At the Risk of Wasting My Time… - Posted by Baltimore BirdDog
Posted by Baltimore BirdDog on January 29, 1999 at 10:34:05:
which we all know is more valuable than money, I feel that I must respond.
J-**First of all, have you ever done a rehab?
D-*Yes,many…this is how I know where the big money is.
J-Glad to hear you’re making money in your chosen area of REI.
J-**Second of all, I must confess, in reading Kevin Myers, I thought the same thing you did until I…
D-*Until you what? You thought it was right because you knew it would work. With a good team of competent people, IT WORKS.
J-I know it works, but without taking the time to put together a good rehab team, I can put some cash in the ol’ bank account. Once I’m in the black and able to do REI full-time, THEN AND ONLY THEN will I consider rehabs. First, with cash in the bank, I will have some staying power and second, I will have the time to put together a rehab team that I can trust. Currently, there’s no way I’m going to put my future in the hands of a bunch of strangers that I can only supervise on a part-time basis. Even if I can find a handyman to supervise, he/she won’t have earned my trust.
J-**started to read the posts and articles on this site and might consider rehabbing once I’ve stuffed my pockets with some cash, but then again…
D-*Sounds to me like you beleive anything you read. Try doing one for yourself (after you’ve done your homework!)
J-First of all, if I or anyone else on this site believed everything we’ve read (e.g., go to school, get good job in the rat race, save for retirement), then we wouldn’t be involved in creative real estate. Second of all, I’ve done my homework, exploring ALL of the avenues of REI, and determined that rehabbing is not a valid start, at least for someone without much cash to take care of unforeseen problems, which I’m sure you have encountered if you have as much experience as you say you do.
J-**In the words of Robert Allen (who, by his own admission, has never shown an aptitude or desire for rehabs), I’ll take a fast nickel over a slow dime any day (especially when the fast nickels add up to $250,000!!!
D-*Don’t quite understand this misuse of a good quote. While your flips are adding up to $250,000 ($5,000 at a time), I’ll be taking a couple years vacation while you’re still out bird dogging.
J-It’s not a misuse of the quote for the following reasons:
It’s possible to do two or three flips each month. Assuming a low average of $5,000 per transaction, that’s at least $10,000 per month. Multiply that by the 3 months for an average rehab, and you get $30,000 (plus a few bucks more for beer money if you add interest, not to mention the other deals which I might be able to get into during the three months while the rehabber is waiting for his dough). From a time standpoint, my flips will average, say, 5 hours for a total time investment of 30 hours–at least comparable if not better than a rehab.
My reference to Jackie’s $250,000 profit refers to a single transaction. Follow the “Not Just for Beginners…” thread. There are two more examples–one for $1 million and one for $5 million. How’s that for vacation money!
J-**Jackie, you are my HERO!).
D-*Jackie is great, but…PLEASE! Why don’t you talk to Kevin Myers a few times and tell me if he doesn’t motivate you. My point…Many smart REIer’s out there–if you’re going to follow the crowd, make sure you are looking at the big financial picture and not just the “CREONLINE NEWS GROUP” buzz.
J-Of course Kevin motivated me, as has Robert Allen, Russ Whitney, Jackie (who, by the way, is still my hero), and everyone else on this site. No personal conversations, but they’ve all shown their experience and value through great material or educated responses to posted questions. So have others. However, I’ve explored all my options in REI and purposefully selected flipping as a start. I’m not following the crowd anymore than you or anyone else on this board, which by the way, covers the “big financial picture.” Not only does it address most of the areas of REI, but it also draws from investors across the country and their experience, be it 2 months or 20 years. No other resource does the same.
J-**So Devin, still thinking about starting off with rehabs? If you do, good luck. I think you’ll need it.
D-*As always. And…thanks!
J-Again, glad rehabs work for you. Sounds like we could all benefit from your knowledge and insight. Why don’t you try answering some of the posts rather than boasting your successes? I’m sure your input would be appreciated, especially from future rehabbers.