Feeling Discouraged - Posted by Rolfe Mpls/St. Paul
Posted by Rolfe Mpls/St. Paul on February 14, 2000 at 23:48:54:
How do I turn this around?
The success stories posted on the site usually inspire, but today those same stories bring that dogging question I ask whenever I allow myself to compare my business to other’s. "What in the heck is stopping me from achieving my desired results?
About 24 months ago I started in REI, purchasing run down inner-city 1’s and 2’s for renovation. I’ve sold 5 and kept 5. By completing renovations, I replace a boarded up or run down property with a property to be proud of, while making a fair profit. I started with about $20k, and today own 5 properties worth a total of $590,000, with $142,600 in equity, and an annual cash flow b4 tax of $21,900.
I was certain that if I could prove I could do this profitably, banks and lenders would believe in my business enough to make loans. Yet every “B” mortgage seems to be a struggle. Apparently, income has been too low, and I went over on two renovations, leaving me $60k in debt. Still, I’m in the positive $142k.
I’m tired of hearing “no”. How do I get to “yes” with lenders? How would I find private investors? Is 10% a fair rate to offer?
Sorry for the venting;