Is there any hope for success for a 64 yr old with mental challenges?

Question

I'm anxious to do my first deal but don't know where to start. Wholesaling seems the easiest and quickest way to make my 1st deal of at least $10k+. I have no cash buyers but have found lots of SFH where the asking price is in the low $30s and the ARV upper $100k with minimum repairs or renovations.

Mangus Allen · Answer

I can say this to you Lucy that nothing is impossible. Go for this if it is your dream

Christian Morency · Answer

I love Lucy. 
Welcome to BP. 
Use your enthusiasm to do something. Nothing happens until something moves.
Too much reading will bog you down.
The first thing you need is a house under contract. That puts you in control.
Then you need to sell it. Once you own it on paper, you will be motivated to get rid of it.
Step off the cliff....... and the net will appear.
If your primary goal is to help investors succeed, you will succeed.
There is a book called "Ready, Fire, Aim". About the situaion you seem to be in.
Start your business and let it unfold with you at the helm.
Enjoy the process, and good luck.

James Vermillion · Answer

Lucy Rowens,

Be very weary of anyone that pitches something to you by saying it is 
"easy, quick cash"...if only it were that easy!  Real estate investing is great because it offers many different ways to make money, but none of them are easy.  If you are looking for easy, you should look elsewhere (although I doubt you will ever find what you are looking for).  If you are willing to work very hard, learn a lot, properly manage money, etc, then you can succeed in this business.

I started by focusing on rehabbing and selling houses, but am ready to start adding long term rentals to my portfolio.  Is it easier than wholesaling...it depends.  Each real estate specialty requires different skill-sets, different education, varying amounts of capital, varying amounts of time to invest, etc, but they all have one thing in common...none of them are quick and easy cash.  Rehabbers spend a ton of time looking for the next property, managing on-going projects, marketing completed projects, and on and on.  Landlords are busy trying to find their next great rental property, dealing with bad tenants, trying to fill vacant properties, etc.  Hopefully you get the point now, real estate investing is not easy!

Now, if this is still something you want to do great.  Start figuring out which area of real estate investing best suites your personal traits, financial situation, market, etc and start learning everything you can about.  Start attending real estate investing associations so you can talk with investors in your area and learn a little bit about what they are doing...perhaps there you will be able to find someone willing to give you some pointers. Good luck!

Jon Holdman · Answer

Almost certainly you heard this from someone selling courses, bootcamps, or mentorships.  Its sounds quick and easy.  That's what makes it attractive to gurus selling expensive courses.  It sounds like it should be easy.  That makes their course sounds attractive to people who are looking for quick and easy cash.  I'd hazard a guess that less than one person out of 100 who plunks don't thousands of dollars for this training even makes a single dollar.

Are there deals you can buy for $30K that are worth $100K?  Perhaps.  But will need $50K in repairs.  Realistically, if you can find a deal for $30K and make $3000 on wholesaling it you would be doing very well.  Are you going to find those on the MLS?  Nope.  Everyone can see those deals.  If they were deals, someone would have already bought them.  Now, there may well be the rare deal where you can turn around and wholesale it after buying it off the MLS.  But when a new wholesaler sends me a deal, I look for it on the MLS.  All too often, I find it.  They're finding a property on the MLS, marking it up and offering it to me.  That's just silly!  They're offering no value.

Zillow is of little value for the zestimates.  They're getting better, but they just don't have enough info to really give a good valuation.

Please use the marketplace forum if you're looking for buyers or for a mentor:

http://www.biggerpockets.com/forums/517-real-estate-marketplace

John Evan Miller · Answer

I personally would recommend investing in discounted single family residences. Here is why I think it works in this economy.

1. Distressed properties (Foreclosures, short sales, REO etc) are readily available and are being sold for cheap.

2. Because of the restrictive lending requirements, loans are hard to get forcing many people into renting. If given the choice, people like renting homes more than apartments.

3. As the economy improves and lending requirements relax a little, these renters are going to want to buy.

4. As demand increases and the economy improves, so will real estate prices.

My research indicates that if done properly, the yields will be between 15 - 20%.  I estimate the holding period to be no longer than 5 years.

Bill Gulley · Answer

Welcome Lucy! Not sure what the implication is with any mental capacity and age has nothing to do with, but younger and older can present issues, but anything can be overcome.

Frankly, IMO, wholesaling is nothing more than a glorified straw man. Profits really shouldn't be that great, I think you'll hear alot of exaggerations, here's why:

You are going to locate properties that other investor types can't find. If a LL or fixer type who is successful at what they do, that should mean they can find most properties that can be had without you. So, your competition are actually mostly your buyers.

It's a simple concept made into a more complex strategy for the benefit of gurus, wannabe gurus and others making a business out of working with new investors instead of actually dealing in the dirt.

Why would anyone want to find a property and limit themselves to selling to others in real estate, that's just limiting your market!

Another limitation is the supply of properties that for one reason or another are difficult to sell, if they were more marketable, the seller would be selling for full value.

As James mentioned, with limited funds you'll need to demonstrate your ability to perform with sellers. If your approach is, let me put your property under contract so I can sell it to another investor and profit off of you, you have a hill to climb.

You might consider partnering with another. Watchout as  birddog in Texas, you can cross the line as acting in a brokerage capacity if you don't take an interest in the property.  :)

James Vermillion · Answer

Lucy, welcome to BP.  It is impossible for me to say if someone else can/will be successful, but I will also not say it is impossible for someone to be successful.  There are a couple things from your post that stuck out to me.  First, not a whole lot a new wholesalers are making $10K+ on their first several deals, at least not that I am aware of.  I am not a wholesaler and have not even used a wholesaler, but from what I have heard on properties in the price range you are talking about a couple thousand is more on par....perhaps someone else with more experience can chime in on that.

Second, I highly doubt you have found  "lots of SFH where the asking price is in the low $30s and the ARV upper $100k with minimum repairs or renovations."  How are you estimating ARV?  How are you estimating repair costs?  The most common new investor mistake is to overestimate ARV and underestimate repair costs...I would predict you have done both.

Third, if you are wrong about the spreads on those properties you are going to have a very rough start as a wholesaler, because you will quickly become "another wannabe wholesaler" and buyers will not take you seriously, so before you go approaching buyers please make sure you are confident in the numbers you are about to present them.

There is a lot of information on BP about wholesaling, so hit the wholesaling forums:

https://www.biggerpockets.com/forums/93-wholesaling

and start learning as much as you can about marketing, estimating repairs, estimating ARV, etc.  Remember, wholesaling is very difficult, it is not easy money and is going to require a lot of learning and effort on your part.  Good luck!

Scott W. · Answer

let me give you an idea of 1 example I found when I got into this business:

I was in between tenants. the 1st tenant left on July 1st, 2011. I was making the unit "rent ready" by hiring out & doing the work myself. I also had my day job. I took some days off (as vacation), worked weeknights, before work (5am-7am) weekends. I put in 70 hours in 15 days.

I spent about $2300 but then I realized each day this thing sits, I'm eating $35/day (forgot I need to factor in my utilities during the vacancy). I learned the importance of having reserves.

I rented the unit out with 15 days vacancy but required the tenant to pay immediately if wanted the unit. They didn't bite but agreed to split the days - so I'm down to 7.5 days vacancy.

I have since put in minimal effort but you'd better be ready to jump when the insanity begins. It was all about minimizing my loss & surviving til the next tenant who pays on time, is a good neighbor, & takes good care fo the place.

James Vermillion · Answer

Lucy Rowens, glad I could help...let us know how you progress.  Good luck!

Lucy Rowens · Answer

James Vermillion, thank you for your recent reply. I'm not afraid of work and I enjoy learning new and challenging things. I will take your advice seriously and remember it. I only wish we could work together but since we cannot, I will continue scouring BB for pointers. I hope you won't mind my coming back to you with any questions I might run across in the future as I feel I can work with you. I almost feel as if I know you personally or you know me personally as all you wrote was true.  Best of luck to you, be safe, protect yourself always and remember, I appreciate you.

Lucy aka "BirdDogPup"
Grant, AL

Is there any hope for success for a 64 yr old with mental challenges?

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