Posted by Lin (NC) on March 21, 2005 at 17:38:27:
I can share a little of my experience with you, though I am not a ?full-timer? doing Lonnie deals. I did all my deals in Oregon, too, though I live in NC now. As far as gender-specific considerations, I don?t really think there are many and they?re experiential, not based on discrimination. If they exist at all they might be related to how much you know about home repair and ?time value of money?-type math and negotiation stuff. Those things can be learned, of course.
It seems that most of the folks who post on this board are not full-timers, though plenty of them make very good money just doing deals on the side. I worked full time when I did my deals, and I made more on them than I did working six months at my job. I wasn?t a highly paid employee by any stretch of the imagination, but the fact that I could work a 40 hour week and still do Lonnie deals worked out great. I also worked for a flexible employer, so the long lunches I took to look at or show homes weren?t a problem. I certainly could have managed otherwise, though.
Some Lonnie dealers fix up homes (from serious rehabbing like plumbing and electrical to just paint and carpet ?essentially cosmetic), some sell ?as is.? I had a basic understanding of what repair costs were and what to look for when inspecting a property, but a checklist doesn?t hurt no matter how many properties you?ve looked at. The homes I bought were in pretty good shape and I did paint and carpet on a couple. The worst one (roof leaks and soft spots in the floor) I got was free, and I flipped it to another investor I met through this website, without doing a thing to it. Even if I had paid someone to do all the work it would have been a great money-maker. You should familiarize yourself with common problems (i.e. soft spots in the floor around the toilet and tub, cracks in the tub, water stains on the ceiling) and have a basic understanding of repairs and what they cost. Even if they aren?t things you intend to fix, they?re negotiating points.
I guess my feeling is that you shouldn?t even worry about whether or not this is a feasible replacement for your current job income. If you work it as a serious business, it is very likely possible to replace the money you currently earn. Just do a few deals while working your current job and see if you even like it. It doesn?t have to be all or nothing, right? Doing a few deals a year while working a regular job can move your retirement up by years, send your family on great vacations, or do any number of things for you, and that?s worth thinking about, too.
Be sure you read the NC-specific posts in the archives. It is my understanding that people recommend Lonnie deals should be structured as leases with separate purchase options.
I hope this has helped. As for me and Lonnie deals, I have decided to focus my efforts on a different niche for awhile: land/home deals. Having a full-time job in addition to doing this type of investing would certainly help greatly, so don?t be in too big a rush to quit your job. There are lots of great posts and advice about this topic as well.
Good luck to you.
Lin