SHINE's Big REI Adventure: Getting Started

Just finished setting up our entity and we're waiting for the Sec. of State to let us know everything's legit.

Then... we'll set up our account at a bank where my partner has an in. Hopefully, we'll be able to use that relationship to get tips on how to best build our business credit. More on that later.

In the meantime, I've been poring over PFRERN, and Automated Probate Finder. We've also begun outlining the next 45 days in order to a) build our team, b) build our buyer's list and c) get marketing materials together for motivated sellers.

4th of July weekend - gonna firm up our SPECIFIC action steps. Hopefully, we won't be too distracted by ribs and lamb chops.

Welcome to the DG family. You are off to a great start and I can see how excited you are. I wish you great success!

Lea

Since I'm on the brink of running a REI business, I've decided to simplify my life by taking a careful look at my own balance sheet and figuring out how to maximize income and minimize expenses. Even if I were never to invest in a single property, the benefits of EDUCATION have made this journey worthwhile because I'm so mindful of financial principles that are changing my ways for the better.

Gonna come up with 5 SPECIFIC and DEADLINED actions to find SoCal and Western PA buyers b/c we're digging up probates out in LA. We also have a colleague in Western PA real estate who is willing to pass on properties at deep discounts.

In the last two days, I've done the following:

1. Talked with a contractor and realtor for several hours concerning Western PA buy and holds. I don't know much about their local markets so we shot the breeze as I picked their brains. Super duper fun talks, and as it turns out, good for business too as it's building an extended network for my RE team.

2. Built a local cash buyers list. Spent a day on the internet and on the phone doing it. Had to change my cell phone plan to unlimited usage cause my minutes were blowing UP! lol I'm still getting calls and emails. Out of about 20 potentials, I found about 6 or 7 very serious buyers who were willing to offer POFs and close in cash in a range of 1-14 days.

3. Found a handful of probates to use as case-studies in researching public records and creating a probate system.

4. Finished looking over LLC papers and amendments and internal Operating Agreements. Signed off on them. This finishes up my filings and the administrative end of entity formation. Hooray!

5. Spent several hours compiling resources for team building and financing options. While I wait for my State papers, financing is the next step of my system.

Now I've got to sit down again and figure out the next steps so I can continue to be productive.

1. Looking at discounted properties in the Pittsburgh, PA area. Found and created a relationship with an ex-asset manager, who's eager to pass on properties to us for some serious discounts. SF Homes ARV coming in at around 50-60% and cash flowing to the tune of about 20-25% ROI.

2. Did a bunch of reading and researching about the probate process, which has paid off in some solid case studies.

Next steps: Locate some deals in the areas that our buyers prefer.

As far as probates, we got more research to do. Within the next few weeks, though, we're gonna create our mailing/marketing campaign for the probate executors.

FINALLY got all the paperwork necessary from the Sec. of State to make our entity official. Hoorah!! We opened up a bank account yesterday, and as a fascinating side project, will be steadily working to increase our corporate credit.

SET UP operations in PA and have now talked with all the team members. It took awhile to get things set up and took even longer to figure out a system that is seamless and on auto-pilot, but it feels 90% there. If things go according to plan, this next month should get me a capital infusion for finding our buyers some crazy deals (we're getting them at half off FMV).

PROBATE research continues, and it's taken about 6 weeks so far to get a sense of what the whole process looks like from A to Z. It can definitely get complicated and involved as it IS a legal process, which is why I assume so many people avoid it and head towards REO's and foreclosures (esp. in the current market). Still, it's very interesting to me and my partner, and after our research is complete (we're about a month away, by our estimation), we'll start creating and working a system for that as well. Exciting!!

HAPPY to say that the last 8 weeks has really been fun and interesting and meaningful. What's more, my work and efforts have given me confidence and a practical, workable plan to lead toward my dream of financial independence..

It's taken awhile, but I'm pretty confident now in the complete overview of what we're trying to do. Now I gotta execute.

YIKES!!

Next step: Get in touch with folks and start putting offers out there!

For those who didn't have much REI experience, how did you guys go about mastering contracts? Did you go over them and get legal advice from attorneys or just trust your own judgment with them?

Also, did you use the contracts on this site or official Realtor contracts? I'd be interested in hearing how the DG fam went about it.