All Forum Posts by: Michael M.

 Nice. Your accounting skills must come in handy when estimating the rehab. Very inspiring.

That's good thinking. It early morning and I'm not bashful about asking questions, please excuse my exuberance. Are you mass mailing to zip codes, or targeting expired, FSBO, NOD, rentals and out of state owners? Sourcing from list source? A-D class neighborhoods? Are you answering your own phones and negotiating? Do you personally meet with the seller or use an intermediary? Offering terms, subject too, or cash for keys? And lastly are you building cash with flips or buying and holding for long-term cash flow? Oh and how difficult or lengthy a process is to get a permit, if necessary, to remove a saguaro? Your patience is appreciated, my family members in AZ can't answer these things as they know what I'm talking about.

I found a few condos in Phoenix, off the MLS (where good deals go to die). I was thinking of doing my first flip with a relative who lives there, he doesn't have his GC license, but he does nice work. Have you ever flipped during the Arizona summer months and would you recommend against it? Maybe I should use a licensed contractor on certain things like the kitchen and bathroom, but I can use my non licensed relative for things like drywall, and flooring? I loved that flooring you picked out. Thanks again for sharing your story.

Yes please share your marketing cost. What inspired you to use a yellow letter? Did you choose your own design or borrow from a template? Yellowletters.com? Thanks for sharing.

Thank you all. Today was the deadline for broker#1. I feel that his small brokerage is in need of free labor to build out his brand. The trainer had picked out for me only had 3 closings in 2016. 

I didn't find much value in his offer. I'll save $500 and go with KW, they have a good brand and I heard the best support. Thank you all. I'll keep you posted.

Ladies and gentlemen I'm at a crossroads. I'm a big fan of Michael Quarrels. I think he's the smartest real estate investor there is. But Michael Quarrels is a licensed broker which gives him lock box access, and allows him to write his own offers. So I figured I follow in his footsteps and get my license before I pay him to mentor me.

I recently spoke to broker#1 who has several small offices. He's looking for a full time go getter. He's asking $750 (overpriced) as far as his price to help me get to licensed in 2 months. I also met with a Keller Williams broker#2 who has a real estate class ($250) for 1/3 the cost and also has several brokerages.

The Keller Williams program is cheaper and faster (6 weeks).

Both offer me only a real estate license and no pay check until I close a deal.

My plan is to get my real estate license, while I work a day job to get an apartment. Then pay Michael Quarrels to mentor me and I follow his program to the promised land or go bust.

I understand real estate investing doesn't require a real estate license, however I'm shy of the $100,000 Michael Quarrels recommends to start his program. That and my living situation isn't that great. The job and apartment plan while I study, get licensed, and then study again to go for the real prize, wholetailing (buying at 50 or 65/100 and selling for 100% of as is value, no rehab).

Please advise if I'm on the right track and or if you tried this and found out another path is more practicle. Thanks.

@ Darren Easy, thanks for the compliment. I'll look at writing gigs.

@ Deon DePaoli you made some good points. If you only lend up to 65% LTV, I believe you are protected. The borrower has significant skin in the game, the property has residual value and is insured. Here in CA MLO license is governed by the DBO while the RE license is governed by CalBRE. Each independent of the other unless you have both licenses, then it defaults to the CalBRE.

I've never got ahead at a W-2 job. I always eventually fell behind, no matter how hard I climbed up the latter or how much brown nosing I had to endure.

Thanks for the input.

Personally, I think the smartest person in the room, is the notes investor. Why? Deals need money, money needs security, and security needs yield. Within the activity of real estate for the purposes of ROI I would much rather own a cash flowing note than any other activity. Why? It's simple, secure, and can scale.

I found a notes dealer offering 10% return on $35k first mortgage trust deed note. I could get a return with them and forget about it, but from listening to hard money guys, I think I should learn the business instead. The problem is I don't have a college degree, or a background in finance. The transaction looks like simple math; 1 year term at 9%, four points (4%), first lean position, 65% LTV. I'll take a guess on a $300k loan would look like the following:

$300,000 x .65 = $195,000 + 4% = $202,800

Buyer has $97,200 down payment and the note investor uses a loan servicing company to handle payments, notice of default, while an real estate attorney would handle foreclosing on the property. Obviously this is a simplified transaction void of preliminary title report, title insurance, inspection, BPO, appraisal and escrow fees.

So what are the minimum qualifications to get schooled or even mentored in this business?

I could go out and get my MLO license, real estate license, or both, but by then I may not need a mentor...Maybe that's the answer I was looking for.

So far my concerns are: costs. I will be investing $1,000 just to earn my MLO license, and another $1,000+ for my real estate license to what equates to a sales person job.

Pitching and qualifying clients with all the new and ever changing lending laws, only getting paid when I close a transaction which can be months apart from paycheck to paycheck.

Right now I'm unemployed and I see myself homeless, destitute, and unhappy playing the W-2 game. I don't have any kids, I don't plan on any until I'm rich, going on 43 maybe I missed that boat, so...What the hell should I do? Go get a college degree so I can get past a corporate gate keeper and live hand to mouth? This isn't a pity party, just looking for financial advice, I'm sure technological unemployment will salivate at the mouth until all humans are unemployed however I don't think debt is something technology can unemploy. I'm reminded of something I heard once, it's all bout time and interest. I'm interested in debt instruments and how I can be a fat cat too ;)

Please advise.

You right, when I was managing the HOA, I would get interrupted all the time.