I AM READY! 3 Years of corporate is enough! - Posted by JASON WILLIS (FRESNO CA)


#1

Posted by ScottB on November 14, 2001 at 10:01:53:

I went to Ron LeGrand’s Wholesale Retail bootcamp and his Pretty House Bootcamp. I chose him because I am freinds with his brother David LeGrand who lives here in my town. David told me about him and I went from there. I will attend MOS next. I have also read many books in the last 7 yrs. Nothing Down by Robert Allen, Carelton Sheets course, Fast Cash, etc. One of the books that got me fired up was Rich Dad Poor Dad, and I bought the game Cashflow. It taught me what I needed to do to be free. Any or all of these are great. L/o is a great way to get started with no money.


#2

I AM READY! 3 Years of corporate is enough! - Posted by JASON WILLIS (FRESNO CA)

Posted by JASON WILLIS (FRESNO CA) on November 13, 2001 at 23:55:11:

FIRST! This board is great! You guys are really positive and helpful! I went through another toner cartridge on the how-to and success reports ? really great stuff. For my first post I want to go all out and submit my passion to you ? if you are reading this as a newbee ? beware- so am I. If you want to make any comments at all ? please do so ? after all it?s my life and I take it seriously!

WHO AM I:

I am a 29 year old male, a California State University Fresno graduate (Business Administration). I was born and raised in Fresno California ? the area I wish to start a REI career. I have worked for a Fortune 10 company for over 3 years ? and can no longer deal with corporate B.S. ?I am not a robot ? and even though I make $40K a year ? I hate my job to the point of being hostile towards it and its corporate culture. I am not afraid to mention this company by name either ? as the sales rep position I originally was hired for was eaten alive and has died a most unfortunate death due to a mega merger. Yes friends GTE was a great place to work ? Verizon, however is a pitifully embarrassing place to work.

MY REAL ESTATE EXPERIENCE:

I purchased my own home here in Fresno last August? my FICO was 680 ? I got an 80/20 loan - and only paid for closing costs. My lender assured me that I could qualify for another mortgage if I want to get into REI.

  • I purchased $300 in real estate books this past month ? (hey! That?s not too much when considering what I paid to graduate from FSU!)

I am in a Partnership with three other like minded individuals who are ready to make money in REI. We have our Fictious Name Statement and a Federal Tax ID Number ? but obviously no credit in the business name. Our core competency with the partnership is that we can get any hardware supplies at cost and on 90-day terms. (One partner owns a hardware store).

I am willing and wanting to ?Jump In? REI ? I am willing to work long hours ? as long as it benefits my total success.

MY GOALS:

  1. To quit my death sentence with Verizon within 90 days.
  2. To make at least $30,000 a year ? WORKING FOR MYSELF, or possibly for a small company where the decision-makers are local.
  3. The usual needs (Time to enjoy life , a self-perpetuating income, and the excitement of entrapreneuership)

MY QUESTIONS:

  1. What should be my immediate actions? Get a Real Estate Sales licensee? Make low- ball offers? Attempt to ?Flip? properties?

  2. Should I consider using a mentor ? or bring one in on our partnership?

  3. Should I just sacrifice myself and only do this on a part-time basis like my parents suggest (they think quitting a sure $40K is a bad choice).

ANY AND ALL ADVICE / COMMENTS GREATLY APPRECIATED.

Jason


#3

You live in “Office Space” - Posted by Bill(PA)

Posted by Bill(PA) on November 15, 2001 at 24:59:00:

Hey Jason,

If you haven’t already seen “Office Space” rent it this weekend. It’s our life in corporate hell, played out on the big screen.

Also, my sister works for Verizon(3 years), also can’t stand the company…hmm, trend?

My advice, don’t quit yet. As everyone else already said, you are much better off to get it done on the side. Make your mistakes while you can still pay your bills with your current income. Quit when you see yourself able to quit.


#4

You’re so CUTE! - Posted by Diane (CA)

Posted by Diane (CA) on November 14, 2001 at 15:36:05:

And I’m so JADED!

You’re smart to make the change now, while your corporate disdain is still fresh. I’m in my 12th year of corporate life, and I keep adding to my skills and to my pay rate each year, enough so that I’m never motivated enough to go out there and make the REI happen. I’m an armchair REI.

My advice to you is to get out there and take action. Get some cursory education here, but then get out there and make offers, call homeowners, send postcards. Don’t rely on education to make it happen or wait for anyone to come to you.

One other thing I’ve learned - the more you have in life, the less you want to risk it. At least that’s true for me. Four years ago, we bought our first primary residence with 100% financing. We lucked out and the house is now worth almost twice what we paid for it, but I have reservations about doing a similar deal, now that we have equity and savings accts to protect. Sometimes it’s better to dig and dig, and never look back at the pile of dirt (read money) you’re creating or you might be tempted to stop too long to admire it. On the other hand, we’re all doing this to eventually create more leisure time in our lives, right? There’s a balance in there somewhere.

Welcome to Thunderdome!


#5

Re: I AM READY! 3 Years of corporate is enough! - Posted by Kent Cheatham

Posted by Kent Cheatham on November 14, 2001 at 14:42:48:

Jason,
Keep the job for now, it will keep your credit numbers better, enabling you to borrow money. Once you have a couple houses, a banker is more apt to trust your ability to understand financing and realty.

Here is one way to make $10k/mo tax free http://www.real-estate-online.com/ss-166.html
I borrowed 100% of this from my 401k but could have borrowed it from a bank just as easily. But to make money THIS way, you need to borrow it from somewhere.

Skip the partnership. Keep the friends. I have a friend who does this too. He and I confide in and give each other tips and resources. We keep our ventures and funds separate. Sometimes he is active, sometimes me but we are not beholden to do “equal” amounts of work this way.

You need NO credit to open a business “contractors” account at Lowes, Home Depot or Ace. They just want a sig and a biz name. They open revolving charge accounts and give 10-20% off. Pay it when you can after they send bill at months end.

Buy some books and courses. Talk to many. Spend no more than $1000 on this (preferably $500). Use the rest of your money BUYING and DOING. If you havent figured it out by $500-$1000, than its not the education thats the problem…its procrastination. You do need a mentor of some kind, whether paid for or friend. If you find an area “flipper” he may educate you to have you as another client.

Once you have a list of trusted contractors, buyers and sellers and bankers you are ready to quit. This could be done in 4 months time. These 4 lists are critical and time consuming to research.

Talk to your lenders and get their feel for you doing this without a “day” job. After you have enough money to bank roll a house and its repairs, you dont care about bankers. They will ALWAYS refinance a finished house at 80%. This gives cash back to you. Now either sell it to get the other 20% equity (and incur taxes)or rent it (remember borrowed money pays no taxes). Either way you have your cash out to do the next house.

Of course if you flip, you need no cash.

Kent Cheatham


#6

Re: I AM READY! 3 Years of corporate is enough! - Posted by Ronald * Starr

Posted by Ronald * Starr on November 14, 2001 at 14:40:21:

Jason---------

I agree with Ken in SC–ditch the partnership idea. I have had a couple of good partnershipa and a couple not so good. Instead of being co-owners of properties, buy only your own properties and let your coherts do the same. Then, if you wish, you can do some labor exchange where you work on their properties and they on yours. And you can meet together to talk over ideas or do so on the phone. But, no co-ownership.

I have a post at message number 59703 this year on this main bulletinboard on how to get started. If you put in “expert” on the Carelton Sheets bulletin board–number 2–you will see Paul’s suggestion on getting going. JohnBoy put his on that bulletin board someplae between number 220001 to 20099.

From your background, it sounds like you should do well. Presno is probably one of the best places in CA to be investing now.

Good Investing and Good Studying****Ron Starr


#7

Some ideas… - Posted by ken in sc

Posted by ken in sc on November 14, 2001 at 07:17:30:

  1. Move. Buy another house with the low owner occupied int. rate and move to it - then rent out your old home. Do this a couple of time if possible over the next two years. You will be well on your way to long term net worth.

  2. Stay at Work. Stay until the money you are making working REI on the side is the $30,000/yr you need. This will keep your family on your side (that helps more than you think), and keeps you motivated because you have a goal toward which to work to quit something you hate. Not to mention, loans are SO MUCH EASIER to get while employed.

  3. Don’t get a partner or mentor. REI is a business that is best done by oneself in my opinion. Partners either slow you down or become a crutch. You can do it on your own, and then think how you will feel - knowing that you are making your own living with your own brains and work. It is a joy.

  4. Work out a Master Plan. Your goals are great, but you are asking us how to achieve them. You need to decide how to achieve them and write down a specific plan such as:

Year 1. Buy 1 rental house and buy 2 houses to flip and 2 houses to resell.

Over next 5 years: Own 10 rental houses and become able to buy and sell 10 houses per year to make $100,000+ per year.

You see the point is to have a plan of action - things to do. There are many good books with ideas on goal setting.

These are my thoughts for what they are worth. I worry over people who quit very early, the stress that they may have making ends meet and becoming frustrated. Stay at work and know that you will eat. Build your knowledge and ability and quit when Verizon pays you less than you pay yourself.

Ken


#8

You will reach whatever goal you set… - Posted by Scottb

Posted by Scottb on November 14, 2001 at 07:13:42:

Jason,

Set your goals higher! You can make more than your bosses, bosses, boss @ GTE. I can relate to your corporate woes. I was the # 2 Sales Rep for Cigna in my region and in the top 4% nationally selling corporate accounts and they jerked me around one too many times (changed the comp plan, shrunk my territory)and gave me one too many hoops to jump through. It was no life for me. I quit my J.O.B. (just over broke) the first week of September '01 and have already made $16,000 cash using none of my money. I spent $3,500 on RE training before I quit my job though and I reccommend you do the same. I don’t see any reason to get your RE License. It will only teach you the traditional way of doing things. If you learn creative methods first it will be better. You will be able to see more opportunity. Also the money you spend on CRE training will come back to you many times over.

I expect to make over $100,000 in cash from my deals not counting equities created. Equities right now are over $100,000 and I expect it to be around 600k to 700k by the end of the year. Keep your job as long as you can possibly stand it while getting training,and then leap! You won’t regret it!


#9

Re: I AM READY! 3 Years of corporate is enough! - Posted by jimi

Posted by jimi on November 14, 2001 at 05:56:09:

buy and sell(or lease/option) three houses over the next 12 months while maintaining your current job. Save up as much cash as possible. Then jump in full time based on your one year experience and sufficient cash reserves.


#10

Re: You live in “Office Space” - Posted by Tim Fierro (WA)

Posted by Tim Fierro (WA) on November 15, 2001 at 01:44:07:

This is one of my favorite movies.

My wife doesn’t get it, but she works for Boeing building planes, so probably doesn’t see to many of these type of people.

She is not allowed to touch my red stapler. :slight_smile:


#11

Re: I AM READY! 3 Years of corporate is enough! - Posted by Jeremy FL

Posted by Jeremy FL on November 14, 2001 at 18:03:57:

I am curious about the revolving account that gives you 10-20% off? I have a commercial account with Home Depot and I don’t believe I get any discounts? Am I missing something?


#12

Re: I AM READY! 3 Years of corporate is enough! - Posted by JASON FRESNO CA

Posted by JASON FRESNO CA on November 15, 2001 at 22:50:33:

Thanks to all of you for your kind words of advice and wisdom. I really enjoy the helpful attitude I have experienced here. From my observatons - I have concluded the bottom line advice is:

  1. Stay with Verizon until I am profitable.
  2. Watch “Office Space” and [deal with the b.s.]
  3. Keep the friends - ditch the partnership
  4. Flip a few for profit to get the feet wet.

I can do this - but am already in done deal with a partnership. I know - I know - I know - I watch the court TV shows too - partnerships can backfire.

We will see - it will be a fun road to travel - and I will keep you all updated - and most likely be successful if you experienced souls will further guide me when I have specific questions on creative real estate investing.

Jason


#13

Re: You will reach whatever goal you set… - Posted by Cris

Posted by Cris on November 14, 2001 at 09:21:24:

Hi Scott:
How did you select your trainig/trainer?
I assume that you paid for more than books/videos.
If so , did you use a selection process to decide which training to use? Was it alined with previous goals or the goals come after the trainig? Or it was just randomly picked because it was the first that you liked?
I have some time in my hands to use for training and have books. I have difficulty in the selection as where to start from. Because I need to increase my cashflow l/O looks as the way to start.
Any insight in this process will be greately appreciated.

Cris


#14

Re: I AM READY! 3 Years of corporate is enough! - Posted by Kent

Posted by Kent on November 14, 2001 at 22:13:26:

You have me on the Home Depot. I just know that they DO commercial accounts but I dont have one nearby. I am aware they have commercial accounts though. I was told when I called them that they do not offer 10-20% discounts. Their commercial account evidently just allows charging.

I do have commercial acccounts at ACE Hardware/Lumber and Lowes.

Ace required a business name and said I needed to do approx $2000/mo in biz to maintain my commercial status. This account segregates charges according to house (they ask at register). They bill once a month, any unpaid portion rolls to next months billing. I have had accounts unpaid for 2 months at a time with no penalties and no interest charged. Anything put on this commercial account qualifies for whatever discount is in the computer for that item. It ranges from 10-20%.

Lowes, required a biz name only. They have no minumum usages to maintain commercial status. They bill once a month with an itemized statement but do not differentiate between house charges. They offer a flat 10% on most items . Warning here. I check my rcpt after every charge. I have to KNOW the full amount and make sure I got “something” off. Many times they will not have a discount registered in the PC. I simply ask “did I get a discount” and they say “OHH, here let me put that on there…”. You also HAVE to use the one checkout counter in the back of the store in commercial accounts to get a discount. You can charge to the account at any register but will only get the discount from the “commercial” counter. This is info they do not volunteer.

Ace’s values are the same as Lowes here but most Ace’s are not lumber stores. Our Ace here is the biggest lumber yard in the state. Ace has better billing breakdowns. I also never have to watch Ace to see if they gave me a discount. Lowes is not very together.
I takes an hour to get out of Lowes, it takes 15 minutes to get out of Ace.

Kent


#15

Wow! So cool to come back to my old post still being here. Sorry to be self - serving. But I am now an investor friendly Realtor / Broker - still in Fresno CA. I did not go back to my job at Verizon and love putting deals together.