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Real Estate "A ha" moments for September

Discussion in 'Real Estate Investing' started by yveskleinsky, Sep 28, 2007.

  1. yveskleinsky
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    yveskleinsky Bronze Contributor Speedway Pass

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    My thinking has really been stretched since I've joined this forum and was curious to hear if others have had brain stretching experiences since being here and what they are. ...And what you think you'll do - or maybe won't do because of your new stretched out brain.

    For example, 3 months ago I was focused on SFR as a great (mainly safe and doable) way to get going in REI. Then my thoughts turned to, well why not a duplex. 1 house for $100k good, 2 houses for $150 really good, right? Then I thought, well what about a 4 plex? 4 houses for $300k really, really good right? Now I'm thinking what about 5-7 houses...whihc breaks down to $45-$55k a door. Holy crap! What's crazy is 3 months ago I wouldn't have even looked at anything this size because it seemed too out of my range and too risky. Too risky! I get it now that the more "doors" the less cost per door therefore the less risk. Based on that SFR is the most risky I could get! ...Even though my thinking has expanded it is capped at around $350k. The reason being the downpayment seems unobtainable. I know this thinking is slowlane and needs to change...and it will.

    What "a-ha" moments have you guys had lately that have stretched your thinking to the point where your brain can't snap back to it's original shape?
     
  2. LazyPenguin
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    LazyPenguin New Contributor

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    I know for me that I was on the plan of "getting more hours" at my current job to obtain more money. But I realized, that is the slowlane thinking, and I probably will never go anywhere faster then turtle speed :smx4:

    So what I have decided to do is sell some of my artwork, that will get me started on my way to what I want: storage unit facility

    I thought I would start other places, and start smaller (Im not saying going to 200 unit at the beggining) but I realized that in order to get to my BIG dreams, I need to have BIG steps, like taking those risks that are out of my "comfort zone".
     
  3. iiinvisi0n
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    iiinvisi0n PARKED

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    september was definitely chock full of epiphanies for me and my business partner. We also decided to think bigger. I feel that instead of starting at a duplex or a fourplex, why not start with giant complexes. The money is out there and anyone can get it if they are determined enough, have enough knowledge, and have an exquisite and detailed plan. Also in we were looking for only apartment complexes but now we are aiming for all different types of commercial properties.
    Despite these epiphanies, I still havent narrowed down a good market or submarket yet. Im still looking at sites like city data for more knowledge on what phase these different markets are in. Im admittedly nervous on choosing a market because its an important factor in whether or not our properties will succeed or not.
    The plan for October is to narrow down 5 different markets on the west coast and explore their submarkets and analyze their phases and future. I know that once we finally do a deal(our goal is before the end of this year so we can celebrate my bday in vegas) it will become easier because of the experience.
    :smx7:
    One book that also helped me gain insight in conquering our objectives, is Trump Strategies for Real Estate. Thinking big is truly the only way to win big.
    Im glad there are other people out there who are like minded....it makes me all warm inside=D
     
  4. yveskleinsky
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    yveskleinsky Bronze Contributor Speedway Pass

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    Donald Trump once said, "If you are going to be thinking, you might as well think big." I love that quote as it is so right on. Anything is possible. ...and that is huge. ...So, sure- why not you? Why not now?
     
  5. yveskleinsky
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    yveskleinsky Bronze Contributor Speedway Pass

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    Bump. ...How about how everyone's thinking has expanded so far for October?
     
  6. Bilgefisher
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    Bilgefisher Bronze Contributor Read Millionaire Fastlane

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    October has been interesting. This was the month I have meet with my first RE investor. I'm learning a lot about due diligence at the moment. Its funny though, with that I am still not pleased with my effort so far. I slacked off with my reading and foreclosure research. I have to pick up the pace.
     
  7. reipro
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    reipro Contributor

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    Bilgefisher,

    Just a quick question what action steps are you taking? Doing research is fine, but you can also research to death. If you are looking at possible deals what action have you taken to get those deals acquired. Make sure you do not fall into the trap of research with no action.
     
  8. RAiMA
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    RAiMA New Contributor

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    September was good for me. It was about money management and how to leverage more, while reducing the risk and increasing returns on the stock market :)
     
  9. Bilgefisher
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    Bilgefisher Bronze Contributor Read Millionaire Fastlane

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    Currently I am talking with the potential RE investor that I talked about in the other thread. Two meeting with them so far. The initial meet and greet, and the next one was to look at some deals they have done in the past and get a better feel for what they are doing.

    The research I was talking about is talking to others they have invested with, looking at their past deals and contacting professionals they have worked with. That will take place this week. Also I just had a lengthy conversation with my partner and were trying to decide whether we should attempt to go out on our own or invest with these guys. For 20k, which is what would would invest with them, can we go out and do the same thing with the limited knowledge and experience we have.

    Beyond that, I'm not sure really what else to do.
     
  10. iiinvisi0n
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    iiinvisi0n PARKED

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    October has been full of moments of duality for me. Everyday I gather more information. And everytime my map of the world and money expands a little more.
    Im writing the business plan for my real estate corporation but I recently found out that the city of Folsom California is in need of a smokeshop. A lot of ''smokers'' have to drive over 14 miles to the nearest one. So right now Im lining up some commercial brokers to see what kinds of properties are available.
    There are a lot of well-off people in this area. They have certain habits and have money to spend.
    October is not over yet!
    lol

    quick question for anybody reading this.
    About how much money is required to start an S corp? I need a ballpark figure. One corporate attny said around 3k...another said 10k...
    And if I have a plan with solid financials, is there a way to get this money without investing any of my own?
     
  11. wildambitions
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    wildambitions Bronze Contributor Read Millionaire Fastlane

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    October "a-ha":

    I really do not like spending my money on doodads! I like having doodads but need to push myself to earn more passive income to pay for doodads and not spend my earned income on them.
     
  12. Poudda
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    Poudda New Contributor

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    My big aha moment came while I was doing a cashflow spreadsheet. Our Original plan was to move to our investment location, buy ourselves a house and then use whatever equity we had left over from the sale of our current house to buy more houses. Problem is that buying a house for ourselves first would tie up all of our equity, (we would have to pay cash since we don't have jobs to pay for a mortgage).

    Then I figured. Why buy a new house first?

    We can sell our current home, move, rent for $700 per month, not tie up any of our equity, and buy more than just a couple of houses. Then the cash flow from all of the new houses could pay the mortgage for our own house if we decided to buy later on down the road.

    Crazy, eh?

    Dave



    PS: Thanks for the Rep, SteveO!
     
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  13. Russ H
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    Russ H Gold Contributor Read Millionaire Fastlane Speedway Pass

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    Dave-

    NOW you're thinkin!

    Plus, you may wind up buying a rehab, living in it for 2 years while you fix it up, and then selling it and pocketing up to $500K TAX FREE (check w/your acct if this is still in effect-- Diane Kennedy mentioned this may be changing).

    BTW, I spend months looking for the right rehab. So being in an apt is a perfect way to do this, esp if you don't have a year lease.

    Then again, you may not want to do rehabs. They're not for everyone.

    But that tax free gain is just TOO TEMPTING for me!!! :banana:

    -Russ H.
     
  14. CRBFL
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    CRBFL New Contributor

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    This forum his brought quite a few "A ha" moments moments in the last several weeks. Most of them are things I knew, but did really "know."

    $1,000,000 isn't a lot of money at all.
    Money is just a tool.
    There are only two positions to be in, moving forward or backward. Being stagnant and inactive is the same as moving backwards.
    911 GT3 RS = Material motivation for me. <= Coincedently read a "Fastlane" quote on a Porsche forum last night. Something to the effect of, "Safe diversified risk-less investments don't buy Porsches."

    Chuck
     
  15. LazyPenguin
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    LazyPenguin New Contributor

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    My aha this oct.
    i want to try oktoberfest beer

    scratch that :D

    im selling pictures BUT its not constant cashfow, i need to reinvest the money from those i sell into something that gives me month to month or week to week consistant passive income
     
  16. Poudda
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    Poudda New Contributor

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    Yeehaw... more rep points! Thanks SteveO!
     
  17. JScott
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    JScott Legendary Contributor FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR

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    Another option (depending on your preferences and financial situation) is to buy a multi-unit (duplex, triplex, 4-plex), live in one unit, and use the income from the other units to cover part/all of your mortgage.
     
  18. Poudda
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    Poudda New Contributor

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    Thanks JScott - I'm totally open to that idea as well so long as I can make the opportunity happen - As I have learned, 4 plexes are few and far between in our investment area. I will have to live in the area first before I start looking for the bigger complexes to invest in.

    Cheers!

    Dave
     

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