Re: I need some DIRECTION! - Posted by AnnNC
Posted by AnnNC on December 03, 2000 at 17:14:41:
Good advice from all. Take a look at “How To” articles on left side of main page, and read Jon Richards article at the top. Can use it to build a “to do”
list of what to do at the courthouse. Learn where to find the info in your county.
Then scroll down to Jackie Lang’s flipping articles
one and two. Basically boils down to running ads.
You can get a RE lic meanwhile,(though you do not need it to buy and sell for yourself, but you do have to have a lic to do any of the RE agent things, such as find buyers/sellers for another);learn the ropes, meet people, go to one or more REIA meetings–they will not
ask what you do for a living! ( But most of them have taken December off!)
The no money and no credit card thing is a problem, because it’s possible to get an advance on a card just
for operating money (advertising,paying upfront for inspections, So, I’d learn local ad rates, and get basics, like an
answering machine, and never never ever let the kids answer the business line. You can also get, for about $2-4/month an extra number, not extra phone line, that has a special ring. (I get a lot of wrong numbers on mine. I screen all my calls, but when I hear the
ring for the number I gave with ads, I pick up ahead
of the machine. BOth numbers will ring to the same answering machine, so you have to decide how you want
to work that. Mine works (it was about $60 at Radio Shack) with one out-going message,
and 4 “mailboxes”. but then you have to have a generic outgoing, or say, “for Susie, press #1; for Tri-County
Investment Services, press #2”. That could get a little
confusing on both ends.
One office uses it like this: "For (lists the investors and office manager) press #1; for property on Elm street press 2, for property on Oak street, press 3.
I live in a small town, and voicemail by the phone company is not available here, as are (not) a lot of
other services, like eVoice. But the ureach 877 number
is good for my purposes. It’s pay-as-you-go, and 60 free minutes to start, then 30 free minutes each month.
It will ring your phone when you get a message, or beep you. you can pick up your messages by phone or email.
All these are fairly low business expenses to
get started.
You can make your own cards for a start.
I had a program for it that came with Windows and I didnt’ even know it. It’s a start, anyway.
Also,don’t forget efax.com or jfax. This is good if your fax machine broke down, or if you don’t have one,
but ultimately, you’d want to print the document. But
again, it’s free to you, and the sender incurs a very
brief long distance charge.
So, initially, get the free stuff, inexpensive stuff.
You can use a buyer’s broker, find someone in your RE
class to share MLS solds with you after they get their lic,
but it’s real difficult to get the “solds” information, which is what it’s all about.
You can call your county tax dept and ask them who they sell the info to, and they will tell you.
In some cities, it’s possible to do your own comps, in others, the information is just not set up by the county to lend itself easily to a program.
One service that does my county offers my county and 7 others for a $150 set-up fee, $90/month, but a year contract up front. Another one sells disks for my county, for about$350 for the year. (no updates).
I used to have better service, cheaper, years ago, in
a larger county. It varies, litterally, ALL over the place.
I’d say pick a geographical area and learn the market.
Many or most of the people who post on the main forum have done this all while having a job, so it’s possible, but
at some point, you need some day hours to collect info.
You don’t have the money for earnest money that realtors
like, so you may want to try working with FSBO, but then you need contracts, so you would need some money
for courses, info, help. You might be able to get
local Realtor contracts, but I wasn’t successful at this, just acting on my own. Our state statute says RE agents can fill out certain portions of contracts, so that is why they will only use theirs. Other things you want can be an addendum.
But down the line, you can learn this business and
find rentals providing an income stream that will
provide enough positive cash flow to cover your child
support long into the future. Meanwile, a job and payment plan seem best. I thought the idea of temp job
was useful. I had a lot of temp jobs, and learned from
them. you should only be lucky enough to get a temp job in a title company!
Don’t give up, it’s all very do-able. When you get to the point where you know you are not going to lose money and know how much income a property is going to
generate, that is a great thing to offer to your child’s support, something that cannot be taken away
by getting fired, downsized, or disabled.
You should talk to a RE tax person about putting your properties in a trust for your kids, that way, I THINK
you are not taxed on the rental income and then pay child support out of that, but the income goes to them,
and as minors, at their lesser rate? I’m not a CPA obviously, but more money stays in the family.
Learn how to do this!
The rest of you readers forgive me, I have not seen
this last paragraph discussed on this board, so I bring it up for discussion, though I can see that it belongs on Newsgroup I.
Take care of present obligations, but know that you hae the potential to take care of your children down the line, big time, if you learn about real estate.
The tax advantages are good, you can do it in a
corporation or LLC which have tax advantages. Bottom line is…the bottom line: more money to your kids.
Hector, best wishes to you and your children, and to your friend and her children. Maybe some of them are old enough to have them work for the corp or LLC and
set up IRA’s for them? That is the best goal to strive for down the road, a company, not just earn money, pay taxes and then spend what is left over.
Best wishes
Ann