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After much internal conflict I have come to the conclusion that I need to stay where I started. MJ was right about monogamy. If I’m going to be successful I need to stay faithful.
Six months ago I started a business with a partner. We decided to get into real estate knowing absolutely nothing about it.
Neither of us had stellar credit (we pay all of our bills on time, but allowed ourselves to get over extended on credit in a typical slow lane way) and neither of us had any money to spare. So I had to find a way for us to get into real estate with no money and no credit. Talk about tough!
Anyway, after much research I learned about various owner-financing strategies. Specifically I learned how to negotiate lease option deals that allowed me to sublet with option to buy and closed contingent upon me finding a sublet-er.
I decided that we should target FSBO’s and owners who were renting their homes out. My reasoning for rentals was that if you rent it’s only because you 1) are keeping it for long term or 2) couldn’t sell it. If you couldn’t sell it, this seemed like a perfect value added opportunity.
We would landlord it, pay the mortgage and try to sell it, without any cost to the seller.
We would put a buyer in the home for a lease option fee (making sure he qualified through a mortgage broker) and make his lease no more than 1/3 of the time our lease was for, optimizing the chance of selling it.
My partner was to be the deal maker as I am way too introverted to be able to make cold calls to sellers. I create the system, take care of the back end, do all the marketing, write the contracts, get sublet-ers into the home, he just calls sellers.
The problem is that my partner isn’t very motivated. He swears he has made calls and tried, but he hasn’t been able to get one deal. On top of that, I don’t think he completely understands what we’re doing. To aggravate matters, he’s my brother (I know, never mix business with family).
The three homes our company has acquired have all been because I bought, sold and landlord them. The work-to-profit ratio on this type of system is extremely work heavy. Cold calling sellers is excruciatingly nerve wracking for me. It takes me half the day to work up the nerve to call ten.
So I was looking for a way to get to business success elsewhere.
I have changed my mind. Starting a business is all about pushing through your comfort zone. So, I have made a business plan “sketchâ€:
1. Learn everything I can about real estate investing
2. Get to know real estate investors in my local area
3. Get all of my debts paid off and make my credit an asset
4. Work my a$$ off at being successful with lease options
5. Leverage that success and my credit for private money (i.e. “pull the money inâ€)
I know many of you have been doing this for a long time. I'm extremely thick skinned and would love for you to poke holes in this, point me the right way if I'm off track or maybe ask me questions I'm to green to have even thought of. Thanks for taking the time to read this.
Six months ago I started a business with a partner. We decided to get into real estate knowing absolutely nothing about it.
Neither of us had stellar credit (we pay all of our bills on time, but allowed ourselves to get over extended on credit in a typical slow lane way) and neither of us had any money to spare. So I had to find a way for us to get into real estate with no money and no credit. Talk about tough!
Anyway, after much research I learned about various owner-financing strategies. Specifically I learned how to negotiate lease option deals that allowed me to sublet with option to buy and closed contingent upon me finding a sublet-er.
I decided that we should target FSBO’s and owners who were renting their homes out. My reasoning for rentals was that if you rent it’s only because you 1) are keeping it for long term or 2) couldn’t sell it. If you couldn’t sell it, this seemed like a perfect value added opportunity.
We would landlord it, pay the mortgage and try to sell it, without any cost to the seller.
We would put a buyer in the home for a lease option fee (making sure he qualified through a mortgage broker) and make his lease no more than 1/3 of the time our lease was for, optimizing the chance of selling it.
My partner was to be the deal maker as I am way too introverted to be able to make cold calls to sellers. I create the system, take care of the back end, do all the marketing, write the contracts, get sublet-ers into the home, he just calls sellers.
The problem is that my partner isn’t very motivated. He swears he has made calls and tried, but he hasn’t been able to get one deal. On top of that, I don’t think he completely understands what we’re doing. To aggravate matters, he’s my brother (I know, never mix business with family).
The three homes our company has acquired have all been because I bought, sold and landlord them. The work-to-profit ratio on this type of system is extremely work heavy. Cold calling sellers is excruciatingly nerve wracking for me. It takes me half the day to work up the nerve to call ten.
So I was looking for a way to get to business success elsewhere.
I have changed my mind. Starting a business is all about pushing through your comfort zone. So, I have made a business plan “sketchâ€:
1. Learn everything I can about real estate investing
2. Get to know real estate investors in my local area
3. Get all of my debts paid off and make my credit an asset
4. Work my a$$ off at being successful with lease options
5. Leverage that success and my credit for private money (i.e. “pull the money inâ€)
I know many of you have been doing this for a long time. I'm extremely thick skinned and would love for you to poke holes in this, point me the right way if I'm off track or maybe ask me questions I'm to green to have even thought of. Thanks for taking the time to read this.
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