Advice, Luck, and Money

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Advice, Luck, and Money

John Ellis
Flipper/Rehabber · Mentor, OH · Member since 2011 · 121 posts · 51 votes

So I posted a couple times on this site in the last week and have been pleasently suprised on how awesome it is. So I thought I would continue to ask more questions haha

Here is my current situation and hopefully someone can offer some advice thank you for your time.

I have bad credit because of students loans and owning two homes.(overextended) I am teacher and I own and operate a construction company. I started the company when I was in college and it has kept going but never growing. I have wanted to expand into Real Estate for ever and have the ability to rehab but can not do it because of my credit.

How can I accomplish my goal?
I have little money to invest (around 1000)

What I do have is a passion for real estate, a hard work ethic, passion for learning and an ability to fix and construct anything. I have the experience to rehab home as both of the homes were complete rehabs.

I just want a chance.Where do I start I am tired of posting on meaningless sights with my business plan on networks that charge high fees just to respond to people.

How did you get your start? Because of my little money and bad credit (sounds appealing huh) I understand the prospects are not good but I refuse to stop. Please help any and all suggestions would be helpful

My goal is to create a One Stop Property Shop where I can buy, sell, rent,and manage properties.

Sorry for the length, Have a great day!

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Steve Babiak
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
15y

Here is the BP resource for Ohio real estate clubs:
http://www.biggerpockets.com/real-estate-clubs/ohio.html

How did I find that? go to the "Local Resources" Menu at the right hand side of this page, and then look for the link to "Real Estate Investment Clubs" ... I suspect the link in the earlier post will be removed ...

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  • Joshua D.Pro Member
    BiggerPockets Founder · HI · Member since 2008 · 16k+ posts · 5k+ votes
    15y

    John - I'd recommend starting by potentially bird-dogging or wholesaling. Both require very little money; just the ability to find quality deals. Build up your cash pot and then think about strategies that can make you more money.

    If you have a construction company, why can't you bid out on projects and build your cash by booking those jobs?

    Podcast Guest on Show #100
    0Reply
  • Account Closed
    Landlord · Seattle, WA · Member since 2010 · 3k+ posts · 1k+ votes
    15y

    You might also think about partnering with other investors.

    0Reply
  • John Ellis
    OP
    Flipper/Rehabber · Mentor, OH · Member since 2011 · 121 posts · 51 votes
    15y
    Originally posted by Charles Perkins:
    You might also think about partnering with other investors.

    I agree that is why I joined this site to hopefully learn and gather ideas on to what other investors are looking for and how I can help them and they in turn can help me.

    0Reply
  • Danny Johnson
    Real Estate Investor · San Antonio, TX · Member since 2010 · 328 posts · 182 votes
    15y

    Bird-dogging and wholesaling are a great way to get started as Joshua said.

    Not only is partnering a great way to get started, it is a great way to learn from people that have already made the mistakes and are in a position to save you a lot of grief.

    I've always felt that finding a mentor (local is best but not absolutely necessary) that you can work with. That's how I got my start and truthfully feel that I would not be where I am right now if it were not for the help and guidance of my mentor.

    A good structure is where the mentor puts up all of the money and you do all of the work (finding, rehabbing, selling), with their help of course, and you split the profits 50/50.

    Awesome way to start. You can learn and receive an infinite return on your investments. Your mentor will shoulder all of the financial risk and make an awesome return, with little work.

    Good luck and have fun.

    0Reply
  • Danny Johnson
    Real Estate Investor · San Antonio, TX · Member since 2010 · 328 posts · 182 votes
    15y

    I just noticed that you were in Mentor, OH. Must be a sign. Get a mentor. Look for any local real estate investor associations and ask around for who has the most experience and is the most successful.

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  • John Ellis
    OP
    Flipper/Rehabber · Mentor, OH · Member since 2011 · 121 posts · 51 votes
    15y
    Originally posted by Danny Johnson:
    I just noticed that you were in Mentor, OH. Must be a sign. Get a mentor. Look for any local real estate investor associations and ask around for who has the most experience and is the most successful.

    Thanks Danny I think that is what I am planning to do is try and find real estate groups and begin networking in hopes someone will take a chance. A 50/50 split would be awesome I was thinking way less thanks!!

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  • Danny Johnson
    Real Estate Investor · San Antonio, TX · Member since 2010 · 328 posts · 182 votes
    15y

    When you find out seems to be a perfect fit for you (successful, experienced and someone you 'click' with), make sure to show that you are 100% committed and have done your homework.

    They may ask you to do small odd jobs without any kind of lessons or compensation. You may need to give a little more in the beginning before you can receive more (think Karate Kid). A certain degree of trust is required. Just don't let it get out of hand.

    It's definitely a journey worth having.

    0Reply
  • Bill Gulley
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    15y

    If you have a construction company, you might contact Realtors and offer to make repairs, to some extent, on properties that are being sold and agree to carry the profits to closing. Finance your work with a note from the seller and if it is not sold, payments can be made to you.

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  • Mark Anderson
    Real Estate Investor · Memphis, TN · Member since 2011 · 63 posts · 31 votes
    15y

    You can also hit up friends, family, business acquaintances, REIA's and anyone else with money and ask them to be a private lender for you. Some private lenders are more concerned about the deal itself and much less concerned about your personal credit/cash position.

    This would give you the funds to close and rehab a property.

    0Reply
  • Alice Green
    Real Estate Investor · Salt Lake City, UT · Member since 2010 · 47 posts · 6 votes
    15y

    I would agree with Danny, networking with the guys in the field is one of the best solution for your situation. These people who don't care for the bad credits as well. As far as, they find the deal attractive. Try building contacts via using BP's listing services.

    0Reply
  • John Ellis
    OP
    Flipper/Rehabber · Mentor, OH · Member since 2011 · 121 posts · 51 votes
    15y
    Originally posted by Financexaminer:
    If you have a construction company, you might contact Realtors and offer to make repairs, to some extent, on properties that are being sold and agree to carry the profits to closing. Finance your work with a note from the seller and if it is not sold, payments can be made to you.

    I really think this a good idea. How would I approach relators should I target houses on the market for a long time or should I target specific relators.

    0Reply
  • John Ellis
    OP
    Flipper/Rehabber · Mentor, OH · Member since 2011 · 121 posts · 51 votes
    15y
    Originally posted by Mark Anderson:
    You can also hit up friends, family, business acquaintances, REIA's and anyone else with money and ask them to be a private lender for you. Some private lenders are more concerned about the deal itself and much less concerned about your personal credit/cash position.

    This would give you the funds to close and rehab a property.

    Mark I am trying to find a good repuitable REIA in the area. The current one in my area (Cleveland) does not have an updated website so I am not sure if they are really active.

    0Reply
  • Mark Anderson
    Real Estate Investor · Memphis, TN · Member since 2011 · 63 posts · 31 votes
    15y

    John,
    Here is a site that lists investment clubs in Ohio

    Try calling some of those. And everytime you talk to a local investor, ask them if they are a member of any club or group that meets to discuss real estate. Contact the Bigger Pockets people in the Cleveland area and ask them too.

    A good number of investment clubs have folded or are no longer meeting due to whats happened over the last few years with real estate and the economy.

    0Reply
  • Steve Babiak
    Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    15y

    Here is the BP resource for Ohio real estate clubs:
    http://www.biggerpockets.com/real-estate-clubs/ohio.html

    How did I find that? go to the "Local Resources" Menu at the right hand side of this page, and then look for the link to "Real Estate Investment Clubs" ... I suspect the link in the earlier post will be removed ...

    1Reply
  • Ben Kevan
    Investor · CA · Member since 2010 · 150 posts · 40 votes
    15y

    John,

    I'm going to give you a call in the AM (7:30AM PST).. Didn't get a chance this morning because of work.

    Do you have details on the full rehabs? Pictures, and more info?

    I'll talk to you in detail tomorrow.

    0Reply
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