Well I finally did it. I've been tinkering with the idea of getting into real estate investing for as long as I could remember. I've read countless books and articles, talked to others and overthought it to death. My saving grace was that my father-in-law and brother-in-law wanted to do it as well.
We formed an LLC and started talking to the real estate broker that sold me my personal residence. It turns out he specializes in lots. We decided to go with lots because my in-laws are more conservative and we figured it would be less risk. I started setting goals for the company as far as the number of lots each month as well as the cash flow amount we hoped to receive. Our goal for the first month was to buy a single lot and flip it in 30 days for about $3,500 – $5,000 profit. We got a home equity loan on my father-in-law's house and ended up buying two lots. After that lady luck was on our side.
A family friend had a lot that he'd owned for over 10 years that he wanted to sell. I knew I didn't have the money to buy it so I jokingly said I'd assign it to my broker for more money. Well my broker took me seriously and took the assignment. That was encouraging to say the least so I looked around and found two more and assigned them as well. All told we'll have made around $30k between the sale of the two lots we actually purchased and the 3 we assigned for the month of July. Not bad for a first month of business.
Our goal for the month of August is 7 lots either bought and sold or assigned. An advantage I have is that I am a software developer by trade. I created a nice database of lots, buyers, and sellers of properties. I keep every bit of relevant information including the county, city, subdivision, zoning, size, etc. as well as the contact info for the lots. I have had a number of inquiries on the lots and have established a mailing list that I send out a few times a week. I plan to wholesale lots through my growing pool of investors. Good luck and happy investing!
Boyton Beach, FL