Our REI Story

Here's Our REI story.



Around 1990, I bought Carlton Sheets' program for me and my roommate who said that he'd work the program for both of us if I'd buy it... Guess what? He didn't.



Ok. Fast forward to 2002.



My wife and I had seen Carlton Sheets' infomercials when we were up late. One afternoon we approached each other with the same idea: buy Carlton's program -my idea was that we should consider buying Carlton's program (I was still skeptical 'cause she said she'd really work it if I bought it...).



My wife and I talked about ordering the program for months (I was suggesting that we wait 'til we had the money). Finally, one fine afternoon, my wife just ordered the program, called me at work and told me it was on ts way.



When the program came to the house, I let it sit on the table for a day or two; then I opened it and began reading and calling; that was about five months ago.



Even before buying Carlton Sheets' Program my wife and I had been working on paying off debt, improving our credit and financial lives because we were trying to buy my childhood home from my parents -which we did with no money down via a gift of equity from my parents which we then used about six months later to buy another house with no money down for my parents to live in and to rent from us!



It was about three years before buying Carlton's program that I began working in a store on Saturdays and Sundays about ten hours each day; the money I earned went to pay off nearly all our outstanding debt: credit cards, doctor bills, kids needs, etc. After three years, we were out of debt (we also used every single tax return and windfalls of cash to pay off bills too -hey, I wanted out of debt and a clear credit report!).



Ok, now here we are with no outstanding bills, with two homes, a paid off car, a financed truck, good credit, and lots of drive and desire -and Carlton's program (Just to get here took about three to four years of solid bustin' our butts, so I don't mean to make it appear as this was a simple, overnight process for us. Believe me, it wasn't. It was difficult to have all that money coming in and then have all that money go out just to clean up our past; I can tell you that we no longer make the same financial mistakes!).



About three months after buying the two houses, we bought a duplex in Virginia (around 7/03) with equity in our homes and, in addition to that, we also got a line of credit for other properties -I used a bit of it to put a new roof on our home (at this point I cannot tell you how important it was for us to have a great mortgage broker. Her name is Rachel, and she's magic!).



Currently, we have two additional accepted offers in VA. We should close on both and walk away from the closing table with about $6,000/property -again, I cannot stress enough the importance of a good mortgage broker! Also, each seller is financing a second mortgage!



Now, let me tell you what I do everyday in REI.



Read and, sometimes, reread Carlton's program, call the foreclosure depts. of banks, call realtors and ask about given poperties, call possible investors regarding $10,000, $15,000 or $20,000 three to fiver year loans @ 10% and/or %25 of cash flow or simply 20% of profit after the flip (I now have two investors!). Sometimes, I'll do 50/50 deals with investors, and I know some people may say, "I wouldn't do 50/50s. I need to make more!" Here's my question to you: What's 50% of $50,000? Now, what's 20%, 30% 0r 40% of nothing? Uh, nothing.



Every day at work I get time to use the phone; so I call FSBO's (For Sale By Owner) and prequalify sellers (why are they selling, how long have they had the prop., and are they willing to finance partial or total, etc.), or I do searches for properties on the Net. Also if I'm waiting for a property (foreclosure or other deal) to come through, I work the phones, papers and banks, looking for properties. The way I look at it is this: If the other possible deals don't happen then I'm still moving forward; if they do happen, I'm just that much further ahead.



Goals.



Goals?



Yep, goals.



Go write down five attainable REI goals; go write down five attainable personal goals. Look at them everyday! For example.



You may want to do one property flip/six months and have three duplexes by the end of a calander year. Or you may want to get a part-time job and pay off any outstanding bills. These, in my opinion, would be REI goals.



Now, for personal goals, you may want to read one book every quarter (Harry Potter, Anne Rice, Underwater Basket Weaving, etc). And, or you may want to walk one mile everyday 'cause your significant other keeps shrinking your clothes!



Here are our goals:

1.)Make as much in REI as I'm currently earning in salary.

2.)I will be working for myself within four years.

3.)$50,000 cash in hand.

4.)One year of health insurance paid up.

5.)After the above, I'll give my notice (giving notice and going it alone is an individual thing -you could do it now where I'll need to wait).

6.)Our persanl rent/mortgage will be paid by income properties.



The bottom line is this: if we have $50,000 in hand and one year of health insurance, we'll be working full-time for ourselves!



Now, I knew that were I to work for myself, I'd need a good financial base, and that's why we decided to buy duplexes and triplexes first -at least we'd have $150/property coming in every month (now I had written $150/property. That's at the least. We certainly make more on nearly all of our properties). Now we're doing rehabs and flips which do require money, but we're not using ours, we're using others' money, but it's always good to have your own when you can 'cause if you offer on a rehab and I offer on the same, and if you finance it, and I offer $5,000 less but put the cash from my coat pocket on their desk, I'll probably get that property instead you. Lesson? Cash is king).



Finally, now my wife and I always seem to be in the middle of a number of offers, foreclosures and whatnot -gotta keep the fire stoked, right?



Lastly, I encourage any of you who are in disbelief to 1.) prove to yourself that these no-money-down-deals don't work... Really, prove that they don't work. Know why? Because as you try to prove that they don't work, you'll actually learn, perhaps in spite of yourselves, that they really do -just like this former skeptic did, and 2.) share your wealth (teach another, hire someone who needs a job or provide safe, clean place, for a reduced rate, to someone to who needs it).



Well, that's our REI story.



Thanks,



OnTheWater