ForeclosuresMass - ForeclosuresMass Monthly - Nothing Succeeds Like Success - Linda Valentine Finds a Second Career (May 2007)

As an older worker facing a competitive job market, Linda Valentine found a second career - she became a full-time real estate investor. With four out-of-state deals currently in the works, a recent closing on a Massachusetts property, and a goal of closing on four additional properties in Massachusetts this year, Linda has started her new career with a definite bang!

Linda focuses on a niche market called "specialty housing" - residential real estate geared toward handicapped renters and college students. We caught up with her recently to learn her insights about going into real estate investing fulltime.

ForeclosuresMass Monthly: Linda, thanks for taking the time to talk with us. When did you get started in real estate investing and why?

Linda Valentine: My husband and I bought our first investment property in 1983. But to be honest, we didn't do it because we wanted to become real estate investors. Like many women, I needed a way to generate income because I had to quit my full-time job due to family responsibilities.

Our oldest son had just started college and we had to pay tuition - which even back in the 1980s was hefty. Added to this, we had a baby and I was pregnant with my third child.

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I racked my brain trying to figure out how to earn money without having to punch a time clock and realized real estate had the potential to generate the capital we needed. My husband and I purchased a three-family in Connecticut and rehabbed it ourselves.

LV: We rehabbed one apartment at a time - that is, we did the kitchens and bathrooms ourselves. We hired someone to do the exterior siding and roof. But that's how we got started.

Unfortunately, the Tax Reform Act of 1986 intervened and destroyed investment properties. [The Act increased incentives for owner-occupied properties while phasing out incentives for rental properties.] We were able to pull equity out, however, and buy a second three-family. This turned out to be a great investment due to the market. We sold it and made over $100K.

LV: That's a good question. I've always loved real estate and during the last twenty or so years, we bought and sold a few houses a long the way. I loved the whole process but never considered real estate a "full-time" job - probably because once my children grew, I was working full-time again.

LV: Yes, I did. I took classes and read books. But again, I never really saw this as a full-time job. It was just something I loved - more like a hobby.

FMM: When did you change your mindset from part-time to full-time investing?

LV: Last year my employer moved to North Carolina and for various reasons I couldn't follow the job. Because I'm near retirement age - I'm 60 - companies don't want to hire me. So again I racked my brain. What can a 60-year old woman do when the job market is basically closed?

My husband said, "Why don't you do real estate? You've always loved it." After I thought about it, I realized he was right.

I signed up for classes and did a few of those guru sessions - both of which made me courageous enough to step out on my own and tackle real estate seriously.

LV: I find them through networking and word of mouth. I work with a mortgage broker and a real estate broker and the three of us work to find deals locally.

Building a team that supports you is crucial in this business. You can't do everything yourself. My mortgage broker, for example, puts me in touch with people who don't qualify for certain things. Ditto for my real estate agent.

And, this year I plan to look more closely at foreclosed properties in Worcester County.

LV: I learned from one of the gurus that you have to know what you'll do with a property before you buy it - in other words, you want to start out with the end in mind.

Since I'm buying properties that I'll then rent to handicapped people or college students, I know what specifications a property needs in order for me to consider purchasing it. This makes me a more efficient buyer because it narrows the market.

I found a property recently, for example, that looked promising. However, the home inspection revealed too many problems - so I walked away from the deal.

The seller was so upset he told me he had another property for sale and would I consider looking at it? I said no, assuming the second property would be like the first, but he asked me again to look at it. I did and he was right - the property didn't have issues and suited my purposes. It's the one I just closed on.

LV: They're all good for giving you nuggets of information. One of my favorites is by David Bach - author of the Automatic Millionaire series. His "money wise" advice is terrific, and it's because of him that I negotiated a 10-year fixed mortgage at 4.49%. Other books I like are by Kyosaki, Lindahl, Langemeier and Unwin, to mention a few.

LV: Just three words: Go for it. Real estate gives you so many ways to be involved on your terms. You can do flips, conversions, short sales or buy and hold. You can do ten deals a year or only two. It's your call.

If you're self-motivated and devote even just a few hours a week to it, you can succeed at real estate investing. No other business gives you the flexibility plus the income. It's also a lot of fun!

Linda Valentine is the President of G&G Regional Investments, Inc. She can be reached at 978-456-0060 or via email at linda@ggrii.com.