FREE ADVICE FOR ALL NEW GUYS but ONLY 1 out of 100 will follow it!!

[phlemboy]

What a great post fdjake! I can't believe this is my first time seeing it. Anyway, I've been saving 10 - 15 % of my gross income for 10 months. In addition, I took a HARD look at what I spend and realized that I WASTE about 5% of my income. I stopped dining/ ordering out when I was too lazy to cook. That alone saved me about $250/month. I've also been working every chance I get. I don't sleep much, but I wasn't before. Worrying about finances and having a strong feeling that I can do a LOT better will do that. Also during this time I've been working on my REI education. I think I said this before, but I thought I was ready to start before I joined this site. I'm glad I held back. I had NO CLUE about cashflow management. I have a good handle on it now. I've learned a ton from you guys. THANK YOU!!

[RonH]

....bought my first rental property using Mike's formula (50%), in the midst of fixing it up myself to save money on the repairs.

Where is this 50% post that I can't seem to locate.

[justin0419]

Use the search button at the top of your screen to search for the "50% rule."  It's talked about on the forum a lot.  It's based on a survey of thousands of apartment owners nationwide.  The average for operating expenses is 50% of gross rents.  Therefore, 50% goes to any operating expense you can imagine.  The other 50% of your rent is for debt service and cash flow.

[Freecow]

  Great points made for all us newbie's! I'm just now starting to realize this myself "as to I've always thought money was easy to make." What a joke?......HUH! It's just that I've always worked for my self and if I would've thought about saving, I could probably retire by now. (Long story short) I've had fun and I've been taught a valuble lesson. I  have some assets from my wreckless actions and after finding this site will be turning those into cash for investing purposes to help with my future decissions. A BIG thinks for helping open my eyes!

[tatertot]

I genuinely believe that in America, if you want to be rich you can be rich.

However, if you really want something, you work to get it, you don't just sit and wish for it.

I suspect that the majority of people who say they want to be rich, actually mean that they sure wish they could spend a lot of money. Spending lots of money and being rich are not the same thing at all.

[cdspeights]

Great point Tater, very well said.

[moellerryan]

Very good advice.  I have seen people invest thousands on bootcamps and learning the theory of real estate, then as you mention they have zero discipline and never do anything.  I heard 4% of them actually implement what they learn.  I bet 1 in 100 people would save 10% over the next year as you recommend, then 100% of those that do it become successful.  Great post.

[short sales]

Interesting topic to start with. Seeking for advice and yet not even heeding it.

On the contrary, this can be a critical step. Investing on your chosen career in general is worth your life as they say.

Great discussion!

[Davebeck]

1. How do you feel about investing in real estate using a IRA or 401 k...have you done transactions like that and how did it go?

[smitnlit]

FD I get it TRUST ME.  I don't have the 10% to save because my income has dropped at least 75% and then I lost my job in February, but I didn't let it get me down.  I literally said, WHAT do I want to do?  Well, I got a job working for my local REIA.  I get FREE education now.  I also have made so many connections with those much more knowledgable than me.  I get paid crap, but hey, the education is priceless AND now I've proven myself to two people in our REIA and they are helping me along with learning short sales AND giving me a % of any they close.  So, if you want it bad enough, you have to work for it one way or another.  I'm not making any $$ yet, but I see the future and it's looking positive. Short sales take time.  I have a 3 year plan.  I'm learning all that I can and then hopefully going out on my own, and if I work at it, I'll have a little $$ in my pocket to start off with.  Yes discipline IS important.  Never loose sight of what you want, and it takes time to learn it.