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CS1977

CS1977's Post-Mentorship Progress Thread

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So, I figured as long as the admin doesn't object, I'd use this thread to make myself accountable.

 

The good, the bad, the ugly--right here for the NI world to see :o

 

So I took the plunge and went for the one-on-one mentorship. Met with the wonderful mentor and now I get to bug him for a long time **evil laugh** :)

 

Great decision on my part, I must say....b/c he is a kick-butt teacher!!!

 

Anyhoo, so it's been about a week and a half since I began this quest toward what Wendy Patton likes to call FX3 (future financial freedom).....so far, just trying to learn, absorb, be awkward, make mistakes, ask a million questions, obsess.....

 

I am studying the manual and this forum and will get my marketing off the ground shortly. To get my feet wet I have been emailing FSBO's off of Craigslist. Kinda cowardly, I know. But I will be stepping it up shortly.

 

PLEASE feel free to comment, encourage, bitch, moan, etc. on this thread along with me. I will soak it all up b/c it helps me LEARN.

 

Until next time :lol:

 

Christine

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So, I figured as long as the admin doesn't object, I'd use this thread to make myself accountable.
No objections here, CS.
So I took the plunge and went for the one-on-one mentorship. Met with the wonderful mentor and now I get to bug him for a long time **evil laugh**

 

Great decision on my part, I must say....b/c he is a kick-butt teacher!!!

Nice of you to say so. Remind me again what I owe you for every plug you throw my way??

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Christine,

I love the accountability part. Like a lot of teachers say; this doesn't work, you have to.

 

I'll give you some heads up on some beginning stuff so you can get continued support.

 

One of the biggest roadblocks new investors lack is the system. Having the system will give you the leverage and the advantage. It will essencially get you the buyers lined up before you even get the property.

 

Here's an example:

 

And investor puts a "letter of intent/purchase agreement" on a house. The investor is intending to flip the property to another investor for quick cash. The property is being offered at $30K with a $4K assignment fee bringing the price up to $34K. The house needs say $10K in repairs and has an ARV (After Repaired Value) of $80K. Not a bad deal right?

 

Who has the advantage?

 

Investor A has it with a LOI/PA and is looking for all cash including his assignment fee.

 

Investor B has negotiated with the seller terms (Such as a short term lease option or contract for deed) as well as cash.

 

Investor A puts an ad in the paper that reads; handyman special, entertaining all cash offers.

 

Investor B puts an ad that reads; handyman special, instant equity will help finance.

 

Who is going to get their assignment fee faster now?

 

In almost all cases when you negotiate terms you will produce an effortless advantage over the market. This allows your payday to become that much more of a reality. The CA and SLO systems allow you this leverage. So whether you're selling to an investor or an end user you have more leverage. And in almost all cases you can make more money with terms. That's why a CA can yield a 100% or higher LTV (Loan To Value).

 

So now you have the advantage of offering terms instead of just cash. And the other good news is that you can now see the value (By reading MC's manual) in a completed system. What I mean by this is, you now have the leverage to take the whole thing that one crucial extra step by setting up the acquisition. This allows you to also have a "turn key" system to offer and not just a property where someone has to come up with not only all of the cash first before buying, but your profit "Second" on top of all of the cash. You will see too many people will get too nervous on those deals and you'll never see that paycheck you're trying to get. Offering a turn key system will always make it easier for everyone.

Just my two cents,

Adam

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Christine

 

I don't think you are cowardly for e-mailing people off Craigslist e-mail is just another tool to use quite often I've found that the response rate is fairly high if you are e-mailing landlords. They will usually say yes or no or lets talk. Just use it as a secondary tool if you feel that you are hiding behind it.

 

Just my opinion

 

 

Gordon Holtner

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Gordon--thanks, you are right--I'm noticing the email weeds them out, if they want to proceed we will set up a phone call.

 

MC--no charge for plugs, I'm the one who is indebted to you for the awesome service you provide.

 

Adam--you make TOTAL sense, thanks. I absolutely think a system in crucial and I cannot WAIT until I have one in place running smoothly.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

 

Progress:

 

So, I ran a short ad on Craigslist last night using MC's "Mgmt co. needs rent-to-owns for tenant/buyers." I got two bites already and one of them called me. Yep, if you leave your phone no. people actually might call, Christine !! :blush:

 

So the guy who called seemed really easy going and turns out he has a vacant house in my town like 5 min. from my own house! He wants to do a LP (or some form of) and wants to meet to go over contracts! Eek! Of course he thinks I have a long list on t/b's lined up!! LOL

 

I need to call him back tonight with more details and my head is just so full of confusion. Don't wanna muck it up!

 

Any advice would be sweet, thanks so much guys. :wub:

 

Thanks!!

Christine

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Progress:

 

So, I ran a short ad on Craigslist last night using MC's "Mgmt co. needs rent-to-owns for tenant/buyers." I got two bites already and one of them called me. Yep, if you leave your phone no. people actually might call, Christine !! :blush:

 

So the guy who called seemed really easy going and turns out he has a vacant house in my town like 5 min. from my own house! He wants to do a LP (or some form of) and wants to meet to go over contracts! Eek! Of course he thinks I have a long list on t/b's lined up!! LOL

 

I need to call him back tonight with more details and my head is just so full of confusion. Don't wanna muck it up!

 

Any advice would be sweet, thanks so much guys. :wub:

 

Thanks!!

Christine

Well, then, let's call this victim, er, homeowner back and see what we can do. ;) I received your email, CS. Call me tonight.

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So I started working for this company last June. Everything about it is pretty great. Even 5 minutes from my house. Left a secure but dull job in education to take this one after they recruited me. From education to the business world.

 

Fast forward to today. They've cut a few people here and there along the way. But today they called 9 of us in a room and told us they were cutting the rest of the people in our office and some out in our Chicago office. So 17 people lost their jobs today in my office alone. Some had become good friends. One I even travelled with to Chicago just last week.

 

GONE. People, gone. Income, gone. Jobs, gone.

 

We were pretty much told we were the 9 "lucky" ones. I feel NO relief. I know I could be next in a heeartbeat although they say they do not "plan any future cuts." Oh, and they also say it is not about money.

 

I call BS in every way. I don't feel safe or lucky or ok.

 

In some ways I feel prepared, though, b/c I have embraced real estate investing and had the goal of making it my full time gig before this axe fell.

 

But that doesn't mean it will 100% happen. Though I fully believe I am capable.

 

The fact is, I still need to work til I get myself off the ground. And I sure as heck can't depend on this company.

 

I guess it comes down to this--the reason I turned to REI and working for myself as my goal was because I know this crap happens every day in corporate America. Now it is just a little more vivid, is all.

 

They sent all of us home today at noon, not just those who got cut. It's very weird to sit here at home. I am still in shock.

 

All the more reason to work my butt off to make this biz a success and never look back. :blush::wub:

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Wow.

 

I went through a similar experience about 4 years ago. New CEO came in and cut about 30% of the workforce, about 100 people. I worked in the IT dept. so we'd get a call from HR as the person was being told the news because we had to disable all of their access. So we'd all sit there in my boss’s office and wait for the phone to ring to find out the next person. It sucked.

 

Needless to say I left the company shortly thereafter on my terms and have moved on to a much better job/company/salary. I feel safe here but I guess you never really know.

 

It's a good reminder to you of what might happen if you sit there and wait for it. Get out there and do it in REI; it's a lot more fun when you leave a company on your own terms.

 

Jeff

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Downsizing,

 

Is such a part of all our lives today. I had it happen to me just like most of you. Rei may give us our freedom for the future. I say may because we have to work at it, something that I have not been doing lately. I am ashamed that I have not been working at it for a month. I am thankful to you Jeff and Christine for reminding me that no job is secure nowadays. I work in a place now that has a good work environment I am becoming so comfortable now; it has made me a bum.

 

 

That being said I just emailed a seller here in Ft Mac and he may have 3 houses for me by summer. Wish me luck he may have another investor who may also need his rentals taken care of as well. I am going to see these tomorrow.

 

 

Gordon Holtner

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So I sent 2 CA offers out this weekend. One on a SFH in my neighborhood, one on a condo right outside the city. Waiting to hear back. The guy with the house wants too much. My comps and my gut tell me that. So I gave him a realistic # for a CA--we'll see what happens. He wanted to keep my contracts to show his attorney when I went to meet with him but I was having none of that.

 

The condo people are a little confused b/c the hubby left me a voicemail arguing about the 2% option money--He thinks it's commission coming out of his price. So I called back and left a message saying that I can explain it better and we can discuss it when he calls back. He also says the rent amount only covers the mortgage and not the condo fee. Wife told me the amount I THOUGHT they needed in rent but if we are adding a monthly # for the condo fee, I will adjust my #'s. Being it is a condo, I am not sure how well this will work out, but I'll keep you posted.

 

I got both local papers last night and will begin calling FSBOs/FRBOs this week as well as getting my marketing off the ground.

 

So, nothing too interesting to see here, move along people :wub::blush:

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Good luck!

 

Downsizing is a big part of american culture, it is all about the bottom line and not the people that make things work. I went through this a few years ago, I to was in education as a Networking and Education Teacher for the teachers. I got recruited to what I thought my dream job was, (Fameous Music Magazine)... Well, after getting a paycut the day I started I knew this was off to a bad start, my first week was tearing down computers so the laid off people couldn't steal data. It is not to hard to imagine what happened to my job from there.

 

I personally felt anything was better then education until I got into my career of choice, Publishing. The best part of having your dreams dashed/destroyed/annihiliated is learning what you can do that you enjoy. I know I found Creative Real Estate and Mortgages and haven't looked back for 5 years.

 

Go kick some ass,

 

Mike

B)

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my first week was tearing down computers so the laid off people couldn't steal data.

 

 

I know, not an HOUR after the people were let go the locksmith was here changing all the locks. Leaves a bad taste, needless to say. :rolleyes:

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"Two to four CA's a month is not a dream, but a very reachable goal. Mind you, it won't happen without the effort. But if you speak with enough sellers, and make enough offers, there is no reason you shouldn't be able to do just that."

 

--MC, 7:35 pm, January 31, 2006

 

 

"I have a dream...." :rolleyes::D

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Christine,

While you're dreaming, keep the big picture in mind. Ask yourself difficult questions while gaining your beginning experience. Things like; how can I get deals without calling FSBOs? How can I have someone not only do my marketing for me, but pay me for it? How can I utilize this knowledge so I have unlimited time to do what I want?

 

Answers to these questions will make you wealthy. But you must realize the beginning has a purpose too. So have the dream of 2 to 3 CAs a month, it's insanely achievable.

 

I made a post a while back about getting 20 deals in one week. I still haven't accomplished that and now know I wouldn't have wanted it the way I was working. Now I have over 10 this month under contract and I'm closing for another big payday on Friday and another next week. That will put me over $50K for Jan! Not a bad start for the year! But the point is that I started with asking those questions and coming up with the answers even if they seemed crazy. But the key is to have your own answers. Having mine wont help you, having your own will give you the promise and ability to do it over and over again.

 

Just keep the big picture in mind for the rough times. And keep in mind the rough times are only in your head because of a lack of the right information/experience.

It's all cool stuff!

Adam

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Darn Adam, this has to be one of the deepest post you've ever written on the board. I sense a top notch guru in the making, if not yet made. LOL

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