Just lost my job!!! - Posted by Trevor

Posted by IB (NJ) on July 24, 2003 at 22:27:23:

As it is now your job to turn a negative intoa positive. But you must do it correctly. I don’t know if you should pursue rehabbing fulltime. It sounds like you are new to it. Rehabbing can be cash intensive. By the time you find the RIGHT property, rehab it, and sell it, it could be months before you see a check. In addition, ATL is a slow market right now from what I hear. Your holding time may be longer than usual.

With incoming bills and mouths to feed, I would seriously look at wholesaling and contract assignments. Cash flow should be your priority right now, IMHO.

In the meantime, I would also spend SOME time finding another job.

Just lost my job!!! - Posted by Trevor

Posted by Trevor on July 24, 2003 at 20:26:03:

Hi friends,

I got laid off from my job today. It was unexpected. I don’t want to get another job so I am contemplating doing rehab full time. I am closing on a home equity line in a couple of days so I will have cash available to initially fund the deals. My credit is good so I can qualify for hard money loans. This is where I need your help. I need a good hard money lender to develop a long lasting relationship with to fund my deals. I also need some good wholesalers in the atlanta area to find me good rehab properties. I am pretty nervous about doing this full time. I have a family with three kids and my wife doesn’t work. Do you guys think I am making a wise decision? Your input is appreciated.


try mobile homes - Posted by Anne_ND

Posted by Anne_ND on July 25, 2003 at 12:17:07:


You can buy Lonnie Scruggs’ book Deals on Wheels here for $30. It contains a lot of gems for any kind of investing, but really gives a step-by-step outline for getting into mobile homes. Give it a try, personally I’ve done both rehabs and MHs and my return on MHs has been faster and much higher.

Check out the mobile home forum here too- there’s lots of support.

good luck!


Re: Just lost my job!!! - Posted by Peter_MD

Posted by Peter_MD on July 25, 2003 at 07:26:39:


It’s very difficult, based on your post to give you much direction. We don’t know what type of position you held at your previous job and don’t know your qualifications for problem solving.

This business is just that … solving problems. They say that necessity is the mother of invention, and I firmly believe that saying. Take this opportunity to sit down with your spouse and children at dinner or just after, and discuss honestly from your heart your goals and plans. This being a business, you need plans to achieve to reach your goals. I can tell you, unless you have ample funds set aside to handle the expenses for the next 6 to 12 months, you will need another job.

Forget rehabs for now, you have to really know what you are doing or you will attend the newest seminar and bootcamp out there (and that will be a personal in your face visit to a bankruptcy attorney … guaranteed!). Also forget about foreclosures unless your previous experience, education, and training dealt with that subject, which I doubt from the way you discussed your situation in your posting.

Now that you have more time, attend everything you can at your local real estate investing club. See if you can do a few deals being a bird-dog. Also, suggest you see if you can get a full time or part time position with a lender, real estate management firm, or something similar that can bring in some money while you work the business. See if your wife is interested in working with one of those firms (maybe part time) to help with your ongoing bills.

Lots of beginners in this business fail to plan rather than plan to fail. If you don’t have ample funds set aside to pay future bills while starting and doing this business, and have good contacts to keep the deals flowing, you will unfortunately fail. I don’t advocate for anyone to just quit their job and jump in with both feet … you have to crawl and then walk before you can run.

Therefore, sit down and go over everything and get on the same page with your family. Always do the right thing for the right reason, and regroup every week and go over developments that have taken place the previous week.

My businesses operate on their own after 8 years of operations, however, this did not happen overnight. It took almost 6 years to really get a system developed so things could run smoothly … and we still have Wednesday morning meetings (called Wednesday morning group and status meetings). Everyone is expected to attend the three hour session unless excused 24 hours prior to the meeting (location has been previously selected and starts at 9:00am and goes until about noon). At this meeting things are discussed and changes that are needed are made. Why am I telling you this? Because my family and I took 6 weeks last year to visit and travel throughout Europe and the bills were always paid on time, deals were negotiated and completed, decisions that were needed were made … all without any interaction by me. All that time, the Wednesday morning group and status meetings were conducted with notes of the discussions. Let me tell you that was a refreshing feeling after struggling for years to get the skids greased so the businesses could operate profitably without my intervention.

Get something going … anything … just get it going with the full cooperation, approval, and blessing of your immediate family.

If done right, you’ll look back years from now and remember the challenges and pitfalls that you endured and the successes you achieved … and you will feel proud that you didn’t do it alone … and all the time you were just helping people out of a bad situation they found themselves in.

… all along these people never realized that while you were helping them, you were also helping yourself and your family.

The best to you in all that you do …

Seize the day!

Re: Just lost my job!!! - Posted by Heather_Tx

Posted by Heather_Tx on July 24, 2003 at 22:28:04:


Noone can answer your question about is it a wise decision except for you yourself. We do not know you, or how deligent you are when you set your mind on a goal, how hard you work to achieve it, how much you can rein in the spending that you are/were used to when you had the cash flowing in. ONLY you can answer that honestly.

After saying that, I will tell you about myself. I am a stay at home mom. My husband lost his job last Oct. We had been reading on Real estate investing for four years and starting looking at properties just a month before he lost his job. Since this time we have busted our tail ends in trying to learn even more, making every contact possible with other investors, realtors, mortgage brokers, title companies you name it! We joined the investment club here in the area. We decided also to learn the price of most repairs needed so we could submit good offers… We work from morning until midnight some nights… when we stop at 8pm it’s out of sheer exhaustion.

I will say that we had 1 year in savings and we needed it! It took 9 months of all this to see our first paycheck, and even that was not big! (But at least a profit!)
We are now rehabbin our second property though, also working on a shortsell, have 3 offers in for REO’s, and a bird-dog fee or two we should see soon. It WILL Pay off if you have what it takes, but it may take awhile.

It all depends on… well you :=) Some we know have made alot more than us that started when we did… they must spend their time more productively than we do, but we are learning and slowly making the process.


PS My husband has also had his resume out during all this time , and only got ONE Offer so far … for a parttime 16 hour a week job, and he is a System Admin. I look at the job lose as a blessing in disguise, but also the skills are there if and when we need them and we hit a slump… (Crossing my fingers that we DON’T!)