A New Life

General Real Estate Investing
1

Hello All,

I’ve been reading over this forum for the past couple of days and just joined today. Extremely interested in Real Estate. This forum is awesome. Filled with tons of information, references, experiences and perspectives.

A little background:

I’m 26 years young ;). I have a beautiful wife and an amazing 2 yr old daughter. Own a nice house in NJ. Bought it in Aug 03 for 180k, gutted the entire house, put in new everything, top of the line ofcourse. Spent about 80k total in renovations. Everything you can pretty much think of, I did. I did most of the work myself, with the exception of plumbing and electric. I basically learned as I went and found out that I have an act for it. When it was all said and done(March 05) the house appraised for $340k.
I’ve been working in the Telecommunications Industry for the past 7 yrs and while it is decent pay and provides steady income, it is dreadfully boring. The last few months have been painful and I got to thinking…Is this it? Is this Life? To work a 9-5 job, commute, do work that is almost robotic? I broke it down where I only get to spend like 17% of time a week with my daughter. The rest of the time either I’m here at work, she’s sleeping or I’m sleeping…What a Life, huh? For weeks I was telling myself that there has to be a better way. And finally it dawned on me. Real Estate. I already had the experience rehabbing my own house, why not use this?

So initially I was thinking about purchasing FSBO or foreclosures, REO’s and bringing a crew in, rehabbing, and sell retail. But after reading many post I think I may of changed my mind. Maybe I should start off Wholesaling. Then down the road try rehabbing.

I almost finished reading- Buy it, Fix it, Sell it by Kevin Myers. Great book IMO.

I think I need to purchase some good up to date wholesaling books. Which ones do you recommend?

I have a few questions:

Wholesaling or Flipping- Do you just find the properties and draw up a contract and make sure you add in “assigned to” in the contract, so you can basically sell the contract to an investor? I mean, do you need to take out any loans to wholesale?

What kinda taxes are you subjected to when wholesaling? Ordinary tax? Does the property actually ever go into your name or it goes directly to the investors name?

I have more questions that I’ll post a little later.

Thanks in advanced.

I really need to get out of Coperate America, it’s killing me.

Jordan

2

I agree, I am 21 years old and I agree a lot has to do with Quality of Life. I am looking to get invovled in rentals in order to establish a permanent cash flow of 10-15k within a year and a half.

I still have not purchased my first property but am learning heaps of information just by posting on this forum, and I’ve only been here 3 weeks or so.

3

since when does flipping burgers count as “corporate america?”

just kidding.

good luck.

4

har har har

the 9-5 is drivin me nuts! haha everyday its more and more inspiration.

5

hahaha cecsix :stuck_out_tongue:

jpstephens,

Exactly, quality of life is at an all time low right now. Granted, I still have a better life then a lot of people but something needs to change for me, fast. This Corporate America is not for me. Everyone here is all caught up in making their management and customers happy. It’s just not for me, Why would I give a S#$% about turning up a circuit or ordering this for that customer etc, when the whole time I am miserable because I barely get to see what is most important to me, my daughter. All this work is insignificant to me.

I need to act fast but do it effectively. I’m shooting for a 1 year plan.

6

We’re in the same boat. I want to get thigns done within a year as well.

1 Year till Real Estate is good enough financially to allow me to support my lifestyle.

I currently am doign the sheets course and am at the stage where I haev to start screening if people are motivated sellers. The only problem is the examples he gives of him calling, he seems a lot more experienced and knows about the business a ton better then I do. I don’t know all the jargon that goes along with this yet. However, people tell me just jump into it and thats the best way to learn. I just want to make sure I do stuff right.

All I know is im riding on a fine line between paralysis. If I keep analyzing this over and over I’ll never act. I just feel I need to learn a LITTLE more.

REIClub should make a test or something to help the user see if they are ready to answer the questions that arrise while dealing with sellers, etc.

7

call a few sellers JP, just make up a list of questions you want to ask them. I have a great seller screening form that I can share with you. I could email it to you later if you would like to take a look at it.

basically, it qualifies the sellers and finds out how truly motivated they are.

8

yea thatd be great

shoot it to me in an email if you can.

9

it’s saved on my home cpu, so it won’t be until tonight. if you don’t have it by tomorrow, remind me. our local REIA meeting is tonight, so I won’t be home until after 10:00 probably.

10

cecsix,

Can you also send it to me as well.

Thanks

11

no problem, just send me an email reminder either tonight or tomorrow. the short term memory hasn’t been that great since the college years.

12

great…thanks

So how about my initial questions?

I have a few questions:

Wholesaling or Flipping- Do you just find the properties and draw up a contract and make sure you add in “assigned to” in the contract, so you can basically sell the contract to an investor? I mean, do you need to take out any loans to wholesale?

What kinda taxes are you subjected to when wholesaling? Ordinary tax? Does the property actually ever go into your name or it goes directly to the investors name?