The Beginning of the Journey

2017 started off strong and ended with a bang.  That bang was from the bomb that destroyed my finances and credit.  I thought I was doing well between a combination of working full time as an IT manager, moonlighting as a project manager/consultant/engineer, and investing in the stock market.  In previous years I hadn't actually managed to accumulate any savings, so this year was special in that I was finally making it happen.  Then a series of unfortunate events burned up all that I had accumulated and more, not just setting me back to ground zero but leaving me in a hole trying to claw my way back out.

Ok, maybe that's a bit too dramatic.  The crapola did hit the fan in August and set me back in a big way, but I still had my job, home, family, etc.   I did put myself in a position where I wasn't keeping up with my bad credit (as defined by Rich Dad Poor Dad) obligations and I had absolutely no savings (back to living check to check).  I wasn't poor, I was just broke (Again See Rich Dad Poor Dad to learn the difference) with goals and aspirations.  I decided that something needed to change.

I'm not sure what lead me to real estate investing.  I know I began researching stuff on the internet, reading books, looking for investor meet ups.  In October/November I paid a nice couple for some pretty extensive training as well as a year of coaching and partnering on deals.  Following the training I began marketing and hunting for opportunities, but so far I haven't landed my first deal.  I know it's coming, but I just haven't landed it yet.

I've been actively marketing via direct mail, facebook, and Craigslist.  I've been networking with wholesalers and realtors, and I've made quite a few offers.  It seems the most challenging part of this current setup is that my investment partners won't fund a deal unless there is a minimum of 10% profit margin at the end of the transaction (meaning bought, held, rehabbed and sold).  This makes finding that workable fix and flip deal a bit challenging.

There have been some seriously interesting deals on the hook that I've had to walk away from while trying to adhere to their requirements.  One was a $9.5M property in San Francisco that I had on the hook for $6.5M.  But I think that deal scared them as the swing in the sales negotiation at that level ends up being in the hundreds of thousands.  So, that brings us to today.

After reading the "Wholesaling Bible", listening to BiggerPockets podcasts, researching and giving everything some serious thought, I've created a new plan.  I am now running multiple direct mail marketing campaigns and starting to get calls.  Those campaigns are targeted at a smaller list of targets than previous campaigns, but its a multiple touch campaign because I've come to understand that for direct mail to be effective, it needs to be targeted, it needs to be repeated, and it needs come in different forms.  I've also decided that every deal will start off being a wholesale deal (whether its selling the contract or double closing), and while I'm marketing the property to potential investors, I will simultaneously run the deal up the flagpole for partnership and private funding.

We shall see where this leads and I will attempt to catalog my experiences (successes and failures) in this blog.  I invite your comments and suggestions.  Also if you want to connect and network, please do!

Looking forward to the journey my friends!

Peace, Love and Chicken Wings!

-Nate Keeter