Posted by SusanL.–FL on March 21, 2001 at 09:22:03:
A copy of this is going home with me tonight for Kenny to read while he reads his weary bones on the couch!
GREAT post! Keep up the good work, John. Perserverence always pays off!
Susan
Bad deals-money tight-should I go to convntion? - Posted by KatieFL
Posted by KatieFL on March 19, 2001 at 20:14:02:
My situation:
I am a beginner, I’ve done a rehab that was somewhat skinny (Yes, I know, I should have listened to warnings on this site better). Anyway it’s been on the market for 6 months, 5 of which it was tied up in a contract (buyer backed out last week).
I have another house that I rehabbed and will be on the market next week.
At the same time, we bought a rehab for our personal residence (it was a great deal and completely worth it) and put repair costs on credit cards which were supposed to be paid off by the sale of house #1.
We have a buyers market here. Houses sit on the market forever.
At this point I cannot afford to use l/o, seller financing and am unable to refinance so far to get enough cash out. Monthly payments on three houses plus interest charges on credit cards are eating me alive.
Here is my questions:
Would going to convention be practical at this time? I have no money to even advertise in a newspaper right now, so how would I be able to do any deals?
Should I put all RE business on hold until the two houses sell?
So far I have not been able to find one decent property for a flip, and called all FSBOs and used tired landlord method for finding l/o for a few months without any results.
Thank you.
Katie
You guys are awesome! - Posted by KatieFL
Posted by KatieFL on March 21, 2001 at 14:27:22:
When I posted my question, I kind of expected that most people would say “Go”, but I never expected to be encouraged and motivated this much.
I KNOW that I will make it in RE. I have tried every kind of business opportunity that came along and nothing ever compared to potential of RE. I also know most of the “opportunities” come and go, but real estate will always be there, thus real estate business is not going anywhere. I just got to figure out how to get my share of the pie.
I am glad I did those deals because they got me started in RE. Too bad it’s a bumpy start, but I’m here for the whole ride, so I’ll wait it out.
I am definately going to the convention. I just hope some of you seasoned pros will let me into your company so I can get some more of that knowledge and drive from you. I really need that. I am a real estate agent in a good company, but all of my agent friends don’t believe much in the creative stuff. I guess I need new friends 
Thank you so much for all the support. It is very valuable to me. The doubt that I started having is GONE.
See you in Atlanta!
Katie
Go! - Posted by Tony (CA)
Posted by Tony (CA) on March 20, 2001 at 14:29:35:
Go! As these responses surely show you, there’s nothing like the commitment and helpfulness of those of us in the CRE business. Yes, you have some challenges. Every time I get a little concerned over the bumps in the road a post (with the positive responses) like yours pops up. Don’t give up. You’re on the right track, just hang in there.
Tony
We have A Winner !!! - Posted by JohnG
Posted by JohnG on March 20, 2001 at 09:22:15:
You are a beginner and you have already done 3 deals ? Do you realize that you now make up a very select few who actually go out and do something with all the knowledge they have ??
Congratulations !!!
All the more reason to go… - Posted by TRandle
Posted by TRandle on March 20, 2001 at 08:20:43:
Katie,
The convention’s not about being practical - it’s about affirmation that REI is what you were born to do! If you truly enjoy REI and use the convention to network (speakers are just gravy), when you leave, you will be stunned you ever considered not going. After meeting and talking to that many folks who are doing what you’re doing, you’ll flame the inner fires.
My financial situation may not be as dire as yours, but I can promise you that I’m SERIOUSLY overextended. We have several houses not moving, numerous offers that require cash already out there, and more appointments to go. I’m freaking, but still operating under the premise that I’ll find a way to get it done.
Keeping my word to EVERYONE is absolutely critical to me. The way I did that prior to REI is by having nice, laid-out plans. These last two years I’ve had to learn to sometimes do things on the fly which is very much against my nature.
My stress level is near an all-time high as is my excitement level. It never occurred to me to not to go to the convention. It’s a family reunion. Just making 20, 50, or 100 friends that will actually listen to REI discussions is worth the admission price! Find a way to get there…
what I would do. - Posted by Dee-Texas
Posted by Dee-Texas on March 20, 2001 at 07:32:43:
I always have a game plan…
Number one: get signs up (made out of poster board, anything and put them on the property and at crossroads in your area) put an ad in the penny saver…
My last ditch effort is always to rent…
My first option if I CAN’T sell outright is always a L/O. You can get higher payments and option money from the buyer. This will stop the bleeding of your credit cards you will have to wait for the big payoff, but otherwise you are in jeapordy of losing everything.
Next I would get this all tied up quickly and then if there was enough money left and IF YOU ARE TRULY HUNGRY for RE, then beg or borrow to go to CREONLINE!
YOU will get your answers and more.
Good Luck,
As I said this is just what I would do.
Dee-Texas
Re: Bad deals- - Posted by Nate
Posted by Nate on March 19, 2001 at 23:26:25:
Katie,
I don’t have an opinion one way or the other. I have not been to a convention so I can’t say whether or not it would be worth your while.
I am wondering, just out of curiosity, where you are in Florida that is a buyer’s market.
Wish you the best of luck,
NT
Re: Bad deals-money tight-should I go - Posted by Vic
Posted by Vic on March 19, 2001 at 22:35:31:
Katie,
Interesting that you bring this up. I’ve been wrestling with the same question as well for almost the same reasons.
Like you, I’ve been sitting on 2 houses (pre-foreclosures)for almost 6 mos. & can’t seem to get either sold. Not only have I gone through my credit cards, but I’ve also gone through borrowed credit cards as well. I think I got about $300 left on one & that’s it. It’s gotten really bad financially. Because I’ve put so much money into these houses, I now have to have an outright sale on at least one of them. Yesterday, I was a lot more confident of that happening than I am today.
I had a cash buyer for one house & he changed his mind. Have the other one under contract, suppose to close this month, now I’m really getting worried about that one too. It seems that the people can’t follow simple directions. Lender tells them what to do & it’s like he’s speaking a foreign language. If I wasn’t in the predicament I’m in I’d tell em to get lost. They’re so close though, I hate to start over.
It’s just incredible how this thing is going & I’m a real estate broker at that. Funny, how I list other people’s houses all the time & never have an ounce of trouble selling them. Here I got my own & can’t get them sold.
I know we’re not alone. I’m sure there are others, who for whatever reason won’t post their story. Perhaps their afraid to put themselves out for public scrutiny, or who knows why. I certainly would like to hear some of their stories though.
As for the convention, I’ve decided that I can only go if I get one of my houses sold. Otherwise, there’s no way. I’m trying to figure out how to keep the lights turned on. LOL Hopefully my buyer will come through & I’ll be there. For me it will be a last minute thing though.
Good Luck & keep us posted,
Vic
My Opinion… - Posted by David Alexander
Posted by David Alexander on March 19, 2001 at 21:05:08:
is if your just now starting out you should go.
The first time I went, I had $100 dollars in my pocket, no hotel and only a desire to learn.
If you have that same desire… dont hesitate go.
David Alexander
Re: All the more reason to go… - Posted by Monique
Posted by Monique on March 20, 2001 at 09:49:40:
Tim,
Great post!
Maybe we can all brainstorm together over a beer or two. And, make some breakthroughs on some of the properties we’re all trying to move.
Monique
Re: All the more reason to go… - Posted by JPiper
Posted by JPiper on March 20, 2001 at 08:58:40:
Good post Tim. Look forward to seeing you again.
JPiper
Re: Bad deals- - Posted by KatieFL
Posted by KatieFL on March 20, 2001 at 09:36:46:
Nate,
I’m in Central Florida, in Winter Haven (it’s between Orlando and Tampa). I am also a real estate agent and I see houses that are priced right and good buys sitting on the market for a long time. I haven’t seen many good buyers recently. No one seems to have the money or credit.
Katie
The Answer is… Buy More… - Posted by David Alexander
Posted by David Alexander on March 21, 2001 at 24:04:23:
Assets.
When you get that point that JonG is talking about, listen to what he is saying and buy more assets.
Do another deal, two or three.
Let your profits pay the expenses, and conventions are expenses.
David Alexander
At a Crossroads !!! - Posted by JohnG
Posted by JohnG on March 20, 2001 at 13:14:50:
Listen, if you’ve got all your money tied up in houses that says to me that you are 101% committed to this thing and I would suggest that you find some additional funds to go to the convention.
Heres why. You are at the crossroads. Right now, there is a debate going on inside your head that sounds like this :
“You must be nuts - all of your cash and now your borrowed money is out on houses and no sales - what were you thinking ?”
“You are making things happen and being stretched to the limit (and beyond) is part of the game. Go for it
Don’t give up - no matter what !”
So, by going to the convention you listen to the voice that will keep your dream alive. Its waaaaaaaaaay to easy to listen to everybody else and then you start thinking like them - and the next thing you know you start forgetting about real estate and laying down and being average like all your broke friends.If you go to the convention I bet you will hear stories from seasoned investors that will make you think that you have no problems at all. Believe me, I know whereof I speak.
Go for it and don’t let anyone steal your dream !!!
Same boat, Vic… - Posted by SusanL.–FL
Posted by SusanL.–FL on March 20, 2001 at 09:30:40:
I’m waitin’ on TWO properties to be cashed$ out and it JUST ain’t happenin’ either!
Figurin’ how to keep the lights turned on? I HEAR ya! I haven’t been able to pay my last advertising bill.
As a matter of fact, I was sitting in a banker’s office a week ago Friday – with the intention of turning my car back in.
I was doing one of these ‘creative’ numbers: “How 'bout if we try this? How 'bout if we try that?” Banker lady was squirming in her chair like crazy—just WISHING I would leave. I wouldn’t!
Then I glanced out my window, saw my Explorer sitting there and thought to myself: Naaaaaaaaaaaaaaaaaahhhh, it’s NOT gonna happen today!
Hopped back in my buggy and drove’r back home! Told myself to HANG in there a little longer! Something will happen!
Good luck to all who are struggling. We’ll get through it!!!
Susan
Re: My Opinion… - Posted by JohnB_NJ
Posted by JohnB_NJ on March 20, 2001 at 14:06:47:
David,
I see that you will be arriving in Atlanta on Wednesday. I will be coming in at 4pm on Wednesday. I hope to meet up with you and “shoot the breeze”.
Take care
John Bittel
Talk about faith… - Posted by Evelyn (FL)
Posted by Evelyn (FL) on March 20, 2001 at 06:12:07:
You must have REALLY wanted to go!!! I have thought about doing the exact same thing. Just going there. The heck with a hotel. So how did you make out while there and afterwards?..I may need to use some of your tips!!!
Evelyn
Re: Bad deals- - Posted by Nate
Posted by Nate on March 20, 2001 at 12:53:53:
Katie,
Not surprising at this point in the economic cycle. Seems to be we’re sort of “tapped out” at this point, in that everyone who had the money or credit to buy a home, would have already done so in the last 3 years when the economy was great…
Anyway, good luck!
Nate
It’s A Funny Thing… - Posted by Vic
Posted by Vic on March 21, 2001 at 24:04:27:
John,
If I had a choice to go back in time & not do these deals, I would have to decline. Even if you told me that it was going to work out the way that it has thus far, I’d still decline.
You see, in the process of doing these deals I’ve managed to become really addicted to this business on the investor side of things (instead of as a broker).
I can’t explain it, but even with all the financial turmoil that I’m currently in, there’s this inner peace inside of me. It’s as if I’ve found what I want to do with the rest of my life and now I’m just waiting for the storm to clear. It’s kind of like a quiet confidence.
Even though things are rough financially right now, I’m not at all panicked. In fact, if anything, it’s just the opposite. On the inside I’m very calm, cool & collected because I know that very soon things are going to start working out. I’ve just got to wait it out. I have no doubt that these houses will sell, & being half Italian I guess I’m too stubborn to do anything else, other than wait it out.
I’m more entrenched now & happier than I was before I got into these 2 deals. There’s something going on inside that’s convinced me that I’m on the right path. I can’t explain it. It may have something to do with looking at the big picture & thinking of what things will be like in a few years, or it may be, just that I know what to expect, having done dozens of sales as an agent. Whatever it is, I know that I’ll be in this business for a long, long time. I mean where else can you go to build a monthly income the way that you can with real estate? Where else can you go to get all of the benefits that real estate has to offer?
It’s ironic too that with real estate, even if you do one or two bad deals, it really doesn’t mean that much over the long haul. Real estate is one business you can screw up royally & still find a way to make money in a relatively short period of time.
The fact that these 2 deals are taking way longer that I ever thought they would hasn’t stopped me at all from pursuing other deals. Just last week, I put a duplex under contract in an up & coming area. It was a great deal! I’ve got it under contract for 60K & it’s probably worth closer to 80K. Each side is currently under rented at $400. Rents can easily be $525 a side. The best part of this deal though is that I will buy it with a zero interest rate loan. The seller is financing the whole thing (except for a $1250 down pmt.) at ZERO interest. It’s set up so that I will pay her $1250 a quarter for 12 years, then I’ll own it free & clear.
Other than real estate, where else can you find deals like this? I mean in 12 years I’ll have $1000/mo in today’s dollars coming in for life, just from this one deal. This property has a brand new roof to boot. It does need about 7-9K in cosmetics though & that’s the real reason I complain about not getting these houses sold.
So when I complain that my houses aren’t selling, what I’m really complaining about is that because they aren’t selling, it’s slowing me down from going forward at the pace that I want to go at. There’s all kinds of direct mktg. that I want to do, deals that I want to pursue, etc. & not being able to get those 2 houses sold as quick as I want to is just slowing me down. So I can’t until I finally get them sold.
Although I can’t speak for the others, I would hope that they would have a postive outlook on things as well. This business has too much potential not to.
Thanks for sharing your story below. Knowing that you’re not alone in situations like this is comforting.
Best of luck to you,
Vic