I started in Real Estate full time 15 months ago when my other career suddenly washed up. I was doing some RE investing with a friend and watching his success prompted me to get my license and try my hand at being an agent/Investor.
In my first 5 months in Real Estate I bought a property filled with junk from a lady who just didn't want it. I told her she shouldn't sell the property to me, but should have it cleaned out, painted, etc., and she would do better. She lived out of state and just wanted to be rid of it. I bought it and cleaned it out myself and sold it at auction 90 days later and made 35K. I also did 3 residential sales in my first few months making me another 15K or so. In my old job I only made 48K, so I thought I was the king of town. Anyway, things have slowed down greatly over the past 10 months. I bought and rehabbed another property that isn't selling and I have been running around with buyers who have no money, 5 listings sitting around, etc etc, I haven't had a residential sale in 3 months and am waiting for my rehab to sell (where I can still make 10-20K). Right now the only income I have coming in is my BPO income - between 750-1200 a week. I haven't gotten a listing yet through BPO's, I am trying to work my way in with the better companies but it is has proven hard. I remember when I interviewed with my broker he said "in Real Estate there is no money guaranteed, you are like a hunter and you only eat what you kill." I had visions of hunting moose and deer, but right now all I am hunting is the lowly but lovely BPO squirrel. My wife doesn't work as she is caring for our 3 young children. So, all the pressure and fun is on my back! I am not sure totally why I am writing this here, I guess I need to encourage myself and think about the positives (I am in the middle of a mess of a BPO). BPO's aren't what I envisioned when I became a REALTOR, but right now they are paying enough of the bills to keep me from the poor house. I just wanted to give a shout out to the BPO squirrel and lift my own spirits (sorry so long).

It took me 3-4 years to get my first REO (and it was a commercial REO, funny enough almost 3 years later and I think 4 agents later, it still hasn't sold) after doing BPO's I started in 2003 and just started to get really kicking in August - September 2007, so needless to say you may have a long road ahead of you. REO's are honestly a pain, you have to have tons of reserves, lots of organizational skills, and tons of time to do Monthly Status Reports, and FREE listing BPOs (sometimes you have to do a Monthly Status and a BPO on the same property within days of each other) you have to front thousands of dollars on a run down home that will eventually sell for $40,000 and you make $800 but you front more than that and you then become a bill collector to try to get the monies back that you fronted. Sorry to make the email so "yicky" but alas it is the truth. So you should know that once you do get the REO's it is a mighty fight!

Thanks for the response. I am willing to give the REO stuff a shot if/when they come my way. I do realize its not all Mercedes' and champagne. I think I am on the right track as I am building relationships with a few companies and reps that I know give out REO's. but for now I am just working the BPO's each week and trying to harvest the residential leads that come my way. I haven't really made up my mind which real estate path makes the most sense for me - residential agent, REO agent, investor, or a combination.

I guess all I can say is do the best you can do for you and your family to make ends meet and it is a rough rough road, but you have to pay your dues and eventually through hard work and a bit of luck, you can make it through!! What doesn't kill ya only makes you stronger!! (I tell myself this everyday!) Once day I will believe it

TAB I would analyze your expenses and cut where you can.

In a great market you can overpay on investment property and still turn a profit.In a down market you can still flip but you have to nail everything and get the right price when you buy.

Sounds like you started off well and then got the invincible syndrome.

Personally for me I do list REO's and I sell commercial and I do my own investments and it works for me. I am an extremeist and only spend marginal amounts of my income and invest the rest. I want to be cash flowing pretty well before I have kids with my wife.Investments are constant cashflow whereas as real estate deals ebb and flow (more feast and famine)

So the real estate deals are gravy for me on top of what I am already doing.

Tab223:

My daughter's mother-in-law is a well know Realtor in Baltimore teaching some of the area's continuing education classes to help with income. The feed back I'm getting supports what you have said about a thriving market over a year ago that is now all but dead in that area.

Mr. Foreclosure

I think I did buy my last rehab decently - I got it for 130 and put 35K into it. I thought it would sell for 240, but in this market - not happening. I may have to settle for 210 for the property in which case I would still make 17-19K depending upon the particulars of the sale. It is just waiting for the sale that is difficult! And Mr. Foreclosures relative is right - the market here is kind of challenging.