In February 1997 my opportunity arrived, and a job opened up. I enrolled in real estate class, passed the necessary state test, and soon acquired a real estate license.
This was to lead to the next stepping-stones on my journey.
I learned all about buying houses on the courthouse steps, using the Multiple Listing Service, HUD foreclosures, and I gradually started developing relationships with realtors that specialized in foreclosure properties.
The Department of Housing and Urban Development (HUD) got all the FHA loans that had gone bad, and there was a special procedure to bid on those properties. I learned how to bid on and win those properties, and it was invaluable information that would help me to succeed in my future business ventures.
I kept running my own business on the side while I worked for them,
and when I found a really good property, with a potentially big profit margin, I would keep it for myself, while still flipping four or five properties a month for the company. This strategy was securing my cash flow, and at the same time benefiting my own venture. It was a win-win arrangement. The company had years of experience, and had already made all the mistakes, and found solutions to all the problems in this niche. They had already learned about underestimating costs, over-spending on properties, properties that did not sell easily – they had already stepped on all the landmines, as it were. By working there, I could acquire all that experience, and I got to know all the mortgage investors that financed the private loans.
I realized that quitting my job at Centex Rooney prematurely had been a mistake, so I changed my approach, and took this new opportunity to correct it.
179 It’s one of the most important lessons I’ve learned on my path to success: When one approach isn’t working, you simply have to take a different approach. No matter how many times it happens, even if it feels like a complete failure, you need to keep trying different avenues until one finally works out.
In many ways it was a good choice to work there, but as with every decision, there was also a downside.
The owner of the company wanted to start replacing the agents with personnel on a much lower pay-grade. They were going to start adjusting the commission splits down to next to nothing – in the company’s favor. I also started noticing that they were not always doing ethical business. They fudged the numbers on some of the repair projects in order to make more money.
While working there for a year and a half, I met my future business partners, Paul and James.
Paul was a successful entrepreneur, and was speculating with properties of his own on the side, as I was doing. Both he and James were my colleagues at the time, and none of us liked the direction that the company was taking.
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Divorce
During this time I had to make one of the hardest decisions of my life.
Although my business was starting to become successful, the same could not be said about my marriage. After a year, it was becoming clear to me that staying together would be unfair to both of us. I discuss this in depth in my first book, but I mention it here because it highlights the importance of learning to trust and follow your heart. This was one of the hardest things I’ve ever had to do, but it was also a powerful lesson. I learned from all the pain we both endured
through the breakup. After it was over, I gained a renewed inner strength, and a deeper understanding of my own intuitions – my gut- feelings. I made a promise to myself that if I ever got married again, I would only do it if it felt absolutely right; if my head and my heart fully agreed.
When we separated, I moved in with my best friend, who had a house nearby, with a completely empty room. My wife stayed in the house, and I kept paying the bills on it while we figured everything out. Perhaps I can add one more lesson in life that I learned at this time – which is particularly useful advice that I offer to many of my clients today who are going through a divorce. If you’re reading this, and you’re going through a divorce, or thinking about it – it might help. Divorce attorneys thrive on conflict – so if you can avoid it, you’ll end up saving a ton of money.
My wife and I separated on relatively good terms. I was going to take care of all the credit card debt, and I soon arranged for someone to buy our house. We each hired divorce attorneys. I paid about $3,000 in total – but she gave her attorney a huge retainer of $6,500.
181 Things changed when she started dating somebody new – a dentist. He started interfering, and next thing I knew I was getting letters from her attorney demanding alimony – because she had decided to go back to school. We had already agreed on everything – so it was a surprise to me.
The attorneys started exchanging letters – and of course, all the while the bills kept adding up. What should have only cost a couple of thousand dollars was starting to become very expensive, and dragging on for months. Every letter cost $250.
The dentist left the picture after a while, because the two of them didn’t get along, and when I spoke to my ex to find out what was going on, she didn’t know anything about it. She didn’t have a head for these kinds of things.
Her attorney was trying to burn up as much of that fat retainer as he could, most probably having spent it all already, and not wanting to refund anything. I called my ex’s father, and explained to him what was going on. He thanked me for letting him know, and the very next morning I got a call from my attorney telling me he had a signed separation agreement – we could go ahead and finalize things.
Always remember – if you’re going through a divorce - do your best to prevent things from becoming ugly and adversarial, because at the end of the day the only ones who are going to win are the attorneys. Try to settle things amicably on your own if possible.
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