All Forum Posts by: Ryan Wilkinson

UNCERTAINTY UNCERTAINTY EVERYWHERE!
It's pretty certain that the future is uncertain. This is why staying as liquid as possible is essential. If you own income producing real estate free & clear you can't lose.

Stay focused on what is certain...Making money with no investment at risk is as safe as you can get. Yes, it requires innovation & creativity to find a niche. You will likely have to go against the grain & do things a different way but that seems to be the only play.

If you're a buy/hold investor & you don't own the property free & clear or can't liquidate for cash immediately for what your investment is you should consider flipping, wholesaling, a second job....something to generate additional cash to reduce debt & create more liquidity. Otherwise you are at the mercy of the market. Cash in hand is as certain as money can be so get more of it.

The risk of leveraging investments, i.e. your future on an already unstable market seems reckless at best. Stay focused on what is certain. If things get better you'll be in a great position to take advantage. If it goes bad, instead of losing your investments you take a diminished return. And if it really goes bad you join "J Scott on a beach somewhere out of the country"...but at least you have the option.

Its impressive with all the "Deal Makers" & Investors on here that the first two responses to this post suggest "Giving Back." Mad props to you both!

I agree with Mitch. Find something you are passionate about then find a way for that passion help somebody else. Its a home-run, especially in today's economic climate.

RE investors today are in a fantastic position to generate opportunities and create much needed solutions for people in need while increasing their own wealth.

The charity home for abused children is a great idea. You could do the same for battered & abused women or drug addicts, etc... Start an AFC (Adult Foster Care) Home.

Promote home ownership for qualified buyers the banks wont lend to by purchasing land contract notes, or originating them.

I can't think of a better investment than real estate that can provide high returns & relatively low risk but that doesn't mean gold or JV's or stocks etc...aren't good investments.

There are so many things to get into. Most importantly, do what you are passionate about...whatever that is. Finding something worth while for your extra $200G's is a great problem to have!

I think wholesaling can be as simple or as sophisticated as you want to make it. Its reasonable to expect the more knowledge you have about repairs, market values etc...the more profitable you are likely to be but the reality is all you really need to know is how much will somebody else reasonably pay for this property right now. Then decide how much is acceptable to get paid and negotiate your purchase price.

For instance, I have some background in renovations but am certainly no contractor. Ill look at a house and know generally what its going to need & cost to be livable but more importantly I know what my buyers will likely pay for a house in that condition in that area. Then I know how much I can pay for it.

I wouldn't spend money on an inspection or an appraisal because that third party opinion doesn't really matter. If you want to wholesale you need to learn your market and know your buyers. The more experience you get the better you will be able to "eyeball" a good deal. But you should always do your homework. Use tools like the MLS to comp areas, talk to buyers and get a feel for what they are buying and how much they are spending. Call some contractors to bid on jobs (even if you never intend on using them) to get an idea of what it cost to do a job. Talk to real estate agents etc...

That may be over simplifying it, and every market has different challenges, but I live a pretty good life keeping it pretty simple.

There is a lot of great info for new investors here but I haven't seen many posts about the issues veteran investors face. Getting started in the business is a life changing experience for most people who decide to "go for it". But what happens after they jump in? Conquering your fears and putting your money on the line is the ante to play, NOT a victory. The problems, challenges, lessons & adjustments don't stop there. In fact they get more numerous and complicated as your business grows.

Once you're "in" you've got to continue to make things happen. It's like that saying, "Its not enough to make the team, you've got to get in the game and contribute!"

The more success you have the more variables there are to account for and manage. Like: What kind of reinvestment plan do you have for all the money you make? What are the tax implications of the new & different investments you enter into? What is required in hiring employees? When do you grow and in which direction? Can you manage people? Is your business systematized to be run by other people? What is the proper use of technology, which ones are necessary and how much money should be invested in them? And when?

Building a business is one of the most rewarding, exciting, thought provoking, mind expanding things I've done. You must make wise decisions and get alot of them right to truly be successful and stay there.

I'd love to hear some stories, comments, experiences from those who have been in the game for awhile. What things did you have to overcome & how did you do it? What are some of the challenges these newbies are going to face in the future? How did you grow from a mediocre new investor to a remarkable one?

......I'm all ears!

Glad to hear it Matthew. You're more dedicated than I waking up at 5:30 to work out. Now you just need to get the real estate cash flowing for you so you can leave the job and work out whenever you choose. Keep on grinding! Thanks for the post.

Nick- you can go to the teller wherever you bank and ask for a POF (proof of funds) statement right there. If the teller can't do it customer service will.
Many banks have it available online. Just ask the bank.

Ask your agent what they need to present the offer and they will tell you. If you are new, don't be afraid of asking your agent what you need. No shame in being new...AND they work for you. But expect to fill out a pa have copy of emd check and POF statement. Once your offer is accepted they will want the real emd check.

You will want to make sure you have a title company that will let you double close...many will not. Ask the title company doing your sale, what they need you to provide then give it to them.

Then start looking for another deal cuz soon there will be 10 G's burning in your pocket. Better to make it 20 asap!

P90X Baby! Now you're talking Anson! Not only do you want to have some physical activity you're doing it extreme style. That's great to hear. I love P90. In fact I turned my 2 1/2 car garage into a gym complete with rubber flooring, two chin up towers, dumb bell weight rack 5-85lbs, bench & a flat screen tv to do P90 in. My brother & a friend come work out with me as well.
If you want to feel amazing, do P90x. Its tough & it takes a strong commitment but It's impossible not to improve yourself so you look & feel better if you do it.

ALL the P90 hype is true! Thanks for sharing Anson.

It's been several years and a bunch of deals since but here is my first wholesale success story....

I had been in the business for about 10 months. Had bought and renovated 2 houses and struggled my way through both deals (which is why it took 10 months). The second house I bought I purchased and rehabbed for $24,000 total and didn't have much left over to live on and had already quit my job so I had no additional income.

Literally with the last $3,000 I had to my name, I put an emd down on a property I had won the bid for at an auction for $6,500. The auction company gave me 30 days to close. I didn't have the money to close though, in fact I didn't have anything. So, while eating a peanut butter and jelly sandwich (again), I printed up a flyer (postcard size so I could get 4 copies out of each sheet of paper) and hand delivered them to every house in the neighborhood around the house I was trying to sell. Before I got off the block I had two people flag me down to take a look at the house right then. Within 30 minutes of returning home from the block I received a call from a man who lived on the block, got my card, looked at the house & agreed to pay me $11,500 cash for the house. I met him that night, signed a purchase agreement, took a $2,000 emd and two weeks later did a double closing and made my first 5k profit!

There aren't many feelings better than going "all-in" and immediately tripling your last dollar in a day. That was it, wholesaling worked & it continues to work! And that's what I've spent the last few years trying to perfect.

You gotta love this business!!!

I agree with you Jimmie. My point wasn't advocating weight lifting (that's just what I like) but physical activity. Its something everyone can do to improve their quality of life. It has to be a lifestyle if it is going to be sustained. To sustain it has to be habit & to make it habit it must be something you enjoy or you wont keep doing it.
Bottom line though is find what you like to do that requires physical activity and do it consistently...then watch how positive things start happening to you and for you.

There are a ton of great ideas on "How To" do whatever needs to be done here on BP, but are there things each of us can do that don't require advice? Is there a natural force that will help you become happier with your life?

I've noticed that my day to day routine is ALWAYS positively effected by a good physical workout. When I get up in the morning and workout, be it an hour lifting weights, a brisk jog, some form of cardio, yoga, swimming...whatever, I've found a direct correlation to my actual ability to create success in my life. I'm more focused on what I do, more motivated to do it, more patient with clients & prospects, all my relationships both personal & professional improve, I sleep better, wake up easier, eat healthier.
30-60 mins/day of physical exercise make a BIG difference for me one way or the other. Not to mention I feel stronger & more confident.

Is it true for you? Have you tried? How important is physiology on your mental approach to business?