Re: help with 1st year expectations - Posted by Mike (WA)
Posted by Mike (WA) on September 20, 2004 at 19:56:44:
Ok, your situation sounds identical to mine right down to the time. Been coming here for a few months and was inspired. Picked up a couple of Rich Dad books and played Cashflow and was inspired as well. Picked some other books up and learned Landlording and other RE specific info. I dove in this month after setting all my ducks in a row and have seen immediate results. Found a pre-forclosure and made good money (in paper, it’s a lease thing and I won’t see results for a bit) on it. Then today, from just word of mouth networking, I had two more potential short-term L/O deals pop up that I’m looking into. Both look to make a good Return on Investment for minimal risk.
I tried just flipping for a month (cold calling on signs and news paper listing) and had FSBOs laugh in my face at my offser, so I took a different route. I now am the proud manager of my own LLC and have seriously educated my self on tax laws to the point where next year I’ll be paying next to nothing in income tax. I’ve networked with RE agents and talked with every bank manager in town to find the best rates. Only 1 laughed at me, the rest were very helpful. Because of this, I can finance my properties at really good rates.
Moral: Don’t stop learning. Listen to Koyowski. Waiting is high risk. Holding a job for security is high risk. The person who sits on the fence will never win and will eventually lose due to taxes and time. If I end of losing now, I’ll get up and jump in again with the experience I’ve gained and win next time. It only takes 1 win to be set for life.
Do yourself a favor, call up a couple of FSBOs and get the info on the houses. It’s really scary the first couple of times, but it’s worth it. Once you can do that, use the tactics described here to check motivation and look for deals. Once you do that, your investing!