Advice From Veterans Needed

Comments(13)

• 
  Esox30th October, 2003

  Any takers on this one?

• 
  rajwarrior30th October, 2003

  There is no way for anyone to really answer you question. Your success would greatly depend on you. Putting in hours isn't as important as doing it right. So education is the first step in your success. You need to have some plan on how you are going to invest and what it takes to do it. Then, you'll need to actively follow that plan.
  
  Personally I probably put in about 10-15 active hours a week in REI. I buy about 5-10 houses a year and wholesale/birddog about 5-10 more. I could easily do more if I wanted, but I don't need to. Prefer that time with family and friends instead.
  
  Also the number of deals don't matter has much as the profit per deal.
  
  Roger

• 
  Esox30th October, 2003

  Thanks Rodger. Feedback and advice is much appreciated.

• 
  Bruce31st October, 2003

  Hey,
  
  It sounds to me like you have everything you would need to be successful:
  
  1) Money,
  2) Experience (your rental and work)
  3) Time
  
  
  Roger is 100% correct on the education, but you will learn more doing the job, then just reading a book/website.
  
  Also if you use your time wisely, 50 hours is vast overkill. As long as you are not working (hammering nails, painting, etc.) on the houses yourself, 15-20 hours is enough.
  
  I also agree that it is the amount of profit your make and not how many deals you do. Obviously, if I do five deals at $1000 profit each, and you do one deal at $10000 then you are the winner. (Also if I did a deal and only netted $1k, I should be drawn and quartered!). But I think you should set a monthly goal of one or two houses, with a minimum profit per house.
  
  I wish you the best of luck.

• 
  Esox1st November, 2003

  Thanks Bruce

• 
  Lufos1st November, 2003

  Dear Esox, sounds like an oil co.
  
  I may be a little off base, but from observing the area of your base Metro area of NY. I would suggest a slightly different path which might make your transition from Corp. to Solo a little easier and allow you to observe more on the way.
  
  remember Big Bill Zekendorff If I spell the name correctly. I would suggest a somewhat similar path, just do not spend as much time as he did in structured real estate.
  
  I would go to work with some Real Estate Firm that is active on the island. I would spend a year or so. Then turn in your Brooks Brother Suit and play for yourself. I think the background might be helpfull and would really show you where the pitfalls and hazards are.
  
  Might be fun, get into a lot of large type deals very quickly. Learn Squash.
  
  Nostalga ? Lucius

• 
  loanwizard1st November, 2003

  This may not sound exciting, but I believe it's true. I would NOT leave the salary and the benefits of the corporate world until 1. Your income from part time REI meets or exceeds your existing monthly outgo, or 2. You just can't stand what you're doing another minute, even at the risk of losing every thing. I believe when the right time for you comes, you won't be asking us, you'll be telling us. Why put yourself through the stress of starting all over if you don't have to? I do believe that by your post, you may have the tools to do it, but although it isn't difficult, it ain't a cakewalk either.
  
  Good luck in your search,
  Shawn(OH)

• 
  Esox2nd November, 2003

  Thanks everyone for your responses .
  Shawn , I would definetely educate myself first and do a number of deals first before I make the leap.
  The biggest inspiration I can get is to hear from guys like you who have been sucessfull and get feedback on how many deals you do per month/ year.
  
  Thanks

• 
  j_owley7th April, 2004

  just remember no venture no gain
  
  

• 
  Taiyo7th April, 2004

  Esox,
  
  I also came from the Corporate World, when I decided to do REI full-time in 1988. You did not indicate what you do, but prior to leaving the Corporate World (I was a Financial Analysis) I had a network of people looking for investments and a network of people who sold my investments. I had been investing part-time since 1983. I purchased 25 investments part-time.
  
  My strategy in my investments are a little different than some of the previous posts. I do not try and take all the profits in a investment. I normally sell to another investor not the end user. I do invest on a volume basis. I normally do two to five investments per month. Not just houses but also land and commercial.
  
  While "Cash is King", I usually buy with seller carryback or OPM (Other Peoples Money). It is a comfort to know that you can close the escrow with your own money but it usually is not needed.
  
  Expand your knowledge by reading and try to find and learn from a Mentor who is doing the business. There are many out there who are willing to help with no compensation if you indicate by your actions you are serious about this business.
  
  Best of Luck,

• 
  Taiyo7th April, 2004

  After thought,
  
  Once you become more knowledgeable try to focus on one area of REI you feel comfortable with.
  
  I did houses then land then commercial.
  I first bought, held then sold, then started to Flip in this order in each category of the above investments as I became more knowlegeable..
  
  You need a different network of sellers and buyers for each category.

• 
  chicagonewbie7th April, 2004

  Lufos,
  Could you tell me more about "Big Bill Zekendorff" ? I searched the Internet and figured out his name was WIlliam Zekendorf. There isn't much out there on him, though I think he was a developer and wrote a book.
  
  Could you expand and describe his path?
  Quote:
  On 2003-11-01 21:02, Lufos wrote:
  Dear Esox, sounds like an oil co.
  
  I may be a little off base, but from observing the area of your base Metro area of NY. I would suggest a slightly different path which might make your transition from Corp. to Solo a little easier and allow you to observe more on the way.
  
  remember Big Bill Zekendorff If I spell the name correctly. I would suggest a somewhat similar path, just do not spend as much time as he did in structured real estate.
  
  I would go to work with some Real Estate Firm that is active on the island. I would spend a year or so. Then turn in your Brooks Brother Suit and play for yourself. I think the background might be helpfull and would really show you where the pitfalls and hazards are.
  
  Might be fun, get into a lot of large type deals very quickly. Learn Squash.
  
  Nostalga ? Lucius

• 
  4myhouse7th April, 2004

  really great posts! i am sooo anxious to get started but would really appreciate more info on finding a mentor in my area
  thanx for all your experiences and advice.