Dallas-Fort Worth Real Estate Investor Club

Newbie Success and Struggles

  • 04 Dec 2017 3:31 PM
    Quote
    Message # 5612745
    Yolanda Columbus

    Howdy ladies and gents,

    I am a new Real Estate Investor.  I attended my first meeting in August 2017.  From attending the meetings each Saturday, I know there are lots of other newbies out there.  Some of us struggle with analysis-paralysis, others with shiny object syndrome, some of us are slowly building, and others are knocking it out the park.  I want to hear your story.

    Perhaps in sharing, we can find a solution or a new connection.  So, please reply and answer these questions

    • How long have you been a REI?
    • What is or was your biggest fear about the first deal?
    • If you have had a first deal, what was it?

    Yolanda
    Last modified: 04 Dec 2017 3:31 PM | Yolanda Columbus
  • 04 Dec 2017 3:47 PM
    Quote
    Reply # 5612760 on 5612745
    Yolanda Columbus

    So, here's my story.

    I attended my first REI meeting in August 2017.  After not being chosen for a promotion, my sister encouraged me to find my niche in real estate investing so I attended another club's meeting.  I joined but once I found DFW REI Club I did not return.

    My biggest fear about my first deal was putting my family in jeopardy.  I am the primary income for our family of four (hubby and 2 kids).  What if I misunderstood the numbers?  What if I committed to too much?  What if I misunderstood the market, the concept, the other party...ugh?  At the same time, I was also afraid of analysis-paralysis.  What if I ran numbers for 18 months without a deal?  What if I got tired of trying and this was the answer to my financial freedom?

    I signed the contract for my first deal on October 31st.  My niche is sandwich leases.  I then rent the properties out on a short term basis which means I have to outfit the single family homes.  My first guests arrived during Thanksgiving.  Some of my fears came true.  I did misunderstand, miscalculate, forget some of the numbers, etc.  but....my snowball is still started and moving.  

    Yolanda

    Nest Eggs Equity Properties, LLC

    682-237-9891
  • 04 Dec 2017 9:20 PM
    Quote
    Reply # 5613160 on 5612745
    Robin Carriger (Administrator)

    Hey Yolanda,

    Congrats on your first deal!  So... what about the numbers did you miscalculate?

    Thanks,

    Robin
  • 05 Dec 2017 7:47 AM
    Quote
    Reply # 5613570 on 5612745
    Scott Robinson

    Congratulations on pulling the trigger, Yolanda.  That seems to be my issue right now.  I have been writing yellow letters since 2015 and have 1 wholesale deal done with 1 pending and 1 contract waiting to be signed (its been a slow process so far).  I am in this to create passive income through owner financing.  My biggest fear right now is a combination that I miss an opportunity and I that I over extended myself.


    Best of luck!

    Scott Robinson

    972-863-2083
  • 06 Dec 2017 9:11 AM
    Quote
    Reply # 5615121 on 5613160
    Yolanda Columbus
    Robin Carriger wrote:

    Hey Yolanda,

    Congrats on your first deal!  So... what about the numbers did you miscalculate?

    Thanks,

    Robin

    My miscalculations were all related to time constraints. 

    This process demonstrated that if you have the time and patience you can find anything you need, at any price you want.  My goal was to setup the property in two weeks. At the time of staging, I was estimating that I would end up spending $1500 less than my budget. So, I had it staged by November 11th, advertised by November 12th, and my 1st guests booked three days later. 

    When the first guests booked, the time constraints and pressure changed everything.  Two things became evident. First, I had not given enough thought to the cost of details that elicit feelings of home (e.g. full set of dinnerware, full set of pots and pans, night lights, small fans, etc.)  Second, because of the time constraints I did not have the time to accurately adjust my budget and estimates accordingly.  Hence, my setup costs exceeded my initial conservative budget.  Thankfully, my budget was very conservative so I can my cash flow should still exceed the typical long-term rental rates.

    Yolanda 
  • 06 Dec 2017 2:39 PM
    Quote
    Reply # 5615787 on 5612745
    Deleted user
    • How long have you been a REI?
    • What is or was your biggest fear about the first deal?
    • If you have had a first deal, what was it?
    It's been two years since I bought my first property. I tried getting into it way before that. I didn't really have any fears about getting started and my issue was getting funding since I started taking interest in my mid-20's with no college education and only Chinese restaurant work as my source of income. What pushed me to seriously do everything was feeling so inspired after taking a property management class at TCC and having my eyes opened to this world beyond hearsay. 

    I hear it time and again from older wiser people about how lucky I was to start so early and how my youth was such an asset since I was single and didn't have anything tying me down. Now that I'll be turning 30 in a couple of  months ("old" right?) thoughts about a starting a family pop up here and there so I understand the hesitation for some folks now. Recovery won't be as easy if I mess up and so on. 

    My first deal was a seller finance since that was the only way I could buy a house since I wouldn't easily qualify for a loan. No one also took me too seriously because of my age so I brute force my way into saving up the down payment and closing costs, but it wasn't enough. I got help from a friend who eased the burden. 

    Two years later, we're sitting on six properties. I've also graduated with a BA in finance. Because of the way we started on our own before being a landlord became a super hot thing, we mostly "compete with ourselves"; a stark contrast from my fraternity brother who networks well with the local market. My partner still maintains that personality as well do I, but I'm not so stubborn as to not be open to new ideas and techniques. 
  • 07 Dec 2017 2:41 PM
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    Reply # 5619689 on 5612745
    Deleted user

    I have been involved in REI since May of this year. I was starting out with literally like $200 to my name and honestly that was already earmarked for bills. My fear was dealing with the legalities, making sure i didn't screw something up or get sued lol. My first deal on my own was a wholesale for two houses on the same street to the same buyer. It was basically a simultaneous close. My two checks were for about 23K (15k  for one and 8k for the other). I have spent the rest of the time trying to recreate that to some degree. I have had 3 or 4 other wholesale deals since then but none even nearly what those were. I love this business but the holidays have really be rough. Haven't gotten anything in a few months now.
  • 09 Dec 2017 8:11 AM
    Quote
    Reply # 5621548 on 5613570
    Yolanda Columbus
    Scott Robinson wrote:

    Congratulations on pulling the trigger, Yolanda.  That seems to be my issue right now.  I have been writing yellow letters since 2015 and have 1 wholesale deal done with 1 pending and 1 contract waiting to be signed (its been a slow process so far).  I am in this to create passive income through owner financing.  My biggest fear right now is a combination that I miss an opportunity and I that I over extended myself.


    Best of luck!

    Scott Robinson

    972-863-2083

    Hi Scott,

    This helped me take action in spite of my fears. I listened to a TedTalk by Tim Ferris. He's the author of the 4-hour work week.  He suggested a process he called 'Fear-setting'.  It contains 3 different pages.  

    On the first page, you finish this sentence 'What if..?".  It could be "What if I signed a contract for this property?".  On that page, there are 3 columns.  

               Column 1: 'DEFINE' all the things that you fear will happen, at least 10 things.  For his 'DEFINE', he listed things like 'I miss a notice about being audited by the IRS'.  

               Column 2: 'PREVENT'. Write what you can do to prevent what you fear

               Column 3: 'REPAIR'. Write what you can do to repair what happened.

    On the second page, you list the possible benefits of success or a partial success.

    On the third page, you answer what happens in 6 months, 12 months, or 18 months if I don't do my 'what if'?

    Yolanda



    Last modified: 09 Dec 2017 8:12 AM | Yolanda Columbus
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