All Forum Posts by: Nicole Pettis

@Shaun Reilly thank you for your advice! Yes, our exit strategy would be to eventually sell for profit. I really wouldn't want to do it as a rental, because we are eventually moving back to St. Louis & I'm not sure I want to be a long distance landlord at this time.

Our criteria is SFH with an ARV of $120 - $130k in a good established family friendly neighborhood. Mainly looking at 3/2 or 4/2 and if they don't have a second bathroom at least have the room to add a second one.

Yep! That's what we got, we got pre-approved for an FHA with a 203k loan:) So now we are on the hunt. I was thinking about using the HELOC option, but I'm still a little leery about that. We just have to find the first house first! And go from there.

Thank you!

Nicole

@Jeff S. No, my husband is fully supportive of what we are doing. He was just working that day. He's all for it!! He wants me to happy and do what I want to do.

No we don't own a home yet, that is going to be our first investment property. We are looking at foreclosures to be our home, which is difficult to do. Because I don't want to live just anywhere & it has to be in good enough shape to purchase with a conventional loan and fit the 70% rule. So that has been challenging. But we will find something.

@Christine P. No, my FIL is not that kind of guy, he respects me and that is why we were able to have a discussion. Trust me I have had to deal with many men that have felt that way & I have learned how to handle the situation.

He is just concerned about our finances. Like I said, my husband and I made some financial mistakes in the beginning and have worked very hard at getting back to a comfortable place & he's afraid that we will mess that up.

Like I said, I know he was coming from a good place, I just posed a question on the BP forum to see what other challenges others have faced.

@Tom Goans Thank you for your thoughtful insight. Please know I did not take offense to what my father in law said, I wanted his insight because I do respect his opinion. He is a very smart man who has done well for his family and has been an excellent provider. Not everyone wants to be an entrepreneur & that's okay. I KNOW he is not a risk taker, however he does know about finances and I wanted to hear his perspective.

To answer your questions:

I am very knowledgable in general business education, besides reading ALOT of business books, I also have been running a freelance business for 10 years(I'm a graphic/web designer) so I understand working with a client, budgets, deadlines. I can do proposals and contracts. I understand taxes to the point of business taxes. I understand social media marketing, marketing/advertising, networking and all of that fun stuff! Also I have been working as an artist in the retail industry for 12 years. So I have learned about strategy, research, trends, how to direct a team, how to build a brand.

Real estate business education..working on that. I am reading books and I plan on taking RE classes for the RE license for WI.

Law Education...none.

Finance Education...it depends on what kind you are talking about? I know how to do a successful zero based budget. I understand the formulas for buying and rehabbing and cash flow properties.

And I will look in tax law(but keep in mind I am an artist!! haha)

I understand what you are saying and that is why I have not jump the gun. Its the reason why I am taking my time. Educating myself and seeking the advice of people like you:)

• End each day a little smarter than you began...absolutely!! Currently listening to rich dad poor dad. Listen to all of the BP podcasts & I organized the Milwaukee BP meetup.
  
• I will look into the Education Sources, been to a few SBA meetings & I belong to a few business networking groups here in Milwaukee

And I will work on connecting with an experienced investor here in Milwaukee.

Again Tom, thank you for time and advice! And yes he is, he just wants Mike and I too be successful. I haven't always been the best with finances and my husband and I have made some mistakes, but we have come a LONG way in a short time and I am just trying to keep it moving.

Appreciate it! And to you as well!

@Robert Leonard Thank you! I am doing my best. I am talking and networking and hopefully soon I can partner with someone that will help me with questions I have. I totally believe in the power of mentorship. I have done it for years in my in my profession with junior designers. I love teaching and helping & paying it forward.

Thank you!

@Adam Johnson Great points! As you know when you are in a discussion, there are things you don't think about, but you are right. They do have two properties that are 100% expense & no income. Although, not sure if I would ever point that out...hahaha.

I just tried to express to him, that my heart is in a different place now, that I am ready to move forward with something else and REI has always been a passion of mine and something I have wanted to do for the past 10 years, just never had the confidence to do it & now I do!

And everyone is correct in saying that ALL investment has some sort of risk attached to it. For example, my father in law lost approximately $1M back in the 90's when he owned single stock with Owen's Corning and they lost a class action lawsuit with the asbestos and their shares plummeted. So I am sure he has never gotten over that.

But thank you for your advice and input! It is much appreciated.

@Joseph M...haha yes, I know! I wasn't looking to find someone to agree with him, I just wanted to start a discussion & get others input. The reason being is I deal with this daily. I tell people what I want to do and they either A.) don't understand and their eyes gloss over when I talk about it or B.)They are like oooh, that's too high risk, you will loose everything. There are very few, besides this forum that support my idea and think that I can do this.

Yes our discussion has motivated me even more. I know he was coming from a good place, however I just don't agree with him and that is okay. My husband and I will take baby steps to make sure we don't get in over our heads & show him how its done.

And thank you for your advice!

@Taylor Shapiro Thank you! Very well said & motivating (I can tell you used to be a personal trainer:))

I have thought about teaming with an investor/mentor for awhile now, just trying to figure out the time, because I do work full time and have a little one. However, we are having our first Milwaukee BP networking meeting this Thursday, so I will be able to talk to some there and work towards that goal!

Yes doubt is a mean thing....in fact I have a quote at my desk that says, "doubt kills more dreams than failure ever will." and that is so true.

I knew what my father-in-law was going to say, before I even asked. I just wanted to hear what his thoughts were. I know he is not a risk taker or an entrepreneur. He has always talked to me about taking the safe route. However I cannot walk away from who I am, which is an entrepreneur at heart and he knows that.

Like I said, this won't change my mind or my goals & he will see through our actions, that this is not willy nilly and I have strategized, planned and have seek council to make this successful!

Is it smart? Is it high risk? Will you go bankrupt? Is staying with your 401k's and mutual funds the best way to retire?

The reason why I bring up these questions is I had a big discussion with my father in law tonight. I have fabulous in-laws. They are sweet, loving people who don't judge and will only give an opinion when asked. My father-in-law is very smart with money, however he is a tortoise when it comes to investing, which has done well for them.

He worked for Owen's Corning for 39 years in various management positions and is now doing contract work for them. He is well invested in mutual funds and 401k. He owns two pieces of real estate, their home and then a lake house. Their house is paid off, however they are still paying on the lake house. I have no clue what they are worth, because they don't talk about their finances, but I do know that they are comfortable.

So I asked him today what he thought about my strategy of wanting to invest in Real Estate and he said you have to have deep pockets and then he proceeded to ask do you want to go bankrupt? Because that is what will happen. He feels I am putting our family at a huge risk if I choose that venue. We then proceeded to have an excellent discussion & I tried to explain to him about the 70% rule, how you make your money at the purchase price. How flipping works. How others are doing well & are even successful at it, making a good living and running a good business. And it didn't matter because of his investment beliefs and philosophies. Which is fine, I wasn't offended, I asked for his opinion.

Will it affect my strategy, and our pursuit to do REI, probably not. Right now financing has been our biggest hurdle, but I think it is for many. However I know we will figure it out.

Just wanted to get your input and thoughts?

Thank you!

Nicole

@Dawn Anastasi Yes, asking for money is difficult. I, myself have no desire to do it at this time, because I have no track record to show. The last thing I want to do is ask someone for money and then loose said money. I am fine with trying it out with my own, but not with others, not now.

I think some people had some great responses on HOW to get over asking & you have proved yourself to be successful at what you do. And you should be proud of what you have accomplished. I think you have inspired many through the podcast on how to buy homes inexpensively and turn them into successful buy & holds.

Many people don't understand REI, they just know what they see on TV or they see it as a HUGE risk. And while you can educate, many won't listen, because they pay too much attention to the news or they feel safe with what they have. Also you know you are the farthest thing from a "slumlord" . Some people are just ignorant & I would just ignore those types of comments.

YOU, my friend, are doing a great job with your REI & YOU will be the one who is the millionaire next door. So don't let the naysayers get you down. Keep your head up & keep doing what your doing!