All Forum Posts by: Charles Whitaker

Originally posted by Renae Bliss:

I'm an aspiring, new RE Investor with tons of desire, will, and drive; the problem is, I have no guidance, help, encouragement. I am financially struggling as it is

Renae,

Tons of desire, will, and drive....... Reminds me of....well, me. The thing that you have to remember is to never stop inching forward, always grasping for that next rung. Everyone's advice on this thread has been great, as always. I joined this site almost two years ago with absolutely NO knowledge of real estate or investing for that matter. So far I have purchased 7 rehabs, sold off 4 of them and am currently holding 3. Keeping in the game is vital to your success.

The following quote is one that I live by, it allows me to step back and realize the bigger impact of all the small things that we do. Note where the changes come from.

“Watch your thoughts, for they become words.
Watch your words, for they become actions.
Watch your actions, for they become habits.
Watch your habits, for they become character.
Watch your character, for it becomes your destiny.â€

Everything starts in your head. So.......How bad do you want it, how hard are you willing to get it. Are you willing to give up many hours, days, months to learn it. It's all about the blood, sweat, and tears. Learn everything possible, read this forum extensively for it contains exceptional real life wisdom of real estate. Once you are comfortable with your knowledge and dying to do that deal then do it. Many would argue against this but I think that book education stops just there, in the book. Actual experience comes from DOING. I would rather DO something and go broke then look at something and be unaffected, that's the difference between success and failure.

Good luck

I currently do rehabs, I am working on my 7th one since I started.

The minimal criteria for our business requires purchasing at 65% of market value or lower. I do not like to buy properties that need more money on rehab than I anticipate to profit. I also do not buy in areas that lack a strong history of retail buyers unless I further reduce the price to compensate for a longer hold time.

I use a real quick calculation which does not include a financial calculator. I only do this for 30 year fixed interest loans.

For 7% interest I use the factor 0.00665
For 8% interest I use the factor 0.00733

You simply multiply the loan amount times the interest rate factor. It will get you really close.

Example: A 75,000 loan, 7% interest, 30 year note

Actual Payment from Bankrate.com = 498.98
Calculated payment = 498.75

#1 rule in rei - Tim already said it, it's not location, it's not even the numbers, it's the people.

The saying should go people, people, people

The right person makes the right numbers, the right decisions, who cares about location when you can turn a swamp deadland into million dollar condos(just example). Yes, location matters, numbers matter, business plans matter. However, above all is the investor

#1 Rule in REI - invest in yourself

Originally posted by James Olson:

If a Realtor is showing you the property it isn't a deal.

I watch the local MLS daily and I can assure you that their are listed deals, however, they are not usually worthy of wholesaling but make good rehabs.

To the point,

Paul, the first and most important step in REI is knowing when you have found a deal. If you don't know how to spot opportunities then how can you find one or sell one to someone else. I highly recommend studying comparables(someone else stated that) along with construction costs.
If you know these two then you have stepped in the door and are then ready for the next step.

When wholesaling I would not look at something that didn't have a minimum 25% reduction, or built in equity. This should dwindle down those realtor deals pretty quick and allow you to get closer to actual deals.
The general 30% reduction from market value minus repairs minus wholesale fee is a great rule of thumb for a fast analysis of any deal.

For buyers, you need a list NOW, start building. A great place to find these is listed homes. Many of which have headings such as "completely remodeled, all new everything, etc, etc", between rehabbers and landlords you will build quite the list.

Best of luck to you, the road is long

Chris,

The answer to 1, 2, and 3 is that you need to either have an assignment contract signed or you need to actually close on the deal and THEN sell it to the end buyer. Without either then it will be tough for you represent the home without ownership rights.

If you have a contract with the seller then don't worry too much about the buyer, they can't legally take the house from under you, however, they might try.

Steven,

Given the breadth of REI, research all the strategies that are available and then pick from those the few that seriously interest you. Doing something you despise or even hate is no way to go about a business or life for that matter.

BTW, what is your exit strategy of the property that you currently own, Is it your primary residence?
What do you want to do with the capital once it is aquired? A general direction is needed in this business so that focus can be achieved.

I personally like rentals, wholesaling, and rehabbing. All of which I have gained knowledge from reading and now I am working on gaining the experience needed. Whatever your path, be dilgent.

#30 - Keep to your word. so many "professionals" in real estate do not know how to keep their word or they are constantly overwhelmed with work. Regardless of circumstances, always keep your word, trust is your best friend and worst enemy.

1. finalize personal and business plan updates
2. Continue working on rehabs
3. Update changes to marketing campaign and follow it this time!
4. Buy 1 more house

Originally posted by Dan O'connor:

David,


I suggest that you get the "goods" on the property first before you worry about locating purchase money.

Very True Dan, so many people including myself figured that an abandoned house would be an easy catch. All deals require some sort of nurturing before materializing. Get your numbers THEN find financing, however, it's never a bad idea to find out what type of financing is available.