Posted by BILL TAYLOR on May 18, 2001 at 22:38:31:
MIke you are learning the business the same way that I did, the hard way. Nothing wrong with it but it will take some time to get to the other side of things the wya you are going. You have to have the stamina to stick with your plan. You will also have to work harder than most people in the begining. You will have those that will be certain that you won’t and can’t make it in this business. The only reason to listen to them is to inspire you to keep going hard to prove them wrong. I might suggest you try to buy the fixer and fix it so it is attractive and sell it. Don’t get into any major fixers just paint clean-up and carpet. That will keep your fix-up costs low to begin with. Doll them up and get rid of them and get some cash. I have been in the business for 20 yrs and am just now learning that. I did what you are now doing for 18 yrs, now I am trying to take it easier. I earned all the profit now I am trying to get that money doing my work for me a lot more. Let the money be your slave not the opposite.
First off I would like to say what a great web site you all have created here! The people around me on a daily basis have no clue or interest in this realestate stuff that I am so involved with on a day to day basis, so I have been keeping this to my self until I stumbled on too this site. I have been lurking for about a month now, all the crap I always think about and so many NEW ideas! The more you learn , the more there is to learn. (My bosses quote)
I started this about 2.5 years ago with a 2 family near the beach in NJ and that went well (luck), is still going well, so then I bought a single family with a good monthly cash flow, from the equity on the 2 fam. and bought a 5 bed 2 bath in the same area for a rehab, I bought for 140k w/ a resale at least at 230k + but am getting serious burnout from all this work! So far in materials 8k in credit cards, counting cash advances, thats not a big deal but the next time I do this I will have cash to pay a crew. The walls are closing in on me. Enough sob story, just wondering if anyone else is going thru this or has gone thru this in the past.
Well thanks for the vent
Take care
Mike
Thanks for all of the great votes of confidence and ideas. I spent a long and productive weekend “over there” and can see the light at the end of the tunnel,
Tahnks again to all
Mike R
Posted by Lori Samson on May 21, 2001 at 01:08:29:
Everyone’s advise is good and we all have been there. The last one I did and finished last week I actually drug my feet on because I was getting tired of it. I pushed through. My husband hates changing out locks and gets so frustrated that he could hurt a door quick. He doesn’t do locks anymore. He would rather be at the office making calls on new deals then messing around trying to get those darn screws to line up!
Remember that the less YOU actually do the more you can make. While someone else is doing the work you can be out finding another deal. You have enough spread to let go of some of the profits. You may not have the cash to do that now but find a way to press through this one.
It’s all about learning! You learn where your strengths are and where your weaknesses are. If you can get in there and recaulk a tub in 10 minutes then I wouldn’t pay someone to do it. But… if you can hire someone by the hour to help you then let him do the dirty work or time consuming work. Get it ready enough to start showing it, so you can move on to the next one.
I will hang signs around the house saying this home will be availible in about ___ days (or weeks) and the following will be completed. I list off the things, that will concern a person, that will be completed by a certain date. I will even have carpet samples and I will stick up a sample of any wallpapers on the wall so they can see what’s going there. If I haven’t really decided to wallpaper yet I might have several styles taped up and some paint sample cards.
Make them have some vision if you need to and if they want it badly enough they will over look everthing (within reason)!
Whenever I fix up a house, I always feel like quitting one half through the job. But the house isn’t ready then. So I work on through to the end. Or close to it. Since I do rentals, I start showing the property when I still have a couple of weekends work left to do. (Regular jod during the week.) Last couple I fixed up, I still have a couple of weekends work to do after the renters moved in.
Boy, sounds like you’ll make a lot of profit with that newest project. Good going, Guy.
Yep! Been there. I have bought and rehabbed for about 16 years. Usually buy pretty rough stuff. Get an easy one once in awhile. Do 80%+ the work myself. I enjoy the challenge and do it part time so it is somewhat theraputic for me. But I always hit a point in a project where I wonder if I am getting anywhere. Now I hire out roofs (bad knees) and will hire a helper. You could do that with a cash advance on the credit card. I have a guy that is a good worker and is reasonably talented. Not a pro but will do anything I show him, how I show him. Cost me $10 an hour but really makes the job go faster. Give him the work you hate. You still need to manage this as an expense and find his strengths and weaknesses so you work him at his best. When I do project cost estimates I include this as part of it under misc. labor. Hope it helps. DanT
Posted by Rolfe Kurtyka on May 19, 2001 at 01:06:18:
Mike;
With that kind of spread (140K to 230k) you can certainly afford to let others do some of the work. Try to find a lender who will loan money based upon an after renovation value.
Hang in there, buddy. You’ll make it if you keep trying, but don’t work yourself to death. If you have to, you might be able to sell “as is” to another investor.