I was a recently laid off tech worker with over 10 years experience in the field. Even when I had a cushy, high-paying job, I never felt I had job security and hated relying on others for a paycheck.
For years, I wanted to get into real estate investing, but suffered from “analysis paralysis.” With the recent downturn in the economy, and the loss of my dot.com job, I finally had enough. I decided to take the next three months and focus on investing in real estate full time.
For the first two weeks of my new career, I read several real estate investing books and even dusted off an old copy of a Carleton Sheets course from 1996 I pulled out of the closet. It was only after discovering CRE Online, that I got motivated to go after my first opportunity.
Within six weeks of starting, I found a junker doing a drive-by in one of the local neighborhoods. I immediately got it under contract for $13,650. House was vacant for over two years and needed about $20,000 work. The comps in the area were $80,000 so I knew I had a hot one. I called all the local rehab investors in my area, and I wholesale flipped it for $30,000 and made $16,350 profit.
My advice to fellow newbies:
1. Focus on one or two strategies, master them, and go after those deals exclusively. I have learned that trying to use too many strategies spreads one too thin. Would you rather excel in a few strategies or be mediocre in several?
2. Find yourself a good local mentor. Someone that can walk you through the first deal, even if you have to pay them a percentage of the deal. I offered my mentor a percentage, but she was just happy to help. Once you know how to do it, you are on your own or can always partner with your mentor on other deals.
3. Use CRE Online! Every time I have an opportunity, I always seek advice from the CRE folks to make sure I haven’t missed anything, even after I have consulted with my mentor.
4. Network like crazy! I found my first deal from a bird dog. She knows everyone in this neighborhood, and I am now working with her closely to find other properties.
5. Use Other People’s Money (OPM). The financial strategies I am focusing on require not one penny of my own money… just the way I like it.
6. Stick to the basics. Don’t get ahead of yourself and work to achieve both your short-term and long-term real estate investing goals.
Finally, concentrate on hitting singles and doubles and not home runs for the first six months. My goal is to wholesale and retail flip a minimum of two or three properties per month profiting a minimum of $5,000 per deal. May not seem like a lot of money to some, but that’s a yearly six-figure income to me. However, if a home run does happen to fall in my lap, I have a mentor to partner with. On to the next deal!