Posted by Nick on October 03, 2003 at 19:49:42:
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realistically earn 6 figures part time w/REI? - Posted by bronco
Posted by bronco on October 03, 2003 at 14:20:23:
I see A.D. Kessler mentioning about earning $250k part time with lease purchasing. Robert Shemin advertises that you can earn $250k part time with real estate investing. I see Chuck Smith saying he earned $500k part time with real estate investing.
My pastor mentioned about the greatest liars dont deviated from the truth entirely. So this means you can earn 6 to 7 fgiures part time or while holding down another job. But there are probably other factors such as what area you are in. Those people who earn six figures have they been at it for years and years. I remember going to meet with a broker about being an agent for his firm and he mentioned about one state worker making $80k a year working part time but he also mentioned he has been at it for a very long time to. So, he has develped his contacts also.
I am guessing six figurs part time can be made but the gurus are not telling everything and they might take cases from people who were experienced before or who may live in high end areas. Or we just need the knowledge and skills and we can make a top income part time.
I am just wondering what is the inside scoop on making that huge amonts the gurus claim.
I am sorry for my skepticism.
Bronco
Re: realistically earn 6 figures part time w/REI? - Posted by diond
Posted by diond on October 04, 2003 at 15:42:38:
The income you can earn is completely up to you. The key is educating yourself enough to recognize a deal and knowing how to make a profit by doing that deal. I just completed my first two deals last week and I picked up two properties with over 110K in equity. 1st was a condo that was foreclosed on by the condo assoc. I bought their position before the sale and foreclosed the owner out myself and picked up 45K in equity and took over the 1st mtg. 2nd deal I bought a house at auction for the 2nd mtg that was being foreclosed on for 11,919.00. 1st mtg bal was 12500 adn the prop was worth 105,000. reinstated the 1st and picked up over 75k in equity. My point is that if you know how to look for a deal and how to put it togehter when you find one, time is the only constraint that you will have for making your 6 figure income.
Reality check… - Posted by William Bronchick
Posted by William Bronchick on October 03, 2003 at 20:45:13:
Realistically? Yes. Possibly? Yes. Likely? No.
I’ve been running a real estate investment group for 8 years. I’ve seen thousands of people come and go. I’ve taught hundreds of seminars, consulted with thousands of people, sold thousand of books, tapes and courses.
Real estate is a business. And, like any business, few make a substantial profit in the first year. And, like any business many people fail for lack of smarts and lack of persistence. But, if you do educate yourself, exercise discipline and work your a** off, you will get better results in real estate than any other business I know. Real estate isn’t however, “get rich quick.” In fact, it’s more often “get broke quick” for people who get impatient, take huge risks, and do dumb deals because they didn’t take the time and money to get educated first.
In the first year, you could make $100k net profit working full time. Most people I see getting started part time make more like $20 to$50k in their first year, and it would still take a lot of work. After doing it for several years, you could be several hundred thousand per year once you crank up your business. And, before you know it (several years), you’ll be a multi-millionaire.
I’m usually the one at the big real estate conferences telling people this is the way it is. I’m also usually the one selling the least amt of courses because the other speakers are telling people what they want to hear.
Then again, most of my customers are from repeat business.
Depends… - Posted by Marcos
Posted by Marcos on October 03, 2003 at 15:29:49:
Depends on how bad you want it. I’ve seen pretty much everything. I’ve seen part-time people make more money than many full-time investors. I have also seen full-time investors go broke.
Can you make over $100k in real estate part-time? Absolutely. I have seen deals that newbies have put together to the tune of $100k. How part-time do you want to get? I have also seen full-timers who only earn $30k a year and are perfectly happy.
What gurus don’t tell you is how simple this business is, yet how incredibly hard it can be for some people. Do they make it look easier than it is. Sort of. The problem is that to those who are already successful, it seems easier than it is. We forget what it was like when we couldn’t get a hold of properties. So, for someone with experience and contacts, it’s very easy FOR THEM. And for certain people this business comes naturally to them. I have a friend of mine who is around 25, and he already earns well over $500k/yr after just a year into the business. Is he the norm? Far from it. But if he did it, does that mean you could too? Absolutely.
HTH,
Marcos
Re: realistically earn 6 figures part time w/REI? - Posted by Dave in NOLA
Posted by Dave in NOLA on October 03, 2003 at 14:32:17:
Part time is kind of a misnomer.
I have a full-time gig with a software company and do REI on the side, but I wouldn’t call it “part-time”. I put a ton of hours into REI every month, from searching for properties to dealing with agents, owners, and investors to rehabbing some of the stuff myself to educating myself to do it all better. Its pretty much a second full time job.
As for how much you can make, I will probably gross $115,000 in REI this year. HOWEVER, $40,000 of that was profit on my own home that I rolled into my new home (you have to live somewhere) and of the remaining $75,000 only about $45,000 is NET profit (the money you put in your pocket).
Is it worth it? Absolutely. Your job is meant to pay your bills while you make yourself rich doing something else. Is it easy? No, I wouldn’t say so. Simple, but not easy.
Hope this helps,
Dave
Not quite that easy for most people… - Posted by JP
Posted by JP on October 04, 2003 at 15:53:49:
Don’t get me wrong, but the odds of doing deals like you describe really depend on where you are located. Try coming to Dallas and working foreclosures and you’ll see what I mean. Competition is an understatement. Obviously you can still do these types of deals but with about 1200 foreclosures in the DFW area every month, and about at least 10,000 investors in the same area, your odds are much less. On the other hand, my father in law is now doing foreclosures in rural parts of southern california and he says most of the people he contacts have never been contacted by anyone else. That’s why some people actual move just to further their REI…
Re: Reality check… - Posted by broncos160
Posted by broncos160 on October 06, 2003 at 14:46:46:
Bill:
I saw an advertisement from a discount real estate brokerage saying make $20k to $60k part time as a real estate agent with the firm. Even with being an agent not everyone earns that much and it is probably a come on but there those who earn that much not all.
So it sounds like being an agent is almost no different besides the fact you only earn 2 to 7%.
Broncos
Nice post Bill… - Posted by mattc - mi
Posted by mattc - mi on October 04, 2003 at 16:36:19:
Nice post Bill. I like your straightforward manner.
That’s why I bought two of your courses!
Real world advice - that’s what I was looking for.
I am starting part-time, and want to look at this as a long-term project.
Take care, and please keep posting here,
mattc - mi
Yes you can… - Posted by Long Beach Ed
Posted by Long Beach Ed on October 04, 2003 at 09:06:08:
Bill is right on base with this…
Like most businesses, you have to live, eat and sleep real estate if you want this to be real. And, if you keep it up, you’ll make money. No, probably not right away.
I remember owning several houses, and renting them out with negative cash flow:
Telling the wife that we have a vacancy, so don’t spend too much money this week. Working under a crawl space on Christmas eve fixing plumbing for a tenant who hadn’t paid rent in two months and the court was evicting. Dipping int savings again and again to pay bills. Not paying real estate taxes for two years and then refinancing to get the money.
It’s a long road, but as Bill says, the rewards are splendid. Twenty years later I sit on more equity than most folks earn in a lifetime and I see a cash flow that supports a nice suburban lifestyle.
No business is for the lazy, the stupid or dishonest. Make a vow to do it the right way, educate yourself, quit TV, drinking and other vices, don’t stupidly throw money into dumb material junk and you will be successful.
Long Beach Ed
Amen to that… - Posted by Dianna
Posted by Dianna on October 04, 2003 at 24:39:03:
…it depends on what you consider success, and what you consider hard work?
Good luck…hopefully, we define hard work and success the same…
Dianna in Seattle
Re: How refreshing… - Posted by Jim V
Posted by Jim V on October 03, 2003 at 23:24:57:
It’s nice to see a “reality check” post from an established “guru”. I guess there are still a few people out there who believe in doing the right thing.
Thanks for confirming my basic and somewhat optimistic, beliefs in humanity.
Jim V
Re: Reality check… - Posted by Michael Pine
Posted by Michael Pine on October 03, 2003 at 21:49:53:
Wow,
Just a little off topic… It is great to have you on the boards so much lately. I give everyone I work with a copy of “Financing Secrets of a Millionaire Real Estate Investor” if they don’t “get it” I just move on.
By any chance are you going to be in the NY area anytime soon? I’d love to see if you could speak at one of my lireia meetings.
Best wishes,
Michael Pine
email: michael_pine@yahoo.com
AIM: Mortgagebroker71
Re: Depends… - Posted by Sally Fodern
Posted by Sally Fodern on October 03, 2003 at 17:08:32:
I love to hear about people making serious money in REI. If you don’t mind me asking, what is your friend doing to make 500k a year after just a year? Surely he’s not rehabbing LOL. I’ll take a guess - is he just finding or creating a relatively small number of deals with huge paydays somehow?
Re: Depends… - Posted by Broncos
Posted by Broncos on October 03, 2003 at 16:22:22:
Marcos:
Can I email you or contact to speak further about real estate investing? You seem to have a lot of insight into this.
bronco
Re: Not quite that easy for most people… - Posted by Nancy
Posted by Nancy on October 07, 2003 at 12:34:11:
If you don’t mind, what part of Southern California is you Father in law at? I’m moving to Los Angles shortly, but all I heard is how hard it is to find deals in LA, so I might consider other cities within 1-2 hrs drive from LA.
thanks
Re: Not quite that easy for most people… - Posted by diond
Posted by diond on October 04, 2003 at 17:55:54:
Good Point. I’m in the Midwest and the bulk of people in REI are rehabbers. I prefer to leaaave that to the pros. The only experience I have is in this market. But, it seems to me that regardless of what market you are in there should always be opportunity if you no where to look and know how to solve problems. Because when it comes down to it thats all the I really do, solve other peoples problems. If I can make a buck or two while Im at it all the better
Re: Yes you can… - Posted by Dan-fl
Posted by Dan-fl on October 05, 2003 at 06:39:00:
You are 100% on the mark,good post.Been there,done that.