Need Help Starting Out Please

Hello Everyone:

I’m writing to you in need of dire advice.

I’m 26 years old, currently working in a job I’m not too fond of (although I should be more thankful, it is a job with security) and I’m in an overall dissatisfied and unhappy phase in my life. I recently turned away from the pursuit of a career in medicine after seven years of hard work. Among many things I scarified for that goal, one was to get into real estate investing from a very early age and now I regret it.

I used to manage and market my dad’s residential and commercial real estate properties when I was around 19-20 years old and I was really good at it. In those few years I learned a tremendous amount about real estate investing and I interacted with everyone involved, my dad, contractors, renters, etc. I unfortunately had to make a choice between medicine and real estate and at 20 years old, medicine was what I wanted to do, so I left my dad’s investment business.

Six years later and I’m full of regret for making that choice. Now, I’m trying to get back in to the industry. My goal is to be financially independent by the age of 30, owning multiple properties (commercial and residential) for years to come.

I still remember much of what I learned from the past years, I even became familiar with construction, having to work with the contractor when it came to repairing some of the properties before renting them out.

My problem is, I don’t know where to start from here. I currently have around $25,000 saved in the bank, I should have around $50,000 by mid next year. I don’t want to take out a giant loan; at this rate I would be paying that back for years without realizing any rental income since most would be going to the monthly mortgage payments.

It would appear that flipping is my only option currently. Can I obtain really cheap houses with what I have saved up and flip them and sell them for a profit? If I’m missing any other potential options to try, please let me know. Thank you for any advice and I appreciate you taking the time to read this.

P.S.: You’re probably wondering why I can’t just learn all this from my dad. Well, he’s still sore about me choosing to leave medicine and refuses to help me. I’m on my own on this one unfortunately :bs

Wow, your story is a simmering hot duplicate of mine, apart from abandoning the family business.

I was heading for a different career direction myself, and then realized I was going the wrong direction. However, that diversion helped me define which direction I actually wanted to go, which was back into real estate.

My family was willing to advise me, and I did borrow money from them, but…

I can say with some authority that you just did what you had to do, and figured out that wasn’t actually what you wanted for yourself, and so you adjusted. No problem. Life is all about new directions and choices. Just look at Donald Trump. I mean talk about abrupt changes in the course of ones life…

Meantime, you’re not in trouble, and the world hasn’t passed you by.

Most investors don’t understand the importance, or appreciate the value, of investing in real estate until their forties, if they ever do invest.

And statistically speaking most people don’t reach their stride until their fifties…

This happens for a variety of reasons including indulging chasing women, raising kids, grinding away at jobs for security purposes, and just not being familiar with real estate investing itself, and not being motivated enough, or having enough energy enough to learn.

All that said, my first advice is to keep your day job. Very few people have the ability or willingness to dedicate themselves to full time investing. Frankly, strict real estate investing is RARELY a full-time effort.

Merchandising, however, can be. And that’s what you’re talking about, if I understand your post. That’s fine.

I still say, keep your day job, until you’re able to transition reasonably into your new career.

Merchandising real estate can be done successfully part time, and later scaled up …rather quickly, once you’ve overcome inertia and developed momentum. And quite frankly, once you’ve scaled up to where you can delegate the processes to a team, then you’re on your way to being an owner of a business, not just a business operator.

Let me say, too that this business can be as simple or complicated as you decide to make it. Some investors get extraordinarily anal retentive about details, while others operate so loosely you wonder how in the world they tie their shoes without help, and remain successful.

Meantime, there’s no one-size-fits-all approach to how to make the transition, except that you’ve got to treat this like a business, not a hobby (regardless of how fast you move forward).

Meantime again, you want a ‘win’ as fast as you can, to build momentum, and overcome inertia.

The fastest way I know is to first establish an income goal, a time-table to reach that goal, and allowing for no alternatives other than to reach that goal.

It makes no difference what the goal is, or how ‘reasonable’ it is, or not. Your mind can’t tell the difference anyway, and will immediately start working to give you ideas, inspiration, and insights on how to accomplish whatever you tell yourself you want to accomplish. Test this.

So what you aimed for the moon, and only got half-way? How many others are around you, half-way to the moon? Not many, I’ll guess.

Assuming you have your basic paperwork together, define what is a marketable deal to merchandise. Then find 2500 absentee suspects with lots of equity; send them a fugly postcard every two months; and never stop. It makes no difference what you send. The suspect is either motivated, or not, and you’re looking to catch them when they become motivated.

The suspects will become familiar with your fugly postcards, and stack them in the kitchen drawer, so by the time they call you, you’re the only one they can think to call. And when the suspect gets another high-grass fine from the city/county, suddenly your interest in buying their house is ‘interesting’ to them.

Yay for being the early bird that catches the worm, just in time, with a fugly postcard. Prepare to answer the suspect’s calls live.

Gotta go.

P.S. Treat the first nine months worth of your actions as training practice, rather than setting yourself up for failure with a do-or-die mentality. Otherwise, plan on blowing five-thousand dollars making mistakes during the training. Or consider buying some of the education courses offered here, that promise to mitigate some of your initial training losses.

P.S.S. Have courage to buy wholesaling training. Cultivate a prosperity mentality, unlike the average schmuck whom agonizes over whether to spend $1,000 learning how to do something, or not. I’ve spent $3000 on one course, that was mainly review for me, but came away with one tid-bit I haven’t found anywhere else that had made me multiple times what that course costs. Never mind the thousand of dollars I already spent learning the basics. Education is an investment, not an expense.

Really gotta go.

You’re a good man javipa. Email me Samson and I’ll send you a book that was sent to me. Then check out javipas link at the bottom of his posts. Between those, this site and the people on it, and your will, you’ll have everything you need to get going in this again.

Thank you, Javipa, for the amazing post, I truly appreciate it!

I haven’t forsaken the family business just yet. My dad, although owning multiple investment properties, is actually a CPA with his own accounting/financial consulting firm. I’m currently back in school (whilst working full time) to get all the CPA requirements out of the way and take the exam. I’ll be taking over the business, but ultimately want to expand the real estate aspect as my dad is content on just what he has and not going further.

The accounting will take it’s time as all the classes are sequential and the business isn’t going anywhere but I should have all that out of the way before I’m 30. In the mean time, I want to get started on real estate, or rather get back to what I left years ago NOW, hence my post.

Thankfully I don’t want any kids or get married any time soon. And although women are my weakness :rolleyes, financial independence trumps all so all my focus, time, and energy will predominately go to that. I won’t be leaving my job until I know I can transition smoothly, as you have said, or get back to working for my dad (funky relationship he and I have).

I’ll definitely create an income goal, I like that. And I like what you said about the mind not telling any difference on how “reasonable” it is. I’ll also spend money on education in real estate, this website has incredible resources. And I haven’t dismissed wholesaling!

I have a goal to try to do an option before the end of the year. I have one other guy in this mini group challenge. Join us?

Yes! I’m in! I printed the book you sent me and I’m currently reading it :smile