All Forum Posts by: Larry Turowski

@Philip K. Congrats on your first property.  I think most investors would like things to move faster and feel held back by lack of funds, myself included.  Things would be a no-brainer if I could get 100% financing.

Cash is king.  What you have now is gap money.  Enough to fill in the gaps but maybe not to fund a down payment with traditional lending.  It might be enough to secure hard money (or private lending if you can get it).

If you don't want to go that route you are going to need to find a way to bring in more money by clamping down on your expenses and maybe doing some side jobs or doing some wholesale deals.

 I use quickbooks, and yes, you post the portion for each property.  So, say, you get a $1,000 bill that you paid, and $700 is for one property, $50 for another, and $250 for a third.  You would post one payment and break it up into those three parts.  You might even need to break up the $700 for the first house if part is expensable and part a capital improvement.

You really need to get this under control now before you grow any more.  You may want to hire an accountant.  It is not as expensive as you may think.  Then you can just tell them what reports your want.

@Casey Cuppy I agree goals are critical.  Goals allow you or someone else to say, "Hey, you didn't do what you said you were going to do."

But different people have different temperaments.  I'm a bit too disorganized for a 5-year plan so my goals tend to be, "What is the next step?"

Axel, you definitely sound motivated!  I wish I had started this decades earlier.

You've got a defined, measurable goal, that is great.  That already puts you ahead of many.

There are too many variables to get specific, so I'd say this. Find someone who can answer your question. It should be someone who has done what you want to do and can guide you. Join a local REIA, call landlords, network, network, network! Find investors and take them out for coffee or a meal. That will help you refine your goal and find the right person(s) to mentor you.

Good luck!

Is there any context to that clause, such as a date?  You also don't say how long this has been held up.

I'm not a lender (wish I had that much money) but I can understand if I have funds on hold for months and months I'd want the buyer to be obligated.  In a sense, they are getting the money as soon as the agreement is made, they just are not getting the first draw until the closing happens.

In general, I try not to create bad blood situations--it may be too late in this case.  For instance, if a contractor charges me too much if I've given them some leeway, I generally do not argue.  I just won't use them again.

Once there is bad blood I don't like to continue business.  You may need to find another lender or partner or back out.

Yes! Well, sort of.  The point is, ask.  The first thing you need to do is define your specific goals--measurable goals, not just "I want to be a real estate tycoon," rather "I want to learn how to find good deals."  You'll know when you've learned that.

You will likely need help even defining your goals.  So your first goal may be So go to him and say, "Would you be willing to mentor me?  And starting out would you help me define what I could could achieve in the next six months?"  And offer discuss options like working for him, helping him out, paying him, shadowing him every Tuesday, or paying him for an hourly meeting each week.  The sources for deals you said he had may be people just like you who asked him these question a year or two ago.

@George Smith Good for you for saving money.  I think that is one of they key things to being an investor.  You've got to be a saver.

As for posting to forums, and REIA meetings, the company you keep does influence you so it is important. The next thing is to take action. Good luck!

Typos!  I should proof read.

Most leads are not going to pan out and I wouldn't put much hope in either of these.  However, if you are new at this these are allows good to cut your teeth on.  So practice your rapport building and negotiating skills.

The first one is difficult because she listed it.  Now you are working with her but against her realtor and other possible buyers.  Ask her what she is looking for.  Probably too much.  But maybe it is a deal if she'll hold a second mortgage or you could ask if you could be subject to the current mortgage.

For the second one, it doesn't matter what it is appraised for it matters what it is worth.  You con't tell us that but I assume the seller is way over fair market value.  Ask them what their lowest price for a cash, as-is offer.  See if they'll go lower when you think they are at their lowest--just for practice.

@Gino Gynero 

They'll walk you through it.  They'll cut check in phases.  First for purchase, then maybe materials costs, and then as work is done.  You'll need to provide proof of work, invoices, etc.

Good luck!