How Did You Get Started?
I'm just curious as to how everybody got started. More specifically how you educated yourself on REI. Did you go to post-secondary and learn the tools of the trade? Maybe you picked up a couple of books and did it that way...tell it here...
That is a great question. I too would like to know how people got started. Thanks
I got started looking into rei about 5 yrs ago. I spent bundles of cash on late night guru's with no real plan for success, and proceeded to do my own research. I researched a few subjects in the REI field for 4 yrs thereafter. I felt like I learned more from my own research then I ever did from the infomercials because they would give you insight as to how to do certain things, but no real plan to accomplish a successful transaction. To this day, I still have not bought a so-called Investment property because i feel as if there is still lots to learn. To help me to better understand the whole process I felt that it was neccasary to learn the loan side of the business to really understand how to make a cash flow situation make money. So, I got a job as a loan officer, then moved to underwriting and processing loans. i bought my first primary residence last year as a result of my job, and I now have 90,000.00 in equity in the property. This year I will be taking my final leap of faith into my research by renting my first property and buying a larger home with my equity, now that I understand what programs are available, and what lenders are looking for, I feel I can make a handsome grip of cash by the end of next year. I did my home work and will create a 600.00 a month cash flow, as well as a larger home with smaller payments. how could I go wrong right? This is just a stepping stone for me to future riches, as I intend to purchase as many properties as possible next year. My goal is to create enough cash flow to replace our current incomes ( my hubby and I that is....) so that we can quit our jobs, and retire by age 40 ( we are 29, & 30 now). Meanwhile our properties will continue to gain equity making it possible to buy even more property in the future. Since I've worked in the mortgage industry, I've learned that it''s important to cover all your bases, including your loan terms. If you want to create more cash on a monthly basis look at loans on the property......... We have interest only payments and 40 year terms on our current residence which elevates the level of cash flow from the rents recieved..... why pay principle on the mortgage, unless you want to own the house free and clear. Just make interest payments, and sit back and watch the equity grow. I've learned alot over the past 5 yrs, thru job experience and research, thats how I got started. My motto is "do your homework" and then get paid!
Happy hunting...... 8-)
I'm not questioning your methods of learning the ins and outs of the business. Do you think it really takes 5 years or research before you can make a wise decision? 90k in equity in a 1 year period is great, if I'm readind your post the right way.
I'm in no rush - should I be? I recently took on a hobby where my mentor told me that it would take me 5 years before anyone would know my name, or before I got good, low and behold a year later, I'm doing better at my "hobby" working on it only part time, as my ex-mentor is doing at the same thing which he does full time.
I'm not looking for a get rich quick scheme.. those never work do they? I guess I'm asking what a realistic time frame would be from research to sale / flip / rent of my first property, even if I only made $500 on the deal. I think 5 years a bit long??
Got started in rental estate two years ago. Cashed 70k out of the market and bought, rehabbed, and rented six houses in one year. The 70k was gone but now I had the real estate bug. Rehabbed and retailed my first house and made 17k profit. Rehabbed and retailed another and made 27k profit. Used hard money to buy both houses and a home equity line for the rehab money. Then I added wholesaling to the mix. Also tried lease options. Now I am chasing preforeclosures.
Still have a 40 hour a week day job. Spend about 40 hours a week on the real estate. Have 14 rentals, 3 lease options, 2 houses for sale, two short sells approved, and 2 houses under contract - one I will flip and the other is a quad with owner financing which I will keep.
Brenda
No , 5 yrs is how long it took me to decide how to proceed, everyone sets their own pace of course. I tend to be overly thorough when I attempt anything regarding money (especially my hubby's check)! But to my surprise, that works for me. You'll decide when and where to go with your investments in your own minds eye. Your on the right path since you've obviously found this network. We all learn alot in these forums, as I'm sure you have too. No rush, no worries..........
Quote:
On 2004-08-17 16:11, EMGSTUDIOS wrote:
I'm not questioning your methods of learning the ins and outs of the business. Do you think it really takes 5 years or research before you can make a wise decision? 90k in equity in a 1 year period is great, if I'm readind your post the right way.
I'm in no rush - should I be? I recently took on a hobby where my mentor told me that it would take me 5 years before anyone would know my name, or before I got good, low and behold a year later, I'm doing better at my "hobby" working on it only part time, as my ex-mentor is doing at the same thing which he does full time.
I'm not looking for a get rich quick scheme.. those never work do they? I guess I'm asking what a realistic time frame would be from research to sale / flip / rent of my first property, even if I only made $500 on the deal. I think 5 years a bit long??
8-) 8-) 8-)
had a wife and kids. needed a place to live. tired of apartments. bought first home. it was a foreclosure valued at 85K gave 48K. hmmm! there's something to this rei. i found that i luv it to.......km
I stay at home with the kids. I worked a part time job in a credit card collections dept on nights and weekends to raise 10K. I bought a foreclosure, fixed it up, rented it and cash out refinanced. Now I have 20K to work with. Incidently, working in a collections dept was a great way to learn how to screen tenants and gauge attitudes towards money and responsibility.
This is a good question. I like it and think it should be moved over to the newbee section.
I personally have not started yet but do have a plan of action.
First find an investor for the area I want to work in.
While doing this find a property. I have several already in mind.
Third work the deal. Depending on the types of investors I have and the deals they look for.
Last cash out and do it again.
I have been tinkering with the idea for uears and learned from the industry.
I simply did not know how to get started. Always heard it was easy enough but never knew the steps of how to do it. Of course no one wants to start and get in over their heads on the first try and get burned.
[addsig]
Hi Brenda,
Was wondering how you could do rehab and a fulltime 40hr job. How did you find good contractors and keep track of the work they did.
I wanted to get into rehabbing too but got scared by a real estate investor that it;s difficult to keep the contractors working your rehab building.
Thx
Chi.
Hello,
To begin with we ordered Carlton Sheet's course.
We were motivated (39, didn't see Social Security lasting much longer, the stock market isn't my cup of tea, and a 401k, in my opinion, is a joke). I didn't want to have to worry about how my wife and I were going to take care of ourselves.
We read everything in two weeks. A few weeks later we had a duplex. A month after that, we had another. Now we have about 8 properties.
We buy, hold, flip... It depends what we're trying to accomplish during a given time period.
We've bought conventionally, subject to, equity gifts, partners (hey, if you get a partner, get it ALL in writing BEFORE buying).
Today, if I cannot get the seller to hold a mortgage for three years, or if I cannot get the deed with no $, or if it's not a CFD or a lease option with out any $, we don't do it. Period.
There's a guru on every corner. Buy something, read it, know it, use it. If you keep reading and doing nothing, then you'll get a great REI education, but you'll own nothing.
Here's a word I like: No. No, no, no. Today it doesn't affect me. I just say, "ok. Here's my card. Should you change your mind, call me."
Thanks,
OnTheWater :-D
I'm also a Carlton Sheets graduate. Took a leap of faith and bought a rehab for 135k put 35k into it all w/an equity line, rented it for 1 year, currently listing it for 300k. Meanwhile I took out a equity line on this property, bought a second rehab for 66k, put 10k into it w/a rehab loan, rented it, its now worth 125k. I also bought another in this same year from another investor and walked from closing w/3,000 in my pocket and brought nothing to the table...be leary of these deals though if it sounds too good to be true it probably is (this ones been my 'alligator'). Meanwile I bought yet another w/seller financing and rented it as well. I'm currently under contract on my 6th property, a 4 unit that I'm doing 100% financing on (yes, the #'s work) and plan to now focus on buying multi-units for long-term and hoping to diversify my investing this year and trying my luck at short sales, wholesale, and/or preforclosures. My advice...read everything you can and just do it, its not easy or everyone would be doing it, but it is worth it!!