Build a real estate company in a D area

[JohnD Realestate]

Newburgh.....Brooklyn is game compared to newburgh.

Not a Humvee. kinda looks like a tank on wheels.

180grams of cocaine I forgot how much heroin and a .38 so no Scarface’s but they were def dragging my property down.

I had video of the cops in that hallways with m16s but I gave it to the cops.

 

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[Bigguns50]

Outstanding thread @JohnD Realestate . Thank you for your time. I was in the Hard Money biz for 4 years. All you wrote about, I've pretty much seen here.

I'm in a Detroit suburb and your buildings are basically the same as ones here in the bad areas of the D. There's a LOT of big money pouring into the City an it's been an impressive turnaround.

Still...outside the downtown, there's money to be made.

My Wife and I are heading out to AZ soon and I'm convinced I can successfully flip homes there.

 

[JohnD Realestate]

Closed out the last of the big hard money loan at 12% today.

Sold 3 properties this month. Paid about 1.1 for them and sold them for 1.7 def not fast lane tho.

Reading MFL right now trying to figure how To find the fast lane in my biz. Looking for needs. Listening. Good times.

Nice not to have 12k in mortgages due next week.

I still have 4 properties only one needs work. I’m at 70% occupancy and cash flowing pretty well now after I sold everything.

Still planning to sell the rest.

But I did come up with an idea.

Kind of a buying service for other investors. The guys that bought me out asked me to find them other stuff. Found them a deal today at 10:15am. By 10:30 it was done.

Did all the work over the phone in 15-20 minutes and made 4K....had to pay another guy the other 4K. More to follow on that.

Oh yea that was the Scarface building I sold today. Bought for 664 sold 825. Not a home run but the other deal I sold this months the one I bought for 560k sold for 895k so not a bad month after all. Still not fast lane tho. Working on it.

 

[Bigguns50]

From my experience in the hard money biz, the BIG money is in the lending. Seems you'd be perfect for this.

 

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[JohnD Realestate]

@Bigguns50 I’ve been thinking about it. I like the action of doing deals.

I don’t have much money tho. Coild
I ask how you got into it?

 

[Bigguns50]

Hey @JohnD Realestate ... I was in the biz 4 years before the 'crash'. Not in it now. However, I did learn a LOT. Hard money lending isn't regulated like conventional lending.

The simple version, and you can DM me if you want more details....Start a business, get investors, get borrowers, make a LOT of money. You don't have to use your own money.

You make money on the initial loan fee, point spread (you charge the borrower say 15%, the investor gets 12%, you get 3%), inspection fees, etc. Typically 3yr loans w/balloon payment. Most pay back as soon as they flip the property.

The company I worked for never advertised. Word spreads fast when investors are making money.

 

[JohnD Realestate]

Closed two deals this week. 103 renwick Newburgh NY. Bought for 69k reno 95k and sold for 250k. Not bad but it was a lot of work for that profit.

Did a wholesale deal on 22 renwick. Mentioned it above 4K for me and another guy that found the house.

Almost completely out of Newburgh RE.

Still toying with some ideas on what to do next.

Been thinking about a hair loss product company. Been doing some research.

 

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[JohnD Realestate]

Grateful to be lucky. Good timing as well.

 

[MHP368]

Still toying with some ideas on what to do next.

flipping mobile home parks?

the real estate world in general sort of ignores it because its not seen as "sexy" but, thats sort of your bread and butter. Due dilligence is a bitch though (even a small deal could have you busy 6 to 12 months waiting for inspections and things)

 

[JohnD Realestate]

flipping mobile home parks?

the real estate world in general sort of ignores it because its not seen as "sexy" but, thats sort of your bread and butter. Due dilligence is a bitch though (even a small deal could have you busy 6 to 12 months waiting for inspections and things)

Funny you say that. My old partner in NYC real estate deals approached me with a plan to acquire parks and build a management company with plans to package and sell it. Sounded like a good idea but the travel aspect bc I’m in the suburbs of NYC wasnt for me.

I passed
I have five years left in my pension job. I never planned to finish it bc I planned to be rich....lol. So I’ll be working that five years. Like what I do tho so it’s not painful.

I’ve been helping my wife with her business...the serial entrepreneur now has two brick and mortar stores, a sales agency, a new traveling trade show...and a women’s clothing brand that’s rocketing towards a million in sales it’s first year.
I’m doing the Eccom, social media, web stuff. Interesting to me. New stuff.
she’s an expert in her field, that’s a fun change. Usually I’m taking some garbage and shining it up...now I’m just fixing stuff and making it easier to take orders.

 

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[Kevin.o]

What is your plan with these units/stores ? If you got a good deal on them you can try wholesaling them to investors who buy them and fix them ? I do this here in Arizona and it works pretty well

Hey man I see your a wholesaler, I'm 15 in Massachusetts eager to run and scale a wholesaling operation soon. Any tips for me to get started and become succesful in wholesaling?

 

[WJK]

Hey man I see your a wholesaler, I'm 15 in Massachusetts eager to run and scale a wholesaling operation soon. Any tips for me to get started and become succesful in wholesaling?

Have you thought about learning to walk before you try to run a marathon? RE is a whole world into itself.

 

[Kevin.o]

Have you thought about learning to walk before you try to run a marathon? RE is a whole world into itself.

What do you mean can you give any suggestions?

 

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[WJK]

What do you mean can you give any suggestions?

At 15, you cannot contract. You are barred due to your age. You might want to start with learning about buying, selling, escrowing, fixing, appraising, locating, and making contracts... and that's just to start. Just jumping in is a dangerous leap! You may need an apprentice situation with someone who is doing it. Actually, you need a whole string of different experiences before you try it on your own.

PS. How do I know that? 37 years of experience in the RE business.

 

[Guest-5ty5s4]

At 15, you cannot contract. You are barred due to your age. You might want to start with learning about buying, selling, escrowing, fixing, appraising, locating, and making contracts... and that's just to start. Just jumping in is a dangerous leap! You may need an apprentice situation with someone who is doing it. Actually, you need a whole string of different experiences before you try it on your own.

PS. How do I know that? 37 years of experience in the RE business.

The good news is that since you are 15, you have 3 whole years that you can't even do it yet and you can dedicate all 3 of those years to pure learning and education! That means at 18 you should come out swinging, full steam ahead. @Kevin.o Read some books about buying fixer uppers under value, what makes a good deal, then figure out how to market to sellers and get those deals. And learn about the transaction process.

 

[WJK]

The good news is that since you are 15, you have 3 whole years that you can't even do it yet and you can dedicate all 3 of those years to pure learning and education! That means at 18 you should come out swinging, full steam ahead. @Kevin.o Read some books about buying fixer uppers under value, what makes a good deal, then figure out how to market to sellers and get those deals. And learn about the transaction process.

Are you interested in residential or commercial properties? There are many segments and disciplines in the business.

Yes, read everything that you can. There's a lot of information available. Read until you know what they're going to say next. Then you know that you know the material.

Find someone to follow around and learn what they do. Don't ask for money from them. Work hard and make their life easier. Your labor is how you pay for their time. Oh yes, dragging you around will slow them down.

Talk to people. Ask them for their life stories. How did they get into the business? What was their best deal? What was their worst? If they were to start over again today, what would they do differently? What do they know now that they wish they had known then? That's a jumping-off start. Add to the list and keep asking.

You are starting on a long road. You have a lot to learn. It's much easier to lose rather than make money.

Oh, I fudged my experience by a little bit in my former post. I started as a salesperson in 1976 and that makes 47 years in the RE business. It was before computers and most copy machines. We used typewriters and offset printing. I was a commercial RE appraiser before we were licensed. And I'm a girl -- we only had 7% women in that segment of the business. As I went along, I was doing flips in the Los Angeles ghetto when we still called them "Equity Purchases". The term "flip" hadn't been invented. Before I saved up, I "wholesaled" the deals to my investors. I got a commission for bringing in the deals. Later I kept my deals for myself and flipped them. I started with little houses and moved up to apartment buildings. Then it was small commercial buildings. I've made fortunes and then lost spectacularly. I'm an expert at starting over again and/or living through the downturns. I have learned about different financial cycles and how to play the market for the long haul. And that's been my RE life in a nutshell.

Someone like me will be your competition. We quietly just keep on keeping on. If you were to casually meet me, you'd never know what I do or how I do it. I'm very successful at flying under the radar and maintaining my privacy.

 

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[Kevin.o]

At 15, you cannot contract. You are barred due to your age. You might want to start with learning about buying, selling, escrowing, fixing, appraising, locating, and making contracts... and that's just to start. Just jumping in is a dangerous leap! You may need an apprentice situation with someone who is doing it. Actually, you need a whole string of different experiences before you try it on your own.

PS. How do I know that? 37 years of experience in the RE business.

I dont want to overstep my place as a newbie but I'm sure someone often the 18 can legally sign a contract for me. But besides that thank you for the advice and I'll continue to learn and educate myself on the topic. Also how would I find an apprentice ship with someone who is already doing it?

 

[WJK]

I dont want to overstep my place as a newbie but I'm sure someone often the 18 can legally sign a contract for me. But besides that thank you for the advice and I'll continue to learn and educate myself on the topic. Also how would I find an apprentice ship with someone who is already doing it?

You must hang out in the business. You must be humble and hungry for knowledge. Go to work in the business. Go find someone that is doing something interesting and start asking your questions. Start by educating yourself from books and hands-on experiences.

Here's an example: My little office is located on our highway. When we were constructing that building, we built a classic post and beam cordwood structure. It's unusual. That's a log building where you can see the ends of the logs. We had some people from our community who were interested in that kind of construction. A couple of them came and worked side-by-side with us... for free. We showed them what we were doing and how we were doing it.

I hear you saying, Uh? Why talk about building a log building? You may not wish to build a building, but you do want to build a business. But, RE is based on 2 components -- land and improvements. Improvements are all kinds of buildings. You must understand both. And then there's the business part of it. People occupy those buildings as owners and tenants. RE has very basic elements.

For the business part, start with questions. Who around you is doing that kind of work? How do they find their property prospects? How many prospects does it take to get a face-to-face meeting? How many meetings does it take for you to be able to make an offer? How many offers to get one accepted? And if you do get that offer accepted, who is your buyer? Buyers have a type of deal they will do -- both financial and property type.

 

[WJK]

I dont want to overstep my place as a newbie but I'm sure someone often the 18 can legally sign a contract for me. But besides that thank you for the advice and I'll continue to learn and educate myself on the topic. Also how would I find an apprentice ship with someone who is already doing it?

I thought about you today. We had to go to Anchorage, 4 hours from our home. I had 8 hours on the road to think about many things. I told my husband about our conversation.

I love your goal. I'm not sure if you know what you are trying to do and what is going to take to get there. In my opinion, you are planning on making a kill without knowing what you are hunting, when to hunt, how to hunt, or what to do with it when you find your goal.

If I was in your shoes, I'd work toward getting your salesman license. If your interest is in residential RE, I'd be going to all the open houses you can find on the weekends. That gives you a chance to tour the interiors of the houses and talk to the salesmen sitting on the homes. I would be driving neighborhoods and defining their trends and natures. I would concentrate on listing agents rather than selling agents. (Most agents either concentrate on listing properties for sale or are dealing with buyers.) Then I would ask to be an assistant to one of those agents. When you are licensed, you can become a bird dog. That is a person who goes out and lines up listings and deals for the experienced person. It's a team effort. The bird dog gets a finder's fee and sometimes a portion of the commission. In exchange, he learns to locate the sellers and their properties. Then learns to make the deals and run the escrows.

Answer some of your own questions through hands-on work:
Why do people sell their property?
How do they set the selling price?
Why would a person sell their property for a lower cash deal when they could have fixed it up and sold it for market value?
How do you determine the current and future market value of a particular property?

In my opinion, there is no substitute for learning from an experienced person. Every profession and trade has shortcuts and work secrets. The only way to learn those is by being inside of that world and personally involved. Book learning only goes so far. You must try it for yourself to really understand.

 

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[Kevin.o]

I thought about you today. We had to go to Anchorage, 4 hours from our home. I had 8 hours on the road to think about many things. I told my husband about our conversation.

I love your goal. I'm not sure if you know what you are trying to do and what is going to take to get there. In my opinion, you are planning on making a kill without knowing what you are hunting, when to hunt, how to hunt, or what to do with it when you find your goal.

If I was in your shoes, I'd work toward getting your salesman license. If your interest is in residential RE, I'd be going to all the open houses you can find on the weekends. That gives you a chance to tour the interiors of the houses and talk to the salesmen sitting on the homes. I would be driving neighborhoods and defining their trends and natures. I would concentrate on listing agents rather than selling agents. (Most agents either concentrate on listing properties for sale or are dealing with buyers.) Then I would ask to be an assistant to one of those agents. When you are licensed, you can become a bird dog. That is a person who goes out and lines up listings and deals for the experienced person. It's a team effort. The bird dog gets a finder's fee and sometimes a portion of the commission. In exchange, he learns to locate the sellers and their properties. Then learns to make the deals and run the escrows.

Answer some of your own questions through hands-on work:
Why do people sell their property?
How do they set the selling price?
Why would a person sell their property for a lower cash deal when they could have fixed it up and sold it for market value?
How do you determine the current and future market value of a particular property?

In my opinion, there is no substitute for learning from an experienced person. Every profession and trade has shortcuts and work secrets. The only way to learn those is by being inside of that world and personally involved. Book learning only goes so far. You must try it for yourself to really understand.

Thank you I appreciate the advice will definitely try and learn from more hands on experiences.

 

[WJK]

Thank you I appreciate the advice will definitely try and learn from more hands on experiences.

Dreaming big is a good thing. I had to start a new to-do and goal list over the last couple of years. Over time, things get done and crossed off of those lists. I can't think of much that I want to buy since I'm personally a minimalist. But, in business it is different. I've always wanted to buy whole portfolios of trust deeds and/or loans. That's generally an impossible dream for an individual. Portfolios are built up one deal at a time. And the mark of a good investor is to be fully invested with some "strutting money" set aside to do more deals. I worked for several banks that did those deals and I did the appraisal reviews for them on their piles of files. I have a list of all the heavy hitters for privately held trust deeds in my target area I'm thinking about putting that goal on my list again. It's a long shot, but it might be fun!