Posted by Wayne-NC on October 19, 2004 at 15:28:08:
Go talk to a life and health insurance broker first. You may not get coverage until you are on medicare. There are guaranteed issue policies but they are exceedingly expensive for obvious reasons. It is hard to insure a house for damage that is already done.
Who Has Taken the Full-Time Plunge? - Posted by Marcus
Posted by Marcus on October 19, 2004 at 09:57:31:
Just curious if some folks could briefly share what it was like when they took the FT plunge into this business? I’ve done 4 deals during my first 6 months in this business, and am totally hooked. My partner and I are about to raise about $1M in private capital to buy houses, and this business is about to go to another level. Just curious if a couple folks could share their experiences in taking the plunge… I’m at work right now, just like everyday, and my head is not in this game… it’s in the real estate arena.
Thanks,
Marcus Lackey
Re: Who Has Taken the Full-Time Plunge? - Posted by rm
Posted by rm on October 20, 2004 at 14:05:05:
While you do have plans to use private funds, it IS nice to be ABLE to borrow from banks and mortgage companies, when necessary.
Be sure that you get any LOC’s, HELOC’s, etc. BEFORE you quit.
Also, look at delegating some of the stuff you don’t need to be doing.
Check out disability insurance rates, because you’re on your own, pal!
I would say that one of the most dangerous things in this business is too have a lot of easy successes in the beginning. When I “took the plunge,” my business went about half as well as I’d expected. Looking back, I’m glad it did… as I didn’t know that I didn’t know what I needed to know. Had things gone according to “plan,” it could have ended badly.
It’s very easy to get overextended by making too many acquisitions too fast. Be sure you have sufficient RESERVES so you can sleep well at night while you’re juggling multiple acquisitions, multiple rehabs, and the houses you were sure would sell quickly, don’t.
My last suggestion to you is to automatically take a set percentage out of each and every deal for yourself- NOT to be re-invested into the business.
Re: Who Has Taken the Full-Time Plunge? - Posted by Brian W(IL)
Posted by Brian W(IL) on October 19, 2004 at 17:53:07:
Marcus, congratulations on your recent success. I just have a few questions for you. You mentioned that you have only done 4 deals and you are already putting together a plan to have $1M in private funds available to you, my questions are: How did you fund your first 4 deals? Did you have to come out of pocket with any of your own funds for these deals?, and how were you able to put together a plan to receive the $1M private funds to purchase more deals. Thanks
Re: Who Has Taken the Full-Time Plunge? - Posted by jasonrei
Posted by jasonrei on October 19, 2004 at 15:02:23:
I quit my full-time job to go into real estate MORE than full-time. I did rehabs, so I wasn’t dependent on rental income, and I had a cash reserve.
I was also single, no dependents, and no real debt to speak of. That made the transition much easier.
Re: Who Has Taken the Full-Time Plunge? - Posted by chandra
Posted by chandra on October 19, 2004 at 11:26:47:
I have plunged in FT.
Here’s is what I suggest…before your feet are
planted strongly to the ground don’t plunge.
I mean keep working at your company until you
feel like your income from the RE side is
stronger and more consistent than your
job. Having some rentals can help you with the
consistency.
You need to take into account that if you are
self-employed you have to get your own health
insurance and it’s not cheap to get it your own.
I have fellow investor friends who purposely keep
their job just for the health insurance benefit.
However, this is certainly your choice.
Good Luck!
Re: Who Has Taken the Full-Time Plunge? - Posted by Marcus
Posted by Marcus on October 19, 2004 at 19:26:07:
Also, the basis for our private investor campaign is Alan Cowgill’s turnkey system.
Re: Who Has Taken the Full-Time Plunge? - Posted by Marcus
Posted by Marcus on October 19, 2004 at 19:21:28:
The first 4 were mostly wholesales. I did do a total rehab job on my personal condo, but that’s not one of the 4 deals. For the private money, I have partnered up with an experienced investor that’s done over 75 deals and we’re having a seminar this Saturday to raise private capital from folks (IRA, savings, etc). We’ve got about 35 folks coming out and we’ve tried to screen relatively well for people with at least $10K min. Even if we get 10 serious folks, that money could add up quick. It’s amazing how people with money come out of the woodwork when you offer a solid return and are doing the deals to support it.
Re: Who Has Taken the Full-Time Plunge? - Posted by Eric
Posted by Eric on October 19, 2004 at 13:14:27:
Chandra-
Do you have any good sources for affordable coverage? I have health problems and am SURE that I will not be able to get any type of “normal” coverage. Is there anything that just covers major catastrophe?s? I am no where near going full time but I know I will eventually and this aspect is srating to scare me.
Any info would help.
Thanks,
Eric
Re: Who Has Taken the Full-Time Plunge? - Posted by rehabber
Posted by rehabber on October 20, 2004 at 13:03:41:
Yes- listen to Ken-SC.
Polling funds requires a securities license in most
states. Stiff fines if you don’t gete one.
See story about a PA Real Estate investor/rehabber
that got investors to give him money and ran afoul
of the securities laws:
http://www.thepittsburghchannel.com/team4/1251359/detail.html
Some execerpts:
When consumers invest in East Haven Group, Inc., they are investing in a brand new company that buys up old, run-down houses, fixes them up and sells them for a profit.
That might sound like a good idea, but the problem is East Haven doesn’t have permission to sell investments.
…Team 4 discovered that six weeks ago, the Pennsylvania Securities Commission issued a cease and desist order against East Haven for selling unregistered securities.
Scott Lane, of the securities commission: “The order is clear to stop all offers and sales of that investment product.”
The securities commission also ordered East Haven to take down its billboards and shut down the company Web site…
pooling funds - Posted by ken in sc
Posted by ken in sc on October 20, 2004 at 06:59:35:
Be careful! Pooling funds may require a securities license. One investor loaning all the money is fine, but when you pool investor funds together their are rules. Get profesional advice.
Ken
Re: Who Has Taken the Full-Time Plunge? - Posted by rm
Posted by rm on October 20, 2004 at 13:51:58:
Your local Chamber of Commerce may have access to a group-type plan.
Be sure to check into Health Savings Accounts, and you may want to do a C corp. if your medical costs are going to be high.
Re: Who Has Taken the Full-Time Plunge? - Posted by Hunter
Posted by Hunter on October 19, 2004 at 21:50:48:
Eric,
Talk to an insurance agent and see if your state has a HIRSP (Health Insurance Risk Sharing Pool) plan. In Wisconsin the state has legislated that if companies want to sell insurance in this state they must participate in this pool that insures all the people that the insurance companies won’t cover. It has been a few years since my wife was on that plan but it wasn’t really too expensive at the time. Good luck.
Re: Who Has Taken the Full-Time Plunge? - Posted by Sharif
Posted by Sharif on October 19, 2004 at 14:01:56:
Dear Friend. I’m sure I don’t know the extent of your health problems. But many problems afflicting the health of Americans today can be changed with turning around their lifestyle including diet.
Are your health problems caused by smoking? How about too many sweets? Red meat? Have you tried a diet based heavily on fruits, vegetables, and protein? Do you exercise regularly? How about meditation and yoga to ease the spirit.
The point I’m trying to make is that too often we rely heavily on drugs to cure our health issues without giving our bodies the tools (i.e. healthy food) it needs to do what it’s natrally design to do: heal thyself.
Re: Who Has Taken the Full-Time Plunge? - Posted by chandra
Posted by chandra on October 19, 2004 at 13:41:40:
Dear friend,
Unfortunately not. My wife is still keeping her job,
so our family got coverage from her company. I’m sorry.
Re: Who Has Taken the Full-Time Plunge? - Posted by Jason-Il
Posted by Jason-Il on October 19, 2004 at 14:52:29:
Try the Atkins diet! Your cholesterol and blood pressure will drop to very healthy levels.
I agree with you. We are a country comprised of drug addicts. We have drugs for balding, toe fungus, penil enhancement, depression, quit smoking, weight loss.
What a mess!
Re: Who Has Taken the Full-Time Plunge? - Posted by Eric
Posted by Eric on October 19, 2004 at 14:52:14:
Sharif-
Thanks for the advice. Unfortunatly I don;t fit that profile. I’m pretty dang healthy. 5’10’', 155 lbs. Excercise 3 times a week with cardio and weights…somtetimes only twice a week…lol.
I was born premature and had open heart surgery. Slight hypertension due to that. I also received Hep-C from the blood transfusions…I guess they didn’t screen for that stuff back in 1980 
I think I’m screwed…and I’m pretty bitter about it. I am happy that I am alive because by all means I should not be but I really don;t know what I am going to do when it becomes possible for me to go fulltime.
-Eric
Re: Who Has Taken the Full-Time Plunge? - Posted by Marcus
Posted by Marcus on October 19, 2004 at 19:22:53:
Wow… we covered alot of ground from my original question eh? 