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Hi, I’m Bernadette and I just signed up as a Premium member about a week ago and I’m from OC, California and maybe 5 more years and I will be ready to retire from my full time job but if I will be successful in venturing into real estate maybe I’ll retire earlier ( which I would love to). I have experience in sales since I am licensed as an insurance agent and I wanted to get licensed as a real estate agent but from the email I sent Jackie she said that I don’t need a license in investing. I am really excited to start doing this venture right away. My goal is to get half of the retirement funds I need to cover my expenses when I retire and help my children own their own homes too. I’ve read the special reports about the wholesaling and bidding and I know that I can do it but of course with your guidance and help. The only drawback is houses here in California are so expensive but I’m still optimistic it can be done.
I would love to hear from you how and where can I start being without any startup funds to begin with. Thank you for any advice.
I would say the FLIP DEALS special report advertises that you need very little money. In lieu of money, you need relationships (cash buyers) which will help you profit from the deals you find. You may choose to invest some money on your marketing strategies, but those are minimal by comparison to buying properties with your own cash.
There are others with more experience on here who will hopefully provide their suggestions, but that’s my $0.02.
Welcome to CashFlowDepot! Thanks for becoming a Premium Member.
To get started, you need very little cash (under $100) when you start with wholesaling. You will simply control a property with a purchase contract that has a contingency clause (an option), then either sell your contract, sell the house, or do a Highest Bidder Sale to sell the house.
But before you start looking for houses and opportunities, you need to start building a list of investors who are cash buyers or who have ready access to cash from private lenders. In your area there are PLENTY of BOTH!
Yes, the prices are high in California, but the profit margins are usually much higher too. Because you are not buying the house, it really does not matter what the price is. Don’t let the high prices scare you.
You can do this!
Bernadette, since Bill and Jackie addressed the beginning stages of where you might start in this deal-creating business, let me discuss some possibilities that might relate to your kids. And yes, houses especially in the major coastal California cities are outrageously expensive. I’m guessing that since you’re fairly close to retirement years, at least from the insurance biz, that your kids are either starting out in their careers, or are maybe well established in them, or maybe some of both.
The classic 20th century home buying model has evolved to taking out a 30 year mortgage to pay off what a 10-20% down payment didn’t cover. That mortgage with interest winds up costing the buyer 3-4 times the retail price of that house. No wonder so many renters in California can’t begin to buy a house. Now contrast that with what’s possible with the kinds of earning and accumulation possibilities that Cash Flow Depot can open up — which if you stick with it, and emulate just a fraction of Jackie’s success, you’ll be in a position to even pass much of that how-to knowledge to however many of your kids care to take an interest in the subject.
Personally, I would think that the possibility of learning to earn enough (while renting as inexpensively as possible, and leaving me the freedom to move pretty much at will when I want or need to) to buy a house for all-cash at a fraction of the mortgage lender’s dream amounts in whatever location might work best for me — would be an immense motivator. And there are multiple methods that CFD teaches that are highly scalable, meaning that they can be done in a many-deals-simultaneously way. The Magic Bus and High Volume Wholesaling instruction is just part of the possibilities.
At some point, you can have the option of either “helping” your kids via direct cash gifts, OR … what I think is a lot more impressive, giving them the option to learn what you’re about to learn — with tools that can last them a lifetime — to accumulate enough cash to do an end run around the mortgage companies. Your choice, of course, and also depending on the kids’ interests, abilities, and motivations.
Did I light any kind of cooking fire under your thinking recipe?
Let’s not forget master leases. Need some homework to be done to get up to speed but on a cheep budget not a bad beginning point.
Thank you so much Bill, Jackie, Dee and Don for the information that you’ve shared with me. I will start looking for investors first just like Jackie advised and do research on where to get listing of fsbo’s and master leases too. I will inform you of whatever progress I have coming.
To Dee, that was an eye-opener. I will share whatever success I have with my children from all my activities with CFD.
Bernadette, there’s an old story I might share with you. A long time ago my grandfather gave me seven silver US dollars. I thought that was kinda cool, but I was too young to realize what didn’t come along with them. What was missing was how they were earned, and how they were able to preserve their purchasing power in a way that the Federal Reserve couldn’t inflate (counterfeit) away. Unlike the gold confiscation in 1933, silver at least so far has never been confiscated in this country. (Congress in the early 1970s did re-legalize private gold ownership, while making the point that what Congress can give, they can also steal.)
Had I been taught what it took to earn, keep and grow such dollars, I was have been much better off. I would have also been better motivated about how to preserve and make such wealth grow and grow. Now … that’s quite a body of knowledge for a grade schooler, as I was then. But the point today is that a mere gift of cash is just a tiny bit what needs to either go along with it, either as a cash AND knowledge presentation, OR as a body of knowledge as a stand-alone.
J. Paul Getty was famous for saying that making money was the easy part. Keeping it was 10 TIMES MORE DIFFICULT.
One way is to start a family-owned bank, where the minimum starting capital is about $500,000. The basic idea is that all family members and descendants who might choose (but are not obligated) to participate (by having the right to borrow for worthwhile projects that WILL repay the loan) would be obligated to make yearly contributions to that bank to “grow that monetary garden.” Two contrasting families make a fascinating point about this. The Vanderbilt family didn’t do this, and generation after generation basically wasted away much of their inheritances. The Rothschilds, instead, used the family banking model which has been incredibly successful — generation after generation for multiple centuries.
Now you may have zero interest in the family banking model, and that’s OK. It’s just one way to get around that “10 times more difficult” barrier that J. Paul Getty mentioned. There are others for you to explore.
I’m just trying to share a long term perspective with you.
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