Posted by Luke Hoppel on June 11, 2006 at 21:06:01:
Yeah, it kind of sucks but I have taken it into account and should be able to work through it no problem.
Thanks,
Luke
4 months until full time! - Posted by Luke Hopel
Posted by Luke Hopel on June 11, 2006 at 19:34:45:
Well I have a little over 4 months before I’m starting REI full time! I’m pretty stoked and am working non-stop to get everything lined up. I’m going to be focusing on L/O’s and Sub2’s primarily but also play in buying and reselling homes, and pre-foreclosures.
The market will be awesome for L/O’s but I’m not so sure about Pre-foreclosures.
The other area I’m currenly looking at is condemned properties which I think have a lot of potential.
Well if anyone has any advice, positive or negative, or they want to share some forms that they think are great, I would greatly appreciate it.
Luke
my advice… - Posted by lukeNC
Posted by lukeNC on June 12, 2006 at 06:12:12:
Be patient…
Make sure you have easy access to lots of cash, liquid cash available if you will be taking on sub2s and l/o’s, just to cover vacancies, problem tenants, etc.
Especially if you wont have a steady income coming in.
Many many a newbie has started those sub2’s, got lucky and made some quick option money and then decided to quit their jobs with no backup cash, including me.
Vacancies, problem tenants and mortgage payments can force you to go back to that job and that is NO fun, believe me.
Personally, I would advise to never start out with l/o’s or sub2’s unless i had the backup funds, but thats my opinion. Even then I probably wouldnt do it unless it was a steal of a deal.
Have a “no debt” mentality. You can do great things in RE without having to borrow a dime OR be on the hook for anyone else’s loan.
Build your cash position first, do this with quick flips. Deals you can get in and out of with little or no money. Learn all you can about them.
Use some of that cash to buy other super cheap homes and notes without borrowing money, keep them for cash flow…
Use some to take advantage of other great deals in the RE, paper and note world. Some amazing deals are found there. They’ll fall in your lap when you have cash.
Just keep going and going…you cant lose.
Having cash and no debt just allows you to do so much more. You become a cherry picker, looking for the absolute best deals, and they are out there. The more cash you get, the less work you do.
Re: 4 months until full time! - Posted by stan
Posted by stan on June 11, 2006 at 22:23:24:
Luke,
Are you sure you are ready for this? I’m not trying to throw cold water on you, but I’ve been noting your many posts and detecting a lot of misunderstanding of RE on your part.
In fact, I was under the impression that at your knowledge level, you had never done your first deal.
Maybe it’s just me, but I would suggest you get your feet wet gradually, otherwise you’ll be in and out of REI in a few months.
stan
Re: 4 months time! - Posted by hha8
Posted by hha8 on June 11, 2006 at 20:39:01:
Have you taken into account the slower market in the winter? If you have already done that, then that’s great.
Henry