A lot happening – networking is king – a job, maybe?

Posted on 21. Apr, 2010 by in Commercial Real Estate Brokers, Debt, Direct Marketing Campaign, Educational Seminars, Finding Apartment Buildings, Free/Low Cost Marketing Methods, Multi-Units/Apartment Buildings, Networking, Passive Income, Private Lenders, Random Ramblings, Short Sale Deals



I have a lot happening lately, which is good, of course, but unfortunately I haven’t closed on an apartment building deal yet. Patience I know…and I have found out they may take a wee bit longer then your typical single family deal.

I’m being a tad bit impatient though because I really don’t want to have to get a j-o-b! Know what I mean? I will though if I have to…I mean if it’s necessary to help take care of my family while I do the apartment thing on the side then it’s ok. That’s not the worse position to be in (it may seem like it because I’m not your “normal” type of job person…..but it would only be temporary.)

You might say “well why don’t you wholesale while working on apartments?” And I’d say that’s a fine idea, but realistically to be successful at wholesaling you’re busting your ass and networking and marketing and doing all of the things that I honestly, want to spend my time doing with apartment buildings.

Sometimes I have that conversation with my self and it makes sense and other times it doesn’t. But the big key is, just because you have a deal under contract when wholesaling does NOT mean you’re necessarily going to bring money in (deal could fall through for a number of reasons, etc.) And if that happens, well that doesn’t do the whole family bank account much good :-)

Trust me, I am not dissing wholesaling in any way shape or form. I made some decent money as a wholesaler but I also remember that to make that decent money I worked my ass off. Not that I’m afraid to work my ass off anymore but I want it to be focused on apartment buildings. The goal: to accumulate enough apartment buildings that throw off enough passive income for me to live off of and for Kathy to live off of and quit her full-time gig (Remember my F R E E D O M post? That’s what it’s all about. ) Passive income does not happen from wholesaling.




So my idea was to get a silly j-o-b that I would just go and do my time (like a prison sentence, right? lol) and have normal set hours so therefore I could manage all of my apartment buildings activities around those set hours. And at least I’ll get a lil bit of money coming in regardless (that is probably until my ass gets fired lol because I spend too much time on real estate hehehe)

If anyone sees a flaw in my thinking please let me know. My debt, folks, is really pissing me off and really determining all of the moves I make. I don’t know if you remember, but I “borrowed” enough money to live off of for 3 months in hopes that we’d get an apartment deal by then……..well I’m tired of paying nearly the minimum on my debt and I’m tired of being broke all of the time. I know a j-o-b is not my end goal, but I think I may be considering it a stepping stone to at least allow me to put a crap-load more money towards paying off my debt while I work towards my passive income goals.

Btw, yes the atm’s are kicking it, even the new one….but still, doesn’t throw off quite enough for me to live off of completely yet.

That’s the bad news, but now for the good news. I’ve been a networking fool lately. At toastmasters, whenever I meet folks and definitely at that tradeshow I went to last week. I think I may have found myself a new private money lender at the tradeshow (we’ll see,) I found an awesome contact who referred me to a property manager and the property manager was fantabulous and she referred me to 2 commercial brokers and told me she’d keep me informed of any properties that she hears coming on the market.

A lady at karate last week saw my WE BUY HOUSES lettering on the back of my car and asked for my card. She called me last night. We spoke. They owe more than their house is worth….I told her I could probably make her an offer and do a shortsale but she’d walk away with nada. She understood and said she’d talk to me in the future when they saved enough money to move out. In the meantime, she tells me about a 12 unit apartment complex near us that she’d like to move back into because the rent was dirt cheap. She tells me that the landlord tried to sell the complex before but the deal fell through. The owner since moved into a retirement community. Of course, I talked to her about that complex and she said she’d get the info for the owner (since her mom still rents from her) and give it to me so I can call her, plus she’d pass my info along to the owner as well. Fingers crossed!

Toastmasters meeting tonite again and I’m bringing Kathy with me aka dragging her kicking and screaming with me! Afterwards, we’re going to drive by 2 properties; a 6 unit and a 12 unit that aren’t far from there. If we have some interest in the neighborhood, which I’m sure we will, we’ll make appointments with the brokers and put in LOI’s.

Friday, we have a 3:30pm appointment at Starbucks with a broker I met at the tradeshow. He knows of a 45 unit property that will be coming on the market sometime soon in our area. And I know, I don’t drink coffee…lol but I like Starbucks’ banana nut bread and their strawberry banana smoothies. Yum.

Saturday, I still have to confirm, but may be seeing a 4 unit property. Monday have an appointment to see a 2 unit property. These are all smaller than I’m really interested, but I don’t think it hurts to practice. These gave from my mailings.

Just got another fax back form from my mailings of a lady that has a 10 unit. We’ve been playing phone tag tho. Sent out 255 pieces, 9 came back undeliverable and we got 5 responses so far; 3 by phone and 2 by fax back form. Just over 2% response rate. Not as good as the last piece we did.

Tomorrow we are going to a Chamber of Commerce mixer to see what we can make happen. It’s $10 for non-members. We still don’t know which chamber to join yet. So we’re just going to the free events and any of the cheaper events for non-members.

And today, I’m going to have Kathy call our next potential private money lenders to set up a lunch appointment with them tomorrow or Friday (those were the folks who were excited to do real estate deals with us but went on vacation.)

Soooo things are definitely moving along, but I don’t foresee an apartment deal by next month, so that’s why I mention the j-o-b thang.

Over and out for now.

P.S. If you haven’t check it out yet, do me a favor and check out my shorter private money pitch and tell me what ya think!

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9 Responses to “A lot happening – networking is king – a job, maybe?”

  1. Steph

    21. Apr, 2010

    Hey Carey,

    Sounds like you have been doing the hustle over there- nice job!

    You are definitely right about wholesaling NOT being passive income. As soon as you stop hustling, the $$$ stops coming in. This is something I did not consider when I jumped in. It still beats the pants off of working behind the bar, but I definitely am looking to build up passive income streams as well.

    Have you given any thought as to what type of job you’re going to look for or how much you need to bring in to make things work?

    It might not be easy to go back and get a j-o-b, but as long as you know that you are doing it for a purpose, and as long as you are working towards that purpose on a consistent basis, it will all be worth it in the long run.

  2. Shae

    21. Apr, 2010

    Carey, really great progress with the networking! The more people know about what you do, the better so that’s awesome.

    As far as a job is concerned, I was going to say something similar to what Steph said. To me, as long as you’re doing it in a purposeful way (i.e. “I’m going to work a 20 hour per week gig to bring in X amount each month until we secure the apartment building”) then its all good!

    You have to do what you have to do to keep things afloat ya know?

    Depending on your skillset, there are numerous other ways to generate income outside of a job. You can get short term contract work, project work, etc.

  3. stephen j. moore

    21. Apr, 2010

    Carey,

    nice going man,you are totally hustling and sounds like all your work is going to end up paying off,i think you’ll end up getting at lease 1 or some of these complexes you are going after man,good luck and keep rocking

  4. Flippin' Carey

    21. Apr, 2010

    Hey Steph,

    Yes, when I started to do the wholesaling thing I didn’t really give it much thought either as to the fact that it wasn’t passive income. But also, I wasn’t really so focused on passive income then (wish I was.) But hey, we live and we learn, right?

    The type of job? Well honestly, I’ve done so much in my life but mostly it’s all been in sales, customer service or in the broadcasting field (music/video/tv, etc.)

    I don’t know that I’d be able to get back into broadcasting been out of it for way too long and don’t have many contacts anymore. But Sales is always an easy option and customer service. Problem is, customer service doesn’t pay that much.

    Honestly, I’d like $2k a month. That would help me feel less stress….but I really can live off of $1k a month but I wouldn’t make much progress with my debt and I may have some stress.

    You are definitely right for it to not be easy to go back to a j-o-b. I know for a fact it won’t be easy. I haven’t have a real 9 to 5 type job for about 4 years. And prior to that it was 2 years before. It’s definitely going to be something to get use to and I’m sure I’ll be a pleasure to live with :-) But I just have to remember the LONGGG term goal.

    Hopefully tho, with the way some things are happening tho we can make bigger progress with the apartments then I think.

    I really hope.

  5. Flippin' Carey

    21. Apr, 2010

    Yes Shae, that’s exactly it, I want to make x a month to keep afloat…..I would love to find a part time gig that would pay me $2k a month. Know anything? lol But you’re right, it would definitely me in a purposeful way and until an apartment building (or maybe 2) are secured. Because the reality is, it may take a couple deals til I get the $ I need to live off of, especially if we’re doing equity partnerships with private lenders.

    And you’re right….ya gotta do what ya gotta do to keep things afloat!

    I am so glad you posted Shae, because I totally forgot about contract work, etc. Because I don’t need benefits and things like that because I’m on Kathy’s health insurance and of course, my IRA is getting ready to be rolled over to equity trust lol

    I really would do anything and can do lots of things, it’s just a matter of learning to sell myself again…..I need to definitely look into short term contract work, etc. Thanks for that tip!

  6. Flippin' Carey

    21. Apr, 2010

    Stephen,

    First of all I want to thank you for visiting my blog. I hope you like what you’ve seen and come back again.

    Second thanks for the positive thoughts I hope 1 or 2 of these deals pays off as well. I appreciate the good luck!

    P.S. I’m not a man lol just in case you didn’t know, but it’s all good man ;-)

    P.P.S. It’s late now, but I promise to answer your email in detail tomorrow. Pinky swear.

  7. Scott Costello

    22. Apr, 2010

    You sure know how to hustle and your networking is really taking off. Reminds me that I have to do more of that.

    Question for ya…

    How many more ATM machines would it take you to put in place before you could get an additional $1000 a month?

  8. Flippin' Carey

    22. Apr, 2010

    Scott,

    Probably 10 more. Kathy and I, of course, split the profit. So we’d most likely need 5 machines per each $1,000.

    So 10 machines would give us roughly $2k and I’d get $1k and Kathy would get $1k. Of course, that’s all just speculation.

    You really never know how well a machine will do until you have it placed. And the profits could go up or down accordingly.

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