Welcome

Welcome! You are reading the blog for Wealth-Steps.com. If this is your first visit make sure you start at our homepage and check out the many articles we have on real estate investing, building wealth, getting out of debt and personal financial planning.

Monday, December 16, 2013

Making Money With Full Time Real Estate Investing - Part 2

(This is the second part of my interview with Danny. You can read the first part here)


Finding Motivated Sellers...

Fast forward to the present and Danny has been steadily doing real estate investing deals for the last 10 years and he's been making a full time living at it. But the thing that most caught my attention of Danny is that he is not chasing foreclosures and bank owned properties like I was.

Since Danny started flipping properties before the recession, before there were distressed properties everywhere, he had to develope the systems to find properties that would make good investment sense. This basically means looking for motivated sellers. Finding homeowners that for some circumstance in their lives, need to sell the house even if it is at a steep discount from market values.

Thursday, July 4, 2013

Making Money With Full Time Real Estate Investing

An Interview with Danny Johnson a Full Time Investor


I recently had the privilege of speaking with Danny Johnson from FlippingJunkie.com, an experienced and very active real estate investor in the San Antonio area. Danny has been investing in real estate for about 10 years now of which 7 of them have been as a full time real estate investor.
FlippingJunkie - Danny, Melissa and Weston
Like so many out there Danny and his wife were neck deep in the grind of the full time corporate job and soon enough realized that type of life is someone else idea of making a living and not theirs.

Danny then started to have the kind of thoughts that I am very familiar with. He realized that the corporate job was not going to cut it if he intended to build wealth and reach financial independence one day.

So in comes real estate investing…

Friday, May 17, 2013

My Investing Strategy is Dead... What Now?

You might have noticed that it has been awhile since I have announced a new house flipping project on this site. That is indicative of how the real estate investing market has changed in Atlanta (again). My strategy of buying foreclosed homes to fix and flip has stopped working. I am now racing to figure out how to find new properties. 

wall street buying properties in atlanta

Monday, April 15, 2013

Potential Deal?...Don't Walk, Run!

This week I was reminded that when opportunity knocks the advantage goes to the proactive person and not the reactive one. You see, I got an email with a potential deal in my preferred area of real estate investing. Although good deals in my area are rare, they are possible because that is how I got House #8.

This was a wholesaler deal, meaning that an investor finds the property and puts it under contract and then tries to assign the sales contract to another buyer (me). They make their money by setting the sales price to his end buyer higher than the sales price he contracted with the owner of the property. The difference in prices is their profit.


I immediately gave him a ring but I couldn't get a hold of him until late in the day so we set an appointment to see the house the next day.

Wednesday, April 10, 2013

Rental House Update and What You Must Know Before Purchasing Rental Property

My rental house is now sold! (my favorite four letter word in real estate).

In the previous post about this house I wrote about how we had taken a chance and decided to sell the house instead of rent it. It turned out that the interest for purchasing was much higher than the interest for renting.

Not only was it very easy to get an offer on this house, we got several offers on the house within 48 hours. To top it all it was fairly smooth transaction to get to the closing table.

First off we had to sort through all the offers that we got. Initially we got two cash offers slightly under the listing price of $125,000 and one financed offer at asking price. But then the offers kept pouring in but all of them at listing price. That is when I decided to roll the dice…

Monday, April 8, 2013

Do You have Passion for What You Do?

Ran into this short clip about Steve Jobs' thoughts on passion for your work. It made me think quite a bit and wonder what areas in my life do I feel passionate about. It's not just passion for the work I do to put food on the table but of all the things that you and I do in our lives how many of them do we feel passionate about?


Friday, March 8, 2013

The Risks of Taking on Debt

Lessons Learned From the Real Estate "Bust"


I was recently researching the tax records of a property I want to to buy and noticed that the house had been refinanced numerous times only to end in foreclosure. I think it's a good example of how some people use debt to fund their lifestyle and the risks of taking on debt.

taking on too much debt


Because real estate in general was moving up in value a lot of people were looking at the equity in their houses and looking for ways to use it. A lot of this was fueled by the multiple offers that mortgage lenders would make homeowners to try and convince them to refinance.

Friday, March 1, 2013

Rental House Update...We Are Selling!

It seems that because of the low housing inventory here in Atlanta demand for houses has gone through the roof. I bet many other major cities are seeing the same too. To illustrate let me tell you what has been happening with my rental house.

A bit ago I told you about how we evicted the tenant and were getting the house ready for rent again. Well, we did exactly that, got rid of all the trash the tenant left, cleaned the carpets, painted and did a major clean of the house which apparently the tenant was allergic to doing.

Anyway, we put the house on the rental market and the phone has not stopped ringing. My sole method of advertising was the sign in front of the house and Craigslist.




Saturday, February 23, 2013

Learning From Real Millionaires...

I had the opportunity recently to attend a conference where the majority of the attendants were field supervisors in a construction related industry. As a project manager I send these guys out to my different projects and they are basically in charge of getting the work done.

The reason I bring this up is because their job would not be the first one to come to your head if I asked you to mention a high-paying profession.

The interesting part is that these individuals mostly have a High School diploma only, they live in rural parts of the country like Alabama, Mississippi and Louisiana, they mostly drive trucks (American of course), many of them consider themselves "rednecks" and...they are millionaires!

That's right. You would never guess it by looking at them because typically the image of a millionaire that is presented to you and me is something like this:


Yet most of these guys look like this:

Saturday, February 9, 2013

How I Messed Up A Potential Great Deal

In real estate like so many other business opportunities, every once in a while a "deal" comes up and you have to jump on it faster than you can say "deal or no deal". Well, it turns out that I just learned exactly how fast that needs to be…


Saturday morning I am looking in the multiple listing service to see what potential house flipping deals I might find. I have specific target areas, at specific price points and I look for specific conditions.

For example, one of the areas that I look in is close to me, has good schools, houses are not too old and resale values are in the upper $100's - $250k range. I look for houses that are at least 3 bed/2 bath with a basement or if they don't have a basement then it has to be a 4 bedroom.

In my search I noticed a house in this area listed at $99,000. The price was attractive and I dug some more…

Thursday, February 7, 2013

7 Ways To Change Your Family Financial Tree

As a father I have the ability to change my family tree. That means that If I come from a family where money was a problem, either there wasn't enough of it, it wasn't managed correctly or it was wasted, then I am completely capable of changing that "inheritance".

We parents are responsible for imparting on our children numerous life lessons, teaching them about money and building wealth is one of them.

The way parenting works you can’t say one thing and then do another…

What do you think happens when a child observes the following behavior:

Tuesday, January 22, 2013

My First Eviction: Eviction Notices and Lessons Learned...

Demand letter, followed by eviction notice
followed by disconnect notice from power company.


A couple of months ago I wrote about how I was trying to work with one of my tenants that was struggling to make the rent. At the time it seemed that we had worked out a solution to allow him to stay in the house until the New Year and then we would part ways. However, that solution apparently did not work and the tenant decided to vanish into thin air along with the rent for December... 

We had agreed to reduce the November and December rent to let him stay in the house. But December rolled around and no check. I was able to contact him at first and he gave me the whole "check is in the mail..." line. I delivered and mailed the Demand Letter shortly thereafter (pictured).

Sure enough the 15th of the month rolls around, still no check, and now he is not picking up the phone, returning voicemails or text messages.