All Forum Posts by: Manuel A.

That's awesome, are you a fan of Milton Friedman by chance Will? He's my favorite economist.

My current personal definition of what is and what will define me as an investor (in the concentration of rehabbing mind you) when the time comes is this:

A form of labor in which one is free from coercion to have the freedom of self-expression, creativity, and a deep sense of pride in ones product. It also brings recognition, has true purpose, and also give one the possibilities to form real relations with others. A labor which when done with passion, integrity, and pride brings profits as a residual effect.

Manuel

First off, thanks to everyone for the continuing advice.

For the sake of not opening another topic thread, can you give me you opinion on what to look for in a RE attorney, escrow and title company?

Yes, I have taken Will's offer and right now I'm just working on things he's told me about/to do. So your guys/gals opinions would be helpful and appreciated! Thanks,

Manuel

Thanks everyone. I write a lot, I can't help it sometimes. Thanks especially Brian Hoyt as I liked that you set out a numbered plan, but still everyone else who contributed thanks.

I'll come back when I have 20k and a job. And I'll try keeping my posts under one novel in length next time. Thanks,

Manuel

Hey there,

My name is Manuel, I made an ambitious post last year trying to push myself to leap into REI starting out as a wholesaler. To be honest, I gave up because of all the negativity. IE: Don't do it, it probably wont work, it's hard, you'll rarely get a deal, it took me five years to get my first deal, get a job instead, do something else, etc...

So in the mean time, I kept reading about REI, but never leaping. I just have a ton of theory. I've also continued with my schooling and am about to receive to Associates degrees this year (Liberal Arts and General Studies), which aren't much to me but a resume builder/job marketing ploy... but hey, anything to help my perceived intelligence and get me a higher wage/salary is great :D. My main degree of which will be in either Diagnostic Medical Sonography, Nursing, or Respiratory Therapy will be on my resume as well within about two more years.

Okay, now to my main question. How much money do I need to get into REI as either a rehabber, landlord, or whatever else you can think of. I'm open to suggestion.

Here's my information:

First, my biggest barrier; my age. I'm 20.

My personal expenses will be covered by my job of course (of which I'll get when I start investing or need more money). I grew up in poverty (mom, no dad, 2 sisters, mom made ~$16,000 gross yearly income.) so I can live on very small sums of money (and be happy :D). In fact, I can probably save ~$400 a month on $7.50/hr part-time.

I have zero debt. Just recurring debt IE; cell phone, helping mom with monthly bills, etc...

I have a car which is paid, and wouldn't want to loan against but maybe if I felt exceedingly confident. It's worth (new) ~$24,000. Used probably (conservatively) ~$18,000. Yes, I don't make a lot of money but I did manage to pay it off. My mom taught me how to be frugal and spend my money wisely. Although, buying an expensive car (in my eyes expensive) probably wasn't too smart at my income level. But I did it successfully :D! So yeah!

Currently I have no income, just saved up funds. Approximately $14,000+. And just so you guys know this is A LOT of money to me. Losing it would devastate me as I'm poor, have been poor my whole life, and getting this much money again would take a long while. I mean you (and the government) might not think I'm poor, but it's all I have. No money coming in at all. Just my account getting smaller and smaller. And it's not like I can go and get a job that pays me even 20K a year when my funds run low, nope. I'm stuck in minimum wage land as I'm schooling full time and it takes up almost all my time. I eat, EVERY SINGLE DAY, Spanish rice, and cupped soup as my meals which is fine. I love Spanish rice and cupped soup :D. I'm not working as I like focusing on my studies. I have a 3.9 GPA so far...

As for resources, I have an uncle who is a "jack of all trades". He is amazingly handy when it comes to fixing up houses. I also have other relatives that would lend a hand. I have a credit score in the 800's and the other one's are just as excellent. I have an aunt licensed in real estate. And I like to believe I'm smart and have the ability to make good, slow, well thought decisions. Especially when it comes to money.

So considering I only need a small amount of money to live, have free labor at my disposal, and have no debt along with a great credit score. How much money should I save before jumping into my first deal. And it can be anything, rehabbing, landlording, I don't really know much else, but hey, anything you can think of to start me off in this, I'm willing to listen. Mind you, my girlfriend (of seven years) would be getting the qualifying loans in theory as she's had a steady job and coincidentally her story is much like mines (poverty, great credit score, no debt, etc...) and she has about $3,000. Plus we have a beautiful daughter (10 months old) and for that reason, we get about $5,000 at tax time. The State pretty much covers all my daughters expenses, it sounds weird, but with food stamps, wic, and tax benefits I'm am or am almost profiting off of having a daughter, haha. Of course that's not how I think of her :D. Soooo.... tell me what you think :D!

Sorry for any typos, I'm tired,

Manuel

Hey all, I have updates, but I'll be sharing them Friday.

I see there is much caution for me to be going into wholesaling. Well I think I'll peruse it for say 3 moths and see how it goes... I'm also going to be looking into Steve L's awesome recommendation too so I think I'll be updating all that on this same post for anyone looking out.

Thanks for all of your caution everyone, but this post can be a case study for everyone instead of an opinion. At least in my market. And this will be great to see how Steve's idea pans out in my situation as well. Thanks

-Manuel

I feel I can get more investors that aren't cash only, so I'm wondering the critical preference towards cash buyers. Is it just because it's more of a sure thing, or easier to work with cash buyers? What is the big deal? Is it impossible to work with a non-cash buyer? Thanks,

EDIT: From a sellers standpoint.

Manuel

Ok, this is a thread for anyone who wants to follow my wholesaling adventure. I am making this so everyone can see exactly how I'm going through this and once I make my first deal, I'm sure this will be an amazing resource for new comers.

I'm going to be detailing as much things as possible as I go through this experience until I make my first, maybe second deal. If you'd like to comment on what I'm doing, please cite the date so others may know where to look at when you respond (when this post get bigger anyway). I'll be editing this post every time I have something to share in my journey. Here's what I got:

-1/6/12

What I know in my humble begging:
Theory, tons, and tons of theory. I've read tons of books and advice on this forum. You know what I've learned? Everyone's advice is just about the same when it comes to "how do I wholesale". I think I keep wanting to learn more theory so I know I'm going to do well and you know, there is a time when you'll reach as much as you'll be able to learn and then you just have to jump into this. And it is scary to jump for me. All you need to know to jump in this is this:

1. Build a buyer list
2. Market and/or go out and find potential houses. Usually vacant and beaten up houses.
3. Once you find a house try getting the seller under contract for a substantially discounted price. (.65ARV - repairs - profit)
4. Find a buyer and "assign" your contract to him/her. The buyer is from your buyers list!!! When you assign your contract, you will charge him an assignment fee or finders fee. It's all rhetoric.
5. Close by turning in all the paper work to a title company.
6. Wait for your money.

So take it from me, and follow me, and JUMP!

Right now, I'm going to be building my buyers list. I'm looking to get about 15 buyers on this list before doing anything. I'm going to be looking for "we buy houses" advertisements on bandit signs, craigslist, the Yellow Pages, and the news paper. I'll be calling these people and asking them if they want to be on my list using a pre-made script. I'll be back once I get about 10-15 people on my list and give more details on how I did it. And for anyone going through this stage, I myself am nervous to even call up these people, so you're not alone if you're nervous too.

By the way, I'm being guided the ebook (which is on here in the resources area) "Real Estate Profit on STEROIDS" by Jackie Lange. Just in case you wanted to know. Why her book? Meh, no real big reason, it's simple and in a guide format so why not? Thanks guys/gals. Wish me luck!

Awesome replies everyone!

Brian Hoyte, you're right. But I think it might take away some of my jitters to do something related to real estate even if it's only slight. I'll be getting my RN degree for sure though. No doubt about it. And thank you for giving me a number I can shoot for!

To Rob,
I don't oppose wholesaling at all. In fact I may start getting into it soon. I just wanted to hear about other paths there are into real estate before I choose one to settle with in my beginnings. It looks like wholesaling is it. Which is great!

And Mike, thank you for your insights as well. On the note of me not having time for a part-time job, let me put it this way. Right now, I can't really work anywhere I'd want to work. No passion plus low pay. So I'd rather not make any money doing what I love and focus on my College which is coming along great. I'm a geek for knowledge of many things. Real estate is a passion for me. Although it is only theory right now... It interests me enough to keep going where others may quit. Do you get me?

Thank you everyone.

Hey Steve L,

Very interesting advice. I've never head of anything like that. I'll look more into it. Quick question from you, this "lease agent", does she get the full 2.5-3% up front upon the lease being signed? Thanks.