Who made the most?

General Real Estate Investing
21

Allagash,
I have never used flipping to describe a rehab project. A flip is really a very short turn around from buy to sell.

A rehab is buying a building and doing whatever work is necessary or required to bring it to the level where you can sell it for a profit.

I have done fix ups, prehab, full gut job rehabs and everything else. I prefer to do prehabs. A prehab is when you take a building that is in very very bad shape, usually with fire or water damage and inmany cases both. What I do for my prehabs is make the building ready for a rehabber to go in and finish the building. I repair the roof and the floor joists (as needed if rotted or fire damaged), totally clean and gut out the building and then I lay a new subfloor. I remove all the old plaster walls and all interior walls.

Hope this helps.

22

Thanks Masoning…

Hoping to do something 4 months from now…(in a different city).

The anticipation is killing me…but it gives me time to read.

Again…thanks for writing back.

-Mike
BTW…I like your “gut job” approach…nothing wrong with getting dirty.

23

Wow! This thread has been busy.

Propertymanager, great post on why most people don’t/won’t make it at any business. And it’s right on track, politically correct or not (besides, how many REI’s have you known that didn’t say what they really think?).

A perfect example of the majority is a life-long friend of mine. He has always dreamed of “making it big.” He has actually had several very good ideas and business start-ups that I believed would have made a huge amount of money. In some cases, it’s been proven, as those ideas have been put to market by others.

Why has he not succeeded even to this day?
Two main reasons: Number 1 = FEAR. Fear of failure AND fear of success. People that will/do “make it” don’t let their fears control them, and they are NEVER afraid of success. They desire success.
Number 2 = motivation/desire. People who “make it” have a burning desire to do so. They will put all of their waking (and frequently, sleeping) hours into making success happen. They also don’t depend on others for their motivation. My friend’s biggest setbacks were when he told/showed friends/family his ideas and got responses like, “that’ll never work,” “How do YOU expect to do that,” “You always have some ‘get rich quick’ scheme,” etc. If no one supported him (and they usually don’t), he would become discouraged and quit. To truly be successful, you have to be self-motivating.

jpstephens,

You asked “Will I succeed by my post?”

Here’s your answer. As of right now, I’d have to say no. However, it’s not because of your past posts. PM is right. You’re here asking questions and learning.
Here’s why I’d say no. It’s because you had to ask someone else if they thought you’d succeed. If you don’t know that you’ll success, if you can’t imagine yourself succeeding, if you doubt it, then it’s probably not going to happen. Granted, it was a sucker post. Hey, if someone said that they could tell more or less if another would succeed/fail by their posts, I’d be probably be curious, too.

Just remember the old saying, “Whether you believe that you can or that you can’t, you’re right!”

Raj

24

WHO WILL SUCCEED AND WHO WILL FAIL?

I think that Raj has said it all with the following quote!

People who "make it" have a burning desire to do so. They will put all of their waking (and frequently, sleeping) hours into making success happen. They also don't depend on others for their motivation.

In my opinion, this is EXACTLY the difference between winners and losers. I’d bet that you could predict winners and losers at a 99% accuracy by this method. I know a lot of successful people in many different businesses and they all had a burning desire to do what they do. They eat, sleep, and dream their passion - their business. That’s why even the best RE guru can’t help a loser succeed - because you can’t put that burning desire in someone!

I’ve been doing this nearly 2 years and I still am excited about REI. I get up a 6am every morning without an alarm clock even though I could sleep til noon if I wanted to. I make the REIA meetings my top priority. I look forward to the REIA conventions months in advance. Raj - that’s the difference!!! I look forward to every day so that I can do more REI. If it weren’t for a handful of IDIOT TENANTS, it would be a perfect business!

Anyway, if you want to know if you’ll succeed - ask youself if you have that “burning desire” that Raj spoke about. If you do and you’re willing to do whatever it takes, you will succeed. If you don’t have that “burning desire”, it might be best to quit now - you’ll never make it.

Mike

25

Roger J,

I will succeed because I have only one option. Success, I have been new to this part of the business, actually the entire business all together. I found a book in the bookstore about 3 months ago while I was unemployed right out of college. Since then I have gotten an OK job, and am still looking to make real estate my big source of income.

So I know I will succeed.

26

JP,

Now that is the type of statement that one expects from somebody that is going places. Now, compare the above to that little “Will I succeed by my post?” comment. Do you see the difference?

Raj

27

First year bought 8 (negative cash flow 1,200 cash in pocket 145k)

second year bought 11 (negative cash flow down to $675 cash in pocket 212k)

third year bought 14 (negative cash flow 0 Positive cash flow $400.00 CASH IN POCKET 232k)

fourth year…(ah lets skip to tenth year you can see the progression)

tenth year I now own 93 (as of friday) and cash flow 32k per month (of course I split that with my family not because I have to I wanted to) Equity 4.3 mil.