Posted by William Bronchick on March 24, 2000 at 19:53:20:
He doesn’t need title in his name to refinance. Once in a while a moron lender insists on title in his name before closing, in which case I will execute a deed and have the closing agent hold it in escrow and deliver it at closing of the new loan.
High Salary but No Time for Real Estate - Posted by Mookie
Posted by Mookie on March 24, 2000 at 09:44:50:
Need some advice - I make a very good salary with my corporate job - about $100K. The problem is that a high salary in my line of work means lots of travel. I’m on the road all the time and only can do RE on the weekends. I know the simple answer is just to say take a dead-end job with 9-5 hours that doesn’t travel so I can devote my time to RE. But when you have a wife and newborn on the way, it’s difficult to give it up for a dream of doing better in RE. So, for the other professionals out there who’ve been or are in this situation, how did you deal with this?
How about your wife? - Posted by Ken Sterner
Posted by Ken Sterner on March 25, 2000 at 22:09:47:
Does she work? Managing single family homes is really not that much of a burden for anyone. And after the first one, she may get hooked on the excitement.
Long Reply – I am in your same shoes right now. - Posted by Mark_TX
Posted by Mark_TX on March 24, 2000 at 21:46:02:
Well,
I am currently in that situation. Almost exactly. Including the travel.
What I have done…
I have made some goals, one of which is to do one Lonnie deal per month to infinity. This means hard work on the weekends. This means sacrifice, which is even harder considering that I travel so much and would prefer to hang out with my wife and two children, ages 1 and 3 when I am home. However, this decision is the best one for my family taking the bigger picture into consideration.
Additionally, I have to tell you, no matter how much you are paid at your job/career, it is only a “perceived” security you are feeling.
Let me explain. I woke up one day about four months ago and looked at my paycheck stub and thought…“If this goes away, I am so screwed!” ?I have a mortgage, car payment, bills and I have to feed my family, once in a while.? Now, there is no reason that I can think of that my job should go away today or tomorrow, but fate has different ideas than I do all the time.
Instead of being paralyzed by my fear or choosing to ignore the thoughts that I mention above.? I decided to learn all I could about money, investing, etc. One day I read an article in USA Today, reviewing Robert Kiyosaki’s book, “Rich Dad, Poor Dad”, it was a regular book that I could pick up at any bookstore for about $6 or $7 and it seemed to fit with my mindset of learning about money. So, I went and bought it. That book along with this web site and quite a few other books have changed my life.
About 2 months ago, I flipped my first home and made a profit of $3000.00 with none of my own money in the deal; refer to the How To articles titled Beginners? Quick Flip Primer Part 1 and 2, which helped me immensely. Last Monday night I bought my first MH and I am in the process of assuming the property that it is on. I should have it sold sometime this weekend. The major point on this last deal is that I was not in town when I bought it. One of my investor friends here bought it for me.
You can do whatever it is that you want to do if you choose not to be denied! There are solutions to any problem or excuse you can come up with, if you choose not to be denied! But, it must be you that chooses not to be denied, and that decision needs to come out of the very pit of your gut. When you choose to work towards real financial freedom instead of “perceived” financial security you will be able to manage your time with your job, travel and family and you will be able to solve any challenge that presents itself in any of these areas? because you will know in your gut that you WILL NOT be denied.
I am here to tell you that I will NOT be denied. I would highly recommend that you come down this path too. But, you have to reach that place on your own.
Regards,
Mark
Back in the Day… - Posted by Dirk Roach
Posted by Dirk Roach on March 24, 2000 at 18:40:46:
Hi Mookie,
way back in the day 1992 I was working a pretty good job, making around 63k a year. I had an office a secretary etc. I was 22 at the time and thought wow, this is pretty cool. Then after a brief trip to the pacific northwest (Seattle) I saw the whole coffee house thing going.
Back in the Midwest (Metro Detroit) where I was living at the time, there was nothing like that going on. So being the opportunist that I was (and still am) I said to myself, “Okay look’s like a neat biz, I’m going to do it.”
And do I did.
I quit my office job, and threw myself head first into my coffeehouse. And I spent 18 hours a day working in my business and the other 4 worrying about things in my business.
Needless-to-say, after I started finding hair in the shower drain, I decided that it was time to sell. So I did that, and pretty much broke even.
Okay, anyhow, how does this relate to your post?
Basically, what you have to realize is the successful business person doesn’t “trade” one job for another, but rather starts (buys) a business and puts systems in place that run the business. Employee’s work the systems.
So with the proper systems in place YOU DON’T HAVE TO BE THERE!!!
Have thought that since you are all over the place with your job, maybe partnering up with someone, who can do the local leg work. Then what can you bring to the table? Most likely it will be money, or contacts.
Also maybe you just fund whatever deal, and have them (whomever your funding) do the work. Of course your yield, won’t be as high as it most likely would have been if you had done all the work, BUT WHO CARES?!?
It’s still better than conventional investing.
Anyhow, hope this helps,
Dirk Roach,
Capitalist
I walked away from it. - Posted by CarolFL
Posted by CarolFL on March 24, 2000 at 14:50:21:
And amazing things happened. And still are happening.
But we were ready for it, and are “excited” not “scared”.
Lots of good advice is given. See the end from the beginning and go for it!
Carol
Re: High Salary but No Time for Real Estate - Posted by You Probably Know Me
Posted by You Probably Know Me on March 24, 2000 at 13:10:25:
Here are the threads to read, Mookie. Lots of great advice is within.
I’ve got a plan for you . . . - Posted by Bronchick
Posted by Bronchick on March 24, 2000 at 10:56:03:
As described in my “How to Create a Real Estate Cash Cow” course, you can make a HUGE return by creating “non-qualifying” financing. You buy properties (using an agent to do your work) below market, financing at 8-9%. You then sell them a little above market value with owner-carry terms (called a “wrap”) at 11-12% interest. The cash flow is huge, and the yield is anywhere from 50% to 100% cash on cash. This take very little of your own time, since you have an agent showing the properties. I have several high-salary, busy clients who do several deals like this every month.
I will be covering this in my upcoming Vegas seminar (click on the banner above).
Re: High Salary but No Time for Real Estate - Posted by Tom A.
Posted by Tom A. on March 24, 2000 at 10:09:55:
I feel your pain…
I also have a fair salary job ($90K), but do not travel as much. Unlike common belief that with a high salary you have it made… they don’t pay you to do nothing. YOU WORK A LOT.
The best advice I can give is to decide what type of investing you would like to do, then try to assemble a good team. This off loads the things that you do not have time for.
I do rehabs. I can find the properties & negotiate the deals. I use contractors or casual labor to do most of the work. Then use a RE agent to sell the property. I can do the things that takes telephone time like financing, calling in material orders, etc. Wife can do the leg work of getting permits, admin stuff, etc.
The net is not as good, but you are in the action. The more you can do the more net, but some is better than none. The hard part is getting the right team, mostly with contractors. If you use handymen/casual labor you have more control, but take more responsibility.
It can be accomplished… may take more start up time and less net, but you are in the game getting knowledge and experience until you are ready to make a more time commitment move.
Hope this helps
Tom A.
p.s. Always have an exit strategy before you buy.
Re: High Salary but No Time for Real Estate - Posted by Rob FL
Posted by Rob FL on March 24, 2000 at 10:05:35:
There is a post below with the exact same scenario. It is way down at the bottom of the newsgroup. Here is the title: “Is patience the answer? No…there is no answer. Get used to it. - You Probably Know Me 01:49:47 03/16/00 (41)” That should help some.
Just remember, that high rolling corporate jobs aren’t everything. I have one myself, not quite in the 100K range but far more pay than my monthly expenses as a middle-class American require. It demands a commute which costs me 12 hours a day, 5 days a week as well as regular out-of-town travel. I realized a while back that my time with my family is really more important than gobs of money from some high-paying job. After all being tax time, I took a look at my what I paid the IRS last year through FICA, medicare, and witholding, and it is nearly 1/3 of my paycheck. My goal with real estate is to cover my monthly bills, a little extra spending money, and some emergency money. One thing that RE can provide is passive income. No corporate job can offer that.
Re: Long Reply – I am in your same shoes right now. - Posted by sharleen
Posted by sharleen on March 31, 2000 at 09:48:27:
To Mark TX:
In your reply which was very motivating you listed the “How To articles titled Beginners’Quick Flip Primer Part 1&2” are these in the book you refer to by Robery Kiyosaki’s “Rich Dad, Poor Dad”?? info needed. Thanks, sharleen
Re: here’s a thought - Posted by Alicia
Posted by Alicia on March 25, 2000 at 11:26:24:
hello,
i know a few people in your same shoes… for example my very own brother. he wants me to find deals for him, either lease options that mean the tenant has a homebuyer mentality or buildings with cash flow that support the expense of property management. how is this worth my time? i tell him i do his loan and get to charge a healthy origination fee.
so the idea is: find a loan officer with a mortgage broker that is an RE investor and works with investors…therefore exposed to lots of money making opportunities and potential buyers.
Good Luck
Alicia
You don’t have to be there - hey thats the ticket !!! - Posted by JohnG
Posted by JohnG on March 24, 2000 at 20:24:17:
That is the next level.
The next step.
The New Frontier.
To be set up in such a manner that you don’t have to be there. Let me explain.
Last year was a wonderful year for me in real estate. I have been full time for a long while. I left the corporate jungle in 1981 (and believe me I was making the big bucks, the travel, the glamour etc.) I have made two fortunes since (and lost one) so I am still ahead of the game.
1999 was a phenomenal year. I added a large number of units to my portfolio; flipped a bunch of rehabs; and did a lot of real great stuff. But, there was something missing. I didn’t know what it was until a few weeks ago.
I just came back from three weeks in the hot sun and it was then that I realized. I want free time. That is what is driving me now - not the dreams of real estate wealth; the big home; the two cars - all the trappings of success. That is nice, but I need time to stop and smell the roses.
We have email, voice mail, fax, cell phones and where does it all end. Its Friday night and I am still on the phones, computers, faxes etc. It is like some great conspiracy to make sure we are busy 24 hours a day seven days a week.
Well, heres my resolution for 2000. I am going to take at least 5 real nice vacations and spend a whole lot more time with my family and I am going to learn to cut back on those 80 hour weeks.
So, if you are thinking of going full time in this biz be careful that full time doesn’t become 7 days a week and 24 hours a day.
Now, I just want to return these 8 phone calls and these 7 emails and I can relax… NOT !!!
Re: I walked away from it. - Posted by Nate Tyler
Posted by Nate Tyler on March 25, 2000 at 11:57:09:
Carol,
I never knew you finally took the plunge! Cooool!
I’m happy for you guys! It’s a lot more fun…huh??
Nate
Re: I’ve got a plan for you . . . - Posted by Sheik
Posted by Sheik on March 24, 2000 at 11:28:45:
Let’s face it. For the most part, only buyers with ‘bruised credit’ and/or low down payment will be willing to purchase at 11-12% interest. With that in mind, how do you handle defaults in a mortgage state with a long drawn out foreclosure process such as NY? After all, there might be a question of equitable interest.
In addition, I infer from your post that you (the investor) will actually buy these properties conventionally. What happens when you’ve reach your ‘loan limit’ and lenders are unwilling to lend more money?
Appreciate the info
Sheik
I had a friend who did something very similar… - Posted by SusanL.–FL
Posted by SusanL.–FL on March 27, 2000 at 14:28:47:
She had her broker’s license and also had a ‘$money man$’ in the wings. Any time an investor needed $capital$ for a r.e. purchase, my friend would take care of the paperwork [for a $1,000 fee]. The money man (who was more lenient than a bank) still required the deal to fall within certain parameters b/4 he would loan the the money.
Ahhhh…Free Time!!! - Posted by SusanL.–FL
Posted by SusanL.–FL on March 27, 2000 at 14:11:02:
That’s something that I (and probably many others) only DREAM about!
Tack on: a 2nd job, real estating, kidlets, homework, the list is endless. Sure gobbles it right up, doesn’t it?
I like your New Year’s Resolution, JohnG! GO for it!! 
Interesting… - Posted by Ben (NJ)
Posted by Ben (NJ) on March 25, 2000 at 08:13:31:
A line in a book I read recently stuck in my mind, it went “if you have your own business and are working
seven days a week, congratulations, you have just given yourself a JOB!”
Re: I’ve got a plan for you . . . - Posted by SCook85
Posted by SCook85 on March 24, 2000 at 22:27:51:
To say that only people with bruised credit will pay 11-12% is completely wrong. I just sold a home last week to a buyer who has A+ credit (not a single blip on her credit report). She is FHA quality all the way at 11%. My plan is to get her in quick at the 11% and I will have her refied within a month and cash out completely. By giving her 11% it gives her incentive to refinance. If she doesn’t want to that’s fine to. I’d be happy to take her 11% with her credit.
Steve