Starting Point REI Journal

I am so excited but I feel like I am pulling others along with me. I don't know what steps to take.

I came across a group that has everything you need regarding an advisor team under one umbrella.
bookkeeper, attorney, business coach, marketing
I think this is great and the start of a best foundation.

In this coversation, I did find out that you should not only have the LLC, you should place your LLC under the Corpation. And put your properties under a Property Trust for protection.

Along with this team of Advisors I have decided that I should go through the mentoring program with DG.

Can someone tell me how that worked for them?

Continue to climb for success

It sounds like you know where you want to go, awesome, Im sort of in the same boat as you in terms of structuring an llc and trying to build business credit. If I had the resources now, I would DEFINITELY get a coach, because they will hold your hand every step of the way. When you succeed they succeed.

I just meet with my best friend to dicuss this very topic, I am so confused. I am really wanting to start the Academy with DG but I have ran into a road block with the ready cash. I see this as an obstacle just obstruct my view from my big goal. I am not going to let this stop me.

I think me biggest problem is that I am taking on way too much information, reading this site and other forums not to mention all the books that I have been reading.

My nest problem is that I don't know if I should do this by myself or with partners. I have 3 other young ladies that are interested in doing this with me. I need feedback, what do you guys think, what is the best way to go at REI career?

Erika, you are fortunate if owner financing is a popular way to sell where you are, as that eliminates many of the typical barriers to starting, such as limited cash and not so good credit. Institutional financing can be expensive, so if a seller who is also motivated to let a decent property go for a bargain price will also finance it, you are ahead of the game. The fact that you are earning a reasonable income as a nurse should give a seller more confidence in believing that you will perform.

You mentioned the desire to form an LLC to hold title, and that is a good procedure to protect your assets from a law suit based on the rental property. It is especially good with owner financing, as most institutions don't loan to LLCs on a house, but a seller would probably have no problem, especially if you personally guarantee the loan. And you can better negotiate the terms with a seller than you can an institutional lender.

I don't understand the involvement of a corporation with an LLC, though. Usually a corporation gets involved as the general partner of a limited partnership, which is a good way to achieve anonymity. Or a corporation can own the property, but it is a lot of fuss to go that route. The LLC is the easiest way to protect the assets.

Don't be discouraged if it seems that you are spending too much time reading up on and learning the real estate investing business. It takes a lot of time and repetition to learn the "language" and the processes. If you are getting a better grasp of what is involved in selecting a property (not paying full market price), making an intelligent offer, and completing the sale, it will be easier to make the start. You do have to understand the need for record-keeping, making sure you have the money to pay for insurance and taxes, recognize what sort of repairs are needed to get a good tenant, and what rent the property should bring.

I don't believe you need a battery of experts to begin with, although an attorney may be helpful to keep you out of trouble with contracts. But you do need to have knowledge of the values in the area you are interested in. Remember this guideline: buy in a good area, and select a house in the lower end of the price range. That way the good location will tend to enhance the rental value and the sale value, and the lower/smaller property will keep you from having an over-improvement.

As far as establishing credit is concerned, a credit card or two and some store credit is about all you need (in the name of your LLC or personal name). If you can get owner financing, you don't have to impress an institutional lender just yet. Use your credit cards to prove you always make payments on time, and your credit score will improve and you will be eligible for a better rate. It is best to pay off all the balance every month, but if you can't, make sure you aren't late.

You can get information on forming the LLC by visiting the web site of your state's Secretary of State. Have your spouse as one of the members along with you, pick a name that suits you but isn't already taken, and fill out the application. That's an easy process and not very expensive. Then you'll be on your way to pick a property and do the seller a service by buying it at less than market. It may take a while, but it can happen. Just have faith and keep learning.

cactusbob

Thank you so much for your insight and words of encouragement. I am excited about the number of properties available in my area with owner financing.

Tell me do you know anything about Mobile Home parks, I ran across a good deal last night with owner financing, most of the homes are rehab. I really want to get inside the head of the park owner and get an understanding on what there goals are with the park overall, it needs some rehabbing itself.
I went to the book store last night did not see anything there, and I have not found anything on the sight. Anyone have some wisdom in this area.

Hi, Erika,

I have not personally invested in mobile home parks, but some postings on this site deal with them and with mobile homes as an investment. I know some people who have owned parks, and they can be good investments. There are 2 ways you can go, either own none of the homes and just operate the park, or own some of the homes and rent them out (as you would apartments) and rent the other spaces to owners of the homes.

If you own any of the homes, remember that you would be responsible for the maintenance of the homes. They have a greater maintenance expense than apartments, but owning them can be more profitable. The people I know who did both ended up selling the homes to the tenants and ended up just operating the park, due to the added management hassles.

In evaluating a park that is on the market, you need to be cautious about accepting the seller's projections and operating history. Insist on inspecting their IRS tax return as well as the current income and expense figures. If it cash flows well, and the seller will carry the paper, that's encouraging.

A reminder regarding your mention of using partners, that I missed replying to earlier: Don't put anyone else on the title, but rather handle any partnering arrangement in a separate contract. Either that, or form an LLC with them as part owner (the LLC has protection against loss of assets due to a judgment). Otherwise, if you own as tenants in common (by percentage), any law suit or other misfortune could affect all owners adversely, and you don't need that.

Good luck, and keep this site up to date on your experiences.

cactusbob

Great information, I also posted the question regarding the mobile homes in another one of the forums and got a little information regarding the difference in measurements and the age of the home. I am going to continue my research even if I decide not to go with it, I am gaining knowledge along the way.

Wish my luck.

My head is spinning, today I found out in Oklahoma State you have to be a broker to do property management for others, not for yourself. And that process takes about 3 years. So I rewrote by action plan. (I need feedback)

1) start LLC - under this LLC I am going to run one business with 2 division for starters and a 3rd to come. (Investment, Remodeling for Commercial and Residental Property, and Property Management TBA)

I still have the low capital and low to mod credit issue, but after studing many post on the blog, I pulled my credit report and disputed things I think that should not be there. along with that I have started paying my personal credit cards and my mortgage early, along with paying debt off. I also have checked into a local credit repair agency to see what they have to offer.

I am not going to let my credit and capital situation hold me back, I am studying bird-dogging, and currently reviewing some owner finance projects. I am really wanting a local mentor and to get in to the DG Success Academy. I have found it difficutly finding the extra cash to pay off debit and along with getting in DG Success Academy. But I am not going to give up.

It has been so long since I have posted I must bring you up to date. I have found the answer to my biggest question regarding Property Management...I don't have to obtain my Real Estate Agent Lic/Broker....that is great.

So since I have last posted, I meet with a young lady she is an attorney, she owns a local company that focuses on assisting small business start up and grow. Under the umbrella of her company you get everthing attorney, bookkeeper, accountant, marketing, and coaching. I love it.

So I have contracted with her to develope my 3 businesses; property management, property investment, and real estate remodeling (commercial and residential). It is really weird but I thought I could run all 3 under one umbrella set up like a division or something, but with the legality of it all it is best to set them up seperate. I am a little overwhelmed but I am so excited.

Well it gets even better, last night I attend my "National Assoc. of Women Owned Businesses" and I met a young lady that owns your own mortgage company and she is her own bank (we are having lunch on Friday), along with another young lady that has several of her own properties and she has requested to mentor me along with all you in the DG family.

Well it gets even better, today my husband was contacted by a friend/family memember and they are wanting us to do the rahab on a rental property and then take over the property management. They have another property that the are wanting to sell to us, it is a rehab property in a low income area, but it is going to be owner finance. I think we are off to a really good start.

Good Morning All,

Today is going to be a great and productive day. I have a lunch meeting set up to day with the young lady I meet that owns her on Mortgage Company and is her own bank. I am excited about this matter and hopeful regarding the knowledge I can gain for this meeting, also attending the meeting is the Landlord that I meet that has taking a liking ot me and wants to mentor me, so I asking God to be in the mist and allow me to gain what He would have me to gain from this meeting.

Oh well have a blessed day and I will post the outcome later this weekend.

Still working through the TALD program it is my goal to complete it with great understanding my the end of the month.

Wow it has been so long since I posted....I really don't even know if someone reads my journal but it makes me feel some-what productive.

So for the last week I have been trying to gain a focus and determine where I want to start....I have decided that my current focus is tax lein sales. I am currently contacting every county surrounding my county and finding out the particulars regarding their sale. I also have the newspaper of oklahoma county to start researching properties and contact the owners. I am not sure about how to draft a letter or flyer to assist me in the contact so if someone does read this and can give some insight please fell free.

Moving forward.

I'm sorry I don't have a letter for you, but I wanted you to know that I read your journal... every time you post. I think it's awesome all that you've accomplished so far. Keep your focus and just keep moving ahead. Looking forward to hearing of your first deal.

Rina

Thanks Rina, it is nice to know that I'm not alone out here. I read your post all the time it gives me so much encouragement to keep studying and gaining knowledge. I still feel like I am moving slow but, I also keep reminding myself slow and steady wins the race.

Thanks again.

I am making progress, I know I did it backwards but after reading several post from the DG family I noticed I was going about it all wrong. So I did 2 things, well really 3, I purchased Dean's Book...I got it today. In mean time I started reading abook titled "The Dream Giver" by Bruce Wilkinson...it provides me with a lot of insight about me and my true dream. I sugget that if you have not read it, you should. I also read an ebook by Ely Preston on Wholesaling. It really made me understand alot while I was waiting on Dean's book.

So know I am doing the research on my bandit signs, business cards, 1-800 #. If anyone has some insight on any of these subjects please chime in. I am very confused about the bandit signs...it seems the all say the samething...what do you do to make yourself stand out?

I am currently working on my 90 day action plan. Once I get it all together I will post it so I can get some feedback. Well if I don't post before the Holiday I wish everyone the best Christmas ever.

Can someone recommend a reputable site to obtain information on available properties? There are so many sites out there! I have read Dean's book and I am excited to get started.
I was also wondering if anyone else from CT is a member of this site.
Thanks
Lori

Just wanted to say hello and welcome to the DG family. I am not from CT but you may want to post this in more general information area to get a higher rate of response.

Hi Erika,
I just joined the DG family in December and I am glad I did. My goals were to finish his book "Be A Real Estate Millionaire" and sign up for the mentoring program by the first week in 2009. I did just that. I wanted to start my year off on the right foot knowing that my goal is to buy investment property. Three years ago I started doing this, but it did not pan out for me. However 2009 is going to be different. My abundance is forthcoming. I have been reading a lot of the comments, but yours was most inspiring to me. I know you are a child of God and he is truly blessing you. It looks like you are on your way. I hope that everything worked out for you when you had your meeting back in November with the woman that is a mortgage broker and has her own bank. I just joined the mentoring program and will start on 1/6/09. I am truly excited and can't wait. I have a friend that sells real estate and he has given me loads of properties to look at, however he still has that traditional mentality when it comes to selling and buying houses. I have not told him about Dean Graziosi methods yet due to his skeptism. Once I do my first deal I will let him know just how I did it using Dean's techniques. In the meantime I am going to look at properties and visualize me buying them because that is exactly what is going to happen for me in 2009 and years to come. God bless and take care.

Paulette
Maryland

Hey Welcome and God Bless your future steps.

God is truly moving in 09 for all of us. I am so excited about what is coming for me and my husband when it comes to our REI biz. So many doors have opened in the past months I just can not even believe it myself. But I am very ready and prepared for what is to come.

We are currently reading DG's book and studying this site. We are putting together our action plan for the next 3 months. We have decided to divide the year in quarters and go from there.

I have a desire to join the mentoring program and I am currently waiting on the down payment to be released for us to go forward.

Currently we are working on forming the business structure, ordering our cards, and purchasing our bandit signs. This will all be completed in the next 2 weeks.

I am currently praying for a job change in my daytime job to free up my evening and weekends more to focus on REI.

Well enough for now, will keep you posted.

Paulette you should start a journal so we can keep up with your steps in this business. PM me anytime.

Hey Ericka,

I wasn't going to reply until the end of your journal, but I had to reply to this one. Yes, someone is reading your journal, following the footprints in the sand. I was unfocused as well, scared to take the first step you're a light at the beginning of the tunnel. You are showing me that it rings true that if we will just take one step.......

Have a blessed evening.

Hello Erika,

I too have been reading your posts and I am a Newbie student. Very inspired by your productiveness. WOW! I need to be focused and have a plan of action as well. I have allready set up my LLC with Legal Zoom and have my papers in order. I live in LA County and the foreclosure Industry is Plentiful I just need to take better action and stay focused. I am overwhelmed with looking up properties daily. My next step is to call the agent tomorrow and see if this listing is still active and make a low offer. I chicken out when it comes to asking them I fell like I dont know how to approach these agents. Cheers to you and your courage and faith! All good things will come both our ways Lead by the DG family and God. I have faith that my first deal will come soon, I just want it to be today!

Best Regards,
Lily

Welcome Tracie

Don't get so caught up in the first step, big or small just make it. I got so hung up with what should be the first step. I don't know if it was right or wrong I just started making steps. So go for it and it will all fall in to place. That is one thing I do know. That is why we have to feet one corrects the steps of the other. Cheers to you and your first step. Keep us posted and if you start a journal let me know, I will be watching for your sucesses.

Way to go Lily, you are Progress in Motion...I am so excited about your call to the agent, Please keep me posted. I had a conversation with my agent and silly me did even know exactly what to ask her for, so I will be continueing my coversation on Tuesday. Go for you future...Our eyes are upon you. Welcome to the DG family.

Okay I have a list of things to do tomorrow. I am finally off during the week from my day job and boy do I have a list.

My spouse and I have decided we are going to the Court House and ask questions....I have got to learn how to read the newspaper listings for the tax sale coming up in June. I hear there are maps to purchase to help me understand and locate properties, I will know more tomorrow. Wow I am so excited. Nothing like productivity to get the blood pumping.

I also have a meeting with NAWOB this is my group for Women Business owners, I love this meeting such a networking event. I hope the lady is there that owns the door store, I did not get her card last month. Now I have decided since my business is not formaly opened I am printing out contact cards to pass out.

Now Thursday I have my REI meeting, I am working on my buyers list this week also, so I plan on handing out cards and collecting cards of potential buyers. I want to get a minimum 20 contact names to start my list by the end of this month.

Oh yeah I wanted to clarify the reason I have not formaly started my business is d/t the fact I wanted to start with that company I mention early. Propellor. I am excited about that. I hope I can meet with her tomorrow. (much to do)

I have an action plan for this month, I really wanted to post it now but I think I have said enough for now so I'm going to hold up for now.

God Bless.

I plan to start a journal, however I want to wait. I just started my first session today in the Mentor Program and I want to get into the swing of things.
I currently want to change jobs also and with faith I know that is going to
happen for me hopefully this year. I tried to purchase property three years
ago and the owner decided not to go through with it after six weeks. You talking about being brokenhearted well I was because the positive cash flow from that deal would have been just what I needed. I have made up my mind to give it another try and continue with it this time not matter what. My attitude towards investing is more postive now. I believe that didn't go through because I told others my dreams and when you do that they have a way of speaking negativity into your life. I teach juveniles (14-18) and the system in my opinion does nothing but warehouse the children. I want to invest in real estate to become debt free by 2010 and show the juveniles how to take their monies from their dealings and invest in real estate. A lot of them are looking for a way out to do something positive with their lives. I believe this is one of the reasons God has kept me in this environment because I have tried to leave and it didn't happen. Keep me in prayer that God will allow me to use the real estate information to help my students transform their lives. Take care and God bless.

Very productive day.

5:00 started my day in prayer. Obtaining direction from God on what steps to take next. This is the way to start your day. I love this time.
5:45 first kid up, Log on to site, check emails and respond to text message from night before.
6:45 next kid up, On DG website-gaining knowledge
8:00 in the shower
9:00 out the door, to the County Treasure office. Clerk very help, reviewed newspaper list of Potential Tax Sale Property. OMG I gained so much knowledge.
10:30 on the road, my spouse and I drove around looking at FSBO and boarded up properties. Got a great list to get started
12:00 lunch with my husband that was nice.
6:00 NAWBO This was one of the best meetings I have every been to. We had a speaker that was a small business coach, He just increased my level of motivation. Second appt set up with Mortgage Broker, I am so excited. I also made a contact with a new Real Estate Agent she is open to DG way of life and very interested in learning more.

I am going to start working with a business coach myself to assist me in gaining focus to better myself and my business. I am so excited for what is to come for me.

Well today was a continued step in the direction of my future.

I contacted the Lady/Attorney that I have spoke of on several different post and schedule an appt with her for next Tuesday. We are going to take the steps to finalize our LLC.

Orginaly I had wanted to do 3 different focuses 1)remodel, 2)investment, and 3) property management.

Well d/t the current condition of my spouse, who is the GC of all of our projects we are going to place the Remodel on hold.

I have decided to go forward with the investing (starting with Wholesale/Assignment/Owner Finance) and Property Management.

Also today I attended my 2nd REI club meeting, I have not became an offical memember but I have plan to do that next month. The topic was funding (all types) very informative.

I found a 16 unit apartment complex for sale all with 1/1 apartments. I really want to wholesale this property. I am having hard time to get the owner to return my call. But I will not give up.

I am drowning and I need to be inspired. I know this will work for me and I know that I am the one standing in the way. I created the bad credit no money situation so it is me all me that as brought me to this point.

My motto this year is to be who I said I am.....So I must go forward in my dreams. I ams sitting her looking at my vision board and it shows no vision. What is really wrong with me why I am allowing my dreams to be stolen for no reason what so ever. I have got to get up and get active.

I will keep back on track NOW...not yelling at you yelling at me. Lol Sorry. With our New President we know that big dream come true, it will work for me too I just got to get out of the boat and swim...who knows maybe I too can walk on water. Well you know.

Hello Erica. I happened to see your call for help lol. Don't give up! when you run into a wall find another way around it. The only thing that can stop you is Y.O.U. Try to get a bird dog Assignment done first. Then move on from there. You are not alone. take small steps. I know i will succeed it is just a matter of time. I have seen your posts from time to time. You sound motivated. So keep on digging. DONT GIVE UP. It will happen if you do something each day to make it happen.
Good luck.
Richie.

Hey thanks B.C. I really appreciate your up lifting words. I am on the site now studying and reading everything I can about bird-dogging and Wholesaling. We are also studying DG's book. We are planning to start the Success Acadamey next month. We got to pull that money together no matter what.

Okay I'm posting this here so I know tha I am still in the game and doing something. I am really about to bang my head against the wall trying to figure out the how to's off all this.

My game plan is to do some bird-dogging and assigning. I have my eye on 2 possible 3 investors at my local REI club. I know the interest of one and I am making contact with the other two today. To get some details and to see if they are interested in working with a bird-dogger. (can't see why the would not be) LOL!!!

My help cry is for the 4 closure alert system and the whold process. Okay I am trying to understand what to do next. I have some properties that I am working up, but I feel like I don't know what to do....guess I need to be spoon food, these house are not on the market but the are in pre-foreclosure. What is my step.....some one please help me out.