Impossible for me to enter real estate investing?

Question

I'm going to be very open and honest about my situation so people know where I'm starting out from and hopefully get some specific advice. I'm looking for the "What would you do if you were in my shoes?" kind of advice.

I live in San Diego working in helpdesk support making $19/hr. I've lost my job twice in the last 3 years due to layoffs. I have 6 kids, 4 of which are bioligical and two we've adopted through foster care (all under 8 years old). I include that because part because my goal is to eventually have enough passive income so that I have more time and resources to continue to work with foster youth and increasing foster care awareness. I also want to be able to send all my kids to college, so 6 times however much college costs in 10-15 years. Not to mention just the daily costs of taking care of such a large family on Southern California. And moving is not an option because I have joint custody of my oldest. But I do recognize that I'll probably have to start out investing in cheaper markets outside of CA.

My credit is shot. I have a bankruptcy that is 2.5 years old, horrible credit and no savings. I know I'm getting detailed here but I want to paint a real picture so I can get real advice on what my next steps should be to get to real estate investing. I know it will end up being a long journey but the plan people keep telling me to do isn't working out... get a "good" job with benefits and life will turn out ok. Problem is, this model is failing so many people and it has failed me a couple times. Going back to college to hopefully land a 6 figure job just doesn't seem in the cards for me. So what would you do if you were in my shoes? I know repairing my credit is one step I can do now and I'm working on that. But how can I get into my first deal? All advice is greatly appreciated.

Aaron Mazzrillo · Answer

Hmm. Not going to tell you what to do in your situation, but if I were in that situation first thing I'd do tomorrow is make an appointment with a urologist. Then, while I was laid up recovering from that procedure, I'd see if San Diego has their probate filings online. If not, I'd figure out where the court house is so I could go there for about 1-2 hours a week and do some research. I'd look for any filings that have real estate listed, an executor with full powers and hopefully a phone number. I'd write all that info down and start making calls. I'd call every week. Forget mailing cuz it doesn't sound like there's any money for postage.

In the mean time, I'd study up on BP all about wholesaling and bird dogging by using the search box on the top right corner. A solid lead can be worth some serious money even if it isn't under contract. That is the best way I can come up with on how to find motivated sellers for little to no money and make at least a few extra bucks. Good luck!

Rick H. · Answer

You can choose your path but must be realistic as to what the next step is.

Success in any field requires multiple steps.

You don't fly big jets on your first day of pilot training.

You also must separate real estate investing from being in business of real estate. I know real estate investors who've made plenty of money but we're never in the real estate business. Primarily, they invested discretionary income and excess cash flow into property deal and/or notes.

If you're struggling financially, that won't help you (yet).

So, ask yourself if you have sufficient RE knowledge and skills to work IN real estate related business. When I was fired from my corporate day job, I received the gift of desperation which motivated me to become immersed in anything and everything that would advance my knowledge, skills and effectiveness in real estate. I started by full time career working as a loan officer, then started my own company shortly afterwards.

I continue to listen to tapes, investing in my own education, belong to mastermind groups. Also, I avoid negative environments, people who are only takers and time vampires, and make a point to give back.

@Jordan Hall Only you are in charge of what goes on in your head. Consequently, you are responsible of your attitude and actions. If you catch yourself saying "yeah, but..." then that the signal to listen to different tapes and take different actions.

Michael Boyer · Answer

well, you can write well, have great self awareness, and are clearly bright.. So can you go buy property tomorrow, maybe not, but you can learn a lot about real estate and investing and financial management. That could all be within reach....maybe see if you can buy a house first (like to live in) and learn and go from there...small victories..

Jordan Hall · Answer

Thanks to everyone for the tips. I'm obviously not trying to fully enter real estate investing today. I just wanted to paint a picture of where I'm at now and get advice on how to get to a place where I can enter the real estate investment market. I know it's where wealth can be built... Just trying to find my path.

Jill DeWit · Answer

@Jordan Hall

Hey, you can do this. Why not start small - buy some rural vacant land, say Kern or San Bernardino County for a $500, sell for $1500 and keep growing your acquisition balance to where you are comfortable enough to make some other decisions? And while you are doing that you can sell a few of the nicer properties with owner financing and sit back and collect $199/mo per property for doing nothing.

Totally not crazy. A ton of us are doing it. Great way to get rolling in real estate and since you are paying cash for everything you don't have to worry about credit - AND - you will sleep well at night because everything is paid for.

Hope that helps!

Jill

Christopher Brainard · Answer

@Jordan Hall

While I'm sure you're going to get a ton of encouraging posts about how real estate is easy and you can fix all your problems here, but Real Estate (at a minimum) requires time, money, or credit. Based on your post, it doesn't seem like you really have any of the above to offer in mass quantities.

If I were you, I think I would focus on cleaning up my personal finances. First, you need to find a (better) job making more than $19. I lived in California for many years and that simply isn't a living wage for two people, let alone eight. Next, I would work on repairing your credit to the best of your ability. Get anything that has any inaccuracies removed. Read and Understand how the system works so you don't inadvertently pay something, but make it stay on your report longer than necessary. Finally, you need to decide if real estate investing is right for you. Without a ton of capital or credit, you're going to be stuck pounding the pavement trying to pickup deals that others aren't aware of.

If you're willing to dedicate the time (which will significantly reduce your family time), use your spare time here on Bigger Pockets and learn about the different disciplines in Real Estate. Try to find local folks who you can hang out with and learn from. Mentors are great if you can find a real one. Once you have sufficient knowledge and an investment strategy you're comfortable with, give it a try and see if you can make things work.

-Christopher

Jordan Hall · Answer

Joe,

I spent four years in the Navy so advising  my kids to go that route is something I'll definitely do. I didn't have a plan going in and also left the military with no plan so I didn't utilize all the opportunities but I learned enough to guide my own kids through that if they so choose. For the time being though I'm trying to get a road map for how I can gain wealth through real estate.

Cashmere Robinson · Answer

It is not unknown (to you too) that opportunity in real estate market is endless. You need to be in the right place and in the right time. I think you should market your strong skills by means of a online presence and if necessary giving free service (initially) to those people who really need guidance. Above all you need patience to sustain in this profession.

Impossible for me to enter real estate investing?

Impossible for me to enter real estate investing?

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