The Philosophy of Painting & Life

Today I did some painting in my own home. I actually really enjoy painting, but only because I do it on my own terms.

OK, before you yawn and click away, let me tell you a little about how I paint. There is no tedious taping. no drop cloths. No pushing all the furniture into the middle of the room. No messy rollers and trays. Just one gallon of paint and a stubby paint brush. I may paint for 20 minutes or 3 hours, the point for me is that I am doing the painting. The project is getting done.

I have freinds who have lovely houses with not a lick of the walls painted since they moved in years ago. Usually they say its just such a big task to tackle, they never have enough time, energy, or motivation to undertake such a big project. Well, I have an acute lack of all three of those as well, and yet my house is slowly becoming a cozy, colorful abode instead of keeping that stark white institution look.

I have a sort-of philosophy in life. Nike stole it from me about 15 years ago but I still hold it as mine... Just Do It.

If there's one thing I can't stand its wasting time to get something started. I have a motivation problem (do they make a support group for that?), so when I get in the "mood" to do something, I need to do it NOW. To me, all the set up that most people think is necessary to start a paint job is a non-issue. Just grab a brush and get going for God's sake! Or else you may never find the time to go through all the steps you supposedly need to get to the final result.

The thing is, this philosophy holds true in so many other areas of life and business. We hear all the time about "analysis paralysis" and "fence sitters" and people who get lost in the prep work only to give up and never make it to the actual meat, the fun part of the project. Why in the world would anyone beat themselves down on the minutia of start up details when really all they need is a good brush and a bucket of paint?

Of course, it is true that I have painted a wall or two, or several dozen, before. True, someone who's never held a brush should absolutely take more precautions and do some practicing. But this is not rocket science, and the things most of us do in life and business are not either. It shouldn't take too much prep for even a newbie to be ready to dive in and get started. Anyone who does suffers from one of the two other afflictions that should also have support groups: Fear and Laziness.

Keep it simple, people. Most projects and business endeavors need not be so monumental that you just don't want to think about getting started, and so never do. Do yourself a favor. Buy a little paint, dig out your brush, do a quick test run or research if you feel the need, and then JUST DO IT. You'll figure out the best methods and your own style as you go, and you'll actually be making progress as you figure it out instead of waiting for everything to be set up just right before you even begin.

Oh, and yes, sometimes my walls are half-painted, a project in limbo, for days, months, even (my dirty secret) years, but at least I made progress. I got started. That's more than many of my friends can say, and more than so many others out there can say about starting any number of things. If you wait for everything to be ready and perfect, you're probably going to be waiting a very, VERY long time. Action, even action that may be a bit messy and unprofessional in the beginning, is better than inaction. Everything else can be learned or fixed as you go along.

Stay tuned for the next episode...

Alright, I've been debating for months if I should restart this blog. After my world sort of fell apart last September, I thought it would be useless to post all the whining and blubbering that would inevitably come out when I sat down to write. Suffice to say that nothing I was working on previously actually ended up closing, and I spent the last few months of the year wondering what in the world I was trying to do with my life, both in business and personally (which for me are so intertwined its hard to separate anyway).

But, here I am, writing the next installment. This year, in 2010, I am learning to work and live a different way. Some of the crazy passion for life and work has somehow gone out of me, which was scary and dissapointing at first. However, I have come to realize that being more level headed and less emotionally involved in everything gives me the distance to hopefully make better judgements. We'll see how that turns out, won't we?

So hello again to all my friends that were following my expolits. I'm still here! And I'm back in the saddle, although I'd say I was easing into it this time and not hitting the road at a wild gallop. On the business front, leads are still coming in and I'm still looking at houses and small multi-families. None have been that interesting... yet. I've decided to operate under the guise that I don't NEED my next deal, I can be picky and wait for the right one to come along. Its a good feeling, one I believe will work to my benefit in the long run. I hope you'll all stay tuned in for this new season of Investor in Limbo. I know I'm anxious to see the outcome of the next few episodes!

The story of quad deal #1: Ending still pending.

A little back story first.

Earlier this year I did two major things: Left my regular "day" job and started my OWN real estate investment company without my former partner. While both were scary in some ways, they were exciting and fun in many others and I've really enjoyed being my own boss. I had run the numbers before I became unemployed and knew that I could go the summer without working at all, and much longer if I could get another cashflowing property under my belt. My plan was, if things went well, to buy a quad or other multi-family building that would cash flow at least $1000 or more a month so that I could have a little more income coming in and then be able to work on other aspects of real estate with a lighter mind.

I knew I had enough money for one good subject-to transaction. I was looking for a quad (or larger if possible) that would ideally not have any immediate/large repairs, hopefully have at least a couple of current PAYING tenants, and that the seller would need no or practically no cash down from me. I had enough to pay for closing and a couple of back payments, and am perfectly willing to do minor repairs myself if needed. Yeah, I know, many people told me I was probably dreaming about nailing such a property. Who'd just sign over a quad in good shape with good cashflow potential?

So when a Realtor called me up out of the blue and told me about this really awesome quad that was bank owned and just lowered to a killer price, I was interested. I'd spent the summer looking for a multifamily building and wasn't having much luck within my parameters, so a killer REO seemed worth a look. The Realtor was right. It was an awesome deal. The previous owners had been rehabbing it and were nearing completion when I guess they ran out of steam or money or both. All the major things had already been finished, it just needed some minor stuff to be ready to rent.

I absolutely knew, without a doubt, that the numbers would qualify for a 100% hard money loan. I had the percentages and fees memorized and ran many estimates and circumstances and tried to use conservative numbers. I happily put down my $2000 earnest money deposit and after some back-and-forth on numbers I got it under contract. Although I can't qualify for a hard money loan due to not having the regular income to refinance out of it, I knew this kind of slam-dunk deal with no money down would be good enough to get a financing partner. I was right, they lined up fast.

Problem is, the 100% hard money financing didn't go quite as I expected. Turns out that even though this will be a "hold" property and not a flip, and even though it is in the cashflow's best interest to keep rehab costs down and not do any extra bells and whistles (its really in a "lower income" area, after all), the lender still requires a MUCH larger rehab budget than my contractor's estimate. Twice as much, actually. They say its to protect their investment in case they have to take the property back, but from what other people are telling me of their experiences, this 100% lender never really gives 100%, there's always some caveat that prevents it. They advertise 100% rehab loans, but everyone I know that has used them (or tried to use them) ends up actually needing cash down. So with a doubled rehab budget the numbers no longer qualify for a 100% loan, and none of my potential financing partners has the relatively small amount of cash to cover the increased budget.

So its looking more and more like the deal is dead.

But wait, its not over yet.

When I submitted the offer I was in a hurry and went online to get a quick pre-approval letter from an online bank late at night. I just needed something to lock up the deal fast, other offers were coming in. Now the bank that owns the quad is demanding to see a denial letter from this online bank that I was preapproved with in order to let me out of the contract with my $2000 earnest money. Problem is, I can't get a response from the supposed "bank" that I got the preapproval from, so I can't seem to get a denial letter. My $2000 may be going down the drain, and what's worse the Realtor that I was working with doesn't seem to care. In retrospect, I probably should have used my own agent rather than the listing one so that my own interest was better protected.

And Murphy still wasn't done yet.

The worst part is that during all this, I actually found the deal that I'd been waiting for all summer. A man called me off of a mailer I sent and said he had two quads that he was getting behind on payments with and he was ready to walk away. SCORE!

Oh, wait, some of my meager amount of money meant for just this deal was already tied up in the other REO quad. Major Bummer.

One of the two quads he owns turned out to fit all my criteria, so after some thought and consideration it is now under contract with me and a new partner (see yesterday's post) to make up for the fact that I am lower on funds than I should be.

I could lament about the fact that I should have stuck to my plan and waited for the right quad to come my way, but I still believe the first REO quad is an incredible deal and I don't regret pursuing it. I actually still want it, but am running out of ideas to get to the closing table. If I loose my $2000, I'll only regret rushing and not using a more legitimate bank's preapproval letter!!!

So, please wish me luck in getting out of the contract with my money. As an unemployed person I really need to keep every dollar I have, I have no way to make it back! Or contact me if you want to buy a quad with minimal repairs needed at a great price in Richmond, VA and can either finance it yourself or have good credit and good income and can bring a little cash to the hard money closing table.

The ending isn't written in stone yet, but Saturday is the start of our big vacation of the year and I'd sure like to go without a stressed out mind and heavy heart.

Countdown to a quad closing!

Today was a happy day! Not a closing day yet, but the next best thing. Signed contract day! The second quad deal that I've been toying with for a while now is officially under contract as a totally "Subject to the Existing Mortgage" deal. Yippee!!! I'm just a title search away from owning a nice cashflowing quad!

Actually, I'll be owning 50% of a nice cashflowing quad. I was in the unfortunate circumstance of having already put some of my small amount of cash into the first REO quad I found (which is still under contract and up-in-the-air about closing), when this second Sub2 deal, the deal I really had been looking for, came along. So with very little cash left in my account and the seller's sob story of how impossible it was to keep the place rented, I hesitated to put the building under contract immediately. Sometimes he who hesitates is lost, but I knew that I would have a hard time buying two quads at the same time with my very limited funds. But lucky me, I happened to had met a local fellow investor in my social networking earlier in the year, and it turns out that she was looking for this exact same type of deal too! So now I only have to put up half of the title, closing, back payments and holding cost money, which takes a huge burden off me and gives me the confidence to move forward in the deal. It also helps that she has a great method for keeping her units rented!!! =)

So today we met the seller at the property (for the thrid time!) and he readily signed the contract, showed us copies of his leases (three units are rented, for the moment), and gave us authorization to contact his mortgage company so we can start the Sub2 process. Title search was ordered today and we're going to get an inspector out there in the next day or two just to give it a once over and know if there's any structural issues. Then, within a few days or so, we'll have ourselves a closing! Did I say "Yippee" yet???!!!???

The nice thing about Sub2 transactions is that it really is a winning situation for everyone. We get a property that will cashflow and, eventually, build good equity (there's not much equity in it now, but that's not what I'm after), the seller gets his back payments caught up, avoids foreclosure, his credit score improves over time and he gets rid of the headache that he just didn't want to deal with in his retirement. Oh, and the bank gets to keep getting payments on their nice lucrative loan, but with banks being such whiners and tightwads right now I really don't care what's in their best interest.

Happy day! I'm so excited about this quad that I sometimes forget the trouble I'm having on the other one I have under contract! But not for long... sigh. More on that in another post, right now I just want to revel in the fact that I have very nearly achieved what many people told me was impossible/extremely unlikely. Now I wonder what is the appropriate amount of nose-rubbing I can do without being unlikeable at investor groups? ;-)

Cross your fingers and don't breathe, some quads dangle almost within reach.

I could not be happier to say that I have TWO quad deals in the making that are looking very good right now. Even though I was out of town all week, I still somehow managed to make phone calls and drive to the Panera and Office Max parking lots to send emails (I was much too sweaty and covered in paint splatters to venture out of the car!), which was enough to keep things rolling along on both deals. I must say I'm quite proud of myself for doing this unique form of multi-tasking!

I got back yesterday evening. Today, Saturday, I went to Quad Deal #1 with a contractor and hard money lender to get a firm repair estimate and figure out if its going to meet the financing requirements like I think it will. I'm thrilled that the contractor's bid came in exactly within my target. Rock on with my bad self! I've always been pretty good at estimating repairs, but wasn't so sure on a 4 unit building like this, especially after reviewing the home inspector's notes (which I had happen while I was out of town, a good and bad thing but at least I know there's no big surprises). Little things times four can really add up to big bucks. But, the contractor's numbers were good, so now I get to move forward one green space towards the closing table. Nobody breathe, please...

Of course, now I am starting to get nervous. This is the time when deals often begin to fall apart for me, and my confidence is slightly rattled from past failures. I've been doing some thinking about my past unclosed deals though, and I'm sure that this time I have better deals, more experience, and more confidence than I've ever had before. I am resolute in my determination to make these things close. IT WILL HAPPEN. And this time next month I fully expect to be the proud owner of two lovely quads that will bring me a nice chunk of monthly cash flow and ease my family's worried minds. Yes, it will happen. I know it will. I know it will. I know it will.

Still too nervous to discuss too many details and jinx the whole thing, but I do promise that as soon as the closings happen I will happily tell you all the whole story for each one. How I found them, what I did to buy them, etc.

Until then, please sleep with your fingers crossed under your pillows for me. My 2009 Big Goal #2 is getting closer and closer to becoming a reality. I could really use all the luck and support I can get!

One hard week = A quad for Melody?

Nope, I haven't forgotten about my blog here. I've had one hell of a crazy week or so, chasing leads, answering the phone, looking at properties and generally feeling like I'm actually doing work. WORK. Ugh. Not exactly what I want to be calling it but hey, the going is starting to get tough so you know what that means...

I'm not going to go into much detail because I don't want to count my chickens before they hatch, so to speak. But, you know how I've been hankering after a multi-family for a long time? Maybe you remember my goal of purchasing a 4-unit building this year? Well I did look at a quad on Monday that pretty much took the cake of all quads I've looked at over the last 10 months. Only one little catch, its an REO. Well, I wasn't about to let anything as small as being unfinanceable stop me from scooping up one of the best deals in town. I put in an offer on it the next day (had to get a POF letter and certified funds for the earnest money) and after some negotiations I am officially under contract with a DAMN good deal. Tons of equity and cashflow to be made on this baby. Now I'm just working out the whole financing problem. I may have found someone to partner with me and get the deal financed for a 50/50 split on the equity and some of the monthly cashflow. Fine by me, if it works out I'll gladly give up whatever it takes to get the deal done. It will be a win-win-win-win situation! :)

Found some other deals, not quite as exciting as that quad but still interesting, that may come to fruition soon. One is actually a pair of other quads that may become Sub2 deals. Its really been a tough week though. I've got to say that if I have to work this hard every week in order to do good business, I may have to just start looking for another job. Especially if all of the work I did this week actually turns out to make zero money. Won't that be a gigantic disappointment? I know its not going to be all bon-bons and rainbows in this business, but I am seriously exhausted and can't remember when I've ever been so busy. But, I think I've got at least one thing in the bag, hopefully two. So as long as something pans out I think I'll be okay with my progress.

Oh, and I may have said I would be blissfully at home for the whole month of August, but it would seem that duty calls and I am once again leaving for the great north and their most excellent pizza. Long distance rehabbing is quite interesting and with New York winter not too far off, we figure we should get as many visits in as we can while the weather is still good. So, I shall answer the call of the paintbrushes and drywall once again. Hey, what good is not having a J-O-B if I can't up and travel at any time for any reason at all?

I feel the NEED for LEADS!

I'm BAAAAAACK!

Whew! I feel like I've been living out of a suitcase for close to a month. Travelling up north multiple times and then vacation to the beach (not that I'm complaining about THAT), I barely had time to unpack for one thing before I was packing for the next! But now I'm back at my home sweet home with my lovely fluffy bed (soooooo nice to sleep in my bed) and am ready to make things happen for the month of August.

July found me getting mentally ready for some big things to happen and laying ground work for what I'd need to really hit the ground running when I finally had the time to devote to my real estate business. I created my new website, created fliers and ordered mailers and took care of some "administrative" type duties last month in between travelling times. And now the time is here for the race to begin! Run, Melody, RUN!

I absolutely know that the few and far between leads that I've had trickling in from random places are not going to cut it if I want to do some serious money making business. And now I'm getting the itch to fill my pipeline. I feel the NEED for LEADS. I want my pipeline funnel to overfloweth. And of course, I want it that way on a shoestring budget because I am, after all, unemployed and broke!

But that's one of the beautiful things about real estate investing businesses I think, marketing doesn't have to cost us big bucks. A home printer and a ream of bright yellow paper is dirt cheap, and home made "bandit" signs (so I'm told, we'll see) are just as effective as pretty printed ones. And branding? Who needs that in our business? Maybe its helpful if you can afford it, but I don't really need to have fancy pens with my company name or a logo emblazoning everything I own like Realtors often do. My website I did myself and pay $5 a month for hosting, talk about affordable! When I was with my former business partner we wasted a lot of money on "marketing" that didn't produce very good leads, and I feel confident that what I'm doing now will be much more effective at a much lower cost. Of course, the proof will be in the pudding (more like DOUGH I hope!).

Today I devoted the entire day to business, even though I had to tote the kids along and subject them to several hours of riding around neighborhoods looking for interesting properties. OK, entire day minus time for a trip to McDonald's for lunch (their reward for not driving Mommy crazy in the car) and a quick stop at the grocery store (does anyone else go through 5 gallons of milk a week???). It really felt great to be focused on one main goal for the day, definitely something I'll do again and try to work in once or twice a week. Of course, tomorrow I promised we'd go to the pool and then there's the back to school shopping that needs to get done and errands that need to be run etc etc etc. Hey, one or two days of focused real estate work will be a big accomplishment for an inexperienced stay-at-home mom!

So bring on those leads, I'm open for business and ready to get my buying groove on!

One small goal at a time!

For the first time in over a month I feel like I had a good week!

I really do struggle with time management, goals and priorities, so meeting one of my goals this week feels like an incredible accomplishment, even if it is a somewhat small goal in the grand scheme of things. This week I set a goal of getting a website up on my domain that actually works and can capture lead information for me while I'm out of town for almost two weeks. It's a wonderful feeling to have accomplished that goal!

I did have to let some of the other things I have going on slide a bit. Just based on this week though, I think I've found a good formula to work with when it comes to my own schedule. Setting daily goals and making daily schedules and to-do lists just leave me feeling overwhelmed and unproductive.

This week I set one major goal: Design website and get it up and working. Then I had a couple secondary goals: Go to my "problem" rental to mow the grass and remove all the staging items to get it ready for the new tenant, and to attend a meeting for Local Real Estate Deals Magazine to go over some new and exciting things we're working on. I also had to make time for the kids and took them to the pool and park a few days. So all in all it was a very successful week! Several of my "bottom" goals did not even get touched, but perhaps they will one day have their turn being the top goal of the week.

The working website was a primary goal for me because I am aiming to capture as many leads as I can over the internet. Taking tons of phone calls all day long is not feasible for my life, and paying a phone service is not yet in the budget (but I know the value of them having used one in my previous REI company). So my new marketing and mailers are all going to be driving sellers to my site to capture their information. Cross your fingers that it works for me!

So if I didn't email you back or take your call or meet with you this week, I hope you'll forgive me for putting on my blinders and working diligently on meeting my first of many weekly goals to come. Obviously I don't want to ignore the world every week, but think of everything I could accomplish if I could!

My problem property gets a tenant... finally.

I have this rental property that's been a thorn in my side pretty much since the day we first acquired it. I bought it late last fall with my then partner, intending it to be our first minor rehab and then to rent it out after the fix up. We got seller financing and used a credit line for the simple rehab materials, and decided to do all the fix-up ourselves. Ideally we were hoping we'd be able to lease-option it to a first time lower-income buyer and give that person the chance to become a home owner, but it seemed like it was in a great rental area and so we were fine with straight renting it if we didn't find a tenant-buyer.

I can not begin to describe here all the things that went wrong with this property, both because of the house itself, because of the time frame we bought in and because of my partner's and my various shortcomings (lack of time, lack of agreement, lack of a pickup truck, etc.). Perhaps one day I will be able to share the grueling details with you all, but I think I need a little more time to heal first. I can say that lease-optioning didn't work at all, and finding a tenant has been a difficult puzzle to solve. The neighborhood was full of rented properties, the rent was right, and the phone rang consistently, but for some unknown reason I could not get a prospective tenant to move into the house. Its shameful to say this, but the property has been vacant all this time, and carrying costs are eating us alive!

So now we have a tenant ready to move in on the first of the month. Please praise the God or Goddess of your choosing for us. I find it interesting, though, that the longer this property sat around and did nothing for us but drain our bank account, the less and less I was interested in dealing with it. I know that logic dictates that I should have become more desperate to get it rented and therefore worked even harder, but the exact opposite is what actually happened. And it wasn't just me, my partner actually "lost interest" long before I even did, and only thought of this house when he wrote the check for the mortgage and called to ask me if I'd found a tenant yet.

How did we finally get it rented if we'd nearly mentally written it off, you may ask? We finally decided to hire a property manager. Sad, but the decision had to be made. We opted to have the management company only handle finding the tenant, I will still be managing the property after she moves in. Its a big blow to my pride that I could not get a tenant in the house myself, but at least now I do not have to duck the question at my REI meetings of "So did you get that house rented yet?" Ummm, no, hey what's that shiny thing over there?

I think its important to realize when you are not performing as well as you'd like to be and to know when its time to delegate things to someone who will get the job done and/or clean up your mess. Granted we probably should have delegated a lot sooner, but at least we made the decision to do it now before it got any later in the year. I had nightmares of crossing the one year mark of holding this house with no tenant!

So as of the first we will have no vacancies, hooray! Now I can concentrate on finding more properties without feeling guilty that I still have one sitting unrented and semi-forgotten. I think I'll skip looking in the same area as this particular house for a while though!

So what is my real estate investment strategy anyway?

Many people lately have been asking me what my real estate investment focus is. I can understand why, since right now I don't have a lot of details on what I'm working on in my blog. That's because its a whole bunch of NOTHIN' at the moment. I'm working on changing that, new marketing materials have been ordered and some new ideas will soon be implemented. So much happened in the first half of this year that was totally unexpected and really threw me off track, and made me reevaluate and have to start over in some ways. I can't believe that half the year is gone already, but I'm glad to be getting back in the saddle now instead of later!

But back to the question, what is my focus? In theory that's simple, I buy rental properties that I can hold for monthly cash flow and long term equity gain. I acquire these properties sub2 or with seller financing and then put a small amount of money and/or elbow grease into them to get them rental ready. I need monthly cash flow because I need some stability in my currently very sporadic small income, and long term gain because I have ended up with no retirement plan and know that Uncle Sam isn't going to be able to help me by the time I'm ready for retirement, I have to help myself.

In practice, its not so simple. The many leads that come in with every new marketing push usually means I end up exploring other areas of real estate investing that aren't necessarily my focus. So many of them are good leads, just not what I planned to be looking at. Some need short sales, some need cash or financing to get the seller out of a short term loan, some need so much repair that I couldn't possibly use them, some are in areas that won't rent well or are in areas that I personally just won't go into. You know the drill. All those who have done any marketing for properties gets calls and emails from every type of seller, not just the ones you actually want.

So I usually end up getting all involved with properties that don't help me towards my goals. Most of the time I'm okay with this. There is a lot to be said for learning the ropes on multiple investment strategies, and I never think it hurts to get out there an make more offers. Very often these "other" leads and offers don't end up going anywhere for me, whether because of my own lack of knowledge, my lack of interest, or something else I'm not really sure. But I do know that I certainly wouldn't mind becoming what Dave Lindahl calls a "transaction engineer" and being able to close more of these other leads more effectively. Working on that too, reading a lot and learning more about what others are doing, and getting some practice on those leads doesn't hurt. (don't worry, I never screw the sellers, if things don't work out I always refer them to others in my network that should be able to help them better than I can)

I know I need to "get paid" more often for all the time I end up putting into some of these deals though. Having them fall apart with nothing to show for my efforts really stinks. So I joined a new group in my area, the Richmond Wholesalers, with the thinking that rather than waste my time on these properties that don't fit my model and end up not getting anything out of them for whatever reason, I could at least be trying to wholesale them and make a few thousand for the effort. Duh, you say? Well yes, but I will tell you of my own previous wholesaling experiences and the fates of several other wholesalers I know in a future post. Lets just say its not as much of a no-brainer as you might think.

So there's my focus for those of you wondering. Buy and hold rental properties in decent condition with creative terms, and wholesale anything else interesting that comes my way. Lets see how far I get in this round of marketing keeping that focus on the straight and narrow.

Are you working on your financial Independence Day too?

Back in January I set a few broad goals for the year. Not too specific since I'm still feeling my way through this business and wanted flexibility to change things as needed. My two main goals were to quit my job and buy a multifamily building of 4 or more units. Hooray for achieving goal #1! Not exactly the way I had planned it, but still, I've been blissfully free to do my own thing for over a month now. As for goal number two... well, for it already being July and I've made nearly zero progress on that one, I'm not so confident it will happen. Don't worry, I'm not giving up. Not at all. Six months is still plenty of time if I buckle down. But I'm also okay with it if I fail to meet that goal this year. Things change and life sometimes creates new priorities, so I'm not going to beat myself up over not making my own self-imposed deadline.

With tomorrow being the 4th of July, America's Independence Day (how'd that get here so fast?), I'm sure many of you are reflecting on what we are doing with our own independence, or maybe how we're going to gain it. I know I am. I'm a voracious reader, and the more books I read on money, real estate, and personal fulfillment the more I strengthen my belief deep in my core that I must become completely free and independent of that which holds most of us back from achieving our dreams, MONEY. As Kiyosaki frequently tells us, money is just an idea, a concept. If we let something as easy to change as a concept hold us back from reaching our full potential, how will we ever be free from the more physical restraints in our lives?

My financial independence is coming. I know it will happen and feel it slowly happening every day. This second half of the year will require a lot more hard work in a totally new way for me, but with some diligence I should be well poised to make next year a spectacular one. And next year is my husband and my 10 year anniversary. A goal for next year is to take a great trip, preferably out of the country, like we did when we went on our honeymoon to China. A lot of groundwork needs to be laid this year for that to happen. Time to become a true mover and shaker and change my family's lives for the better. Buying a few rental properties is a good start and certainly helps the process, but I need to think about the bigger picture and how I can truly become free from the tyranny of money in the long run.

Who else out there is working on their own independence day? I hope you see the great things to come just as I do!

Time for some focus and *maybe* some guidance

I've been thinking a lot about my poor time management and how I'm going to overcome this insanely large hurdle on my own. I loved all the comments I received after my previous post, "So Apparently I Suck at Time Management." It would seem I'm not the only one! Yes, we all obviously get the same 24 hours each and every day, and its heartening to know that many of us still have not figured out exactly how to make the most of them.

I realize that first and foremost I must learn to focus better. With so many different things that need my focus, I have been crazily trying to do them all at once, which is only creating chaos and not results. A month of floundering is enough for me to know that things aren't going to simply fall into place on their own, I need to be proactive about setting specific times and days for each focus area. A written schedule (and maybe even a timer) will be my next order of business.

The second idea that has been rolling around in my head is the possibility of finding a mentor. It makes my insides recoil to even contemplate it, but the thought is there nonetheless. So far I've gotten in the game with no mentor, very little advice, and only a few books and home-study CD's. I'm the type who learns just a little, then hits the streets and gets to the fun action part of the game. I am a fiercely independent person and can not stand to be told what to do, how to do it, or to answer to anyone else. Gee, I wonder why I often didn't get along with my previous bosses! I also really like to pave my own way, learning from my mistakes and not buying into anyone else's "proven system for success." My success will be my way, not simply a copy of some other more successful person's.

But, with the clock working against me and so many other things pushing me back, I'm starting to think that having a little guidance and a little pushing from an outside source would be a big benefit to help get my priorities straight faster. I did manage to start my real estate investment business on my own and got my feet good and wet with all the mistakes and challenges that go along with that. Now that I'm in the water though, I think I'm realizing that wading into the shallow end and really swimming through the deep water are two very different concepts, and that I'll learn to swim much faster if I have a swim instructor standing along side of me.

So now comes the question of WHO I will choose to be my swim instructor. The choices are nearly endless, especially when I have several different interests within the field of real estate. Then there's the question of going with a well-known name or a local "Joe" who is doing well. I do have a short list of about 4 or 5 individuals, but which one at the top of the list varies depending on the day/week/latest webinar I've logged into. I'm very pleased to have connected with most of them through various social media, especially Facebook. I think that seeing the interactions of these people in their everyday lives and businesses helps show their true character and lets me know if they are someone I can A) get along with and B) respect and actually want to listen to.

I leave tomorrow morning for another long postponed trip to see more family this week. Next week (after my return) starts the new daily FOCUS plan and further decision making of engaging a mentor. Gonna be giving myself some tough love and really working to get my top three priorities some individualized attention. Call it my mid-year resolution!

An Affiliate Program Fence-Rider

I can't decide how I feel about affiliate-type programs. They seem to be the current fad in all real estate type marketing right now, and some of it is really making me angry. One guy's "Make Millions" system in particular has been offered to me via email, Facebook, and Twitter so many times by so many DIFFERENT people that I've about had it with all of them and am close to disconnecting myself from ever last one of them. Anyone want to wager a guess about whether or not I'll buy this training system?

Its like a pseudo-direct marketing/MLM system, which I've never been fond of personally anyway. Not to say that they aren't valid products or methods of selling, Warren Buffet has one and even Trump is getting in the game. Its just the SHOVE IT IN YOUR FACE attitude with no regard for the relationship (or often product) that I can't stand. I myself recently joined a direct sales company for the first time, more for the product than the opportunity to make money, but I can't and may never bring myself to hawk it to every last person I meet. Talk about a big turn-off for your friends, huh? I do believe in the product though, and will talk about it if someone first expresses a need or interest in it.

But back to the fad of affiliate programs in real estate investing. I can see how it is a tremendous opportunity for some people to "cash in" on someone else's product and make some extra money. And most of us do need extra money. And of course, the someone else that created the product essentially gets free advertising, paying only a small fee to the hawker after a sale is closed. Genius. Really, a great system in theory.

What happens in reality though is that everyone in investor clubs and on the internet is out there shouting about everyone else's programs, systems and software. It turns into meaningless noise that leads to confusion about the motives of the hawker and makes many of us sick. Even some of the Facebook groups I'm a part of and joined for sincere networking and information sharing are apparently nothing more than a group founded by someone that wanted to bombard more people with their affiliate links. Gee, thanks for the group, I joined because I needed more stuff to delete from my inbox.

Maybe I'm just old-school. I still appreciate the idea that companies who want to make money need to invest money first in their product, employees and advertising. Isn't the saying that you have to spend money to make money? These affiliate programs may be the wave of the future, but to me they seem like a shallow attempt to get around that rule and make some quick cash. I very well may be wrong, but I don't think this fad will last. I also seem to remember that during the DotCom bubble many new businesses on the internet thought they were geniuses for getting around that same rule, and we all know exactly where 99% of them are now.

On the other hand, I know the value of first hand recommendations too. In fact, I recently found out that one of my successful real estate investor acquaintances learned from a particular system that I then looked up online. I've known this person for a time now and he'd never mentioned it before. Guess what, the system has an affiliate program. He didn't feel the need to SELL me on it, but his passing mention was enough for me to consider the program seriously. THAT's the power of an affiliate program in my eyes. When someone who uses the program and actually does recommend it to a few friends out of the sincere desire to help those friends, then it is great for the company to say "thank you for your belief in us and for trusting us with your friendships" with a small referral fee. I will gladly listen to my personal friends and value their advice much more than some stranger that sends me a Facebook message or mass email 3x a day about their "INCREDIBLE OPPORTUNITY."

So are affiliate programs good or bad for this business? Are they the future of advertising or is it just a fad to make a quick buck? I'm no expert marketer, and prefer to sit on the fence for a while, judging how the wind is going to blow on this particularly fast growing phenomenon and whether there will be any integrity left in selling if it blows one way. What do you think?

Private Investors: Show me the money and I'll show you a sound investment.

I have to admit, when it comes to real estate investing I am consistently putting the cart before the horse. I will chase leads, talk to sellers, and look at properties all day long, but when it comes to talking to people about private lending and finding the money to do the deals, I never seem to get around to it at the right times.

Talking to people about money is just plain boring to me, while looking at houses is super exciting. I can't tell you how many deals I've lost simply because I didn't have anyone showing me the money BEFORE I found the great deal. In all the excitement I'd leave the funding until last, thinking the awesomeness of the deal would make funding a breeze, only to have time run out and/or someone else swoop in and snatch it up while I was out looking for a lender. This is one reason why I originally started out with a business partner. He was a "numbers" person that loved talking to others about money, and it was deemed one of his responsibilities to get out there and find the money while I found the deals. Sounded perfect, but unfortunately it was a part of the bargain that he didn't hold up and we've since parted ways. Trust me, I'm ready to learn my lesson once and for all that the money needs to come first and that I have to be the one to find it.

I read an article in my local paper today about private investors who thought they were funding deals for a real estate company and getting great returns, just as it should be. ( http://bit.ly/YPkML ) Turns out the real estate company was not rehabbing the houses or even holding the notes for under 80% of the house's appraised value as they were told, so the private investors were left holding notes on dilapidated old boarded up houses that were so over leveraged, often by multiple notes, that there was no hope of ever recovering the investment. And these so-called real estate investors owe their lenders over $25 million.

I already dislike the "show me the money" part of this business, but it is one I whole-heartedly believe in because I know how safe and secure investing in real estate the RIGHT way can be. I am sickened by these poor investors who have now lost their life savings, retirement money, or family nest egg due to one incredibly unscrupulous individual. and he probably loved talking about money and was very good at it from the amount he was able to receive. On the other hand, I can not believe these investors essentially handed over their money and just assumed everything was as they were told it was. Would these same people give a large lump of money to their stock broker and just trust that he knew what he was doing and was making them money, never reading a market report or checking in with the broker, even with the stock market falling as we speak? Perhaps they would, but perhaps they are also part of the problem the country is currently in.

So now, as I resolve to go and secure more funding before I miss out on another great deal, I must hit the streets with this incredibly derogatory article overshadowing my good intentions. Will potential lenders have read this article and now completely shy away from securing their investments in real estate? Will they think we are all scammers just taking their money to buy ourselves big boats and fancy cars while the alleged investment crumbles on its lot? I pray that is not the case and that logic and reason allow people to see that this is an extreme case of abusing the system.

So how can I assure you, Mr. or Ms. potential private lender, that I am not such a despicable person?

Well, for starters I am a member of all the larger real estate groups and associations in our city, and in fact I'm president of one of them ( http://www.richmondring.com ). I have a lot riding on my reputation in real estate and would not do anything that would jeapordize my position or lower my ethical standards. Ask anyone in our groups, I'm a stand-up kind of gal. Next, I want you to be comfortable with the property in question. I'll meet you there any time you like to see what your money is buying and if invested, how the progress is going. You should never invest in a stock and then not bother to check up on it and the market, why in the world would an investment in a house be any different? I will show you the inspection report (if obtained), contractor's written estimates, get an after repair appraisal, and close with an attorney or title company that will record the mortgage note with the deed of trust for you. There are many other ways to help you keep your investment safe and secure AND profitable, these are just a few to start. I want you protected and happy so that we can have a long and profitable relationship!

Oddly, I'm now even more determined to show people the great benefits of investing their money in real estate. perhaps this article will give me the boost I needed to get out there and talk more about it with more people. Perhaps I'll go so far as to call it a personal quest to prove to Richmond that real estate investments are an excellent choice to earn very profitable returns on your money. I don't expect to raise $25 million to counteract the damage done by this one disgusting investor, but every little bit counts toward righting some of the wrong that's been done to many private investors in this town.

Lets whine about how life gets in the way...

As part of our evolution at Local Real Estate Deals Magazine, we will soon have a columnist (and good friend of mine!) writing about the perspective of women real estate investors. Lets face it, men in this industry far outnumber the women, so there are certainly some differences and stories behind those of us in that minority!

Being a member of this minority and talking to my friend about the column got me to thinking about my own experiences as a woman real estate investor. After some careful thought, I don't believe there is a true disadvantage to being a woman in this industry per se, I've had no more difficulties or challenges than many men I know have had. A different perspective, for sure, maybe a little more weeping when things go wrong (not me, but maybe some of you others, right?), but nothing is inherently harder from my experience. Perhaps, even, there are some actual advantages to having some feminine wiles in an industry of men. You know what I mean, Mr. Officer who let me out of that ticket [bats eyelashes coyly]???

Instead of my gender being an obstacle in my business plan, I realized I have a much different "problem" that I work every day to over come. Its the particular stage of my LIFE that poses the biggest challenge to me. True, everybody probably thinks "if only such-and-such in my life were different, things would be much easier!" But I stand by my own claim as being fully legit, darn it!

Let me start by saying I don't regret starting down this path when I did, and I am a firm believer that its never the WRONG time to take control of your financial future. If you haven't started because you're waiting for the right time, STOP WAITING!!!

However, I can't help but think sometimes that if I had started 7 years ago I would have no children, less debt, and a much more carefree way of life as compared to my current situation. I would not have a problem loosing my house or eating ramen every night if something went terribly wrong, after all, it was just me and my husband, we'd manage and get through it just fine. Now, with the kids and nice house and standard of living to maintain, I do get scared of messing something up and ruining my family's lifestyle.

On the other hand, if I could pretend for a while that I'd never been exposed to the idea of financial freedom or alternative means of retirement planning, then I would be able to start down this path 7 years in the future, when my children are older and less needy, and my family is more financially stable.

Being at this very spot in my financial life, with the piled up debt of student loans from our youth, bad credit card decisions of the carefree days after college, expenses of the early children years (daycare, diapers, new clothes for every season) and the nice house and decent cars of the middle aged lifestyle we are entering into makes for some rather high hurdles to lift myself over.

Similarly, with my children still being quite young, they require a lot of my time and attention at this early stage in their lives. Kindergarten has been especially rough on my oldest this year, and I feel that I have not been there enough for him during this turbulent time. I've noticed especially that most of the women that ARE in real estate investing do not have young children, and I believe there is a good reason for that. Even in this new age of parenting equality, women still usually have a tighter bond with their children than men and desire to be with them more often than not. Starting either before kids or later when they are older and more independent would certainly have made it easier for me to focus on what I am trying to do.

But this isn't just about me whining and lamenting about my life as I know it. My point is that even though things do not seem like they are the most optimal time for me, even though so many things make me sometimes wonder what in the world I am doing, I'm still out there trying to do it!

So what is your "such-and-such" excuse for this not being a good time in your life? What obstacles do you feel like are holding you back? No, don't tell me, I really don't care. It doesn't matter what excuse you use, there will never be a better time than now to get started on the path to your dreams. The past is already gone, and you can't be sure that tomorrow will be any better than today unless you DO something today.

I can't say I don't sometimes let life get in the way. Suze Orman even tells us "People first." But hey, if I can manage to not stray too far off track and keep pushing forward then I fully believe that anyone else can do the same. My progress may be slower than some others, but at least I am pointed in the right direction and know where I'm going.

Whine with me if you need to, but I'll only sympathise with you if you're working on your own path too. Otherwise, you just sound like my kids who whine about everything.



P.S. - If you haven't checked out our new magazine website, click the logo below!

The Quest for the Illusive Multi-Family property

I'm on a quest. Not the dragon-slaying type, but so far equally as mythic and frought with difficulties.



I made it my goal at the beginning of the year to purchase a multifamily property, and I'm not talking duplex. I have bigger things in mind.



Problem is, it is now June and I have realized I have wasted half the year on other things that have not realted to that goal. Properties that won't rent, partnership that needs dissolving, job that took too much of my time for not enough reward, kids that need extra attention, the list goes on. Life happens and while I've been working on keeping that together its hard to remember to focus on some of my goals. You can all relate, right? Time to get my rear in gear!



The reasons for wanting a multifamily are pretty obvious, I think. Higher cashflow with less overall maintenance for starters. Who wouldn't want that? Of course, its not easy to find a lender that will lend a million dollars to someone with no job, less than stellar credit, no downpayment, and very little verifyable income. They don't seem to care that the rents coming in are close to twice the expenses and debt service and the building will far exceed paying for itself. No, you need to have "skin in the game" everyone keeps telling me. Even the seller holding a second or getting a private lender to hold a second doesn't help. Come on, don't you see these numbers people???



Well, that leaves me with the same stand by I usually use for single family properties, buying with creative terms like seller financing, and I must say it takes a lot more work to find those particular properties, hence the fact that I am behind in my goal. So far I've come up empty on a property that I like and that I can get good terms on. I'm determined to find one, I'm sure its out there! But in the mean time I'm still calling and sending emails to any commercial lender that I come across that advertises themselves as a non-traditional lender. I've contacted a lot. No luck yet, but they are all nice enough to tell me to give them a call back as soon as I come up with $200,000 cash to put down and they will gladly work with me. Gee, thanks for the help.



I know I'm asking for the moon, but it takes only a few minutes of my time to ask for it and maybe, someday, some brave knight out there will help this fair maiden to lasso the moon AND help me slay this dragon of a goal in one fell swoop. Hey, a girl can dream, right?

Do we all really need our 15 minutes?

I'm sometimes perplexed with the way the entire real estate investing industry works. The more I network, both in person and online, the more it seems that everyone is out to sell you something and/or get their 15 minutes of fame out of real estate. Don't get me wrong, I love making money just as much as the next person, but I just can't identify with this phenomenon.



Anyone who has a few deals under their belt is suddenly planning a "training package" or offering to be a mentor (for a hefty fee) or is writing a book. There are plenty of people out there that have incredible experience and offer some really excellent services (Dave Lindahl, for instance, is the real deal with a great program: http://www.rementor.com/). The thing that gets me is that so many investors are now flooding the "market" with training systems and home study courses galore. They see the "Gurus" making tons of money and want a piece of the action, its only natural, right?


My problem with it is two fold: First, I don't see that many of these people understand that in order to make it big in any venture, you need to give before you can get. Second, they are not setting themselves apart from the crowd or finding a good niche to carve out to really make the product shine.



Giving before you get is something I've always believed in passionately. Some of the most successful people you'll meet probably started out asking people "What can I do for you" rather than asking what can I GET out of you. Its one reason why I'm working with Local Real Estate Deals Media, we are looking to help other businesses in their goals first and foremost, and we know that in approaching our business that way we will see exponential returns in the future. We're already seeing that return coming back to us with incredible speed. Dave Lindahl (to use him again as an example) is offering his boot camp for free to people who sign up for his newsletter (visit http://is.gd/Nbtz), a great deal and an example of how even the big guys still abide by this rule. So no matter if you are working on your own training system, book, or just some good real estate deals, don't forget to ask "What can I do to help YOU?" before you even start thinking about your check. Chances are the check will be much bigger and more satisfying when it comes your way.



The second thing that gets to me with all these "Nuru" wannabes (and I know some that will make it because they believe in the things I'm talking about here) is the fact that few are offering something special. I'm sure many of you can relate to having your email boxes full every morning with promotional offers for everything from webinars to boot camps. Which ones do you automatically delete? If you're like me its most of them, because its the same old noise over and over. Please people, tell me something interesting about why you are different, what can you offer that I can't get at 10 other websites? And speaking of websites, am I the only one that wants to see some actual content on these sites, not just an exceedingly long plug on how great the system is without any real statement about what the system DOES. I'm sure some marketing person somewhere did research that proves you get more response without telling site visitors what they're getting, but I can't fathom who those people are that sign up for things blindly!



Of course, there's nothing inherently wrong with developing new businesses out of your real estate investing business, I strongly support individuals coming up with multiple streams of income. There are many great tools, seminars, home-study courses, etc out there that are worth every penny. Just for my own selfish benefit and thousands of others like me, consider a few things before you make your leap into these products, though.

Ask these questions:

• Am I doing this to help others or to get my own piece of the proverbial pie?
• What can I offer to help others before they can help me?
• How is my knowledge and/or system different or better than all the others already out there? (if its really not, you should probably refer to question #1 since you might not be in it for the right reason!)

I, for one, do not need and am not looking for my 15 minutes, and I'm also not looking to sell anyone anything just to generate sales. I'm looking to help those that can benefit from my help and in doing so see all of our success grow. If someday I do come across an idea that prompts me to develop another business, you can be sure that it will be done for the right reasons and with the right methods. A good product will always sell itself no matter what's going on in the world. I would much rather be a part of something that other businesses want to be a part of themselves than one in which I have to force-feed the product to everyone I meet. If I had to do the later, no amount of revenue is worth the bad ju-ju I'd be creating in my life and business.

When opportunity comes knocking...

This past Friday I found myself suddenly jobless. YIKES!!!! Granted, this is something I’ve been working towards anyway and was even planning on, but I don’t think you can ever be completely prepared for it until the reality strikes. So far it hasn’t completely “sunk in” that I have no set schedule to abide by, no boss looking over my shoulder to make sure my work is getting done, and most importantly, no pay check to count on every two weeks. I KNOW all of these things are what I longed for and are now the facts of my life, but I just can’t wrap my head around the full significance of them yet!

So what does it feel like exiting the normal work force, some of you may wonder…

Truthfully, it feels like a lead brick is resting in the bottom of my stomach 24/7! I’ve prepared, I have a Plan A and a Plan B, and even some ideas for other plans should those two fail, but planning alone can not ease the feeling in my gut. Oddly, this is almost the same experience I had when I was pregnant with my first child (and even my second, come to think of it). Not to loose my male audience, but its true! There are the same amounts of fear, excitement, dread, hope, and “what was I thinking???” moments as after we’d decided to bring a life into this world with no actual experience in doing so. We read books, attended classes, talked and listed to other people who had been there before us, and gathered advice from professionals until we had some level of confidence of our foundation and were ready for the leap of faith. Sound familiar?

I admit I have a parachute of sorts, I have some things going “on the side” of my real estate investing which will enable me to ease into my self-sufficient “jobless” status. Honestly, my real estate investing is no where near ready to support me on its own, but the Catch-22 of time and attention to real estate versus time and commitment to my job has been a major obstacle in being more successful in investing. I can get all the education and mentoring I need, but it does me no good without the time to implement the strategies. Now that the cycle is broken, I am excited to throw much more of my effort into real estate and see my success grow accordingly.

Just like when I was pregnant (sorry guys!), I know that I CAN DO THIS and do it well, and that the fear and doubt are minor in comparison to the rush of empowerment and excitement.

I am embracing this opportunity to strike out on my own and live my life as I wish to live it. I know the road ahead will be a difficult struggle, but it is one I believe I will vastly prefer over wasting 8 hours of every day to help someone ELSE live the life they wish to live. If I fail there will always be other jobs to turn back to, and if I must go back then I will do so without regret, but how else will I ever truly know the kind of success I might have if I never bother to try? The opportunity knocked and I gladly answered the door, ready and willing to follow it no matter what the path. Thank goodness I was ready for it when it did!!!

So tomorrow starts the first day of the rest of my life. I can’t wait to meet it, even if I do carry some extra weight for the moment. What’s a little lead in my stomach compared to the limitless opportunities that I’m about to be a part of? Sounds like I got the better end of that bargain, now if I can just find some cash flowing multi-family properties where the stakes are the same!!!

To blog or not to blog, that is the question:

Whether 'tis nobler to suffer the thoughts of mine own mind without exposure, or to take up the pen and unleash those thoughts, and by that stroke open mineself to the world?

For me it wasn't much of a decision. I already narrate my life in my head as I'm living it and talk WAY too much about my own situations, good or bad, to anyone who makes the mistake of asking, so it's no big step to write all those thoughts and soliloquies down for the world to see. My only hesitation is that everybody who thinks they are anybody, especially in the real estate investing world, already has a blog. Isn't the blog market over saturated already? Do we really need another person throwing more junk into cyberspace that no one reads? Well, maybe not, but my ultimate decision was "too bad!" and here I am. The internet pretty much has unlimited space anyway, right????

Let me start out by saying how incredibly excited I am to be a part of Local Real Estate Deals as we begin our quest to link real estate investors across the nation together on a huge variety of media platforms. Local investing topics in a national format, who'd of thunk? Trust me when I tell you that LRED will soon be an industry leading company and household name to investors everywhere in the USA, and maybe even beyond!

So what will I be offering to my faithful readers here on LRED's blog profile? Probably nothing Earth shattering, sorry to disappoint! A little humor, a little insight, hopefully a little education, and, if I'm really lucky, maybe a little scattering of brilliance every now and then. I will happily post the good alongside the bad and the downright ugly, freely sharing my experiences with real estate investing, personal development, my road to wealth creation (road still under construction!), and the goings-on at Local Real Estate Deals. If you're looking for all the answers, keep looking (and let me know when you find them!). In the mean time, subscribe to this blog and give me some feedback as we go. The only thing I like better than hearing my own self talk is hearing the ideas, experiences and feedback of others in response!!!

Oh, and don't worry, I'll keep the Shakespeare references to a minimum, I promise! ;-)