Taking the wholesaling plunge

[Matthew Martin]

I finally feel like it is time to start taking more action. I bought my first primary residence in December of 2012. Since then I have not been able to stop thinking about the possibilities of REI. I conducted a lot of research, listened to all the BP podcasts (most of them more than once), and hear one thing over and over.....Take Action! I wanted an investment property, but didn't have 20%. I thought to myself, "why not buy a new primary and make my current home my investment". It would turn out to the same result, but a different means. Besides, this would allow me to put little down on the new home allowing me to renovate it while i lived there instead of losing potential rent while the rehab took place. That is what I did. I paid 5% down on a slightly undervalued home on the MLS in Riverside (it was very ugly) and was able to avoid PMI with a slightly higher interest rate. It all worked out so far. Since then I tore the kitchen down to studs and redid everything by myself and it is beautiful. I also went through the entire house making it look beautiful with little touches. The best part is because of my financing I had to pay 4.25% interest rate on 30 yr fixed, but now I have 20% equity due to renovation and appreciation in one of the best neighborhoods in Riverside, and am in the works of refinancing back into a 3.6% interest rate on a traditional loan saving me about $100 per month. This will allow me to cash-flow better when I rent out the home in about a year (when i transfer due to military service).

Additionally, i have a stack of handwritten yellow letters sealed and stamped ready to be sent out this week (I feel handwritten are more likely to be opened and read and they're cheaper). I can't wait to see what happens with this. My only skepticism on the yellow letters is that I'm only here another year, and i know it takes some time to gain traction. However, once the traction is built I will have to move soon thereafter, but I feel like if I can get it going here and learn how the process works internally (with title companies, estimating rehab, finding buyers, etc) I can continue the process wherever I have to move to. I do have a competitive advantage in the fact that I was a Marine Recruiter for 3 years in one of the richest counties in the United States (Westchester, NY) selling one of the hardest things to "sell" to upper class families that have everything they could need in life. Long story short is that I know how to talk on the phone to indifferent customers, and am used to hearing the dreaded "no" or "I'm not interested". I was actually the recruiter of the year for my area (The entire tri-state area of New York from White Plains to Syracuse) in one of the most difficult regions to "sell" the marine corps. I love the fight that goes into the chase, and realize the battle that's in front of me. But like any good marine, I get excited by the thought of battle and don't run away. I can't wait to see what happens. 

I'm sorry this post is really long, but I feel like this will help me get more motivated, and will help keep me accountable to myself. Thanks for letting me share.