I have a stubborn bone headed brother
My brother Mike is struggling financially. Just like me he was also doing Construction. About 10 years ago he sold his house and made $60,000 in profit. So, naturally, when I first started this Real Estate Investing endeavor, I tried to get him interested. He told me, “because of the present economic situation it just wasn’t possible to make money in Real Estate now”. I told him he was wrong, that thousands of investors were making a killing and I was going to be one of them. He says well, I’ll wait and see how you’re doing.
So now, a few years later, after I’m starting to make some great money, and I have several nice vehicles, a Harley, an Airplane, all paid for. I’m wearing nicer clothes and have completely remodeled my home with room additions and decks, and getting ready to take my 3rd (count em) vacation to a tropical island with my family for 4-6 months at a time, and all paid for from Real Estate profits.
Low and Behold, Guess who’s starting to get interested in Real Estate? He’s asking questions and wants to borrow some of my books. You guessed it.
My stubborn, bone headed brother.
Rando I am the only sibling of 4 who has gotten into real estate. My 3 siblings have never been interested even though our parents tried to get us all interested in real estate 30 to 35 years ago. Quite by accident one of my siblings has one rental, a previous home which will provide some long term benefits but none of my siblings ever thought you could really make a bunch of money in real estate.
Now I think they feel there to old to get started and have to many excuses for other endeavors that cost them money.
Haha, I flipped my first property when I was 62, just turned 65, a few people ask if I’m retiring and I laugh and tell them, I’m just getting started. My Mom got me interested in it. She has purchased every course on the planet and never did anything cept purchase her own home sub to. My first endeavor was when I seen a late night commercial about buying and selling notes. I told my Mom that it sounded great and I was going to buy it. She tells me oh I have that course. She said she spent $6 or 7K going to his seminar and that she cudnt understand it and it didn’t work.I dug it out of one her many boxes.
I purchased a list of note holders and spent about $1200 on stamps and supplies. It was a lot of work, took 4 months but I made $6,000
I decided to get a course on doing Sub to’s and did a few of those and then discovered Wholesaling which is the easiest and most fun with no risk except marketing costs.
I have actually heard of many newbies starting their Real Estate careers in their 60’s and 70’s and doing very well. I mean why not, it’s easy, no physical labor involved. You can be one eyed joe sitting in a wheel chair and still do this. The excitement and satisfaction and feeling I’m worthy is payment enuf, the money makes it even better.
But you know, it’s a mind set thing, you gotta actually believe you can do it.
Let’s make some Money…
I was fortunate, like GR, to have parents actively investing successfully in real estate. I caught the bug early. My brother would have nothing to do with it.
I’ve concluded that it takes a certain character and personality type to embrace real estate investing, and all that goes with it. People who don’t like dealing with other people are terrible at it. They often treat the whole enterprise like it’s a nuisance. Those are the people I like to buy from. They are often motivated, flexible sellers.
I have offered my family and friends to help them get started in Real Estate.
I explained that it was simple and they didn’t need money or credit. My sisters are living in poverty on welfare, I give them rides to church bread line every Tuesday and Thursday. I offered to buy them both vehicles if they quit smoking. 3 years now and they smoke more ciggs now than ever. And they got no vehicles.
I do pay them to help me with my post card mailings.
My old ex friends are driving junk vehicles, surviving on SS. They talk behind my back and spread rumors that I’m probably doing something illegal.
It is frustrating and defies logic.
I can’t be around people with that mindset, all my new friends are newbie to advanced investors.
I cant worry about relatives and friends that wont help themselves.
It’s really exciting to find something that is fun that I luv to do and is profitable.
Let’s make some Money…
Rando
I’m reluctant to do any rehabs, my very first deal was a major rehab and it was fun, took 3 months, did most of the work myself, had to sleep on the job site to keep it from getting vandalized. Turned out really nice, but, I didn’t make any money. Then because it was a flat roof it kept leaking, tenants didn’t want to pay rent when rain water was leaking in their units. Finally I just gave it to my partner and walked away.
Of course now I’m wiser and wud never buy a flat roof SFH and I wud farm out the rehab work.
I luv wholesaling, I have a deal coming up that’s paying $28,000 I don’t have to do anything cept cash the check.
The rehabber I’m selling it to will take all the risk, spend 3-6 months on this house and if he’s lucky he might make 40K
In that time I’ve done a half dozen wholesale flips while flying my plane, riding my Harley & watching Judge Judy reruns.
It’s a no brainer.
But, I do think about trying it again, not as a flip but as a buy and hold.
Rare as hen’s teeth in some markets. You find more of these kinds of discounts on properties off the beaten path, and away from densely populated areas. However, these deals often take longer to sell.
The same could be said for economically depressed areas where there’s just a lot of beaters available. Finding buyers is SLOW.
My wholesaler friend in San Diego, flips high-demand deals, where a wholesale steal is defined as 85% of ARV.
You have to know your market, and what it offers, and what it will bear. Otherwise, you’ll frustrate yourself trying to settle only for 65% deals in the wrong market.
That is an awesome story! I am just starting out. I will need all the tips and tricks there are to survive. I will learn from you all pros that have gone ahead of me.
Thank you.
I have one brother who works at a bank and “wants to eventually get into renting houses,” but he’s very unaware that he will only make $300/month tops on each house. He’s “waiting for the right time,” and calls me arrogant when I tell him that no time will be better than now. He plans to hire a “professional management company” to handle it and I don’t think he has any idea about how to do maintenance at all.
I have another brother who works in construction. He rents an apartment instead of owning a home because he “doesn’t want to do maintenance when he’s at home.” Makes no sense to me (or at all).
Like said before, renting houses all depends on ones strategy. Sure the monthly income isn’t great, but there are many other reasons successful investors do it. Tax benefits, cash flow, equity potential, etc.
All that being said, those who go into it with little to no knowledge of this industry will take a bath. They’ll eventually call your bandit sign and you’ll buy their house for pennies on the dollar.