All Forum Posts by: Jeff Wallace

@John Cushing

I have had a few hubzu transactions - some took 4-EVER to close others took 5-EVER ... (which is one longer than forever) - but just sit back and enjoy the ride - it will eventually get there - assuming you actually contract.  That is another bit of silliness - I have watched some hubzu properties jump all over the board with regard to pricing and reserve price. A roller coaster of thousands or tens of thousands of dollars higher and then lower and then higher again from one auction cycle to the next.  

As for entering the property, most that I have bought have allowed access. But, if the listing says you can not enter.... then you would technically be trespassing - BUT... it is your money at stake - so therefore your decision - and you who will pay the consequences -

Go in - -- and possibly face a trespassing charge.

Stay out - -- and face whatever property condition you encounter after you have made the purchase.

good luck

@Brian Garrett

This is why the W-2 income is so important when just getting started -

With most rental property price points -  and since you have good credit, money in the bank, and no debt - you could qualify for a mortgage with a decent part time job at Lowe's or Home Depot -- W-2 income will carry a ton of the weight you are struggling so hard to lift and make financing the property pretty painless...  Once you are an established investor, with multiple properties showing income, it still isn't  easy to qualify for conventional mortgages as a self employed borrower  -- Lenders LOVE to see the W-2 -- 

Remember when you played Monopoly as a kid - "Passing Go" was the key to getting started - Later you were making so much money from rental income that you didn't need to Pass Go (collect a salary). Real life investing is exactly the same.

Good Luck

@Jonathan Steele

I agree with @Paul Hitchings - Every GuRu or Real Estate Investing course seems to push wholesaling as the thing to do to get started - Primarily because they say you can get started without investing any money - What I am seeing in my area is that every beginning investor and their uncle are sending me postcards wanting to buy my properties - I get about 5-6 per week.  Wholesaling is primarily a marketing job and has nothing to do with investing in real estate ... until you get a potential property under contract --- my thought for a beginning investor .... Marketing isn't free - and the successful marketers are spending thousands of dollars a month to generate leads - Are you ready to commit the budget to marketing in order to compete with the number of people sending letters to homeowners?  

In my opinion, the absolute easiest way to get started INVESTING (buying rental property) is to buy a home (Duplex,Triplex, Fourplex if possible) as an owner occupant with a low interest rate and low down payment -  live in the property for a time then convert it to your first rental property and go out and buy another home as an owner occupant to live in for a time ... etc, etc,-- you should be able to do that a few times before you considered and investor and required to provide a 20% down payment.  before you know it you will have a few properties generating cashflow --- 

Good luck in whatever path you choose

There is no doubt in my mind that the KEY to success is living below your means early in your adult life - Delay gratification for a few years to accumulate the investment dollars and let those dollars start working for you EARLY - a client of mine (and Biggerpockets member - although I am not going to call him out here) is the perfect example - He is buying houses at a pretty rapid pace now and makes a pile of money - In fact, he is only a couple of years away (at 29) from quitting the day job to spend the majority of his remaining time on earth hiking and traveling- How did he do it? by living below his means - He drove a piece of crap car through college AND dental school - he lived way below his means while he was paying off school debt and saving money to buy his practice --- now he owns a considerable practice which generates massive monthly paychecks, but he still drove that same crappy car until it caught fire about 6 months ago --- did he go out and buy the luxury automobile?  no... even though he could afford to pay cash for several -- he bought a slightly newer version of the car that had served his needs so well ---he kept his eye on his goal --- Freedom --- freedom to do whatever he wants with his time -- Now he uses those paychecks to build his investments so he can fund the rest of his life ---

@Brian Salinas

- when you find a good deal there is always a way to finance the project - even with poor credit and no money in the bank account - but the finance costs are VERY expensive - --- so you need to be searching for a great deal to offset the loan costs -- as others have said, this isn't a great deal - it isn't even a good deal there is barely any money to be made if everything goes exactly according to your rehab numbers 

- my advice--- pass this deal up and work hard at your job (or jobs) and save, save, save - live below your means and pile up the cash - keep your eye on the goal line and keep your eyes open for really great deals- read all you can, talk about real estate every chance you can with people who know their stuff - before you know it you will be ready to go, but it is risky to try to force a deal in your current situation - if you think you are broke now, what happens when your deal is a $20,000 loser rather than a $20,000 winner?

@Scott Logan

 I believe there are a couple of investor groups that meet on the north side of the city- I haven't attended any, but I occasionally see postings on this site- use the search function to look for past threads and you should be able to find them. Good luck getting started

@Dar Shan

The coin has two sides 

- One side is your passive income (cash flow from rental property)

-The other side (in my opinion the more relevant issue) addresses you monthly expenses.

I know one friend (an old co-worker before I quit my 9-5 job) who could have "retired" years ago with the cash in his checking account - He lives on a little over $1,000/month - He literally spends less than $15,000 per year on his living expenses - He is a multi-millionaire.  Our manager at the job I used to work when I "traded my time for money" had a household income of probably $350,000-$400,000 per year --- she couldn't afford to go out and buy lunch two days before payday because she didn't have ANY money - she was flat broke - they spent every penny they made on cars, jewelry, clothes, purses, suits, watches, eating at expensive restaurants, etc

As you see, every persons situation is different - as @Ryan Cameron said, the first step is to work on getting your expenses under control- that makes your goal much more obtainable in a shorter time.

I had a good job with great benefits, but I had other interests that I wanted to pursue - and I hated going to work every day - so I started working on leaving my 9-5 job - between adding income with rental property and reducing my monthly expenses, within a few years, I was able to leave a job I hated and spend my time doing whatever I wanted- As @Thomas S. mentioned, a job is nothing more than trading our time for money - well, Time is the most valuable asset I have - and I wasn't willing to give it away so cheaply - my Time is more valuable than money - You see, it doesn't work in reverse, I can't buy more Time, I can't inherit more Time --- money is easy to acquire, our time is limited. 

@Daniel Lehrman 

First, I congratulate you for being able to see the benefit of real estate - in my experience, Financial advisors have completely ingested the Kool-aid and aren't able to see anything past a "standard diversified stock portfolio"  I can't even count how many broke financial advisors tried to tell me how I should be investing my money --- but I digress.

As a real estate investor, a real estate license can be very valuable to you.... eventually - but don't think that getting your license will get you ready to start investing.  The best way to learn about investing --- is to go out and invest.  Sure, read the books and listen to the podcasts, but you will learn more about investing when you buy your first investment than by reading a lifetime of books.

Since you are a bit apprehensive, I recommend finding a GOOD agent who is also an investor and go out and buy your first home ... BUT do it with the intention of it becoming your first rental property... even better if you can find a duplex, triplex, etc... that way you are able to dip your toe in the landlord business slowly while your tenants pay the majority of your mortgage payment --- if you find that it isn't your cup of tea, no problem, live cheap for a few years and sell when you are ready. 

good luck

@Bryce Wong

Yes, but you won't be able to get it "off the shelf" the designer will need to order it

@Bryce Wong

they make them - perfect for cookie sheets or cutting board etc. go to lowes and the cabinet designer should be able to get a fairly close match to door style and color.