Posted by Tim (Atlanta) on April 07, 2000 at 13:54:33:
I am currently doing some rehabs and the ability to pay for the work upon the sale of the house would help me out greatly. I didn’t catch your e-mail address. Please contact me at timpatkel@yahoo.com
Hanging by a thread and in need of guidance… - Posted by H.L.R.
Posted by H.L.R. on April 01, 2000 at 11:55:03:
I purchased the CS program 4 years ago. I made attempts to get through the info., but the intimidation got to me. Now I’m ready to dust it off and give it another shot. Brief history of the last 5 years. Got married, both working, great income, had savings, quit job to have child. I was a home owner when I married, he moved into my house. After child was born, hubby wanted us to move to his hometown. No problem, sold house, went into rental in new town while looking for property to build on. Hubby was fired from job to make way for boss’ son who got his girlfriend pregnant for second time. We were unemployed for approx. 9 weeks - lost savings very quickly. No insurance, no home, expensive truck to pay for, credit cards, etc. I had to find a job. When we both finally started working, together we weren’t making what he was alone at previous job. The downhill slide continued until we finally had no choice but to file bankruptcy. We have yet to fully recover from this. He has since found a better job, but the income is not where it was. 3 months after the bankr. I found out we were expecting another child. After much calculating we determined that I would be working to pay someone else to raise my children. I quit work and can no longer sit around watching my family struggle every week just to make utilities and put food the table. I feel very strongly that this is the way I should go, but I’m operating out of panic right now and I need some guidance so I don’t make decisions based on emotional knee-jerk reactions. I have this CS program, but I think there is probably more to learn. I also have no idea how to start when I feel like my only resource is my gut instinct and determination to get out of this HOLE. Can anyone help me. Just something to get a focus. If I succeed you will have my eternal gratitude and I promise to pass it on to others.
Re: Hanging by a thread and in need of guidance… - Posted by Tim Conde
Posted by Tim Conde on April 06, 2000 at 14:04:00:
To just add a little to the discussion, you may be able to form an alliance with a contractor or a handyman to do work “on the come” (as we say), ie. he gets paid a percentage of the profits when a rehabbed house sells. The construction company I own does this all the time and everybody loves it.
Good luck,
Tim Conde
Thank you Bill and Mike for your input… - Posted by H.L.R.
Posted by H.L.R. on April 02, 2000 at 13:46:14:
I will step back, take stock of my finances, review my resources,(I probably have more than I think I do), and educate myself. Can’t go wrong with education, right? Thank you for the direction.
Re: Hanging by a thread and in need of guidance… - Posted by Mike
Posted by Mike on April 01, 2000 at 16:03:14:
Sorry to hear about your tough financial situation. I admire your willingness to want to do something to improve your situation. I would have to say thought that your situation is a bit more complex than just wanting to make a few extra bucks from real estate. I am not a financial wiz by any means; just someone who has some experience with the CS course and the ups and downs of getting started. Here’s what I would suggest for your overall plan: First, get a good idea of what your monthly finances are right now. I did this by making a spreadsheet using my computer and listing EVERY expense and every type of income. If you don’t have a computer you can do it by hand. The important thing is to list everything. It will be very tedious at first but you will be amazed at how much clearer the picture of your finances will be. Once you know where you stand, you can have an idea of how much you could tolerate if you lost a tenant, etc.
Second, begin by listening to the tapes and following the material several times. I listened to some tapes as many as 6 or 7 times. You will not understand everything the first time so don’t be discouraged.
Thirdly, when you actually start trying to find out about properties, look for properties which are owned outright by the current owner (or close to it). This will be difficult but I think with your bankruptcy it will be difficult to get traditional financing. The key is finding a situation where the owner wants to sell for good reasons (like he’s moving to another state), and not for bad reasons (like he’s losing money or the place needs a new roof). You will need to always do the financial analysis first before ever even seeing the properties. If they don’t make financial sense (and many won’t) then move on.
Lastly, I want you to know that it will not be easy and it will take effort and above all persistence to keep looking for the right situations. Think “out of the box” and don’t be afraid to make ridiculous offers. You might be surprised at the results (and it is kinda fun to be able to walk away if the owner doesn’t want to deal)! Good luck.
One Other Thing - Posted by Bill K. (AZ)
Posted by Bill K. (AZ) on April 01, 2000 at 15:53:10:
HLR,
Don’t forget to read through the many wonderful “How To” articles and “Success Stories”. The advice given in there is invaluable, and IT’S FREE!
Bill K. (AZ)
Keep Hangin’ in There - Posted by Bill K. (AZ)
Posted by Bill K. (AZ) on April 01, 2000 at 15:51:13:
HLR,
Carleton Sheets’ program is a great primer for this business. However, if you’re struggling to put food on the table, you should look into areas of the business that can pay today’s bills first.
Carleton’s basic program advocates “buying and holding” (ie: income-producing properties with appreciation). While that sounds great, if you don’t buy right, or the market turns sour (depreciation), or you have extra maintenance, or you have an unexpected vacancy, you may quickly find that a small positive cash flow has turned into a negative cash flow. And, it may take some time to recover from this.
For folks in your situation, I highly recommend that you consider lease/options or flipping. Both of these strategies can get you into, and out of, properties fairly quickly with very little of your own money invested. And, they can literally put thousands in your pocket in short order.
For example, with lease/options, if you find an owner who is willing to consider this strategy (motivated seller), you can make money 3 ways…
With flipping, I’d recommend you start with wholesale flipping. I wouldn’t put any money into fixing up these places. Find motivated sellers that will work with you on their price. Add $3,000 to $5,000 to the price (your profit), and flip it to an owner-occupant (which is actually a “retail” flip) or another investor. But, keep in mind, if you flip to another investor, there must be room for his profit, repairs and holding costs in order for it to be attractive to him to retail it.
That’s just a quick rundown, and I’ve simplied many things, but you get the idea.
You can find courses on Lease/Options and flipping by clicking on the “Books/Courses” link at the top left of this newsgroup page.
I hope this helps.
Bill K. (AZ)
Re: Hanging by a thread and in need of guidance… - Posted by MilNC
Posted by MilNC on April 06, 2000 at 19:15:55:
Tim,
Can you elaborate on how your company does this?
I drive by houses being built, and rehabbed all the
time, and would like to be able to see if I could
work something out. These would be ones that are in
neighborhoods near me, and that are working in the
price range of houses that I know about.
(So it strikes me as logical)
can you give any other guidance as to what I would need
to know about the contractor or to tell the contractor,
–what the contractor wants to know.
Time frame? Any details?
I’d still be interested in mainly flipping, but if
most of the money could come out of proceeds at closing,that would be another way, that I had not thought of.
Thanks,
Ann
Re: Hanging by a thread and in need of guidance… - Posted by Tim Conde
Posted by Tim Conde on April 07, 2000 at 10:38:05:
I’ll reply by email to anyone interested in this. This is not the forum for rehab questions. It’s for guru discussions. Or anyone can reach me at my email anytime.
Tim