How To Retire In Your 30's Part 3

Thanks CBR, Looking forward to the details in part 4!

Al

CBR, thanks for Part 3.
I have to say the "jobs" I've had have just been things I love to do that I ended up getting paid for, so they were no burden. But they still got in the way of Real Estate Investing when it came right down to it. I have eliminated one, and have almost phased out the other (I hope to have more time later to strictly volunteer again in these areas). BUT I also know that my husband's job, which has been our bread & butter, is not necessarily a guarantee, nor will his body be able to hold up to the grueling demands of the construction business as we get older. I am glad to know (even if he doesn't believe me yet) that there is hope in the near future of him being ABLE to retire much earlier, with the newfound knowledge I have and the rate at which we are gaining passive income.

All the REI I've done has basically been No Money Down, as well. I think lately I've put a mental roadblock in my mind telling me it's going to get harder (because of things I've read/heard). I know better than to listen to that and, CBR, I look forward to hearing the answers in Part 4. Thanks again for sharing all that you've learned with us. (And I have taken everything you've told me to heart, not lightly. Thank you.)

Rina

P.S. Congrats again on your retirement!

I enjoy always enjoy your post. It gives me an edge to keep pushing forward. I will be on the look out for Pt.4

Wayne

all banks want/need them...so where does your down payment money come from? We always hear no money down, but we also all know that there has to be money down!

So everyone, please list the places you get your down payment from... I'll start.

I finally did my first deal(still waiting on closing)I got my DP money from myself. I was fortunate to have grown up a saver! From watching everyone else around me have nothing, I acted differently than them....I SAVED!

After this deal goes through I will refi and get my DP money back...then do it again, and again...

Thanks for a great Part 3 - and the suspense ending for Part 4 has me crazy
Hazco - with regard to down payments - I too grew up a saver...and since I own my home outright I have a Home Equity Line of Credit I used for my first DP and rehab....paid it all back and have it ready and waiting for my next deal, which I am having a hard time finding believe it or not!
But CBR, I cant wait to hear your great wisdom of how to do MANY deals in a short time! This is my dream...and while I only wish I had found real estate in my 20s or 30s (I'm in the 50 something club)I still believe that this will be my answer to retiring from my 'regular' job. My goal is to be doing RE full time by end of next year!

Like you, I am in the fifties club. However, it is never too late to acquire the millions. Well done CBR, as one will say your Part 3 was user friendly and to the point. It is like reading a good book and hoping that the end will never come. You keep us thirsting for more i.e. knowledge. Addressing the no down payment issue is something that needed to be addressed, more sooner than later. This is the point in time where the answer to the question of where the down payment may arise will be helpful to all of us. There is no need to feel guilty when finances are unavailable. As individuals, at times we are thrown in situations where we have to overextend ourselves. In addresses obstacles and challenges to success mean doing a reality check of ourselves and putting plans into action. CBR has been honest by explaining that at times not having funding is not a hindrance, but rather another way of "taking the bull by its horns", that of still doing the deal, even if it means reassigning. Great posting CBR, anxiously awaiting Part 4.

Sandra

Congratulation on your retirement CBR! Thanks for the great post and i wish you all the best. You have inspired me to go after my dreams and so far i've purchased 4 properties in the last six months. I know that's nothing to you in terms of properties, but i think it's a great start. I'm setting goals to get 10 in 2009. Once again, congratulation and enjoy your retirement!

Lloyd

4 properties is fantastic! Do you rent them out, or did you 'flip' them?

Thanks Laura! They are all rented out. I'm going to hold on them for a while until the RE market recovers. The mean time, i'm getting cash flows on all of them.

Looking forward to Part 4. Although i've managed to get one property on 95% financing, but i'm looking forward to part 4 and how Matt is making $$ without any $$ down.

Lloyd

Are your mortgages financed as owner oc or investment properties. If owner oc can you mention how you were able to do that?

Well CBR, I can't figure out if I love ya or hate ya (LOL--probably just somewhat envious of your success and confidence although I can be happy for other's victories--Congrats!). I definitely admire you and very much appreciate your willingness to share your wisdom! I will be watching for part 4. Maybe it will be the answer I need to help me confirm that I ought not even be thinking about accepting full-time employment with one of my other jobs and should absolutely focus on real estate. There is the battle in my mind that says a full-time job sure would make it easier to get loans and give me more of a cushion to work with but I also know having something else to fall back can prevent success. I'd be interested to know how long and how many deals you had to do to replace your income.

HAZCO..As far as answer to down payments I have (in the past) used equity from one property for down payment on the new and like everyone else who has replied, been one who saves. My latest deal will be funded almost entirely by a family member. My mom got me into this business years ago so she knows it works and completely trusts me.

I am sure that CBR would confirm that once you have established credibility, other want in.

I purchased them both as owner occupancy and investment properties. The first house i've purchased in May 1, 2008 was an owner occupancy. It needed some work of which i moved in as the repairs were being done. While i was staying there, i've purchase others homes as rental properties. The seller was an out of towner and wanted to get rid of the property. I made an offer which was 20% less then the FMV. This particular property has renters living there for about twenty years. I did not have to do any advertising as they were already living there. It's an older couple, and they were happy with everything given that they had lived there for almost twenty years. They did not want me to do any upgrade on the house and they were just as happy with everything as is. This particular property has cash flow over $200.00. The other property i just purchased last month, i just moved in, i bought for 30k less then the appraised value, (apprasided at 140k and bought it at 110k) and the bank has financed for 95 percent. The the first property i purchased in May has turned into another rental property with $185.00 cash flow. I have another property in Utah is also being rented out and has over 60k equity. This particular property does not have a cash flow as the renters are paying $1,725.00 per month, but they are building more equity for me. I have two more properties i purchased in tax sales of which i just paid taxes for 2008 yesterday, and it's just a matter of time before i turn them into rental properties as well, and another deal in place hopefully i get to close on it by the end of the week before i take a much needed trip for a month back to the island. I hope this help and feel free to pm me if you have any further questions!

Lloyd

Hi Lloyd,

My question is how do I find tax sale properties?

Thank you!

Prub

ok Matt, we've read 'How to Retire in your 30's Part 1', Part 2, and Part 3...
are you going to post Part 4??

I'm sure everyone here would love to read it if you post it...

Learning and progressing every day,
Valerie

where is part four hello MATT

up up

as well. Hope that it is still coming as this was several years ago. Bump!

"Here is the problem that everyone faces. Most people can't buy real estate right now because the banks are asking for a down payment. That is a fact. Even my bank won't allow me to do a deal without a down payment! So the question that most people are asking right now is this: How am I going to do 10-12 real esate deals in the next 12-18 months when I can't even come up with the money to do my first one?! That is a great question and I will answer it in detail in Part 4!"

This answer should be EASY for most of you that have been here a while and have read and studied REI

or did I miss it?

3 months later......and waiting