You can do this! How I started in CRE investing
I was born on the wrong side of the tracks, so to speak. My parents are wonderful, caring people, and my father would have been one heck of a salesman, but my momma was always too scared to let him take a risk, and thus he worked in the labor force for a steady paycheck. I am a mommas boy, and I still remember the look in her eyes when I told her I was gonna be a millionaire by the time I was 25. (I am very late). My uncle had his own barbershop and was successful by our standards. I had to split the extra pork chop with my dad.
When I was in high school, I fell in love with vocal music and wanted to be in a country band.... but my momma said, that's only for the lucky. I went to the Ohio State University. First one in my family to go to college. Hated it. Flunked out after 2 quarters. Gotta go to class to pass. At the same time I discovered alcohol and women. Got into a barfight one night and this big fella told me... "Before I kick your ***, I want to tell you something. You oughta use that mouth for something productive, like sales, instead of getting into trouble" Truer words were never spoken. Painful memories 
, I got a sales job selling kitchen cabinet refacing. I sucked. My momma always said, when someone says no, they mean no, and it's rude to push them.
At a show, I met a man named Howard Belford, and he said he owned some furniture stores and wanted me to go to work for him and he would teach me how to sell. I went to work for him and his training was simple. He gave me a clipboard and said, and I quote, "Just get the fu**ing money" Thanks, Howard. I did that for 2 years, then got homesick and came back to Columbus, Ohio and decided to sell cars. If I could sell furniture, I could sell cars. Thanks largely to Bill Swad, I learned the car business.
Through all this time I was paying rent. One day, I saw a Carleton Sheets commercial, and I thought, gee I can do this. I bought the course. It gathered dust for 2-3 years. i was talking to my special finance manager one day and asked if it was possible to buy RE w/ no money down. He said it was easy. He made a call to a guy a City Loan (now Citifinancial) They had a 2nd that they were going to foreclose on. I contacted the owner and what an experience. They had 23 cats, the city wouldn't allow them to let them outside, so they went in the house and on the roof. When I first walked in the house, he had incense burning to cover the cat smell.... you couldn't smell the incense. We made an offer, I had no idea how he did it, but we walked away from the close with $14,000.00 in our hand. I now know how he did it. We had a 10 1/2% rate and the closing costs were $3700.00 but we owned it.
After the close we went and sat in the yard and thought.... What the he** did we do. We fixed it up nicely. Got a job transfer and had to sell. Listed with some real nice agents. They were terrible. listed with an arrogant pri*k. He bought it subject to, before that was a known term. My banker friend allowed us to buy our next home using a credit card for a downpayment figuring that we'd pay it off with the proceeds from the other house. I then decided to open up my own car lot. The bank said NO!, My banker friend referred me to a guy that was thinking of retiring. I worked with him and paid on the business for 5 years. I've still not put anything down. I decided that because I was self employed and a terrible saver, that I'd buy some rentals for long term cashflow.
I found some folks that had a duplex and a triplex and wanted out. I had them carry a small second and gave them a camping membership for the downpayment. Then my banker friend decided to buy a bigger house and offered me his at a great price. Only one problem, I had to sell mine. How do you do that fast? I sold it in 2 weeks on Land Contract. financed that one with the new one no money down.... Oh yeah, I took their Mobile home in on trade. Then I bought 3 more props. Had to put a little down this time. $3500.00 out of my pocket and 20k on a zero percent credit card. I just refinanced everything at 5.25% fixed for 15 years and bought an REO that appraised for 45k for $25,707.00 . Actually I paid 35k and had 9k and change credited back for "needed" repairs. Had it rented 30 days before I closed.
Just today, I set up a Credit Line for 150k to buy and flip houses. Am I lucky? I'm the luckiest guy in the world! But.... I was looking..... and saw opportunity.
Momma, I'll be a millionaire yet. I hope you enjoyed the big 45th wedding anniversary party we threw for you. We had 135 guests, and we paid for it all. I work hard and play hard. By the way, whenever I go to a restaurant, I order more than I can eat. I don't have to split the porkchop any more.
I hope this motivates you. I share this to tell you the American dream still burns brightly. And if you don't start now, where will you be in 5 years, or 10?
God bless you all,
Shawn Dostie
Coshocton, Ohio
Shaw.....
Read your article. I noticed some similarity in things you did and what I have done and "not done". I got my Ca. RE license in '89' and worked in the mortgage lending biz through the early 90's and the car biz after that in sales and special finance...
I remember back in 1989 I answerd an ad in the San Dieog Union. These guys set up an office in La Jolla, CA. (San Diego) and gave us leads to call on. Guess what! They were foreclosures!
I would go out and knock on doors and try to talk to folks. Alot of 'no answers' and most of the people were to embaressed to talk with me about it. We didn't have much training and I wasn't real pushy and didn't stick with it. But I now often thought "what if"...... Anyway I'm coming back to RE and trying to find my niche.
Glad to hear you kickin it ..... Thanks for the article....
Rand
Shawn,
Thank you for sharing this story with all of us at TCI. This should be an inspiration to all who read it.
John $Cash$ Locke
Enjoyed your article and wonder if you can give me some info since you've already done this one?
I am in the process of buying a FSBO. The seller wanted $90K, we made up a contract for $110K (appraisal should come in at $115 or so) for a 5% conventional loan. Since the roof needs fixed and the house needs some other repairs, the seller is motivated to begin his life somewhere else. Our contract indicated I was due to get $14,500 back at closing for repairs needed to the house. This would give me money to fix it like I want and put money in my pocket.
Now the mortgage broker indicates we need a new contract--we can't do this deal and that I should either a) make up a contract for $90K and get a home equity loan or b) make up a new contract for $110K selling price, have the seller sign a promissory note for $14,500 which he pays me after he gets his check. We're supposed to close on 8-29. I suppose I could do the promissory note, take the seller to the closing and get him to the bank right after. He has been easy to work with but is living in this vacant house, sleeping on the floor in a sleeping bag, and after closing will move to another town. He's anxious to go.
The broker indicates that Fannie Mae will not allow this kind of deal and the title company has said basically the same thing--if we do a promissory note, they don't want to know anything about it. Any ideas, suggestions, etc. will be sincerely appreciated quickly! Thanks!
Thank you for the story.
For us starting is always nice to see motivating stories... but yours was special:
You are making one of the persons that love you the most so proud!
I am a mother of two boys (2-5), still very small, but the thought of your care and love for your parents is a blessing.
You are going to be a millionare!
Thanks for your great love
Rocio
I am glad to see your reply to my question has now become an article for all to see. It was motivating then; it is motivating now.
God Bless!
iglooman
awsum story! and yes very motivating. you had some really creative financing