All Forum Posts by: Charles Whitaker

Heather,

First and foremost your story is inspiring, touches the heart indeed. I always seem to remember something I saw on a note one day which read, "I believe a hero is the one who does what they must, when they must".

My only good advice is that hardships are what make people, are you the one who will sit and ponder the possibilities or are you the one who will go MAKE possiblities happen? RE really messed me up the first year, I maxed all my credit cards, my FICO dropped 200 points, almost lost my job, family, and friends.

The boiling point is where hero's are made, you must trudge forward, regardless of who/what is dragging you down. Also, I can't honestly say that I have tithed in hard times but I would pray for guidance and it shall come in time.

For the now, do what it takes. Strive harder than ever before, work harder than ever before. Show everyone including yourself what you are truly capable of. Sorry for the lack of ideas to get you through this but I figure motivation is almost just as good.

P.S. The first year that was so bad for me was last year, made 11K from 3 deals in real estate. This year already up to 55K and still buying

"in the pursuit of happiness"

I wholeheartedly agree with everyone, my own situation being a combination of all. We rehab properties(quite the difference from rentals, same taste, different flavor). I have manufactured and cultivated many "safety" nets for that leap from the 9-5. Schooling and your network is great for a back-up job if needed, cash reserves should EXCEED 6 months of your current pay. Also, IMO you should have at least 1 property paid in full to secure a line of credit. Between an excellent equity standpoint and the cash reserves, a bank should be more easily accessed.

Good luck

in addition to Wheatie's post, the tax assessments around here are not indicative of the actual value in any way. I've seen houses that appraise (tax value) of 20K and the actual value is closer to 60K. Knowing your market is one of the most important facets of real estate that you MUST know before jumping head-long into a deal. Look at ALOT of houses, find a competent agent that is willing to work with you. Don't forget to take care of this agent if they are willing to invest time in you.

Getting a property that nobody else knows about is relatively easy, just stay in the game. REI is like fishing, you can't catch a fish if your hook is in the air. BTW, competition is not all that bad, let the owners know that you can generally beat any offer and this will get you a few extra deals a year.

I suppose you are thinking of two different things. Buying a property for 70% of market value minus repairs is the calculation for a rehab. I don't think rehabbers use equity to buy more property(not usually anyway). Alot of landlords use available equity to purchase more rentals but the buying criteria for a rental is slightly different.

I have used equity to furnish materials for a property but not for buying another, guess you could.

I think the proper wording would be that flipping is 100x harder. TV is not even close to the actual numbers of a flip. I personally prefer flipping and that's what I do, however, i know the power of rental properties and that is where I am heading. The major difference between flipping and rentals is this:

Flipping will make you rich if done correctly, rentals will make you wealthy if done correctly. Rich and wealth are two very different states of being.

All strategies are good for finding deals, some materialize faster and more often than others. Each method is good for a few deals per year; follow every method and your sure to find more than enough properties for yourself.

The MLS is a good resource but has high traffic, noob investors will shut out a deal quickly here. Any lead must be tracked over the long term. if the first contact is of no prevail then try again. Many owners are not ready to sell at any given notice but time changes all. I have lost numerous deals from a lack of following up with prospective clients. Now, though, I realize the importance of following the marketing plan. Marketing is where it ALL starts.

Good luck

Find a deal that is closer to an actual deal and then try using your creative mind to put it together. You can't make something out of nothing.

The bank most likely will not accept anything that low since the house needs only minor cosmetic repairs. Foreclosures rarely turn into short sales, certain criteria must be met and repairs are accounted for. I wouldn't put too much time into this deal.

To expedite the arrival of your status quo, 15 - 20 properties, you should seriously explore the power of leveraging your money. Instead of using the 45K in liquid assets on one or two properties, use only a paltry amount of that for closing costs and down payment. Long term wealth can be built faster by using other people's money (OPM), in this case a bank.

A typical 30K house can often be closed with less than 5K out of pocket(down payment and closing costs). You could probably purchase 7 or 8 houses with your savings depending on the lender.