Tonja Demoff Real Estate Tips

Investing requires more than excitement!


Real Estate Investing is an exciting idea for many people who want to create a solid financially free life with freedom and flexibility.  The unfortunate part of the excitement is that most often the person or people thinking of becoming investors have no money.

A few weeks ago I met with 3 very smart young people who called me up, told me they had purchased and flipped 6 properties this past year.  I began to ask questions and just knew there was more to the story.  After 20+ years in this business of real estate and investing I've learned a thing or two and I was certain this story had more to it... I decided to schedule the appointment with the group to see how I could help guid them.  They arrived promptly to the appointment and settled in to our conversations. As they became comfortable they revealed the following facts for me to work with as a realtor.

1. We (none of us have a job)
2.  We don't have any money
3.  On the 6 properties that we did flip we made NET a cumulative total of 13,000.00 (to split 3 ways)
4.  Nobody was willing to loan these 3 anymore money to "flip"
5.  2 had no credit and 1 had excellent credit (reminder... no jobs)
6.  All were below the age of 24 years of age.
7.  All were students in college
8.  Each expressed how motivated they were and wanted to find a "good deal"
9.  They wanted me to find them "good deals" to wholesale to my clients that were qualified.. (keep this in mind, we'll discuss)

Upon uncovering the "facts" I explained that it was nearly impossible for them to become investors with the set of facts provided.  Keep in mind I'm a very creative person typically I can give a solution that has some possibility but given the above my solution was not received with any warmth of serious consideration.

MY SUGGESTION:

I explained that I do not as a business model offer "wholesale services".  When a person wants to wholesale a property they find the property for "under market value" and enter into an agreement with the seller to purchase the property, the buyer then assigns the contract for purchase to a qualified buyer asking for money in exchange for having secured the property.  (Could be 2K, 3K etc.... whatever they choose)

I suggest that you all get jobs, create a history of income.... well before I finished my suggestion they decided that I was just negative, was not wanting to earn my "commission"....

Misconception:  Realtors don't earn money helping you "wholesale", they earn money representing the buyers or the sellers (absent some other creative strategies that we are NOT discussing here.)

This situation made me laugh... Thought I'd share :-)