Baby Steps

Posted On 5:48 AM by Scott Costello |

Yesterday ended up being a fairly productive day in terms of moving forward in my investing career.


Realtor

I called up Doreen and we talked for about 30 minutes. She sounds like she knows somethings about investing, she's done a short sale for a client and has in the past attempted to rehab and flip a condo. Hopefully her experiences will be helpful and not a detriment. She is going to give me the contact information for a mortgage broker that can provide me with a mortgage commitment. Now I'm not exactly sure how much of a commitment I can get, but I guess we'll see.

REIA Meeting

This was a very interesting meeting. As I mentioned in my last entry that there was a guest speaker, Terry Hale, who was going to be pitching his Commercial Real Estate Investing courses and bootcamp. The meeting was PACKED! All of the successful, big time investors where there as well. This guy was very believable and if I wasn't concentrating on wholesaling residential property right now, I'd definitely consider buying his course.

For most of the other "GURUS" that have come and pitched there products at these meetings my BS meter would go crazy, but for this guy it only had a few blips here and there. He sounded legit and I swear i heard his name before while watching the Apprentice a few years ago. I'll have to look that up. Anyhow, he had some good ideas and gave some really good tips on what to look for and how to turn properties into profit by being creative.

Two thumbs up for Terry Hale

Networking

At the meeting last night I met Bruce_NJ, from the flipping_homes forums. He had mentioned he was going to the meeting so we took advantage and met up. He is a real nice guy and knows what he is doing. After the meeting we talked for a bit and he shared some of his experiences with a few of his most recent deals. A good learning experience. I will say, that the more investors I talk to the more I realize they are all just like me, an average person. That thought gives me a lot of confidence in moving forward.

Networking Again

The other day I got a message from another Investor (Paul) through my "The Creative Investor" account, which I had just signed up for a few weeks ago. In the few emails that we've trading back and forth, Paul has already motivated me by asking me pointed questions like...


  • Are you getting your phone ringing?
  • Have you made any offers?
  • What are you doing to move forward?
  • What is your 90 day plan?


These questions really puts the "Analysis by Paralysis" investor on the spot. Its sort of like when you just graduated college and don't have a job yet and everyone keeps asking you..."So what kind of job did you get?" That question gets very embarrassing to answer after 6 months of "just looking" for a job and it motivates!!

Another tremendous thing that Paul did was he offered to help wean me off my analysis paralysis, he offered to get me a buyer and walk me through any deal I find and need help with. That includes using his contracts, attorneys, and title agencies if needed.


Things are moving forward and I'll be writing about my first successful deal very soon, I can feel it!
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5 Response to 'Baby Steps'
  1. Shae
    http://sjcostello.blogspot.com/2008/10/baby-steps.html?showComment=1225064460000#c675001842163395477'> October 26, 2008 at 4:41 PM

    Hi Scott! I thought I'd check in and see how things are going :-) So will you be getting those first offers out before the end of the month? Do you have a proof of funding letter from Coastal Funding or some other source so that you can submit that along with your offers? We have our first two properties on lock right now and still looking for buyers to wholesale to over the next couple of weeks. Back up plan is to buy and hold since they are both good cash flow properties. Best wishes from Florida!
    Shannon
    Ft. Lauderdale, FL
    My blog: goodfaithinvesting.blogspot.com

     

  2. CherylR
    http://sjcostello.blogspot.com/2008/10/baby-steps.html?showComment=1225151220000#c7568074163947274499'> October 27, 2008 at 4:47 PM

    It's been interesting reading your blog Scott! I saw your posting on the flipping homes website. I'll be following what happens as I'm right behind you!
    Cheryl
    Gaithersburg, MD

     

  3. Scott Costello
    http://sjcostello.blogspot.com/2008/10/baby-steps.html?showComment=1225199880000#c5258791217493120215'> October 28, 2008 at 6:18 AM

    shae,

    I'm working hard to get some potential homes to make offers on, but I'm running out of time to meet my goals. Now that I think about it, why not make offers on some of the open houses I visit. Good way to gauge motivation I guess.

    I've got an email out to Coastal funding right now, just waiting to hear back from them.

    Thanks for keeping me on track!

     

  4. Scott Costello
    http://sjcostello.blogspot.com/2008/10/baby-steps.html?showComment=1225199880001#c6570003878175316520'> October 28, 2008 at 6:18 AM

    Cheryler,

    Thanks for reading my blog, hopefully you are making some headway and are close to making your first deal.

     

  5. Shae
    http://sjcostello.blogspot.com/2008/10/baby-steps.html?showComment=1225204740000#c5798852966357738013'> October 28, 2008 at 7:39 AM

    Scott, you hit the nail on the head. Make offers on these houses you're visiting. Lowball, cash offers. Once you get your proof of funds you can immediately make offers on REOs right off of the MLS. Something to keep in mind though...REO contracts are typically not assignable so you need to decide your strategy up front...are you going to do double closings and use "cash for a day" type of loans...or are you going to make the offer in the name of an LLC and then just sell the LLC to your wholesale buyer...or some other strategy? I'm planning on doing double closes on these first two properties but only because I didn't know much about the LLC method. But this method definitely eats from the profits because of the cost of doing double close as well as the cost of borrowing the money for a day. I think Steph does a different type of simultaneous closing where the buyer funds the deal. I need to learn more about that too.