Can anyone suggest a pathway for a smooth transition to REI

Question

Good Morning All and Happy Holidays !

I have been interested in REI for a long time now. As you all know, there are several pathways to take in this industry. I have hooked into what BP has to offer and looking into the membership. Truly, I am very impressed with this organization and its willingness to help people, particularly newbies like myself and not make them pay thousands.

As for myself,  I currently have a good paying job and cannot just drop everything. My time is limited.  I am currently working 8-14 hours a day and then training for at least 1 hour each day (REI).  When time permits, I put about 5-6 hours into education on REI.

My Questions are:

1) With this kind of schedule, can someone suggest a pathway for me that I could learn and implement over the next 2-5 months and begin to transition to REI as a solid income stream ?

2) Trainings have talked about - get the deed " subject to" .

What is this and what does it mean ?  How does it work ?

3) Also I have read about "double closings and simultaneous closings".  The explanations were not very clear but it was said that it is difficult for a title agency to do.  Are these processes needed ?

I have contacted lawyers for consult and I was informed that the closing methods are legal in AZ.

Thank you,

Dennis

Steve Bracero · Answer

@Dennis Dougherty

1. First define your goal. Write your goals down daily. Whats your target market? Are you pre approved? Is your financing lined up? How much do you have saved for you initial purchase

A good place to start is the BP Podcasts on the topic you are looking to study. Listen to them on your way to work. Also, there was a segment called ask bp which was 100 short episodes to direct questions.

REI comes down to 4 areas

1. Finding leads (MLS, off market, CL, DM, bandit signs, networking)

2. Analyze Deals (BP calc, or own calc)

3. Make Offers (use a realtor if on market)

4. Manage properties (aquire units, build a portfolio)

There is tons of info on this site... it is a great resource

Connect with investors in your area

Go to local REIA's

Be consistent and take action! You have a good paying w2 job so it will be easier to get the bank to loan you money

Dennis Dougherty · Answer

Thank you Phillip

Phillip Dwyer · Answer

@Dennis Dougherty Wholesaling is not low cost.  You need to spend marketing dollars to get leads.  If you have a good paying job, start saving as much as possible while you research property listings.

Dennis Dougherty · Answer

Thank you Bryan,

As stated, I am just learning right now. I am willing to bet that my terminology is incorrect.  Sorry if there is any misunderstanding.  So here are my thoughts on this.

1) Find a way to get started in Real Estate. From what I have heard and read,  Wholesaling is a fairly simple and low cost way to get started .

Is that correct ?

Are there any other low cost / part time/ controlled risk ways to do this ?

2) I will need to be able to do this work part time until I replace my current income and pay off most of my current loans etc.

3) Build and learn other facets of this business to make a lasting / passive income

4) The end goal is to be doing this business fulltime in 2-5 years and structure is so that when time off is needed, I can take it....   No questions asked and still maintain a decent income.

I hope this clears up my intentions.

Is this an achievable goal ?

Please advise,

Dennis

Bryan O. · Answer

@Dennis Dougherty are you trying to get a job in RE? Or actually invest? Those are 2 very different things.

Regarding your #3. Typically, a wholesaler is going to be talking about double-closings. Wholesaling is another job, not investing. It is a time for $$ exchange.

If you are talking about investing then just keep researching, buy investments, and eventually you will have replaced your income to a point where you can leave your normal W-2 and pick another path, whatever it is.

Phillip Dwyer · Answer

@Dennis Dougherty  Congrats on beginning the journey.  You mentioned REI training.  If you're spending money on this, I'd recommend stopping that asap (beyond buying books on amazon).  Most of the information any of those trainings give you is already free or cheaply acquired.  Take the saved money from the training and put it in a savings account for your first down payment.  Keep your current job and increase your savings.  It's much easier to get financing for a purchase if you have a W2 job.

Figure out if you want to be a landlord or flip houses.  Those are the basic two options.  Your full time job will limit how much time you have to manage a flip, so you might end up looking at acquiring rentals.  It's possible to work full time and manage a local property or two at the same time.  Start researching your market.  What are properties selling for?  What are they renting for?  How long does it take to rent out a house?  If your lender requires 20-25% down payment, how much will you need with closing costs to acquire your first rental?  Will it cashflow?

As far as subject-to and simultaneous closings go, does your market require that you use these strategies to acquire a property that works for you?  If not, then I would keep it simple and stick to traditional acquisition methods.

Can anyone suggest a pathway for a smooth transition to REI

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