Posted by ray@lcorn on November 09, 2002 at 17:45:53:
… “Now” work the plan!
ray
Formulating a Plan - Posted by Steve
Posted by Steve on November 09, 2002 at 08:03:46:
Here’s my situation:
Recently laid off, severance package will continue to pay me until March. Also, collecting unemployment.
Job prospects are slim to none.
Figuring I have about a year that I could devote full-time
to REI. Want to proceed cautiously, try to avoid needless mistakes. Have never run my own business.
Buying and flipping seems to be a logical starting point.
Here’s what I’ve planned out so far, not necessarily in the order things will happen but close:
- Receive free small business start up information from local community college.
- Take real estate agent course sponsered by broker or at community college. From what I’ve read I should not get the license due to liability issues, conflict of interest, etc.
- Learn the market I intend to work in.
- Learn how and where to find motivated sellers.
- Take home inspection and/or appraiser courses to help with evaluating properties, also connect with contractors.
- Learn to do my own title searches to save on cash.
- Join REI club to begin networking to connect with investors as well as networking with r.e. agents, and placing ads, etc.
- Find competent and receptive r.e attorney and tax man.
- Devouring web-site information, books, courses, etc.
- Start making offers.
My key initial goals are to gather some capital through contract assignments and double closings and then move on to rehabs, and eventually rentals. (I already have a 2-family running nicely).
I do not want to go into this blindly or impulsively.
I would rather make less profit and learn to do things right. Build my business slowly, but steadily.
Knowlege + experience = success.
I would greatly appreciate any comments, suggestions, criticisms. Thanks so much.
Re: Formulating a Plan - Posted by Mike G
Posted by Mike G on November 11, 2002 at 11:36:32:
I think it’s good you’ve developed a plan. I’m certainly no pro, but I have made a lot of progress over the past year. Based on my experience so far, here are a few recommendations:
Definitely join your local REI club first thing…this will cover a lot of your other action steps (ie you’ll prob find there your attorney, cpa, partners, contractors, how to find motivated sellers, info about your local market, maybe even how to inspect properties, etc).
Personally I wouldn’t bother w/ the RE licensing course. Haven’t taken it, but heard it’s a big waste of precious time and a lot of it won’t be relevant to CREI.
Read as much as you can. Combined w/ attending your local investment club and posting questions on creonline you should be in good shape. You’ll learn what other things you need to do as you go.
Good luck.
Re: Formulating a Plan - Posted by ray@lcorn
Posted by ray@lcorn on November 09, 2002 at 17:44:45:
Steve,
I like your plan. I am assuming that you are not necessarily going to do 1 -10 in order, but rather work the plan as a growing sphere of influence, devoting time and attention to each activity as they come up.
For example, most REI clubs meet once a month or so, not a big time commitment. The classes are a good way to learn the basics (and you’re right, don’t get the license), but are certainly not a full time activity. As you are doing these things I assume you’ll be watching the classifieds, learning the system at the courthouse for title work and practice on a few properties that are advertised, etc. You can do these things simulatneously, and the knowledge gained in one area will quickly pyramid and grwo with knowledge gained in another. The trick is to be in the arena… hang out where deals are made and you’ll eventually find yourself in one. There’s an old saying… if you hang around a barbershop long enough you’ll wind up with a haircut. Same thing here.
Develop everyday habits of looking at property, asking questions here on these forums, and absorbing as much as possible. Don’t overlook the how-to articles and the moiney making ideas sections of this site. All of those were written by those that came before you and cared enough to pass it on so you don’t have to learn it the hard way. Take advantage of that, and you can’t beat the price, it’s all free. In time you will find yourself gravitating to one particular niche or another, and then the courses will be invaluable. You’ve got a great opportunity to use your time wisely, and by putting what you want to do into a plan as you have, things will start to happen. You’ve planned the work, not work the plan.
If you do those things diligently and persistently you cannot help but succeed. Best of luck.
ray
Re: Formulating a Plan - Posted by Kristine-CA
Posted by Kristine-CA on November 09, 2002 at 11:29:47:
I agree with Ed on this one. Do a deal to see if you even like what flipping entails and if you like running your own business. Perhaps you will find that you prefer buy and hold rentals or other kinds of rei. In that case, you will have to determine if there will be enough income by the time your current incomes drys up.
Sincerely, Kristine
Re: Formulating a Plan - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on November 09, 2002 at 09:37:16:
Forget about all the preplanning and just do one transaction. Go slow, but go. Don’t get greedy just make a small profit and move foreward, but do it. You can get the detail fo your education as you go along.
You have too much planned… - Posted by Mike
Posted by Mike on November 09, 2002 at 09:26:00:
Start by DOING one thing at a time. Do all of your reading/learning in your sparetime. Check out http://www.flipinghomes.com, nodiscount.com, and legalwiz.com for info on flipping for quick profit.
Real estate investment requires money and $$ reserves. Without those you need to focus more on quick flips.
Mike