Should I wait??? - Posted by Paul(FL)

Posted by phil fernandez on April 27, 1999 at 19:22:05:

Hi Paul,

Just because you might offer 50 cents on the dollar doesn’t mean you don’t have to do your homework. Make sure you know the values in the area you want to buy. If you don’t do that, how do you know if you are getting a good deal.

Let’s take an example, and keep in mind I don’t know your market. Let’s suppose you find a bunch of 3 bedroom two bath homes in a neighborhood and theyt are all selling within the range of $80.000 to $90,000. If you know this through your research of market values than if a deal comes along that the sellers wants $60,000 you will know that its a great deal.

Now its easy to say offer 50 cents on the dollar. Not alot of sellers would do this, but if you find a motivated seller, he may well sell at this discount.

Bottom line. Learn and know your market and be on the look out for motivated sellers.

Should I wait??? - Posted by Paul(FL)

Posted by Paul(FL) on April 27, 1999 at 18:01:09:

I purchased the C. Sheets program. I think it was very good. But I have a dilemma. The solution, as far as I can see is not acceptable. That is to wait!
Here it is:
I am living in Key Largo, Fl. I don?t want to buy here because I want to live up north. Way up north around Palm Beach, Fl. (about 100+ miles away) I have a good paying job, as from what I?ve seen so far, I need to keep it until I get going on the positive cash flow thing. I could take trips up there on the week ends or when on vacation, however my phone bill will be out of sight in no time. I have been looking on the internet to find out about areas and neighborhoods. I thought about getting there news paper, but there is a lot of ground work that needs to be done there, the court house, etc.
I could quit this job and get a job that will undoubtedly pay about 1/2, but I think my income and credit will help in getting the houses.
I know there has to be way, rather than WAITING???

Any ideas?? Thanks,


Re: Should I wait??? - Posted by Baltimore BirdDog

Posted by Baltimore BirdDog on April 28, 1999 at 10:18:14:


Ah…the Florida Keys. One of my favorite places in the world to visit. I used to live in Miami Beach, so I’m somewhat familiar with your area. Unfortunately, I wasn’t involved in real estate at the time, so I can’t tell you anything about property values. Several from this board probably can though. Sandy(FL) is the first to come to mind. She’s a great person to get to know. I had a brief conversation with her at the Dallas convention in March, and she’s fun and easy to talk to.

Anyway, here’s how I would address your problem…

Based on your post, it seems like you’ve studied Carleton Sheets and his buy, hold and rent strategy. Millie gives you some good advice in this regard. While this is a good strategy, I don’t think it fits your needs, at least for now and here’s why.

You want to be able to relocate as soon as possible. In order to do this, you need to free yourself from your job. In order to free yourself from your job as quickly as possible, I would start to wholesale (flip) properties in Miami (lot closer than Palm Beach; less driving time) to build up a cash reserve. Once you have a reserve of 6-12 months living expenses, you can quit your job and spend all the time you want prospecting up in Palm Beach, whether or not you take a part-time job to help pay the bills once you move there.

The number of months that you save in reserve will depend upon how confident you feel in your money making abilities. With education and encouragement from this site and some true dedication on your part, six months to your first deal is not unrealistic. I wouldn’t go any lower than six months in reserve, and twelve if you really want to be safe. Even if your monthly expenses are $2,000, assuming a conservative profit of $3,000 per flip deal would mean 8 Miami flip deals before you’d have 12 months of reserve (OK, maybe one or two more due to Uncle Sam taking his part, but you get the idea). How long will 8 deals take? If you make 20-25 offers a month as a beginner, you should do at least one a month.

Paul, your success is tied to how well you educate yourself on whatever field of real estate you choose. This site and the courses offered here are a good start. To get yourself educated on flipping properties for wholesale profit, buy Ron LeGrand’s course (either his Wholesale/Retail package offered on his website, or the Fast Cash with Quick-Turn Real Estate offered on this site–both will serve your purpose). Both give you step by step instructions on how to make money wholesaling. LeGrand’s book, Fast Cash with Quick-Turn Real Estate (offered on for less than $20), is good too, but it doesn’t give you all of the details you need to get started.

One word of caution. It might be hard to rent an apartment up in Palm Beach without a job. To get around this, you can get a part-time job. Or you can rent month to month. Or you can find an investor willing to lease-option a house to you. Or you can lease-option a house yourself. Or you can buy a multi-unit and live in one unit. Or you can take over the payments of a motivated seller (buying “subject to” the existing loan; rather than you asssuming the loan, the loan remains in the seller’s name and you make the payments). Or, if all else fails, you can prepay all or part of your rent from the reserves you have saved. In other words, though it’s a concern, you have lots of options.

Again, while I think buy and hold is a great long-term strategy, there are faster ways to build up your bank account. Once you have a decent “war chest” and everything’s rolling, then go looking for multifamily properties to generate a permanent cash flow stream. Read LeGrand’s article “Triple Your Income in the Next Twelve Months.” It should help to give you some direction.

Lots of luck to you. There’s a lot to absorb. Just remember to create a plan of action and focus on sticking to it. Pretty soon, you’ll be wondering why you didn’t start your REI sooner!


Re: You can do it now & keep your job - Posted by Millie I.

Posted by Millie I. on April 27, 1999 at 23:00:00:


If I was in your position, I would keep my job, but go up there during the weekends to look for properties. It’s OK to use a realtor to do the running around for you when you are from out of town and have limited time. You can get good deals through them too. I always do. Just make sure they know what you are looking for.

To get familiar with market values, have the realtor print you a list of ‘Sold Properties’ and ‘Listed properties’ in the area you are interested. Go look at the ‘sold properties’ to see what can really get with your money. Go see the ‘listed properties’ to see what is available on the market. You will learn your market quickly in a short time. Be practical and realistic, don’t be wishful thinking, you have a higher chance of success if you do your best with the cards you are dealt with.

To maximize the use of your investment time, money, and credit, look for multi-units with tenants in them already. Make sure there is sufficient positive cashflow after all monthly costs. The security deposits, taxes and rent credits you receive at closing will help reduce your down payment.
( Review Carlton Sheets video on Multi-units). After you bought the property, decide whether you will go up on weekends to collect rents and service tenants, or turn the property over to a property manager to take care of for you (cashflow must cover more than management expense).

Now you continue to keep your job, raise money for the second multi-unit, keep in touch with the property manager, and drive by your property once a month.

Get serious at being a professional investor, be properly equipped. Select a wholesale telephone company for all your long distance needs. I pay $3.99 a month for service and 9 cents per minute for all calls to any state in USA.

Whenever you have a problem or hurdle keeping you from moving on with your life, don’t just sit there and let the problem put you in a rut, DO SOMETHING TO REMOVE THE PROBLEM, MOVE ON WITH YOUR LIFE !

Good Luck,
Millie I.

Re: Should I wait??? - Posted by phil fernandez

Posted by phil fernandez on April 27, 1999 at 18:24:45:


Let’s see. You have a good income and excellent credit. Interest rates are at an all time low.

What the heck are you waiting for. The rates to go up.

Get out there and make low ball offers. And I mean 50 cents on the dollar. What do you have to lose.

If you get one of them accepted, it would go a long way to solve your long distance phone call problem.

Re: You can do it now & keep your job - Posted by JHyre in Ohio

Posted by JHyre in Ohio on April 28, 1999 at 08:11:40:

Hi Millie!

Enjoy reading re job and investing at once…I’m in that situation. Keep 'em coming!


John Hyre

Re: Should I wait??? - Posted by Paul(FL)

Posted by Paul(FL) on April 27, 1999 at 19:06:08:

I like your logic Phil. But are you saying make low offers, that way I wouldn’t have to do much “hands on” research?
By the way, thanks for your input!!