Is it a good idea to become a real estate agent when you first start investing?

[Roger J]

Unique,

What Money was trying to say in his own personal way is that whole books and courses have been written on those questions that you have posed.  Manga, I guess he's just dazed and confused at this point  

I can attempt to give you some brief answers to most.

What is focusing on financial statement means to you?
Making more money!

What is the difference between "distressed properties and distressed sellers"?  
'distressed properties' = properties that are in need of repair.  In most cases, major repair.
'distressed seller' =  a seller that has a strong motivation to sell fast.  Examples: pending foreclosure, job transfer, divorce, new, but lower paying job, etc.

How was the time spent rehabing prevent you from focusing on your financial statement, make offers, and locate more financing?
If you're swinging a hammer (fixing up a property), then you can't be out looking for more deals.

What do you mean by "a lack of needing to be a consumer of depreciating items"?  
'depreciating items' = cars, tv's, stereos, etc.  Anything that doesn't appreciate in value or general consumer goods.  In short, he doesn't feel the need to "keep up with the Joneses," and thus, has more money available to use to increase his appreciating assets (real estate).

What to you is a good money manager?

If at the end of the month, you have more money in your account than the month before, you're probably a pretty good manager of money.

Hope it helps,

Raj

[Moneytalks]

Thanks raj,

I could not have said it better and surely not in such a condensed fashion.

I guess I can stop writing this book now.

Thanks again.

Moneytalks

[NAWKAW]

Don't know if it's the right forum, but we closed our first deal today, and already stand to make ( hopefully) over 30% profit on the parcel. It REALLY is a beautiful lot in the developement and almost seems a shame to sell, but we are not ready to build yet and VERY ready to begin making MOOLA !
We close on the triplex tomorrow, and the modular home the following week.  There is an intersted buyer for the modular, but we would only make 2 or 3 thosand.So, we will consider it, but  will  keep the two as rentalse for cash flow and resale within 3 years. We found another sfh we will check out in the morning and after confimring some details will
MAKE AN OFFER!!  
Then back home to find some more!!
Good fortune to all..... and peace

[Moneytalks]

Congratulations NAWKAW!

You should be an inspiration to many.

Winning stories should be allowed in any forum.

Moneytalks

[reoconsultants]

Congratulations NAWKAW!

you are on your way!

[Unique26]

Unique,

What Money was trying to say in his own personal way is that whole books and courses have been written on those questions that you have posed.  Manga, I guess he's just dazed and confused at this point  

I can attempt to give you some brief answers to most.

What is focusing on financial statement means to you?
Making more money!

What is the difference between "distressed properties and distressed sellers"?  
'distressed properties' = properties that are in need of repair.  In most cases, major repair.
'distressed seller' =  a seller that has a strong motivation to sell fast.  Examples: pending foreclosure, job transfer, divorce, new, but lower paying job, etc.

How was the time spent rehabing prevent you from focusing on your financial statement, make offers, and locate more financing?
If you're swinging a hammer (fixing up a property), then you can't be out looking for more deals.

What do you mean by "a lack of needing to be a consumer of depreciating items"?  
'depreciating items' = cars, tv's, stereos, etc.  Anything that doesn't appreciate in value or general consumer goods.  In short, he doesn't feel the need to "keep up with the Joneses," and thus, has more money available to use to increase his appreciating assets (real estate).

What to you is a good money manager?

If at the end of the month, you have more money in your account than the month before, you're probably a pretty good manager of money.

Hope it helps,

Raj

Raj,

You and the many people who voluntarily shares their knowledge are a blessing to people like me. I have learned by now that any questions I have regarding to REI is written in the millions of RE/REI books out there.  I ask these questions b/c I would like to know and understand what  were other people’s experiences and their perceptions.  Yes, reading books will also allow me to see and understand different people’s (authors‘) experiences, but I do not want to limit myself to just books.  I find that having an interactive conversation is much more an enjoyable learning process than having a one way conversation--just like listening to the professor lecture until the bell rings. I learned from reading these forums that in real estate there is no one way/method/system to invest in RE.  That is one of the reason why I love REI so much.  It brings out each individual’s creativity.   I personally enjoy learning the different experiences and perceptions that every individual have to share.  So thank you again for not minding to share your knowledge/perception/expereices.  

[Unique26]

Thanks raj,

I could not have said it better and surely not in such a condensed fashion.

I guess I can stop writing this book now.

Thanks again.

Moneytalks

Moneytalks,

It looks like Raj have save us some time and money on publishing this book.

[Moneytalks]

NawKaw,

http://www.theofficialjohncarpenter.com/data/movies/sounds/inscthis.wav

I hope you do not mind if I ask you to explain in more detail, some of your statements and then compliment
others.

Quote:
** we closed our first deal today,

C- Again congratulation. I think that most people that make that 1st and major hurdle ( closed their 1st property ) and applied the basing thought of “ You make your money when you buy and that appreciation is a bonus” will do well.
They may decide that certain issues involving this business does not suite them personally and quit. But if you buy right, you should be able to sell the next day (Including any buying & selling cost) and make something from the deal.

No matter how rough it may be, if you could not get your cost back the next day, you paid to much.

Those that do start and quit, never realized that there were other ways to do this, and that they could have found one that suited them.

Quote:
** and already stand to make ( hopefully) over 30% profit on the parcel.

Q- You used ALREADY and HOPEFULLY.
Which is it? Do your comps show that the 30% profit is there, if you sold today?
Or at some future date you hope to be able to sell at a 30% profit?



Quote:
 **It REALLY is a beautiful lot in the development and almost seems a shame to sell, but we are not ready to build yet and VERY ready to begin making MOOLA !

C- That a boy, do not fall in love with any of them. This will distort your ability to reason. Buying desirable property is great, but buy without emotion. You want YOUR buyer and seller to be the emotional ones.

Quote:
We close on the triplex tomorrow, and the modular home the following week.

C- That a boy, first 3 properties in two weeks. You will have three bargaining tools. If need arises, you have three properties that you can use to raise cash. Provided, you can sell or leverage them tomorrow, for some gain.

Quote:
There is an interested buyer for the modular, but we would only make 2 or 3 thousand.

Q- Why only 2 or 3 thousand? What is determining this amount of gain?

 Quote:
So, we will consider it, but will keep the two as rentals & for cash flow and resale within 3 years.

C- That a boy, 4 of 5 are self supporting units. Not a strain on your beginning budget. Does not have to be self supporting at first, but it helps. It still must have value over the debt and you must be able to service it.


Quote:
 We found another sfh, and will check it out in the morning and after confirming some details we will
MAKE AN OFFER!!  
Then back home to find some more!!

C-Move swift grasshopper, your fortune awaits you.

Apply, the basic qualifiers and you can grow as fast as you want.

* Buy something that others want / Do not buy, what you can not sell.
*Equitable value from day one. Before the purchase, apply the deal to your financial statement. Did your financial picture improve?
*Your ability to service the debt is not dependant on rental income. / If the inflow of rents stopped, you could still service the debt.
*Leave a way out of the contract, incase new information surfaces before you close.
*Never deposit more than you can afford to lose. ( I never did put down more than a $100 on the first 80 homes that I bought ) Obviously, I have to put up more for the properties that I do now. (On a $600K purchase / $3 to 10K usually. They often want more but, I do not care, I’m the one writing the offers.
*Anything that is not in writing, isn’t anything.
*Insist on inspecting everything, before closing. ( property, leases, warranties, etc.)
*Sellers are liars. ( “That is my final counter offer”, is one of the common ones )
*I think, always negotiate  more than one deal at a time.  Then choose the best.
*The deal of a life time is available everyday, it is up to you to find it.
*Do not be bashful with your offers. You can not buy 30% below value or better, if you do not start lower.
 I do not care how much you are asking, it does not play into my equation.
 (Value – desired profits, expenses, negotiation room and then a little lower in case you were real desperate or do not know the value )

I like submitting offers, through others, I do not like to hear whining. Just give me the facts. I know that I am only going to get a small percentage of my offers accepted and I do not care. I ask enough people, I will hit one out of the field. It is simple, I ask 10 times as often and I get ten times more deals. I am a professional offer maker.

Quote:
Good fortune to all..... and peace

C- There will not be good fortune for all, but do surround yourself with people of good fortune.

NawKaw, you know that we are all proud of you.

http://www.theofficialjohncarpenter.com/data/movies/sounds/elscphen.wav


Moneytalks

[NAWKAW]

Good Morning MONEYTALKS,
In re your post ( thanks for your previous posts, as well)
"I hope you do not mind if I ask you to explain in more detail, some of your statements and then compliment
others."

1)  
Quote:
** we closed our first deal today,
Your comment:  But if you buy right, you should be able to sell the next day (Including any buying & selling cost) and make something from the deal.

Answer: Yes, One lesson that is been firmly planted is that you do indeed make your money on the way in.
Although this triplex was bought for cash flow AND appreciation, we bought  well below market AND well below sellers asking price.

Quote:
** and already stand to make ( hopefully) over 30% profit on the parcel.

Q- You used ALREADY and HOPEFULLY.
Which is it? Do your comps show that the 30% profit is there, if you sold today?
Or at some future date you hope to be able to sell at a 30% profit?

Answer: Glad you posed this one. I've heard some say that they harder AND smarter they work they luckier they get.
And, "You have to be in it, to win it"
We'd checked out  several of the land properties in this developement from afar, only to see them sold. We were in our early learning stages then, so didn't 'jump'
The very same day we submitted out offer, the owner/ developers issued their new price sheet for the land, showing an increase of 8k for our piece. Having previously met with them was a great aid; they honored the old price. 2 days later, a nearly identical lot raised their asking price to 14 k over what we'd paid!
Using the developers 'list price', we could sell it tomorrow for a handsome net into pocket profit of over 22 %.
Not bad for a days work, but this was a cash deal, so we will wait up to a month to field offers.

And yes, we are a little guilty of being emotional with land. We buy land that we love ( and I must LOVE the price, too!! LOL ), seeking out the best available for the price in high demand areas. THIS one we'll sell, for sure, but always feel an attachment. REALLY will be a fantastic homesite.

3 properties in 2 weeks is a darn good start, I agree, but we put a lot of time and research into them and had a lot of FUN so far, too!

Quote:
There is an interested buyer for the modular, but we would only make 2 or 3 thousand.

Q- Why only 2 or 3 thousand? What is determining this amount of gain?

Answer: Another buyer offfered asking price to the seller 2 days after  they'd accepted our offer at $4700 less.
There is a comp (  a little larger, though ) just up the road asking 12k more than I am paying.
If I ask, (and get ) 8k over my price and factor in closing costs to buy and closing costs to sell, I'd net out appx. 3- 4 k. Again, not bad for a days (sic) work, but the area IS growing and I have several options open.

a) HUGE rental demand in the area; I'd cash flow about $130 per month initially.
b) Sell in 2 years for estimated net gain of 45-50 %.
 b) Lease/ option the property and ' be the bank' would allow BETTER cash flow , better return on my investment.( but longer)and less headaches.  I've not yet thouroughly  studied  this subject ,and even just heard of another technique called ' land contracting', that seemed to be a still BETTER way of proffiting for this poroperty.
Will research and seek counsel on this , but regardless will cash in whichever way we go.  

Quote:
So, we will consider it, but will keep the two as rentals & for cash flow and resale within 3 years.

C- That a boy, 4 of 5 are self supporting units. Not a strain on your beginning budget. Does not have to be self supporting at first, but it helps. It still must have value over the debt and you must be able to service it.

Answer: Well, the wife and I are a good team and we have sufficient reserves and a good growth plan.
Part of the initial process involves having sufficient cash flow from our rentals to cover all the carrying costs for three other parcels of land that was our first 'contract'  in May.( land is in now in  final developement stages )
This was BEFORE I made a  FULL committment to become educated about investing. These properties, too are 'prime' , and could be sold for a modest  profit immediately, but as homes are built, as the ponds and parks are completed and  the road paving is finished,
they will dramactically rise in value. Phase III is being plated now; a full 16- 18 months ahead of schedule.  
We still plan to build here and sell the other lot(s)
If we find an exsiting home that we really like , we sell all three ( two are side by side corner lots)
Well, much of your ' MONEYTALKS' "basic qualifier"' stuff  below is already ingrained; I've still much to learn and new techiques to try and develop.
Thanks again for all the thoughful insight

"Apply, the basic qualifiers and you can grow as fast as you want.

* Buy something that others want / Do not buy, what you can not sell.
*Equitable value from day one. Before the purchase, apply the deal to your financial statement. Did your financial picture improve?
*Your ability to service the debt is not dependant on rental income. / If the inflow of rents stopped, you could still service the debt.
*Leave a way out of the contract, incase new information surfaces before you close.
*Never deposit more than you can afford to lose. ( I never did put down more than a $100 on the first 80 homes that I bought ) Obviously, I have to put up more for the properties that I do now. (On a $600K purchase / $3 to 10K usually. They often want more but, I do not care, I’m the one writing the offers.
*Anything that is not in writing, isn’t anything.
*Insist on inspecting everything, before closing. ( property, leases, warranties, etc.)
*Sellers are liars. ( “That is my final counter offer”, is one of the common ones )
*I think, always negotiate  more than one deal at a time.  Then choose the best.
*The deal of a life time is available everyday, it is up to you to find it.
*Do not be bashful with your offers. You can not buy 30% below value or better, if you do not start lower.
I do not care how much you are asking, it does not play into my equation.
(Value – desired profits, expenses, negotiation room and then a little lower in case you were real desperate or do not know the value )

I like submitting offers, through others, I do not like to hear whining. Just give me the facts. I know that I am only going to get a small percentage of my offers accepted and I do not care. I ask enough people, I will hit one out of the field. It is simple, I ask 10 times as often and I get ten times more deals. I am a professional offer maker.