.

4/15/18 at 3pm CST

I have to agree with @Steve Milford. I think you want a fixer upper as your first, not a total gut by any means but something in-between that tests you a bit. My first property needed a new bathroom, new flooring, patching to the roof, plumbing changed out to pex, the faucets and fixtures, and several other misc; I was terrified at first. After I conquered that project, call me crazy, but I'm not afraid of anything. I have a relationship with a contractor now that is pretty good, I feel I can branch out a bit. Heck, I'm thinking about buying a total gut (for next to nothing) just to take my time with it and have some fun now, some guys like fixing cars, I like rehabbing houses. And I am not a diyer by any means, but I can paint and want to get involved where I can, I know I can hold a ladder and drive my contractor to Home Depot. :) Good luck. I'd stay away from major foundation issues but the rest shouldn't scare you much. "You've got to be bigger than your problems."- Secrets of the Millionaire Mind.

After you and the seller agree on price, I would go to a title company and have them hold the deal. They may charge you $20 a month to make your payments to them instead of the seller, but at least you know you won't be taken advantage of. This protects both of you honestly, so I see no reason the seller should not agree to this. The title company will pay the seller monthly. They will be happy to draw up the contract too for a fee if need be and they will make sure you understand what you are signing.

@Anthony Markey There is a REIA meeting on Dec. 2nd at 5pm in Wichita. The group meets the first Saturday of every month. If you google that you'll find the location.

Not sure if you have thought about this yet, you can take a loan out on your 401k, the Roth too. The interest rate is low and you are paying yourself that interest. You can borrow 50% of the money in those accounts, you can schedule to have it paid off over up to 5 years. You do want to stick with your employer until you pay the loan off or else you will be taxed if you don't pay it when you leave. My plan with Vanguard will let you have up to three loans and you can still contribute and get your company match while you have the loan out. Some people will tell you not to take a loan out on your 401k, and most of them will be working until they're 65. :) Good luck.

@Ryan Delauz Yes, that is the only way. Always shoot high and let the housing authority correct you downward if need be. It isn't difficult to get a tenant to agree to your number on Section 8, at least not in my area.

@Wade Sikkink They may have taken the original offer had I checked my email an hour before fielding his call that afternoon. The realtor wanted me to resubmit the offer using a different contract form. I felt bad, oh well, he only lost 2k. He was a solid 12k under asking on 150k property. I buy him a cold beer now and again.