OfflineMy son and I decided to partner after I told him about the Rock Bottom program I purchased last week. I welcomed his enthusiasm! While Hubby is supportive, he is much too realistic to be enthusiastic about just about anything-- except fishing. So here we go.
I am a business owner, so I don't have a lot of extra time (who does??), and I am burnt out. Medical insurance billing has always been a challenge, but with the economy as it is, the insurance companies are making it much harder to get reimbursement, and that reimbursement is lower. So, more work for less money and I'm tired of not having anything left over for our family after I pay the vendors and employees. I am very ready for a change in career and a change in income.
I listened three times to the training videos about building your team, took detailed notes, and decided to call two real estate agents I know. The vid said I would encounter two kinds of realtors, 1) oh no, you need to buy and hold, or just wait in this economy; and 2) oh sure, I do that all the time, in fact I'm investing myself. Here is how yesterday's conversations went.
Realtor #1 was not answering her phone, so I left her a message.
Realtor #2--Oh hi, Kelli! How are you? Oh yes, I work with investors all the time. In fact, I'm investing myself. [It ended up being a very positive phone call, read more below.]
Realtor #2 calls me right back--Hi, Kelli. What can I do for you? Yes, I've worked with all kinds of realtors. I've made a lot of investors millionaires, but not in this economy. I'm telling everyone to hold off, it's not the right time to invest. We're in unprecedented territory, with a huge inventory and the banks don't care. If you're interested in RE, you should go to a company and ask to do some secretarial work for them so you can learn the ropes.
So Judy was it. She was skeptical at first--why do you want to go into RE investing? What about your career as an insurance biller? Are you with some kind of program? It's not easy, you know, you have to know what you're doing. After making sure I wasn't being scammed, she opened right up and took on the "mother role".
"Well, you have to have specs, you know."
"Yes, I've got some specs for you."
"You do? OK, let's hear them."
"I'm looking for three things. 1) As is, 2) vacant and 3) price reduction." (Thank goodness for my notes!)
"That sounds good. And next you have to decide what area you want to invest."
"Well, I've thought of that, too. I want to stay in my backyard first. Let's just stick to ZIP code 98---."
"OK then. Have you thought about a price range?"
"Yes, I'm looking for starter homes."
After that bit of screening, she decided to take me more seriously and we ended up having a very good conversation. I will be getting my list of houses by tonight and she is excited to work with me-!
After these back-to-back phone calls, I was in awe. Two phone calls, both of them nearly word for word as the training video taught. Wow. After that experience, I'm ready to make phone calls to investors.
Jonathan went to the library to see if they have Dean's books (they don't) and then to the stationary store to buy board for bandit signs. The plastic sheets were $5/board, so he'll try another store today (I guess Washington is a little more expensive than Mississippi). He also spent several hours yesterday scouring Craigslist, the local newspaper and other For Rent websites. He has compiled a list of phone numbers which I will be calling today to start building our Buyers List. You may be wondering why he doesn't call himself. Well, he's 16 years old and feels like he needs to watch me do it first before he starts making phone calls to potential investors. And I agree with him.
Our first goal is to have our first deal done this month (August) so we can help big brother and big sister with college tuition (due September).
So I checked Google Voice and it WASN'T working. Reset it, verified it, checked and double checked--it should be working now. I know we've missed two calls, I wonder how many more.....
Go to www.signwarehouse.com
50 yellow corrugated bandit signs - SS-CP2418YL-50
50 wire stakes - SS-END-STAKE
Get the phone number from the website and call them to order- if you ask nicely they will give you free shipping! (saves alot)
Now, put at least 18 in your target area, by slow moving, high traffic intersections, across from McDonalds drive-through, Walmart, etc.
Some ask homeowners if they can put a sign in their yard and pay a small fee if they get a deal from that sign.
Blessings & Favor,
Gena.
Follow my Blog: www.genahoriatis.com
I can do all things through Christ who strengthens me. Phil 4:13
Psalm 1:1-3
Thanks, Gena! Signware House is closed for the long weekend, so I'll call them next week and place an order.
Not one phone call today. Hm, wonder what I'm doing wrong... We drove by the signs, and they might be a little hard to read. I think I'll take them down tomorrow and make the lettering a little bolder.
Sometimes people have to drive by several times and see the signs in multiple places before they call. Don't get discouraged.
Blessings & Favor,
Gena.
Follow my Blog: www.genahoriatis.com
I can do all things through Christ who strengthens me. Phil 4:13
Psalm 1:1-3
Got a phone call from someone who saw the bandit signs. She left a message, I called her back and left a message. I'll call her again tomorrow morning.
I also posted an add on Craigslist and got three responses. Two want to see pictures, one wants to lease to own. I'll contact these people tomorrow, too.
So we got two phone calls on the bandit signs--not bad for the first run. One has not called me back, and the other is looking for a lease-to-own home under 100K.
We got three responses on the Craigslist ad, one responded to my return email with "That's what I thought", one is looking for a lease-to-own home and the other has not responded to my email.
Two lease-to-owns.....hm. Maybe I should look into that option a bit.
Jonathan and I attended the Puget Sound (Seattle and Tacoma area) REI orientation meeting on Saturday. It was a 90 minute drive up there, but it was worth it. I guess Washington state has some peculiarities and is not as investor-friendly as other states. "Oppressive" was the word the presenter used, but they're working with the politicians to relax some of the laws. We handed out three business cards and collected three business cards--the next step is to join the association. Their next monthly meeting is September 22.
So now I have attended a couple of local REI meetings and am feeling better about how best to move forward. But there is this "interference" of my other job. It's more than just a j.o.b., it's my business, my company. In order to have more time for REI, I have started delegating many of the tasks I normally do. And then I remember that it takes longer to train someone to do a task than it does to do the task myself. So I have been busy training others and making several changes, and by the end of November business should be smooth enough for me to step back. I am looking forward to having more time for REI! (and getting over this nasty cold that has hung on for two weeks now...)
Kelli, I have been reading you blog and it looks like you are still plugging away. Keep up the good work and just keep learning. I am a newbie and I am working towards my first deal too. I see we have more than REI in common.
www.tw4homes.com website
https://tvallc.isrefer.com/go/RehabLite/reigirl/ FREE SOFTWARE FOR WHOLESALERS, REHABBERS AND AGENTS! Present professional looking deals to buyers and lenders as well as run your numbers and get the ROI.
Ah, a sister CEO! Thank you for the encouragement. Slow and steady will win this race.
and that is the commonality of our last names being Japanese.
www.tw4homes.com website
https://tvallc.isrefer.com/go/RehabLite/reigirl/ FREE SOFTWARE FOR WHOLESALERS, REHABBERS AND AGENTS! Present professional looking deals to buyers and lenders as well as run your numbers and get the ROI.
I didn't see your last name on the post, but did when I went to your profile. Yoroshiku o-negai shimasu! Plus we both like gardening, and my sons play Taiko professionaly here in Seattle. Small world.
I took my mom and step-dad to the local REI meeting and we all learned a lot. The presenter was offering a full day of training, so I signed up on the spot!
I took a local DG-er, Gena, out to lunch and she offered much advice and direction. Thank you!
A DG-er in Texas, Hector, attempted to work with my friend who is walking away from her house. Her husband was not interested in what Hector had to offer, but I learned a lot by just being on that phone call. Thank you!
On Craigslist, I noticed several ads for mobile homes. Hmmmm...wasn't there something about MHs on the Edge CDs? Yes, Dawn Erling presented. I listened to her presentation twice more, then emailed her with a few questions. Guess what? She emailed me back the very next day with the answers. Thank you!
So, I go and talk to the manager of the mobile home park about a mile from my house. He has only been manager for six months and is trying to turn the park around after a couple of "do nothing" managers let the park's quality slide. It's still a nice family park, just not as nice as it used to be. He talked to the owner and they would love to have me fix up and resell a couple of MHs that need work. There are also six vacant lots that need MHs on them, so they asked me if I would be interested in filling that need, too. Mr. Manager showed me one MH that only needed cosmetic fixes and is an estate sale. The three brothers apparently reeeaaalllly want to sell this home. I will make an offer tomorrow and hope for the best until I can see the other two (he didn't have the keys to those homes).
Progress!
The Owner of the mobile home park requested a contract before I make any offers. He wants to be sure I don't move any homes out of the park, and he wants to make sure I pay the lot rental fee while the home is in rehab. I thought that was fair, so we bounced a few contracts around today and should have one to sign tomorrow.
I also called Hubby-san's previous employer to ask about rolling that 401K into a self-directed IRA. The local agent I got transferred to told me that using an IRA for RE investing is very expensive and he didn't recommend it for anything but long-term investing. So I emailed Gena who put me in contact with Mountain West IRA. Their website is VERY informative and I ended up spending quite a bit of time just reading to educate myself. I did call and spoke with Josh and he was very helpful, and no, it won't cost an arm and a leg to do this. That was a relief!
And...the MH park owner let me know that he has several other parks that he would like me to work with him on if this project is successful. I sure want this to be successful!
~Kelli
Thanks for posting how your conversations went with the RE agents you spoke with. I think we all know how solid the RBB is but sometimes it takes some reinforcement from our peers to reassure us that this really does work. I'm sure many here (including myself) appreciate it!
I love that you got in touch with Dawn Earling - she's a real expert and a great teacher. Push on woman!
Blessings & Favor,
Gena.
Follow my Blog: www.genahoriatis.com
I can do all things through Christ who strengthens me. Phil 4:13
Psalm 1:1-3
I heard back from the MH Park owner this morning. He sent yet another version of an Agreement. He inserted the need for a business license (understandably) and liability insurance before I can invest in his park. I guess I'm going to have to create an LLC a little earlier than I had planned, but I wasn't planning on obtaining liability insurance.
Do any of you carry liability insurance? Thoughts?
There is a double-wide mobile for sale in the park above, asking price $30,000 (owned free and clear). It needs new carpet, interior paint and a new skirt, otherwise in good condition. The owner is now in assisted living and her three sons are anxious to sell. We've gone back and forth a bit, and my verbal offer of $15,000 was verbally accepted this morning (nothing has been signed yet).
BUT, the park manager (also a RE agent) told me that I can't get in to fix the home until after closing. Obviously, this creates a problem. How do I proceed??
Apologies for the above moment of panic. I think I've answered my own question: It's all in the paperwork. I reviewed a Contract of Sale that I found on this site (I think it's Carol's) and the wording is right there. So I just need to make sure that when we do sign papers, that paragraph is in there and all parties know what is going on. I thought I was making my intentions clear with the park manager, so his statement of "you can't start fixing it until after closing" caught me a little off guard.
I have so much to learn.......
The contract has gone back and forth twice now and the seller refuses to let me in the home, clean/fix the home, advertise the home, list the home or do ANYthing to this vacant home until after closing. This is not going to work, so I'm letting this one pass.
Another person has learned that the seller accepted $15,000 so they are buying the home (cash), then carring the contract for a family moving in. That will bring in a nice monthly cash flow for them--glad someone was able to benefit from all this "back and forth".
Another learning experience. I will be glad when all this learning becomes actuality.....
I met with the Mobile Home Park owner and his wife this morning. Nice people. He is glad to have us invest in his park and offered any assistance he could give. We signed the contract and were done.
I'm going to concentrate on Christmas for now (haven't done any shopping yet) and restart real estate in January.
Merry Christmas, Happy Chanukah and Joyous Winter Solstice everyone!