My goal for this month...please critique this..

My goal for this month...please critique this..

winchester, OH · Member since 2013 · 7 posts · 0 votes

Have never invested in anything but real estate books, and Gunu classes and seminars. Here's my goal for the month of September. Give me more ideas on how to set up the contracts or good things to have in them..etc Please tell me what you think, the bad, good and the ugly if necessary, but be positive.

**Make an appointment with a local real estate attorney to set up my S-corp and start my local Rent to own real estate company. Learn what i need to do and how much money it's going to cost to get everything setup correctly and then execute that.

**Place flyers and ad's in the newspapers, online media and create a website..stating our business name and our what it is we do.

**Wait for the calls.they will come.they will come.they will come(fingers crossed)

** Here's the basics of how I want to invest in my town and surrounding counties- Purchase properties on rent to own contracts(land contracts)with no money down only monthly payments to current mortgage holder, Make all the tax payments as well and insurance of course.-Put a tenant in the home and start making some positive cash flow. One after another same scenario, purchase home and home after home for the next year and at the end of that year we'll see where we are with the number of homes we've obtained and then sell X amount of homes and pay off the rest or at least as many as we can.

Okay now let the comments begin. please be encouraging not negative, lord knows i have enough of that to deal with.

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Indianapolis, IN · Member since 2013 · 549 posts · 310 votes
13y

Hi Ashley-

I like the goals, but personally would like at least one goal to be: "secure one deal, have several leads leading to __________." What is the financial goal? Give yourself an objective goal that you need to reach--it will help you get there faster.

Also, why an S-corp for your rent to own company? Why rent to own contracts in general, and why no money down? Market nowadays will be allowing for some kind of money up front I would think, and allow for you to pursue marketing and advertising efforts while getting something in the bank. Just a thought.

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  • winchester, OH · Member since 2013 · 7 posts · 0 votes
    13y

    im posting this in another forum cause it's been several hours with no comment. so if you see this more than once..that is why.

  • Indianapolis, IN · Member since 2013 · 549 posts · 310 votes
    13y

    Hi Ashley-

    I like the goals, but personally would like at least one goal to be: "secure one deal, have several leads leading to __________." What is the financial goal? Give yourself an objective goal that you need to reach--it will help you get there faster.

    Also, why an S-corp for your rent to own company? Why rent to own contracts in general, and why no money down? Market nowadays will be allowing for some kind of money up front I would think, and allow for you to pursue marketing and advertising efforts while getting something in the bank. Just a thought.

  • Specialist · Kirkland, WA · Member since 2013 · 1k+ posts · 817 votes
    13y
    1. Why do you need a Rent to Own business? You don't need a license to own or to rent real estate. Seems like a false step.
    2. Starting your Marketing Engine is a great step. But to whom and what niche are you marketing too? You can't just say I'm going to be marketing be more specific here: I am going to send 500 mailers this month to Out of Town Owners.
    3. Don't WAIT! There's no waiting in Real Estate! Move, Hustle, Knock on Doors, Talk to Neighbors!
    4. To find deals like that you need to network and chase those types of no money down leads.

    Post Script: You need to learn to deal with the negativity that people are going to have. Hopefully BP is a mostly negative free zone but people are always telling leaders that they are wrong.

  • winchester, OH · Member since 2013 · 7 posts · 0 votes
    13y

    thanks for the input. Rent to own because in my market that is what people want. No money down because i have no money to work with, starting with nothing here. I know it's possible because my husband and i just bought a house on land contract with no money down so it's doable in my area. I live in a rural town. starting an S-corp because it's more professional i think owning a corporation and being able to say I own_______and what we do is______people seem to be more interested. I could also do an LLC that why i'll be speaking with a real estate attorney to get legal advice on all this. As far as a financial goal, idk what to really say, should i make a financial goal that is 1yr out? Or right now. This is going to take time to start generating leads and purchasing properties. But my financial goal is to be making 3000 a moth positive cash flow with in 6m...i think this is realistic for my market.

  • Real Estate Investor · Central, TX · Member since 2012 · 479 posts · 165 votes
    13y

    @Ashley Buckamneer How many houses will it take to achieve your $3,000 monthly cash flow?

    Can you share some numbers with us? How much will these houses rent for? How much will you profit off of each house? Who will be managing these?

    In my opinion, you may be looking too far ahead. Most successful people I know started their businesses small and grew them as the opportunity presented itself. Don't get too caught up in grand marketing schemes and branding and all of this other stuff.

    Concentrate on making 1 successful deal that is profitable. When you get that first one then you can worry about deal 2 and so forth.

    As a mentor once told me " you have to be successful where you are now, then you can pursue larger goals ". Prove yourself with 1 deal and focus all of your efforts on it.

  • Agent/Investor · Murphy, TX · Member since 2013 · 542 posts · 304 votes
    13y

    I think @Ryan R. is right on the mark. It's great to have your long term goal but you need some intermediate goals to get you there. It's kind of like looking at globe and wanting to drive to California from Ohio. You can see where you are and you can see where California is but without a map with the actual roads you are going to take to get there you are going to get lost, sidetracked, and take much longer to get there than if you have a detailed route laid out.

  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    13y

    Doing no money down once and no money down over and over again is 2 different Universes.

    One is a lucky break and the other is running a scalable business over time.

    You say no money down but doing an S corp or LLC will take cash. Entity formation attorneys do not like spending endless hours giving advice for free.

    I am not trying to discourage. Even if you wholesale to build capital you need money for some closing costs and mailers. What happens when one of the tenants stops paying and trashes the place?? You will not have reserves in place to service the debt obligation or recondition the property.

    I understand what you are trying to do but I think everything will not go perfectly and it will take a very long time to hit 3,000 a month cash flow. It would be interesting to hear others comment if they have done this and achieved that level of cash flow over time.

  • winchester, OH · Member since 2013 · 7 posts · 0 votes
    13y

    thank you all. very very good points here. I know that 3,000 a month will take a while i'm not expecting that to happen right away. a few properties i've looked at are renting for 400-500 a month currently. not a high priced market where i'm at. When i say no money down I mean to buy the properties..i understand that attorneys and all that cost money. and i also understand it wont be possible with every deal. i have an appt with a real estate attorney on friday so that's my 1st goal that will be checked off, getting legal advice from my area on my market. Then i go from there. The job i have i am unable to save money so i need to be thinking out side the box to get positive cash flow to be able to purchase more and more and bigger properties. In time of course. great thoughts here, thanks for the replies..

  • Specialist · Portland, OR · Member since 2010 · 3k+ posts · 1k+ votes
    13y

    RE attorneys are equipped to draw up documents and give legal advice. They aren't there to give you business advice. You are too far ahead of yourself IMO when it comes to talking with an attorney about asset protection (LLC's etc) when you don't even have any assets.

    You don't get legal advice "from your area about your market." Legal advice and markets have nothing to do with each other.

    If you want to be of value to someone then study the areas via the MLS sold statistics and properties currently for sale in an area that you can become very familiar with. Learn to recognize when a place is overpriced, priced just right or a steal. Then start networking around with people in the biz and meet owners of properties that are distressed...

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