OfflineI'm an at-home mom desperately DETERMINED to make life better for my family thru REI, so we can ENJOY life along the way, not just living paycheck to paycheck. I signed up with the coaching thru Dean's Success Academy and they're VERY helpful. My goal is to earn the '5 Deal Money Back Guarantee' in this next year. I'm doing this part-time with twin toddlers in tow. 
I'm focusing on 'Assignments,' as I have no money to start my investing. I put Ads on Craigslist and in American Classifieds looking for investors-buyers-flippers, and ONE guy has responded. He's a flipper with a cash buyer, so hopefully I can find him my 1st deal.
I live in Southwest Colorado, and there are NOT houses for $30-80K (NO Bull Matt L!), the lowest asking price on the MLS has been $150K for a true 'fixer-upper' with foundation issues, 2-3 bd/1-2 ba, in town (criteria of my 1 Buyer). I put in an offer for $100K, but it just closed for the asking price. The average houses sell for $300-$400K and 10-15% off the FMV. I've looked at over 15 houses in the last 3 weeks, and my low 50% off offers are laughed at. I have an agent who is doing his best working for me, but I think the only way I'll find a house less than 35% off FMV will be with Pre-foreclosures, as my coach with DG's Academy recommended. Am I on the right track?
I visited with an accountant Saturday to be sure I have my business set up correctly, he recommended an LLC (which I filed for) and set up as a S-Corp for tax purposes, which costs $850/annually plus to file the tax returns. GAG! It seems like I'm just paying money OUT, with no money coming IN yet. 
Frustrating. That visit with the accountant cost $175. He also said that the Academy Fees won't be deductable, what? I will call my PMI coaches on that one. He was VERY skeptical about my 'Investing' business, "What EXACTLY will I be doing? How do I think that "I" will get the houses cheaper than another buyer? So I won't actually BUY the house, just ASSIGN it to a buyer? I better consult with an attorney to be sure I can DO that..." blah-blah-blah... So negative...it's frustrating to hear. One RE Agent I interviewed told me to take the RE course and become a Realtor, then go work for her, I'd make more money that way. Riiiiggghhht, and whose pocket was SHE concerned about lining? I don't use her as an agent.
I'm trying to build my Buyers List, but only have ONE investor so far. I put an AD in craigslist and Amer Classifieds, but my investor is the only one who responded to both Ads. 1) Ad craigslist, I put in my email address, 2) Ad Amer Classifieds, I put in my phone number, and my investor called me, ha! I think we're the only TWO investors in town. I'm going to attend our 1st REI Club meeting, which is suppose to be this month November. YES! Hopefully some leads from there.
Questions: Building your TEAM, do you line up a Handy Man to do your estimated repair costs? I can do the cosmetic repair estimates, but the structural or more in depth, I don't know. Do I have to hire an Attorney, they're soooooo expensive, but Matt Larson said that I NEED one if I'm doing 'Assignments of Contracts' (which I am, NO MONEY here)? What percentage commission/fee do you pay your Agent for helping you on FSBO's and Pre-foreclosures, foreclosures? REA's get their realtor commission on MLS listed houses, but what about the others? What price do I figure for my 'Finders/Assignment Fee?' Is that price figured from the OFFER price or from the FMV price?
I'm overwhelmed with it all. The Tax Club seems like a great way to go for the business set up & taxes, but again, another $5,000 intial fee & $50/month is money I don't want to ADD to my credit card BEFORE I at least make my 1st deal. HHHEEELLPPP... I've filed for my LLC, and what is the next step I MUST take to protect myself and my family and also to set up my business wisely BEFORE my 1st deal?? Thank you for any suggestions!
Making it happen!
Sincerely, Sheri
Sunrise Solutions, LLC
Congratulations for taking action and creating a plan. I know you encounter some naysayers along the way. The key as Dean has often told us is to truly know your "WHY" for doing this and nothing or no onee will get in your way. Look at each experience as a learning experience and each day your base knowledge will contiue to grow. The key is stay positive and make sure you do a little each day to move you closer to your goals.
In regards to estimates you can get a good idea of costs by getting quotes. Often for certain items it may be a quote by square feet say for carpet, tile, painting, etc. Or a cost of a new door, window, kitchen or bath remodel etc. If you contact Home Depot or Lowe's, or even visit one in your area there have a list of contractors that can almost do it all. Over time you will find the local handyman and other contractors that do a good job for a fair price. The best way to find these people is by networking with other investors or by word of mouth. Good luck with real estate investing. Believe and Achieve!
- Joe
Hello Sheri,
I can understand your frustration as you are getting started in real estate! I’ve been there and everyone on this forum has also been there!
As you mentioned before, having a list of qualified “buyers” is absolutely important!!! As you get started in doing the assignments of contract your primary focus will be to develop your buyers list! Don’t worry about looking
at properties or meeting with real estate agents or talking to mortgage lenders – we first need to get the qualified buyers & then we will teach you how to find all the properties! Real estate investment clubs are great places to find investors, because you are able to meet people in person!
Here are a few great websites where you can find some Real Estate Investment Clubs – www.CREOnline.com / www.REIClub.com / www.REIClubDirectory.com / www.MeetUp.com / www.BiggerPockets.com .
You’ll also want to attend “foreclosure auctions”!!! These are gold minds for finding qualified buyers, because the investors at the auctions have money!! Every county is a little different, however most county’s will require a “bidder” to bring a $5,000 cashier’s check and have the rest of the money available with 3 to 5 days. You can contact your county court house and they'll be able to tell you where and when the auctions will take place.
So auctions have buyers with money!
Now over time we will be building our “Power Team” – this will consist of a real estate agent, mortgage lender, title company, etc. But we’re not going to working on the “Power Team” UNTIL we have our qualified buyers first.
Keep using the real estate advisory line for assistance.
Keep up the great work, stay positive and remember that real estate investing is like eating an elephant – you take one bite at a time!!!
Your acountant pretty much told you he's not in your corner.
For the best advice for tax questions, Google Sandy Botkin at the Tax Reduction Institute. He's a former IRS attorney himself and has great courses for real estate and home businesses.
As long as you run your investing biz like a true business and not a "hobby", you can definately and legitimately deduct your coaching.
Sheri,
You are doing AWESOME!!!!!
I'm excited for you and the pot you are stirring!! And I'm right there with you in the trenches and your billion questions!
Accountant questions...turn to DG family member Robert(BomberCPA)...look him up! He's awesome!! (And not to mention on board with this real estate investing stuff which is helpful from an attitude perspective
He sounds like he's got a lot going these days ...but shoot him a PM and I'm sure he'll send a nice word or advice your way!
There are so many threads I could reference here to help with your questions...but I know you can find them too! This site gets easier to navigate and less overwhelming as you focus in on ONE topic at a time. For instance, take one question you have and search for two words (within the DG search tool on this site) ---realtor commission, estimate repairs, attorney costs, assignment fee, etc....and if a thread doesn't come up, then just change the wording ----so many WILL come up that helped ME immensely in answering some of these critical questions!
Great Advice above from Drew on BUYER'S LIST!! Whew, if you start with a SOLID buyer's list that was truly qualified, then the foundation is TRULY BUILT for success!!
I sooooo wish you all the best, and would address some of these myself if I didn't need to go to bed right now!
But I think you'll find better threads from more experience members on here!
I look forward to hearing more of your success...stick to it, because you are asking ALL THE RIGHT questions, and obviously have quite a FIRE burning to GET YOU THERE.
Be patient! (I know it is hard, I struggle with it too) but everything has it's time and will come in time (a recent DG member has just given ME that advice!
A post that I finally caught tonight that inspired me from CBRPOWER: http://www.deangraziosi.com/node/4858
Cheers to your success!
Louisa
Now to Him who by the power at work within us is able to do far more abundantly than all that we can imagine.
-Ephesians 3:20
Do not follow where the path may lead. Go instead where there is no path and leave a trail. - Ralph Waldo Emerson
My Journal on Dean's Site: http://bit.ly/ocv10
For estimates I found a cool site online, punch in my numbers, and it provides a general price quotes for my area. Site: www.remodelingmyspace.com and then go to the 'cost estimator.' So thank you for the suggestions, I'm going to Home Depot with my list of estimates and I will get a list of prices as a baseline as you suggested. Thank you so much Joe.
Drew, I'm working on building my BUYERS list, I've put Ads on Craigslist, Amer Classifieds, and flyers around town. I've now got TWO Buyers, whaaa-whooo.
I'm a little frustrated b/c I'm trying all the ways to get them, but have not built the list to '100 Buyers overnight' as some people seem to do. I will keep working on it. I will continue to call the Advisory Team, you guys are really supportive, thank you!
I just locked up a house under contract, my FIRST one, Wed, my 2nd Buyer came and looked at it, my 1st Buyer said "no thanks, it needs too much work." Yet he said repairs, no problem, the uglier the better. After that response, I asked him WHAT repairs are OK? I'm getting more specific with him now. I'm hoping #2 Buyer will take it.
I also attended my FIRST REI Club meeting, it was exciting. I was a little bummed as only 9 people attended including me. Was so excited to attend, I forgot to share my business cards. But I will next month. It's all so new, exciting and scary...thanks for your support you guys. I'll keep you informed.
Making it happen!
Sincerely, Sheri
Sunrise Solutions, LLC
Congratulations on attending the REI club, I found them to be very educational as well as the best way to make contacts. I have met Lawyers,title people,bankers and investors as well as other profesional people at these meetings.If you keep taking action along with the resources available to you through the coaches, you will be successful. a little each day brings you closer to your dreams.
Just never ever give up.
good luck on your investing.
Richie.
Ingalls 71,
Hello all, I am new to the DG Family and the combination of the Coaching and this site makes it the best family to be a part of. In regards to your earlier post, when you say run the RE like a true business, it what aspect to you refer? Do you mean setting up an LLC???
Thanks,
RIck C.
Do today what others won't, so you can live tomorrow like others can't!!