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New Investor Blitz - Where To Start... Here's your chance....

#1 User is offline   Dealmaker 

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  • He that lives upon hope will die fasting. - Benjamin Franklin

Posted 16 July 2004 - 08:09 PM

Here's your chance to get started on the right foot. I going to read your post about you, your situation, your goals and where you want to go. Then I'll give you advice on what I would do! Don't miss out..it's free..it's helpful not only to you but the 1000's of lurkers that have yet to join in. It's only a rumor that I bite.. :dance1:

Why an I doing this?? Because I get tons of emails everyday asking for help. Since I do not have the time to respond to everyone, I thought offering this on the forums would help out a lot of new investors at once.

You are encouraged to post your thoughts, plans, and questions about getting started. Each post should include as much of the following as possible...
  • What are your goals for investing in real estate?
  • Is your goal short-term (I need cash now) or long-term (I want to build wealth and a monthly cashflow)... or both.
  • List the strategies you want to employ.
  • When do you plan to get started.
  • What are the first five actions you plan to take to get started?
  • What do you need to know before you get started?
  • What skills do you need to improve to become successful?
  • How much time you plan to set aside for investing?
  • Who can you depend on for support?
  • Who will think you're an idiot for getting involved with real estate?
  • What is your 4 biggest fears?
  • How much capital do you have set aside to get started?
  • Do you plan to use partners?
  • What are your top 5 strengths?
  • What are you top 3 weaknesses?
  • Credit score? Good? Bad? Pass?
  • What are your reasons to invest in real estate?
  • Do you want invest part-time or full-time?
  • Are you good with people and one-on-one communication?

Post as much as you can along with your questions. I will personally respond to each post. Some days (like July 22th to 25th) I'll be traveling and unable to respond but when I return, this will be the first thing on my list.

No, I don't expect everyone to jump on this opportunity. Some of you have been reading these forums for the last year and you have yet to get started. You have everything to gain and nothing to loose for getting started.

Lurkers, jump in and introduce yourself!

The Cafe' is cozy and we have your favorite brew. I'll have Gyokuro Tea..my favorite.

Dealmaker :blink:
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#2 User is offline   jeknapp 

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Posted 16 July 2004 - 09:50 PM

Ok... I will jump in here. I have been reading the forums for a good while and reading lots of books and asking lots of questions either here or asking Locutus9, we go way back:)

My situation....
I HATE working for someone and depending on them for my paycheck. I have been barely squeeking by for a while, but my wife just got a full time job so we will have more money at the end of month now. But were planning on using thhat to pay off credit cards.
I want to answer to me and not someone else. I don't want to live paycheck to paycheck. I would like a much better life for me and my wife. More time together and more time to do what we want instead of what the boss man wants.
This december I will turn 30. My uncle asked a couple months ago what I wanted out of life and I told him I wanted to retire by 35 and live the good life. (He is in his 50's and starting all over again in a new location and a new job, I don't want that!)
So here I am at point A (30) and know that I want enough passive income by point B (35) to not have to punch the clock.

I would like to get a good mix of long term (cashflow) and short term (cash now) deals, using the short terms to pay off existing debt and to roll into other long term cashflow properties.

Capital to work with. I have about $1000 in savings right now and should be getting a little more in soon when I get the final order from the weddings I just photographed. Use this for advertising? "I buy houses" ads? Voice mail? etc

Strategies:
I have a good grasp on sub2 and LO. Would also like owc since I have such limited funds.
Would like to go after apts, can pcik up 12-24 units around here for what a nice house would cost in other places (50K-200K)

Education:
I am sure I have read enough books to get started by now. I should have started months ago. Sometimes I think I might be more afraid of success than of failure. I have read 3 of the Conti-Finkle books, How to sell your house in 5 days, Flipping properties by Bronchick, and am reading "how to buy and sell apts" by Volluci. And I have read lots of posts here.

When do I want to get started:
In all reality I wanted to start like 9 months ago

To get started:
Place classified ad,signs around town, mag signs for car, call fsbo (I know I have seen it said that this is a waste of time, but might get a deal and help me to learn to talk to owners)

Time investments: around 15 - 20 hrs a week ( have a full time J.O.B) want to replace JOB with full time investing

Support: Usually talk to Locutus for support. Feels like I don't have real support behind me most of the time. Parents are the type who know nothing but "work more to earn more" Usually get a reply like "Yea right" whenever i talk about my ideas.

Fears:
Losing everthing that I have, even tho that isn't much. Fear that I will find a way to by that 24 unit building then have no one wanting to rent, or if it already has renters they all move out.
Talking to people.. afraid I will look like an idiot in font of owners, fear of looking like a "newbie" even tho that's what I am.

Partners: Don't know... no one I know around here to partner up with.

Strengths:
Honest and dependable
Quick to learn new things
Willing to study and learn new things
Usually can work well with people either in a group or 1 on 1

Weakness:
Procrastination is the biggest
Shy and timid at times
lack of confidence that I can succeed and deserve to succeed

Credit:
Well... Last year at this time I pulled it and it was a 712... just pulled it tonight again and it is now a 654, tho I have no late payments, and have reduced my debts... Any ideas how this might have happened? Suggestions to improve it?
So would you consider a 654 good or not so good?

Reason to invest:
Freedom, freedom to be my own boss and create the life I want to live. No boss. Ability to create the income level I want to achieve and not be limited to what someone else deems I am worth. Pay off bills and lead a debt free life.

FT or PT:
I will start out part time, would like to go full time wihtin 12-18 months.

And now that I have written a novel here I will say Thank You to everyone here and for the DM creating this place so that we can learn from those who ahve been where we are and are willing to help us get where we want to go.

Thanks,
Jim
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#3 User is offline   Dealmaker 

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  • He that lives upon hope will die fasting. - Benjamin Franklin

  Posted 17 July 2004 - 12:00 PM

[quote]Ok... I will jump in here. I have been reading the forums for a good while and reading lots of books and asking lots of questions either here or asking Locutus9, we go way back:) [/quote]

Glad you decided to jump. Locutus isn't cheap!! Buy her dinner at a fine restaurant for answering all those questions.

[quote]I HATE working for someone and depending on them for my paycheck. I have been barely squeaking by for a while, but my wife just got a full time job so we will have more money at the end of month now. But were planning on using that to pay off credit cards.

I want to answer to me and not someone else. I don't want to live paycheck to paycheck. I would like a much better life for me and my wife. More time together and more time to do what we want instead of what the boss man wants. [/quote]
Excellent..those are the reasons you need to succeed. The ones that matter.

[quote]This December I will turn 30. My uncle asked a couple months ago what I wanted out of life and I told him I wanted to retire by 35 and live the good life. (He is in his 50's and starting all over again in a new location and a new job, I don't want that!)[/quote]
I see this alot. Of course, some seniors like to stay busy but I hate to see some of the 60 to 80 year old senior working at Wal-mart because they have to.

[quote]I would like to get a good mix of long term (cash flow) and short term (cash now) deals, using the short terms to pay off existing debt and to roll into other long term cash flow properties.Capital to work with. I have about $1000 in savings right now and should be getting a little more in soon when I get the final order from the weddings I just photographed

Use this for advertising? "I buy houses" ads? Voice mail? etc

Strategies:
I have a good grasp on sub2 and LO. Would also like owc since I have such limited funds. Would like to go after apts, can pcik up 12-24 units around here for what a nice house would cost in other places (50K-200K)[/quote]

With limited funding, I would suggest you stay away from any long-term deals initially. These deals could be subject2 deals where you would be responsible for the payments. A key mistake for new investors with no money or small reserves is committing to payment for the Seller then depending in the Tenant to make those payments. When I ask the new investor about the repairs, I commonly hear.."the tenant/buyer is going to fix everything".

While that may be our objective, a lot of tenant-buyers are unable to afford a new heat pump or roof. Guess who has to cover that expense.

If you locate a subject-to deal that was very attractive, depending on the terms you could sell it retail or let another investor step in to make the commitment to the Seller and get a finder's fee.

My recommendations:
  • Get started today. Drive & look for vacants, rundown, REOs, mail to the pre-foreclosures, start marketing to generate some leads.. ads, signs, & doorknock your the pre-foreclosures.

  • Draft a list of potential money partners from your circle and another lists of business owners & professionals that you don't know. Mail them about becoming a money partner. Offer above-average interest on short-term deals secured by local real estate. Make no mention of points or deal splits. They're not necessary.

  • Talk with a lot of RE Agents. Ask for summary list of REO or Foreclosures (actually they are REOs at this point but most Agents call them Foreclosures) from the MLS. Expect to go through several agents. Most do not understand our business and will not fulfill your requests. Meet them in person to build a relationship.

  • Gather all the books, flyers and newspaper supplements advertising real estate in your target market. Get to know the listing/asking prices. Find out the median price in the MLS.

  • Be frugal in the beginning & cut back on some things in order to have the funds to use for real estate.

  • You focus should be to find deals with equity that you can buy & sell.

  • Long-term business plan.. buy & sell, re-invest profits into bigger deals, rehabs or resort property to re-sell. Re-invest those profit into apartments.

  • Read all the posts about marketing, taking calls, talking to sellers. and any others areas you're unsure about.

[quote]Education:
I am sure I have read enough books to get started by now. I should have started months ago. Sometimes I think I might be more afraid of success than of failure. I have read 3 of the Conti-Finkle books, How to sell your house in 5 days, Flipping properties by Bronchick, and am reading "how to buy and sell apts" by Volluci. And I have read lots of posts here. [/quote]
Yes, you've read enough. It's time to get started.

The only other area I'd suggest you get some knowledge it tenant/property management. How to deal with tenants, leases, etc..

[quote]When do I want to get started:
In all reality I wanted to start like 9 months ago[/quote]
Next April with be 9 months from now... will you be saying this then?

[quote]To get started:
Place classified ad,signs around town, mag signs for car, call fsbo (I know I have seen it said that this is a waste of time, but might get a deal and help me to learn to talk to owners)[/quote]
Good ideas..I'd ONLY call the FSBOs that seem motivated by their ad. Unmotivated FSBO usually will beat new investors down and make the feel like an idiot. Remember, don't do deals over the phone!

[quote]Time investments: around 15 - 20 hrs a week ( have a full time J.O.B) want to replace JOB with full time investing[/quote]
You know what you want. The only the left...Are you willing to pay the price? See most of us forget that to [u]add[/u] something to our lives we must [u]subtract[/u] something.. eliminate something from our lives. TV, Golf, Poker, wasting time with friends, kite making, taking naps, etc...

If you're ready, talk with your wife and give her a list of the things you plan to eliminate in order to make time for real estate. Have her ask you daily about your choices and hold you accountable for the list you have her. Most will not do this task. Why.. it makes us feel as if we're giving our power away. But accountability is the best tool to change things in your life.

[quote]Support: Usually talk to Locutus for support. Feels like I don't have real support behind me most of the time. Parents are the type who know nothing but "work more to earn more" Usually get a reply like "Yea right" whenever i talk about my ideas.[/quote]
Start finding support internally and from the forums here. Don't rely on Locutus for support. She needs to have and receive support herself. Your support should come from your spouse, a great old friend, or a new friend. It's usually best that your support doesn't have any knowledge in real estate. Do you know why?

Remember..never, ever share your goals, dreams and aspirations with those that do not believe in you. Their response is usually crushing for most of us. Don't let it happen to you.

[quote]Fears:
Losing everything that I have, even tho that isn't much. Fear that I will find a way to by that 24 unit building then have no one wanting to rent, or if it already has renters they all move out. [/quote]
Nothing unusual. If you implement what you know and gather from us, learn from mistakes the 1st time, and remain discipline, you'll do fine.

[quote]Talking to people.. afraid I will look like an idiot in font of owners, fear of looking like a "newbie" even tho that's what I am. [/quote]
Here's a new [url="http://www.dealmakerscafe.com/Real_Estate_Investing_Articles/Getting_Started/Talking_to_Sellers% 3AWill_I_look_like_an_Idiot%3F/"]article just for you and this topic.[/url]

[quote]Partners: Don't know... no one I know around here to partner up with. [/quote]Money partners is all you need for now. It's best to work with money partners that do not know real estate.

[quote]Strengths:
Honest and dependable
Quick to learn new things
Willing to study and learn new things
Usually can work well with people either in a group or 1 on 1[/quote]
Perfect!

[quote]Weakness:
Procrastination is the biggest
Shy and timid at times
lack of confidence that I can succeed and deserve to succeed[/quote]
Use the accountability technique above and give your wife another list of things you plan to accomplish each 10 days. I'm sure she can keep you on track! :blink:

[quote]Credit:
Well... Last year at this time I pulled it and it was a 712... just pulled it tonight again and it is now a 654, tho I have no late payments, and have reduced my debts... Any ideas how this might have happened? Suggestions to improve it?
So would you consider a 654 good or not so good?[/quote]
Good.. over 700 would be best but it would take much as at all to get you there.
I like buying a full year access to Equifax and the other credit bureaus (www.equifax.com) for $69.95 a year I can watch my score. Challenge any incorrect items..all from the Net. Very fast and easy to use.

Keep your unsecured debt to 0 or a minimum.

[quote]Reason to invest:
Freedom, freedom to be my own boss and create the life I want to live. No boss. Ability to create the income level I want to achieve and not be limited to what someone else deems I am worth.  Pay off bills and lead a debt free life.[/quote]
Good reasons.. print them out and hang them on your wall with the above reasons.

[quote]And now that I have written a novel here I will say Thank You to everyone here and for the DM creating this place so that we can learn from those who ahve been where we are and are willing to help us get where we want to go.  Thanks,Jim[/quote]

Jim, you're welcome. More importantly, 98% of new investor will not post on this thread. Why? Because they would have to reveal their dream, goals, strengths, and weaknesses, and they do not want to be held accountable. I admit changing one's life is not easy...but it's worth it.

Stay focused, get your wife behind you for support, and start depending on you. Locutus nor I can make you a success. You have the tools & the knowledge. Just start digging. I had to dig my own.. and so did everyone before me.

You can do this!
Dealmaker :dance1:
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#4 User is offline   tony from philly 

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Posted 18 July 2004 - 01:44 PM

Hello dealmaker,
I want to begin by telling you that I've been lurking around on this site for the past 2 months and have been overwhelmed by the information and willingness from dealmakers like you to help lost and confused newbies like me get into action.
A bit about myself, I've been interested in rei since the beginning of last year.Since then I have read over 20 books related to re and have purchased and reviewed over and over again steven cook's and ron legrand's courses.I think I'm suffering from a big case of the old "PARALYSIS OF ANALYSIS" and I hope it ain't terminal....
[quote][*]What are your goals for investing in real estate?[/quote] Presently I would like to make some cash now, enough so that I can quit my present job.It wouldn't have to be much, I can survive by making 15k to 20k a year which is what I presently make working full-time at my crummy job.Not to say that my goal is to make 15 to 20k a year from rei hopefully I will be making more but that is what I need if I want to stay alive and not die.
[quote][*]List the strategies you want to employ.[/quote]I am very interested in wholesaling because I NEED CASH NOW!! I need to build up my cash reserves before I enter into any other form of investing like rentals,rehabing,l/o, and sub2 which I'm very much interested in but I must build my safety net first.
[quote]*]When do you plan to get started.[/quote]
As soon as possible...but I've been saying that for the past 10 months :dance1:
[quote]What are the first five actions you plan to take to get started?[/quote]
1.I've got these blank bandits that I've finally made a stencil for(after 2 months of having them) and will be finished with them by weeks end so I'll begin posting them up this weekend.
2.I've printed up over a thousand flyers and will begin distributing them this coming weekend to nearby neighborhoods.
3.Plan to approach at least 3 real estate agents to begin looking for fixer-uppers for me.
4.Thinking about putting ad in the paper to begin building buyers list.
5.Place mag sign on car finally,the hell with what people think.
[quote]What do you need to know before you get started?[/quote]I think at this point,nothing.
[quote]What skills do you need to improve to become successful?[/quote]I feel as though I will have to improve my communication and organizational skills if I wish to succeed.Any suggestion on courses or books will be nice.
[quote]How much time you plan to set aside for investing?[/quote]I could devote 3 to 4 hours a day and possibly more on the weekend.What I would like to know is how can I spend that time more productively and do the things that will get further to my goals.
[quote]Who can you depend on for support?[/quote]Recently my girlfriend has begun to begin getting interested in rei (just a little not much)She even has told me that she'll be willing to invest in a rehab if the price is right...I know what your saying WHAT ARE YOU WAITING FOR!!!
[quote]Who will think you're an idiot for getting involved with real estate?[/quote]Most of my co-workers and probably the managers at the plant that I work at.I had one of the managers chuckle when I gave my business card to a fellow employee.Maybe that why I've procrastinated somewhat in placing my mag sign on my car.
[quote]What is your 4 biggest fears?[/quote]1.Fear of failure
2.Fear of looking like an idiot
3.Fear of communicating with people one on one
4.Fear of criticism
[quote]How much capital do you have set aside to get started?[/quote]I have saved up about 3 thousand saved that I can use towards rei.
[quote]Do you plan to use partners?[/quote]I am trying to do this alone but if the right opportunity comes along I would bring in my girlfriend to be a partner.
[quote]What are your top 5 strengths?[/quote]1.Insatiable appetite for learning
2.Very honest and dependable
3.Openminded to new ideas
4.Creative
5.Very helpful to others
[quote]What are you top 3 weaknesses?[/quote]1.Tendency to procrastinate(purchased a daily planner just like ronlegrand said and have been procrastinating using it).
2.Lack of self-confidence due to lack of past experiences and successes.
3.Communicating
[quote]Credit score? Good? Bad? Pass?[/quote]My credit score was non-existent a couple months back but I have been paying off a loan, that I took out just for the purpose of building my credit, on time every month for the past 7 months so I'm not sure how that will effect my score.
[quote]What are your reasons to invest in real estate?[/quote]I see it as the only way for me to find financial freedom.My only way of escaping the rat race and something that I would really find enjoyable once I get over this newbie stage and begin doing deals.
[quote]Do you want invest part-time or full-time?[/quote]I want to invest full-time but I don't want it to become another rat race. I want to make enough to live by and enough to enjoy the better things in life.
[quote]Are you good with people and one-on-one communication?[/quote]I guess I'm ok with one-on-one communication but I deffinately think I need help on this one.
I guess thats about it I think just answering this questions has given me some motivation I never really sat down and wrote what my I wanted to get out rei.I feel this has really helped me,thanks.I be looking forward to your response.


"If you have one eye looking to the past and one eye looking into the future you'll probably be crossed eye today."Carmelo Vasquez.
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#5 User is offline   ariliz 

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Posted 18 July 2004 - 08:50 PM

Hi Dealmaker, I guess I'll get it all out :dance1: My little story is my husband and I moved down here to Orlando, FL last year from NYC determined that I would make it in RE. A couple of months after I arrived I had my RE license because that was all I knew. To sum it up, after 6 months in the general RE biz I left my broker and became a seminar junkie.

Now, in RE school investing was never mentioned; not in my RE firm either. Once I found out a little about it, that's all I've been thinking about. My goals are I finally want to comfortable and for once not have to always be on my calculator figuring my budget. If I become wealthy in the process, that's just an added bonus. The main thing is I really want to be an expert in this field. So, my goal for now is short term, because I'm in dire need of extra income. However, I also want passive, residual income my family can live off of.

The strategies that I'm most interested in now are wholesaling and optioning pretty houses. My issue is that I have knowledge about them both but not the step -by -step processes. Tenants, lease options, subject- to's and wrap arounds are great but I don't think I'm ready for them yet.

I've already started! Sort of. I invested in a weekend workshop with a RE education group, I purchased some office equipment like fax,copier,scanner etc. I've also bought a couple of books like Ron LeGrande. This weekend I took pictures of several ugly vacant houses and looked on the tax records for the owners, but the owner address was the same as the home address. So at this point, I', kind of stumped as to what my next move is.

The first 5 actions I'll do are drive for ugly houses, place ads trying to attract owners of pretty houses so I could option them, put up WE BUY HOUSES signs (do those really work?) and - I don't know what else.

What I need to know before I get started are the details like what is the most cost-effective way for me to start wholesaling-what is the most amount of money I'll have to be prepared to spend to wholesale -including everything? I also want to know, in reality, when I get a house under contract and place and ad HANDYMAN SPECIAL , how many calls really do come in? How does being a Realtor fit into all this; is it a good thing or a bad thing? What exactly does it mean that I have to disclose that fact-in writing or verbally? Right now I'm not with a broker-should I get back with one?The last thing: if I find a good house TOMORROW, should I do it in my name or run and get an LLC of land trust or something first?

The skills I need to work on are communication with strangers face to face. I'm OK with people I know or really nice people. How do I deal with the others? Also I'm intimidated by the level of professionalism and organization that is required to do this business. Also, I'm 24 and I've never been put in a situation that really requires serious negotiating on my part.

I can do this all day, for now. My husband agreed I can try this full time or for as long as we can afford it. He is very supportive of me, but I don't expect tangible help from him because he has his own business he's trying to get off the ground. My parents, especially my mother will be helping me. I think the only person who might think I'm crazy for doing this may be my brothers, but everyone is still pretty supportive.

My 4 biggest fears are the fear of leaving out an important step and messing everything up because I still don't feel confident I have all the details. Also, that I'll get a seller who knows a lot more than I do. I really fear getting a property under contract and not being able to find a buyer which might result in an unpleasant scene with the seller(does that happen much?)and I'm scared that my contracts won't protect me even though the RE educational group that I purchased them from said they're perfectly legal. It's Cash Flow Generator/Russ Whitney. Should I take their word for it or do I still have to get a lawyer?

I don't have much cash at all, I could get together the $100 each needed for a few earnest $ deposits and I have maybe $2500 on credit cards. And I don't plan to use partners. I don't really know anyone that well down here yet.

My top 5 strengths are I'm really focused, I'm a big researcher, I'm pretty persistent so I'll keep trying, I only want to do things honestly, and I can stay excited for a long time. Id say my weaknesses are I'm scared to move for fear I'll do it wrong, I procrasinate, and at present I don't take rejection that well(I know I'll have to get over that quick).

My credit is bad. At least since I moved down here. But the good thing is all I need is a good $3000 to pay most people off.

So that's everything. Thanks a lot for the opportunity and I love this site, and hopefully you guys will give me the big push that I need.
Ariane
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#6 User is offline   SprinklerGuy 

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Posted 19 July 2004 - 11:56 AM

My turn....not really your average fence sitter as I have a lot on my plate already...3 different businesses to manage. But...a business is a lot like a job, only you put in more hours for your money.

My goals for real estate investing are as follows:

Get out of the businesses that I am in...they are not fun for me anymore. Because they aren't much fun anymore...they also aren't producing the revenues that they should. Burnout anyone?

Real estate is the answer I believe...I own one rental home now and I have fixed and flipped one time very successfully so I know it can work.

My goals are both long and short term...short term I would like to flip some homes to pay off debt. (same as everyone I suppose) Long term I would like to keep some homes and rent them / lease them and sell them as necessary for retirement. (ever hear that one before?)

The strategies I would like to employ are as follows:
Find a farm area within my town and work it like crazy....much like Tom Hopkins in his real estate book: How to master the are of .......only for my purposes and not his purposes of selling and listing real estate.

I would run ads in penny saver etc.
No door knocking for me....just not my style...no offense to those that do.
No bandit signs....again no offense.
Door hangers will work for me, and if I happen to speak with someone...so be it.

I plan to get started right after my last vacation this year....leaving soon for Yellowstone with the wife and kids for 10 days. Will start around August 15th

My first 5 actions will be to drive the area I wish to farm....during my drives I will talk to people and put out door flyers....I will be searching not only for homes to buy, but people to help me find homes.

2nd action will be to place the ads.
3rd action will be to call my RE agent and get REO list

I think I know enough to get started now. I just need to leave my office chair and go.

My organization skills could use some work. I would like to start planning my days in the morning and sticking to the plans. I am a failure at that right now...I put out fires all day and get nothing done...this includes my home and personal fires...not just business.

I would like to set aside 4 hours per day m-f right now and more when needed. The 4 hours for now would be used in driving for dough and flyer generation/distribution.

My wife is not too supportive. She would be happier I think if I had a job making just enough to pay the bills. She would like it if she knew my schedule. She has been putting up with me now for 10 years....but she has been a stay at home mom now for 5 of those years. I think I need to sit down and talk with her. There isn't any doubt in my mind that she would be more supportive if I asked her to. Problem is, I am they typical male...don't need help and don't need to ask for directions when lost. I should work on that and ask her for support, I'm sure I would get it.

I dont know of anyone off the top of my head that would think I'm an idiot actually. Most of my peers respect my judgement, as I have proven to them my ideas work.

My 4 biggest fears are:
My biggest fear is one of commitment. The businesses I own now are reliable. I know what will happen for the most part from month to month. I like knowing....even though there is some risk in my businesses...after 10 years with one and 3 with the others....I have a pretty good idea of what to expect.

Other fear would be that I would become lazy after being a bit successful and start playing too much. Meaning, I wouldn't work as hard. I have found in my current businesses that I worked really hard to establish them and slowed down and maybe relaxed too much after that. I have seen my propensity for that in the past...in Real Estate Investing I see that as a bigger problem to overcome.

I don't have any capitol set aside...most of my money is tied up in my businesses and in bad debt!

I do not plan to use partners if I can help it....I hate the "P" word.

My 5 strengths
Quick Learner
Creative
Hard working
No fear of debt or taking chances with debt
Desire

My 3 weaknesses
Organization
Not thrifty
Get bored easily

Credit score last checked was 694....was 745 2 years ago and then credit card debt and a new business venture.....high debt to income ratio.

The reasons to invest in real estate for me are that I can make my own hours...I can start out working around my current obligations and I enjoy it. The one house I flipped after fixing up...that was the most fun I had ever had...and I earned pretty good money doing it.

I am great in one on one communication...I have to be. My businesses are service and tourist....therefore I am one on one quite a bit.

Thanks Dealmaker, you have given good advice in the past and I hope to hear about myself soon!
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#7 User is offline   ClassiB 

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Posted 20 July 2004 - 09:21 AM

What a great opportunity! How could I pass this one up?

[quote]What are your goals for investing in real estate?
[/quote] I want to take care of some immediate cash flow now. I have 2 rental properties, (one is paid for) well it was, I used the equity in it to purchase an REO last week that we are rehabbing. It is my first one, things aren't moving as quickly as I would like. But I am learning. I want to make this my business, one that will give me the freedom to do things with my family that I have always wanted to do.

[quote]How much time you plan to set aside for investing?[/quote]
Right now I do quite a bit probably 20 hours per week. Sometimes more, it is really easy to spend alot of time on it. I enjoy it though. :dance1:

[quote]Who can you depend on for support?[/quote] I do get support from my husband although he has yet to see the big picture, he is more of an immediate kind of guy. I also have a friend that has been investing for 22 yrs. that will answer any questions I have for him.

[quote]Who will think you're an idiot for getting involved with real estate?[/quote] My husband, we have not seen the kind of money we were told we would see yet. He is somewhat frustrated with it.

[quote]What is your 4 biggest fears?[/quote] I guess failure is my biggest fear. Although I know I won't fail. I have no fear of talking to sellers or realtors if they don't want to talk to me then that is fine, I will move on to the next person. I also am at a point where I need to find some private money, I think it is hard to ask for money and I have gotten here quickly. Another fear is hidden things in the house, I wish I knew what to definately not buy in a house that is a big money pit.

[quote]How much capital do you have set aside to get started?[/quote]I have some money, I have used alot to already start, now I need to make some back. We are getting really close to this point.

[quote]Do you plan to use partners?[/quote] I hadn't planned on it.

[quote]What are your top 5 strengths?[/quote] 1 - willingness to learn all I can 2 - already learning (active) 3 - I have alot of materials that I have read and am reading again. 4 - I am motivated and do something towards investing every day. even if it is small. 5 - Honesty and wanting to make this a win/win as much as possible. (I got a short on a property and when I told the owner she said she wanted to kiss me (yech) but I was glad to help her while helping myself. Just haven't been able to find the money for it yet. :( )

[quote]What are you top 3 weaknesses?[/quote] 1 - private money 2 -oganization (working on that) 3 - rehabbing shortcuts, not on quality on how to get them moving.

[quote]Credit score? Good? Bad? Pass?[/quote] Good - I beleive it is a 680+ last time I checked.

[quote]What are your reasons to invest in real estate?[/quote] Freedom - to do the things I want, and have the money to do it. I don't want to be rich necessarily just extremely comfortable.

[quote]Do you want invest part-time or full-time?[/quote] Whatever it takes, right now I am a stay at home mom with 5 kids, I do what I can.

[quote]Are you good with people and one-on-one communication?[/quote] Yes, getting much better in it with this business too. Sometimes I do more talking than listening, I must work on that. :fl2:
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#8 User is offline   zzacbec 

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Posted 20 July 2004 - 11:05 AM

DM,


I don't know when the term "newbie" goes away, but I am still new investor with 2 deals under my belt.

You and I have talked many times in the last 1.5 years, and you've helped me out a ton with deals that happened and a bunch that fell through...

My main question is how to deal with the lack of the most valuable asset: TIME

Everything from marketing, to knowledge to do the deals, to money is already in place, and its working...just to slowly

My main goal is to do this full time and make it last.
First by doing enough deals to keep cash in the bank and then by buying properties to hold...

the problem is that i know i miss deals do to my lack of time. if i had 40 - 80 hours a week to find deals I know that i could 2 a month easy (in my market thats 50k easy....50k a month would work for me :dance1: ).

right now because i work, full time and commute 3 hours a day. I find myself juggling between keeping my job up, my relationship with my wife up, the real estate investing, and total exahustion.......


I know that at some point i need to take the leap of faith, but i don't wnat to do it until i have a steady stream of deals comming in, or a bunch of cash in the bank to live on....


My question is how do i find a way through the catch 22? I know that a plan needs to be made and followed through....

Quote

TV, Golf, Poker, wasting time with friends, kite making, taking naps, etc...


I don't play golf, I shutoff my TV, don't make kites, only take naps when my eyes won't stay open........ok i do play poker once a month with freinds :fl2:

I find myself wasting time because I am so spaced out that i try to get something done and i end up zoning out....
Yesterday I started excersising again....hopefully that will give me the eneergy i need to push through to Job quiting time...



I can see it and taste it but I'm not at the table yet...

zachary :greenblob:

This post has been edited by zzacbec: 20 July 2004 - 11:23 AM

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#9 User is offline   Elaine 

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Posted 20 July 2004 - 10:02 PM

Well, here I go:

[*]What are your goals for investing in real estate?
I have taken an extremely early retirement due to my health. I receive generous disability benefits, but I don't like the idea of someone else pre-determining how much money I can have. That should be my decision. It is my goal to take charge of my financial destiny.

[*]Is your goal short-term (I need cash now) or long-term (I want to build wealth and a monthly cashflow)... or both.
Both. Short term, I want my REI cash flow to equal the disability benefits. Long term, I want my REI cash flow to replace and surpass the disability benefits.

[*]List the strategies you want to employ.
So far, I have bdogged and acquired two properties; one by LC and the other sub2. I also want to do some wholesaling.

[*]When do you plan to get started.
Actually, I started in '99 when a friend became a mortgage broker and started harassing me about REI. I bought a duplex that already had tenants. I was hooked, but health concerns interrupted my progress. I reconnected with my mortgage broker friend last year and soon found myself lurking REI websites. Within a month, I was a birddog. Again, my health interrupted my progress, but that's ok. I just picked up a few months ago where I left off last year. The final property I looked at last year was still on the market this year. I snapped it up.

[*]What are the first five actions you plan to take to get started?
I've started, but what I need to do to maintain momentum: 1) Network more with local investors. I've been relying on Internet contacts for bdog and wholesale opportunities. Many of these experiences were not profitable nor pleasant. 2) Continue developing my "team" so I can maintain progress and not worry if I get another health interruption. 3) Celebrate even the small victories. 4) Don't dwell on mistakes (which have been many). Learn from them and move on. 5) Focus more of my efforts on short term deals, like wholesaling.

[*]What do you need to know before you get started?
I didn't know anything about REI when I bought my first duplex. I didn't know a whole lot more when I started bdogging. I just read as much as I can and ask a lot of questions along the way. I will attend my first one-day boot camp in a couple weeks. I'm psyched!

[*]What skills do you need to improve to become successful?
I need to be able to analyze and structure deals better.

[*]How much time you plan to set aside for investing?
I put in a fulltime effort, but not fulltime hours. The spirit is willing, but the flesh ain't.

[*]Who can you depend on for support?
A close friend and some members of my local REIA.

[*]Who will think you're an idiot for getting involved with real estate?
My parents, so I don't talk about it with them. Others around me are too polite to openly ridicule, but I know they are watching closely to see what happens.

[*]What is your 4 biggest fears?
I don't want to sound arrogant, but due to my health, I've lost everything more than once and on more than one occassion faced the possibility of living the rest of my life in a nursing home. What else is there to fear?

[*]How much capital do you have set aside to get started?
I had planned to use several thousand dollars owed to me by Uncle Sam, but that could take another two years of legal wrangling. I refuse to put my goals on hold, so I'm operating on a frayed shoestring budget.

[*]Do you plan to use partners?
Definitely. I've used money partners already. A friend who put cash into a property I purchased told her mother about it. Now her mother wants to invest. Sweet!

[*]What are your top 5 strengths?
1) Tenacity--doesn't matter how many times my health interferes/delays/disrupts my plans as long as I keep moving forward. No excuses.
2) People skills--I'm good at talking to people in groups or one-on-one
3) Organizational skills
4) Time Management skills
5) I'm a quick study

[*]What are you top 3 weaknesses?
1) I spend too much time trying to figure out if it's a deal or if I should pass.
2) I spend too much time trying to figure out if it's a deal or if I should pass.
3) I spend too much time trying to figure out if it's a deal of if I should pass.

[*]Credit score? Good? Bad? Pass?
Bad, but will improve tremendously by next year.

[*]What are your reasons to invest in real estate?
There are many things about my life that I cannot control, but I focus on the things I can control. REI is one of those things.

Elaine
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#10 User is offline   tojo 

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Posted 21 July 2004 - 01:31 PM

Hi Dealmaker,

Thanks for the opportunity. I appreciate all you and this site’s administrators do. I am still a newbie that has started, and would like my situation, goals, and what I can do better reviewed.

Where I am/my current situation
I currently have a job, so I do investing part time. I have some courses and began applying wholesaling and buying creatively on seller finance or lease option, but may be stumbling on getting to the next level up. I have wholesaled 7 small junkers for a small profit over the last 2 years. After studying this site for the last year, I found I shouldn’t buy on l/o. So I’ve made the mental and paperwork changes. Even though I was trying also to buy creatively over those 2 years, I’ve only been able to wholesale, and I’m struggling with subto or cfd. I think it has something to do with analyzing the deal (its location and cash flow), what to say to the sellers, presenting the offer and closing, and having all the finer details. This is the next level I want to get to.

What are your goals for investing in real estate?
I want to be able to have enough properties producing cashflow to meet and exceed my living expenses so I do not have to work for someone else. I want to keep buying and selling to keep the capital reserves up and coming in, but mostly I want to then begin getting subto and cfd houses to produce that monthly cashflow.

List the strategies you want to employ.
I will keep wholesaling to other investors. But now mostly, I want to do subto and cfd, either selling for cash or on l/o to homeowners.

When do you plan to get started.
[/U]What are the first five actions you plan to take to get started?[/U]
Well I’ve started already. I have some marketing going on. I have about $500 a month to use. I have a classified ad in paper (there’s another 4 investors doing the same thing), I have 3 signs and put out a few bandits on the weekends, I mail postcards to divorces and housing code violations, I’ve tried out of towners. I have calls come in on voicemail (I know this is bad, but I have a day job, and I am pretty much alone, on my own. I thought looking into a answer service, but may not have the budget or may have to juggle some of the budget, and am afraid to lose the phone number I already use for marketing). I get about 10-15 calls a month.

What do you need to know before you get started?I think I need to know more about why I am struggling on the next step with buying subto, and work on this immediatly. I may have trouble knowing exactly what it is, so I will try to elaborate more throughout this post.

What skills do you need to improve to become successful?
- How to analyze a deal, structure a deal and close for buying subto or cfd – what does that mean structure a deal. Is that in my head working out the numbers, or in front of the seller, on a contract or on a yellow pad of paper?
- Knowing what to say on the phone, and in person. When to do a driveby, when to set the appointment. This is kind of where I get stuck. I get calls from a lot of central city crappy areas, and I think - well will rents really cover this? or I don’t know about this location? Maybe this is some ‘paralysis of analysis’, but aren’t these considerations to make?

How much time you plan to set aside for investing?
I have 3-4 evenings in the week and all of Saturdays.

Who can you depend on for support?
I am pretty much on my own. I have a mother who, of course, is interested in my well being, but is not interested in real estate investing.

Who will think you're an idiot for getting involved with real estate?
I don’t think anyone would, but then I don’t care.

What is your 4 biggest fears?
- Interfering with my job, since I need it to keep funding this business. So I try to keep low key about it at work.
- Not knowing if I have all the details, not knowing how to sell fast, not knowing if I have access to the right people on my team when I need them fast, covering too much carrying $costs because of these missing details.
- Procrastination
- Something else, I know its something. For example, after I would wholesale a deal, I would ‘veg’ out for a month, even when I know I had phone calls stacking up. I don’t know really what it is. Maybe this is not a fear, but more of an aggravation I know I have to hurdle.

How much capital do you have set aside to get started?
I have built up $17k just for capital reserves for subto (taking over payments, handling evictions), and I have the additional $500 a month for marketing.

Do you plan to use partners?
No.

What are your top 5 strengths?
- This may be a hard question. I am good with numbers and have some computer skills.
- I think I have some people skills, but am a little bit shy.
- I have the courses, and know the concepts, forms, contracts (may need to pick up finer details that I can get along the way)
- I have applied myself (and I know I need to keep applying and persisting to grow my business even when I know there’s something I am struggling against)
- Built up some $reserves.

What are you top 3 weaknesses?
- Not knowing when to go sign them up, I get all the information on the phone, and like I said above, either location or rents, I ‘lock up’, and say to myself ‘nah, not good enough deal’.
- Not knowing what to say, what to present, if I am structuring the deal best and closing it.
- Not asking for help (even when I have something wrong, I don’t really know what it is specifically to ask for help on)

Credit score? Good? Bad? Pass?
Fair? I have some older (4 years ago) remarks. My FICO was around 670 last I checked. I have one older judgment that I cannot find the people anymore (my attorney just said to keep waiting it out). This may be another fear – what to do with it or my credit in general.

What are your reasons to invest in real estate?
Freedom. I want to live the lifestyle that I can only dream about now, where I have enough income producing assets that meet and exceed my living expenses, so I do not have to work for someone else, and I can work for myself to keep growing more assets.

Do you want invest part-time or full-time?
Part time now, but eventually full-time (then back to part time once I’ve made it through).

Are you good with people and one-on-one communication?
Sometimes I think I am, sometimes I think I am not always.
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#11 User is offline   Angel 

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Posted 21 July 2004 - 02:30 PM

Matt (Dealmaker) says, keeps these posts coming! He's preparing materials for Friday and Saturday so he's unable to respond until Monday. Don't worry, I set time aside on Monday for him to reply. I have an idea. Why not blow him away and have 50 posts to respond to in this thread? That might keep him busy for a week!

If you haven't posted before, this would a great time to get started. Let's overwhelm Matt (DM) with posts! Post your story and situation to get in line for Monday! It's exciting to see everyone benefiting from this thread!

Best wishes,
Caroline :ninja:
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#12 User is offline   sdupdike 

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Posted 21 July 2004 - 02:59 PM

Well, here I am again, still trying to "get started". I've been reading and studying REI for the past two years. I actually did start a few months ago, and got really busy at work and had to put things on hold. I guess I'm just another fearful newbie making excuses.

My goals are like most everyone elses. I want to be in control of my life, my paycheck, my time. I don't like the fact that someone else controls how much money I make every month. I could use some extra cash flow to pay off debt. And of course would like to build wealth, for my daughter to go to college and for retirement (early).

I am most interested in rehabbing. I'd like to buy foreclosures/REO's and rehab them. Like I said earlier, I actually did start a few months ago. I placed ads in the papers, got some calls, nothing that amounted to much. I got some experience talking to sellers, even met with two at the house. I went and looked at two houses with my realtor and put in an offer on one, which wasn't accepted. I've got business cards (haven't given one out), fliers (haven't done anything with those either), signs (put up 10 out of 100).

I'm not what you would call comfortable talking to people. Very shy, timid, scared of looking like an idiot.

I plan to get started (again) immediately.

Actions I plan to take:
Get back in touch with a realtor
Put up the rest of my signs
Do something with those fliers and cards
Call FSBO and get back in the swing of talking to sellers
Talk to local investors, ask to birddog for them, get info from them if they volunteer it.

I don't think I need to know anything really to get started. I started once with what I know now, I can start again. I definitely need to improve communication/negotiation skills.

I don't have a lot of extra time, some time in the evenings and weekends. I work full time and have a 2 year old at home. But I am committed to being successful at this.

My husband and family is not very supportive REI. They all think it's a joke. Also there is no REI club nearby.

No one will think I'm an idiot for getting into REI, especially when I start bringing in the checks.

Biggest fears:
Looking foolish
Losing Money, putting my husband/family in a bad situation financially

I don't really have any money set aside, but I have a couple hundred dollars each month to play with (could probably squeeze $500 if I really tried). Also recently paid off $12,000 in credit card debt by refinancing our house, so I have that as back-up. When I started months ago, I contacted a hard money lender about money for purchasing and rehabbing and got a prequal letter, so I'm good to go there too.

I don't plan to use partners, unless something comes of contacting a local investor. It definitely wouldn't hurt to have someone in my corner who has done this before. Also, my parents have some extra money every month, but I'm not sure I could convince them to put it into RE. I'd be afraid of losing their money.

Strengths:
Determination
Independent
Analytical (I'm a computer programmer)

Weaknesses:
Communication
Negotiation skills
Fear

Credit scores, between 670 and 710, so I have borrowing power. No negatives, only some credit card debt.

I guess what I really need is just another push to get back to where I was. I need to get started again. Also, some feedback on jumping in by rehabbing would be nice. I know wholesaling is the suggested way to start, but if I have the power to borrow the money I need to do a rehab, and I have some cash to sustain it from month to month, is there any reason not to do this? That is what I'm really interested in, rehabbing and reselling. And I'd like to eventually keep some of my rehabs as rentals.

So with a little cash to work with each month, borrowing power, credit cards as a back-up, an interest in rehabbing, some knowledge of the market, and no-so-great communication/negotation skills, what would you do?

This post has been edited by sdupdike: 21 July 2004 - 03:03 PM

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#13 User is offline   mikeee 

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  • Occupation: Full Time Investor / Landlord

  • Target Markets: Angelina & Nacogdoches Counties , Texas


  • My Goals: To be sucessful in creative investing & make a comfortable living without killing myself in the process.

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  • Niche: Landlording & rehab-retail flip / owner finance

Posted 21 July 2004 - 04:52 PM

OK-Guess its my turn.

A little background first: I have thought about rei & kinda looked at it for years but just didnt have the cash to spare or know how to go about it without cash. 3 years ago I inherited a garage apt w/up & down units-both rented. I was able to have a new house built on the lot with a regular mort for little out of pocket cash due to the ltv ratio. The house has been rented for 2 years this month. I rehabbed both gar apts during vacancies & increased rents accordingly. Im hooked!!! bank draft pays my mtg payment each month & I pay taxes & ins anually & net $12000 a year. Like I said IM hooked!!!! since I started with the first house I have bougt 2 more homes. the first one needed some work & I wound up having in it probably about what its worth. The 2nd one I bought from a motivated seller-paid the loan off & gave the owner 5k for her eqity. After repairs & fix up (5k) I will have about 15k equity. I have bought the last 2 w/home equity loans from my personal residence. I plan on selling my residence this time next year & both will be paid for & I will have income. Enough background...

Goals-#1-to escape from my job of 15 years that I absolutely cant stand.
2-to be able to determine my own destiny-work as hard as I want to &
reap the rewards ( I now know what I want to do when I grow up!!)
3-purchase a property that I can flip/rent or owner finance that will pay
for a new car for my wife. She has never had a new car(buy assets to
buy things)
4-make enough to be comfortable-not looking to get rich

My strategies: Im going to try a little of everything untill I find what Im
comfortable with & what works best for me in my market. Im a rehabber
at heart & figure I will to start there to generate cash to work with. Try
to buy @ tax sale / fix & flip-same with reo or pre foreclose (rinse &
repeat!)
When will I start: Cant do much more than I am @ this time. I work 55-60 hrs a
week at the job. Will start full time end of this year. Wife will be retiring
but still working @ full pay while drawing ret. pay allowing me to commit
all my efforts.
Actions to get started: Talk to every one I know-hand out bus cards-seek bird
dogs-talk to money people to invest with me-put ad in paper
What do I need to know to start: EVERYTHING! How to attract money , how to
use a self directed IRA, details of sub2 etc. Ordering Bronchicks
alternative re financin product next week.
Imrove what skills: negotiating for the best price

I will depend on friends & family & fellow investors for support
So far-no one thinks I am an idiot for investing in re-I have only gotten support.
Wife & partents are concerned that I am so "gung ho" but I am commited
& know this will work for us.
Biggest fears: FAILURE!! Loosing money & not making it
How much do I have set aside for investing: after I sell my residence & pay off
equity loans I should have approx 50k to start with (suggestions on what
I should do to start w/that kind of cash?)
I do plan on cultivating money partners to use if I should need them. I will be
associated with a fairly upper end scale of people in the community I am
moving to & have already asked if I would be able to find people that
would be interested in making 12-15% on their money-no problem.
strengths: I can talk to anybody-not afraid to talk or ask questions. wind up with
my foot in my mouth on ocasions but work around it. I dont mind working
for what I get. After the past 15 years this seems easy to me.
Weakness: not very detailed oriented , get frustated easily , get depressed when
things dont go my way.
Credit: Excellent-720+
Reasons to invest: FREEDOM TO DO AS I PLEASE!!! Get an extra cup of coffee in
the am. Dont have to be on the job @ 6:30 every day etc. etc........
I feel that I communicate with people well-I talk to people all day long & am comisioned sales.
Well, there it is warts & all-I could go on a lot longer because I am so excited that I AM in control of my destiny. Yes i also am very nervous but I know I will be sucessful at this. Literally weeks of reading here at the cafe has put me on the road to that sucess. I know so much more now than just a few weeks ago it is amazing to me-lots more to learn though. Thanks for giving us the opportunity to sound off like this & hopefully learn even more from the dealmaker

mikeee
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#14 User is offline   tulipcowgirl 

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  • City:Downingtown
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Posted 21 July 2004 - 05:10 PM

Hi. I joined yesterday and lucky me...I can jump right in.

[*]What are your goals for investing in real estate?
Can I say financial freedom again? Actually I think we have that already; we pretty much buy what we want when we want. But why not make our money (that DH-dear husband and I work hard for) work harder for us? Also, long-term cash flow (is there such a thing). We've only been married for less than 2 years, but in the next few years we'd like a couple of little ones. I'd like to be able to stay home with them for awhile, even if it means putting my career on hold. So we need cash to supplement hiccups in my income. Plus, I'd like to have my own architecture firm, work for myself eventually, how I want and do the projects I want to do. I'm done with this other bull**** that I put up with every day. DH is on the 'partner' track at his CPA firm. Eventually he sees himself doing that part time and REI the rest.

[*]Is your goal short-term (I need cash now) or long-term (I want to build wealth and a monthly cashflow)... or both.
I think it's more long-term. Steady cash flow over the long-haul.

[*]List the strategies you want to employ.
Networking: DH joined a REI group in one location. I was going to go along with him but may join another one north of where we are. Then we can swap info.
Foreclosures: we're ignorant of this right now, but plan start looking
Buy-Rent
Buy-Rent-Sell
DH and I have shyed away from 'flipping' but think we need to pursue. We've been looking for new townhouses to buy during construction, then sell at completion for a profit. This is something new to me, and I'm amazed at how quickly they appreciate in our surrounding markets.

[*]When do you plan to get started.
An offer was just accepted today. Listed at 79900, offered 75000 with 3% seller assist. In rentable condition right now. If all goes well, we close in Sept. Then we're going to do some work to the outside and porch and see where we are right after the new year. We see that as a long term cash flow property. Another one a couple blocks away we've submitted an offer on (money partner assist). Commercial (storefront) on first floor with a two-floor apartment above. Has been listed at 125k for almost 200 days. So we offered 115k in cash with closing in 30 days. I think buyers are scared off by the wallpaper in the apartment that needs to come down. As far as we can tell at this point in time, work is cosmetic, rugs and paint.

[*]What are the first five actions you plan to take to get started?
We're already started, I think.

[*]What do you need to know before you get started?
More than what I know right now, but we're going ahead anyway. :dance1:
DH and I really complement each other I think. He's the financial wiz, CPA and all and I know the architecture/building/construction side. I've been doing more research on property management and how to be a 'landlord'. Ewww. All those years renting in NYC...that word scares me! I think that's where both of us are clueless.

Based on other people's post, I'm thinking that maybe DH and I haven't read enough yet. We did buy that No Down Payment course. But I never got all the way through. Well, it's too late now. There's no going back.

[*]What skills do you need to improve to become successful?
Negotiating, both with knowledge of issues and numbers and also confidence.

[*]How much time you plan to set aside for investing?
Umm. More than I am? I think we probably spend 10-12 hours per week each. I think we both realize that we'll need to cut out some stuff.

[*]Who can you depend on for support?
Of course DH. We're in this together. My parents are great too. Don't have any money to help us, but a lot of encouragement. DH's parents too I guess. DH has asked them if they'd be interested in investing financially. I've always been against it. I think mixing money with family and friends is not a good idea, but I'm rethinking my position.

[*]Who will think you're an idiot for getting involved with real estate?
Some of our friends. The same ones who own a sweet victorian house in an up and coming 'main street' town and want to sell it to buy an $800k cookie-cutter McMansion a mile down the road. We don't talk to them much about it.

[*]What is your 4 biggest fears?
Losing my (our) shirt, along with my bra.
Sometimes looking stupid.

[*]How much capital do you have set aside to get started?
20k cash from a debt consolidation/home equity loan
45-50k from various other brokerage, retirement, insurance accts
no unsecured debt right now

[*]Do you plan to use partners?
DH is my partner. Others for financing if needed. DH knows a guy who just sold his business for a couple mil and is interested in talking to us about REI.

[*]What are your top 5 strengths?
*organized
*creative
*good with people one on one and groups, friendly, generally outgoing
*I have good vision, I can see the potential in properties/communities where other people see chaos
*honest

[*]What are you top 3 weaknesses?
*Pride: don't want to ask for help, mostly financially. Want to figure stuff out on my own. That's quickly changing though.
*Separating myself: from the properties. I can see myself getting emotionally involved. DH doesn't, so he's my back-up. I do historic preservation for a living, so I get enjoyment out of seeing something in shambles turn into something beautiful. I know there will be times that we'll need to do the bare minimum because that's the best financial plan. DH does the numbers on his fancy spreadsheet. We makes offers based on them, not how 'pretty' it could be.
*I'm impatient.

[*]Credit score? Good? Bad? Pass?
Good, I think. 740 ish for both of us.

[*]What are your reasons to invest in real estate?
I want to provide my family with more than my parents were able to for me.
DH and I both want career freedom.
I want to participate in some of the 'revitalization' that I see going on in towns around us, but initially we'll concentrate on the money deals first

[*]Do you want invest part-time or full-time?
Whatever it takes. I think both DH and I are willing to see where this whole thing takes us and if one of us needs to leave our FT jobs we will.

[*]Are you good with people and one-on-one communication?
Yes, I think so, with both.

Right now, it's just hitting me how the decisions that we've made since Saturday, when we first looked at the property, will have substantially altered our life, good or bad. It's like that whole "ball rolling" thing. Maybe it's a snowball. I'm not sure yet. I almost feel like crying, out of fear and excitement. It's a woman thing. :ninja:

thx.

Update: 08.17.04
We close on our first property in mid Sept (75k). Our second cash offer was turned down for a better one. I was upset, but again it's that emotion thing I struggle with. I think DH was disappointed too, but it was a good learning experience. We've made two offers since thanks to a money partner with quick access to cash, both turned down. But we're getting better at making offers and moving on. So far we've been doing it the 'traditional' way using our agent and he's been truly great helping us along the way in a very non-traditional RE agent way. Sometimes I feel as though we are taking a very non-agressive approach to our REI, but right now it's about all we can manage. I think we both knew we had to get started somehow or another. The hardest part has been re-organizing our priorities. We usually go to about 4 PSU football games each season but this year probably none. We'll need to spend our time getting our duplex rented, establishing our managing strategy and hopefully making our second (or third) purchase by football season. :girl:

This post has been edited by tulipcowgirl: 17 August 2004 - 04:03 PM

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#15 User is offline   piasaproperties 

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Posted 24 July 2004 - 08:00 AM

Let me start by saying I appreciate all the advice and wisdom offered by this site.
I have been looking at this website for a while now, but only recently got involved. If you are lurking out there?? GET INVOLVED!

[[*]What are your goals for investing in real estate?

Our goal is to make enough money to be "allright". I know this is relative to who you are and your cash flow needs. Right now my husband and I are unemployed so RE is our JOB right now. We need to make enough to sustain us for now and then work on investing for the long term.

[*]Is your goal short-term (I need cash now) or long-term (I want to build wealth and a monthly cashflow)... or both.

BOTH!

[*]List the strategies you want to employ.

Already drove around the neighborhoods looking for the ugly vacant houses to no avail. Most of them were owned by:

(1) landlords
(2) owner-occupied--we live in redneckville where people are willing to live in a mess, there are several around here,or
(3) In foreclosure

[*]When do you plan to get started.
Already started!

[*]What are the first five actions you plan to take to get started?

1. Did the ugly house thing--not going to waste any more time just driving around looking for those! If I come across them while out doing other deals or people call me with them (working on 2 currently) I will try to do them.

2. Preforclosures--Learned there are SOO many of these out here! People refied last year and are loosing them this year. My husband and I have learned to work the courthouses in 3 counties. There is not an up to date source published for these so we have learned to do it ourselves. At first the courthouse people looked at us like we were taking advantage of these people. We have since built a rapore with the people there and they don't look at us like "scum" anymore because we have educated them about what we are doing. Now they like to see us coming because they know we are trying to help others out.

3. Invested in a new fax, scan, copier, printer!! I love it!! It is an HP 7130 and bought it on an e-bay auction for less than half price. It has been one of our wisest investments. We got it last week and have been using it like crazy!!

4. Invested in the "Cash-Flow Library" by Legrand in August of '03. We finished studying it, reading it , listening to ALL of those CD's in May!! Still disappointed by the Whitney buy-out of SDI, but am getting over it!! :D

5. Went to the REI meetings in our area. They were more for the landlords and are not for the REInvestors out there. Tried networking with some of the people and discovered it would be a waste of our time to continue to go.

6. We put our "We Buy Houses" ad in our local newspaper, and in the little "Shopper" paper that goes to 3 counties (getting at least 5-7 calls a week from them!)

7. We had printed up "Avoid Foreclosure" postcards that we send out weekly to the latest. We have had several hits from these.

8. Yesterday, my husband printed up (on our new HP) 20 flyers to put up on bulletin boards and in stores. They are soo coool. Instead of the tear off our phone number on the bottom of the flyer idea--here is what we did! We found a clear plastic adhesive data disk pocket (one that is used for the floppy disks) that we stuck onto the bottom of our cardstock flyer. This pocket holds our buisness cards! So all the potential seller/buyer has to do is pull out a card. I thought he came up with a great idea!

[*]What do you need to know before you get started?

Already started!! I wish I knew last year that I didn't have to invest in 3-day boot camps to get educated in this buisness. As an educator I should have known there was no way you could remember all the information they want to teach you in those 3 days!!! Plus you couldn't record anything they said, nor did they give you recordings of the seminars. Should have realized something was up. Sure you practice some of the things in class, which is good. However, reading what I have read in the archives here and the advice you have been giving me has been more valuable.

[*]What skills do you need to improve to become successful?

Negotiating skills! My husband and I have been role playing and this has helped! He is so much better at the numbers than I, so I know I need to improve there. My phone conversations have become more smooth. (Although I was so excited about the guy with a $300,000 dollar house in foreclosure that I forgot to ask him his phone number!!! It didn't show up on my caller ID either so I just knew I had lost him!! My one redeeming factor is that I am persistent. He had given me a fax number so I faxed him 3 times and he called me back with the Authorization letter filled in and a phone # I could reach him at!! ??? My husband hasn't let me live it down yet though!!

[*]How much time you plan to set aside for investing?

I am working this buisness SEVERAL hours a day and night. What TV? Yea, right!! Husband plays the golf! I walk with him for the exercise. Gotta take out time to feed the kids though!! ;)

[*]Who can you depend on for support?

MY HUSBAND!! He is the greatest guy (most of the time :cool: ) After 18 years we have begun to read each others minds. It is scary!! We think way too much alike!!

MY KIDS!! They are great encouragers. They get involved in the mailers we send. (Although I think these girls think we can get them a horse, if we make enough money. Maybe that's why they encourage us????
[*]Who will think you're an idiot for getting involved with real estate?

The in-laws! We don't talk to them about it. We know their opinion and I don't want to hear the step-mother-in-laws discouraging words. :dry:

[*]What is your 4 biggest fears?

1. That we won't make it!
2. That someone will find out they are my first deal!!
3. That by saying, sending or doing something I shouldn't I will loose a deal.
4. Loosing any more money!! We don't have it to throw away!

[*]How much capital do you have set aside to get started?

We have budgeted our advertising. It has cost us about $150 a month. My husband is the budgeter. We have the money in the savings and we know how far it will take us for the neccessities. We live very frugally.

[*]Do you plan to use partners?

Married to the only partner I plan on using!

[*]What are your top 5 strengths?

1. Our faith in the Lord to guide us every step of the way. We have so many people praying for us right now!
2. My spunkiness!
3. Persistence :read:
4. A strong will
5. Our honesty

[*]What are your top 3 weaknesses?

1. Fear of the unknown
2. Becoming emotionally involved with my clients. One of the junkers I am currently working on has 2 children in conditions I would not put my dog in. These people are destitute. I was doing OK until I visited the mom the 2nd time and met her daughter. I now have a face to put with the child. When we got back in the car I just bawled.
3. Pride--not being willing to ask the questions I need to. I am getting over that one pretty quickly though!!

[*]Credit score? Good? Bad? Pass?

We have always been credit conscience! When we purchased our house last year the loan officer was taken aback. "Nobody has credit that good", then he asked us "How much did you say you want?? You can have whatever you want!!" PTL

[*]What are your reasons to invest in real estate?

Our reasons are named Megan, Danielle, and Caleb. We want to provide for them and their futures. We have dental costs that are soon to be astronomical. One of our daughters was born without 11 permanent teeth. The adult tooth never formed so we are looking at implants. $$$$$$ We also have 4 more years until the oldest goes to college!! I want her education $ to be in the bank before she goes! We also do not want to become greeters at Wal-mart when we are 65.

[*]Do you want invest part-time or full-time?

I would like for this to be a full-time job. Especially since we don't have one right now! ;)

[*]Are you good with people and one-on-one communication?

Yes to both. As a teacher I have learned to deal with parents in all kinds of situations. My husband has been a principal, teacher, and basketball referee. He's great at this.
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#16 User is offline   AndyVA 

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Posted 24 July 2004 - 11:36 AM

I just wanted to say that this is great stuff guys!

Dealmaker is out of town teaching his Bookeeping and Georga Foreclosure classes this weekend, but he wanted me to assure you that he would read each and every one of these next week, and offer his suggestions!

This is awesome! Everyone else, don't be afraid! Testify!!
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#17 User is offline   godaddyo 

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Posted 25 July 2004 - 06:44 PM

This thread is exactly what the board needed. If you are new and dont post here, you are missing an opportunity of a life-time. Now is not the time to hide, now is the time to take action!!! I am half tempted to post myself, I am such a post hog and my replies can be quite lengthy, so I will spare everyone hearing about my business until a later time.[;-) What I think will really help is seeing your plan in writing and hearing the stories and beliefs that you may have about the business, yourself or where it is all heading. I have been doing this for over a year now and I have taken it very seriousily, so I do not fall in the fence sitter category at all, but anyone can benifit from getting feedback. We are fortunate to have others that are willing to share!!!!

Biggest Kudos Ever to the Dealmaker!!! Here is to all of YOU who are stepping out of their comfort zones and take life on!!


See you at the top!!


Jon

This post has been edited by godaddyo: 26 July 2004 - 10:00 AM

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#18 User is offline   Breadwinnin 

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Posted 25 July 2004 - 10:17 PM

Hi everyone.

My name is William. I've been periodically browsing these boards for about 6 months now. I am 17 years old. I read Rich Dad Poor Dad about 4 years ago and started reading the RE Investing Forum at their site for quite a bit. I read many great posts and it was there that I learned of this site (although I didn't actually visit this site until 3 years later, wow). I am getting close to turning 18 so I really want to start to get serious about real estate investing. I have a pretty solid understanding of many investing subjects but have yet to actually take action. Basically the only thing that's been holding me back is my age.

[*]What are your goals for investing in real estate?
Real estate is just part of a plan that I have created for wealth acquisition. I have interests in other investment vehicles and real estate is just another 'prong' on the fork. Real estate investing will enable me the cashflow to be financially free. It will enable me to make things happen, when I want them to happen. Sometimes people are presented with a key to the city in recognition of something. Well, money is like a key to the world. You can open all doors.

[*]Is your goal short-term (I need cash now) or long-term (I want to build wealth and a monthly cashflow)... or both.
My goals are long-term but they involve short-term checkpoints. For the long-term, I want to acquire large rental properties (100-500 units) which will provide monthly cashflow. But you have to start from the ground up so I intend to do many small quick deals (bird-dogs, flips) from which profits can be parlayed into a down payment on a small rental. Do this over a few times like Monopoly. You buy 5 houses and trade for a hotel. The overall goal is a continual wealth acquisition.

[*]List the strategies you want to employ.
I have only read Flipping Properties by Bronchick so my strategies are generally limited. At the moment I am aiming to bird-dog and flip a few deals only.

[*]When do you plan to get started.
I am in an intense learning phase right now. I plan to actually get a deal under my belt within 6 months of my 18th birthday (March).

[*]What are the first five actions you plan to take to get started?
-I will be going to the assesors office next week to familiarize myself with looking up information on properties and just their system in general. This will help later on.
-I have also compiled spreadsheets of potential investors found from want ads. Now all I have to do is call all of them. This is the main 'to do'. I have to start talking to people and letting them know of my intentions and try to build contacts.
-I've been picking up those free 'Homes For Sale' magazines and such that you see at stores. I'm just trying to get myself familiarized with certain areas and the price range of houses there.
-I will call any fsbo that I come upon just for the experience. I will call them regardless of whether it is a deal or not. This is strictly for experience in asking questions and approaching homeowners.
-Read more.

[*]What do you need to know before you get started?
-I am pretty confident in my understanding of flipping and bird-dogging. I'm sure any specifics can be learned in the actual process of a deal. I believe I should get those first one or two deals under my belt before I start worrying about specifics. Sometimes you just have to leap before you look.

[*]What skills do you need to improve to become successful?

-I need more 'talking with stangers' skills. But I guess it comes with experience.

[*]How much time you plan to set aside for investing?
-I have 5-10 hours per week at the moment. I hold a job right now and will also continue to hold one during the school year.

[*]Who can you depend on for support?
-My parents support me 100%. They want me to be successful and encourage me in whatever I think is right for me. No one has any major qualms about it.

[*]Who will think you're an idiot for getting involved with real estate?
-I don't think there is anyone who thinks I am crazy. I've mostly only told those closest too me and everyone supports it. Those who would think im crazy should not know in the first place.

[*]What is your 4 biggest fears?
-Failure. Failure is most feared. I basically counts as 3 fears
-Talking with stangers

[*]How much capital do you have set aside to get started?
-$2500 at the moment. I make $300/wk.

[*]Do you plan to use partners?
-I plan to use other investor's money but not actually partners.

[*]What are your top 5 strengths?
-Quick learner
-Good analytical skills
-Dependable
-Savvy
-Creative

[*]What are you top 3 weaknesses?
-Lack of Patience
-Communication
-Procrastination

[*]Credit score? Good? Bad? Pass?
Nonexistent.

[*]What are your reasons to invest in real estate?
Stable. It's tangible. For money.

[*]Do you want invest part-time or full-time?
Eventually going at it full-time 7 days a week.

[*]Are you good with people and one-on-one communication?
No. Any books, tapes, etc recommendations?


That's about it. Sorry if it's kind of long. I tried to be as thorough as possible. For me it's good to have things written down.

Please critique and guide. I am open and willing to any questions, comments, or flames.

William
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#19 User is offline   ygc 

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Posted 26 July 2004 - 05:38 AM

First of all, thank you very much for allowing this opportunity for newbies, such as myself, to openly receive feedback from experienced investors. Documenting my thoughts and answers in this forum will serve to be the beginnings of my real estate investment business plan. I’ve tried to answer your questions as fully as possible, so I apologize in advance because this will be a very long post.

What are your goals for investing in real estate? What are your reasons to invest in real estate?

Firstly, my goal is to learn about the different areas of real estate investing. This site has been extremely helpful in providing a lot of real life experiences for me to learn from. Ultimately, the goal is to develop a consistent stream of cash flows that initially covers my monthly expenses and eventually far exceed these expenses. In other words, the financial freedom that so many of us here are after. Even bigger picture, what drives me is to provide for my family (no kids yet, but not too far away) more opportunities than my parents provided me, which is a pretty big goal because I feel like I was provided many opportunities growing up.

Is your goal short-term (I need cash now) or long-term (I want to build wealth and a monthly cash flow)... or both.

My goals are both short and long term. In the short term (next 6 months or so), I would like to read as much as I can and purchase some relevant training courses to study. Longer term, I am seeking the monthly cash flow that will allow for true financial freedom for me and my family.

List the strategies you want to employ.

This is where my inexperience will show. I am only at the very beginning of my REI journey and am coping with information overload. I feel with my longer term goal of consistent monthly cash flow, I will start with buying and renting out single and or multi-family homes and potentially rehab.

When do you plan to get started?

I plan to purchase and study course material over the next 3-6 months and begin to analyze deals along the way. Knowing me, I’m sure I will shrink this time frame as I begin reading and focusing on specific strategies.

What are the first five actions you plan to take to get started?

1) Purchase and study David Lindhal’s apartment building and/or rehab courses. Together these courses are around $1,000 and constitute a rather substantial investment for me. However, I’ve read good reviews on this forum about the courses and they hit 2 of the strategies I am interested in. Do you have a recommendation on which to purchase first? Again, I feel I will eventually work both of these strategies, but the apartment building course seems to better fit my longer term goal of monthly cash flows. Are there other strategies and courses you can recommend that fit with my goals?
2) Develop a business plan of how I will utilize the strategies from Lindhal’s (or any other material you can recommend from my above #1) courses to achieve my goals. I want to approach this as a new business venture because that’s really what it is.
3) Create a framework or system to analyze and assess potential deals. I understand there are no hard and fast rules that everyone abides by, but I expect to mold my REI education to fit my goals and having a systematic way of assessing deals will help me better focus my time.
4) Meet and speak with as many people involved in REI as possible. This forum is an excellent resource for this. I live in Newport News, VA and plan to start with properties within an hour drive from me. This includes Williamsburg, Yorktown, Hampton, Norfolk, VA Beach, Chesapeake, Suffolk, and potentially Richmond. Do you have any recommendations on how I can meet people who are involved in REI in my area?
5) Start looking at deals!

What do you need to know before you get started?

I feel like there is so much to learn, but the bare minimum would be the basics of what to look for when I’m searching for deals and then how best to structure a deal to ensure the best opportunity of acceptance.

What skills do you need to improve to become successful?

Probably marketing skills. My education and work experience has been all financial and investing based. I have experience analyzing companies and financial statements, so I think with the appropriate education, I can leverage this experience towards working the numbers with real estate. I also understand that REI is a relationship business, so I will have to improve my networking and marketing skills.

How much time you plan to set aside for investing? Do you want invest part-time or full-time?

It’s tough for me to make the distinction between part time and full time. I quit my full time job in the investment strategy department of a large insurance company a year ago to move closer to home to be close to an ill family member. I have spent the last 6 months working with attorneys and accountants to start a private investment partnership (obviously, not REI) and have rounded up some investors. It was much easier for me to round up investors and start my own investment firm in this field because I have direct experience in the industry. However, because I am starting very small and I have structured it so I am only compensated with a % of the partnership’s gains, my income will be lumpy (if any). I fully expect my partnership to perform well in the long term, but there are of course no guarantees.

I would like my investments in real estate to provide the steady income. I am willing to put in as much time as necessary. Given there are only 24 hours in a day/7 days a week and I am still a relative newlywed (about a year and a half now), I plan to put in 30-40 hours a week into my REI efforts. I expect this to be adequate and I think my lovely bride will pick up interest and help out as I get a better feel of how I will go about this journey.

Who can you depend on for support?

I am lucky because I have always had a strong support base. As I just mentioned, my wife will be my largest supporter followed closely by my family (parents and brother) and friends.

Who will think you're an idiot for getting involved with real estate?

No one…well, no one whose opinions I care about. I have surrounded myself with very successful friends and my family has always supported me in whatever I’ve decided to do.

What are your 4 biggest fears?

Really only 3 –
1) Not giving myself the best opportunity to succeed. This has been the case with anything I’ve taken on, so I am aware of it and thus I will ensure I am appropriately educated prior to risking money (mine and partners’). That’s why I’m making this post, so I can get your help in deciding how best to spend these next few months educating myself. If I give myself the best opportunity to succeed and for some reason fall on my face, at least I’ll learn something from the experience.
2) Being consumed with my work and not spending enough time with my family. I must always remind myself of the ultimate goal of providing for my family and only part of that is monetary.
3) I’m not very handy. That’s an understatement; I’m probably among the least handy people in the world. How big of a negative is this?

How much capital do you have set aside to get started?

Much of my savings are tied up in my investment partnership and a land investment in Atlanta. I will have about 15-20k of my own money and my father, who is retired, has risk capital that he will most likely invest if I can show a solid plan. Total pool to start off will be around 100k.

Do you plan to use partners?

Initially, only my father. Don’t know enough at this point to seek outside investors. I would appreciate any recommendations on potential ways to structure partnerships with investors. Is there an industry norm in terms of allocation percentages? For example, the hedge fund industry typically has a 1-2% annual management fee and 20% performance allocation (to the investment manager) on net new gains.

What are your top 5 strengths?

1) Goal oriented
2) Motivated and focused to achieve my goals
3) Analytical and good at developing models in Excel
4) Strong work ethic
5) Very professional

What are your top 3 weaknesses?

1) Lack of experience
2) Analytical – have a tendency to over analyze problems that’s why I would like to create a range of acceptable deals, so I can quickly assess deals and overcome this weakness.
3) Not handy

Credit score? Good? Bad? Pass?

Average to good, I just checked my Experian score and it is 743.

Are you good with people and one-on-one communication?

Yes, I’ve always been better at one-on-one communication than speaking to a large audience.

Wow, that is really long...sorry. Please take your time with your response as I see you have a lot of posts to catch up on. Thanks again for the opportunity to document my thoughts and receive feedback from an experienced investor.

Jimmy

This post has been edited by ygc: 26 July 2004 - 01:36 PM

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#20 User is offline   headstill 

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Posted 26 July 2004 - 12:26 PM

OK, here goes:

 What are your goals for investing in real estate?
To allow me to do what I want to, when I want to. To allow me to quit working at a job as soon as realistically possible. To be able to sit in my Lazy-Boy one day and know that I don’t have to do anything if I don’t feel like it and I’ve still got enough cash coming in to live comfortably.

 Is your goal short-term (I need cash now) or long-term (I want to build wealth and a monthly cashflow)... or both?
It’s both. Short term: From reading DM Café, I know that I need to find ways to create cash, especially early on, until I get enough cash reserves and income coming in to protect and sustain my business. And, I also need to create cash because I simply don’t have the income right now that I want (or need). Long-term: This is the ultimate goal for me. What interests me the most is not making $1,000,000 a year and having to work for it, but being able to make $100,000 a year and not being forced to do anything, unless I choose to.

 List the strategies you want to employ.
OK, I’ll start with what I don’t want to employ. I don’t want to get into any big rehabs until I get some serious experience. This would only become part of my toolbox when I get enough know-how and experience to handle it in a timely manner and know what I’m doing. So, if a house needs a lot of repairs, it would be a deal that I would try to wholesale. So, pretty houses with little to moderate repairs would certainly be an area that I would focus on. I will buy deals either 1)Subject To 2)Land Contract 3) And possibly cash (I’ll need to find private lenders)

 When do you plan to get started?
Like so many others, ideally I would have already started. But, I still don’t feel that I’m ready…but I do feel that I am getting closer. Although I know that I don’t need to know everything to start, I have to be able to have a clear understanding in my head of what I’m trying to do and how I’m going to go about it……

 What are the first five actions you plan to take to get started?
1) I need to assemble a foundation of forms that I will use to buy and sell in my state, and learn how to fill them out automatically.
2) I need to review the 10 or 20 most common seller objections and practice what I will say in negotiations.
3) Decide what message I want in my marketing, how and where will begin marketing, what telephone # I’m going to use and who’s going to answer the phone, etc.
4) Assemble some type of form to help me quickly estimate repairs.
5) I need to decide on what is an acceptable profit for me, and I need to learn to run the numbers very quickly.
6) Keep learning.

 What do you need to know before you get started?
At the very least, I need to know enough to MAKE IT EASY for a motivated seller to sell their house to me. Right now, I feel like I would make it a chore for someone to sell me their house.

 What skills do you need to improve to become successful?
Well, most everything. But, my negotiating skills will need improvement…my ability to take action…my overall creative real estate knowledge…….

 How much time you plan to set aside for investing?
Well, I presently have a full-time job. I work from 7:30 until 4:30 Mon. – Fri. So, especially the first year or two, I’m willing to set aside a lot of my spare time for investing. Obviously, if I can quit my job, then we’re talking full-time.

 Who can you depend on for support?
Encouragement?……..My parents for sure, and DM Cafe……..probably an uncle of mine………and maybe my brothers and girlfriend….

 Who will think you're an idiot for getting involved with real estate?
I really don’t care……

 What are your 4 biggest fears?
1) Fear of not knowing how to approach a deal and what I’m trying to accomplish
2) Fear of looking like an amateur, and losing a deal over it
3) Fear of buying a property that costs me money
4) Fear of not doing anything

 How much capital do you have set aside to get started?
Not much. My bank account sits around $2,500 to $3,500 normally. My car is paid off, but it’s only worth about $2,500. Debts of about $1,000.

 Do you plan to use partners?
Yes…. well, I’ll need to use their money. I don’t want to use HMLs if possible.

 What are your top 5 strengths?
Good with numbers
Have previous sales experience
Can handle multi-tasks
Can put myself in other people’s shoes
Strong desire to learn and improve

 What are your top 3 weaknesses?
Procrastination
Over analytical
Perfectionist (Good and bad)

 Credit score? Good? Bad? Pass?
Good. Last I checked, it was about 720 or so, but I’ve never bought a house.

 What are your reasons to invest in real estate?
There is lots of money to be made, without requiring a lot of money to invest up front. It’s a business that I can do without hiring a lot of people. People will always need a place to live.
It will help me to get PASSIVE income coming in, eventually.

 Do you want invest part-time or full-time?
I’ll have to start part-time. Full-time is definitely a goal, just not sure how long it would take for me to realistically achieve.

 Are you good with people and one-on-one communication?
Above average, if I’m confident about what I’m saying…but always trying to learn and improve in this area
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#21 User is offline   Tacoma-Jon 

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Posted 27 July 2004 - 10:06 PM

[*]What are your goals for investing in real estate?

My goals are to be successful, and provide my family with everything they need and want. I also would like to be able to enjoy the so-called good life.

[*]Is your goal short-term (I need cash now) or long-term (I want to build wealth and a monthly cashflow)... or both.

My goals are both. I am one of those people who has been searching for what they wanted to do in life, and I think I just may have found it. I have this desire to succeed in this business, like none I have ever felt or wanted.

[*]List the strategies you want to employ.

I am really oopen to using all the strategies I know. I have only read two books, so I am some what of a "brand" newb. I plan on getting brochicks cash cow course as it seems like it is highly recommended around here.

[*]When do you plan to get started.

I plan to get started around mid August. That gives me time to do further reading and studying and get to know the approaches front to back. I am at the point where I know what these approaches are and how they are employed on sellers, but it takes me a little while to think about which one is which and whats the difference. SO i would like to be comfortable with each approach and know it better than I do now.

[*]What are the first five actions you plan to take to get started?

1. Gain as much knowledge as I can to where I feel comfortable.
2. Start calling the ads in the newspaper.
3. Farming my surrounding area for prospects.
4. Advertise, advertise, advertise.
5. Meet other investors and make contacts.

[*]What do you need to know before you get started?

I think I need to understanf each approach fully. I think i need to now the concept and how it applies to what I am doing.

[*]What skills do you need to improve to become successful?

I need to become more comfortable with selling. I feel as though I will be selling a product. Is this a common conception?

[*]How much time you plan to set aside for investing?

As much time as I need to become successful at it. I will start with 3-4 nights out of the week and 1 of my days off. If thats not cutting it, then I will make more time.

[*]Who can you depend on for support?

My wife. She is supporting me thorugh this. I feel that she finally thinks too that this could be our future.

[*]Who will think you're an idiot for getting involved with real estate?

My coworkers and friends. Some friends are supportive, and other are just telling me I am going to go Bankrupt!

[*]What is your 4 biggest fears?

1. Fear of failure
2. Fear of the unknown
3. Fear of Financial trouble
4. Fear of looking like a newb

[*]How much capital do you have set aside to get started?

5 thousand is what I have total. I have some ina mutual fund, and some set aside in an emergency fund.

[*]Do you plan to use partners?

For some of the bigger ventures such as apartments and what not, I have entertained the idea. A guy I work with offered to go partners with me on some deals. At this point I feel like I need to prove to myself that I can do this on my own though.

[*]What are your top 5 strengths?

1. Communication. I am very approachable and am very open.
2. Persistence. I will folllow up.
3. Fear of failure. I think this is a strength and a motivational tool.
4. Knowledge. I feel I am a sponge when it comes to this stuff. I just can't get enough.
5. I am looking at this more as an adventure than a job. Do not know if that is a good or bad thing.

[*]What are you top 3 weaknesses?

1. Knowledge. I am just getting started out.
2. No contacts. I know nobody in this area who is into this.
3. Knowledge again. i

[*]Credit score? Good? Bad? Pass?

730+

[*]What are your reasons to invest in real estate?

To support my family and be able to work for myself. Knowing what I am doing is for my business, not someonelse's
[*]Do you want invest part-time or full-time?

Part time to start to prove to myself I can do it and build capital. Then full time.

[*]Are you good with people and one-on-one communication?

I am good if I am knowledgeable about the conversatioin topic. I am a very people oriented person. My job is to talk all day and give instructions. I dont think I can get any better than that

Thanks again, and I think this is a great site and idea. Lookiing forward to all the advice and questions I may have and you may also.

Jon
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#22 User is offline   labellavita 

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Posted 28 July 2004 - 05:25 AM

Hi my name is Ginnie, I am a newbie RE investor, wanting to make my first deal. I worked for a major company for (cough, cough) 14 years, all the while getting more and more frustrated as my eyes were opened to the possibilities available to me through REI. I didn’t want to be 70 years old, look back on my life and realize I didn’t do anything I wanted to do, that I only did the things I was “supposed” to do or that people “told” me to do, you know the “safe” things like staying with a company for 30+ yrs. And when I looked around me and saw those people who had like 20-30 yrs in at my company, they were miserable! No passion in their lives, just hanging out, treading water. Their lives were on Hold. Uuugh, didn’t want to be like that! I LOVE the idea of being able accomplish things based on my effort, not what a company chooses to offer me, I love the freedom and control that REI offers, the tax breaks (being able to keep more of the money that I earn) and I’m just not too excited at the idea of Social Security providing me a comfortable retirement (is anyone? :P) and there was no way I wanted to hang out in my old job for an additional 23 years in order to be pension eligible (long story). I am a stay-at-home mom to my 3 yr old and 1 yr old so they keep me pretty busy. Its actually taking longer to get my REI off the ground than I had originally thought, not much time to sit and read with little ones, learn, peruse websites, etc. But its getting easier, my youngest will be 2 this Fall so he’s getting more independent. Overall goal is for me to get the REI started, replace my husband’s income, then he’ll quit and join me and we’ll grow the business together.

• What are your goals for investing in real estate?

I have pages of my goals written down, but to make it short: my goals include financial freedom, control and freedom. We all want the same things, huh?  I want to own SFH, beach houses and condos as rentals (I’d love to start out buying 1+ a month and then grow it to where I’m buying a few houses every week), and my eyes have even been opened to the possibilities of small apartment complexes. I want to be able live very comfortably, and I want to go on vacations with my family and to be able to help others. A big goal of mine is to also teach others about how they can take control of their own financial future through REI. We have a whole country of people who were never taught about money (like me, I’m just now learning). Like I mentioned before I want to get my husband out of the rat race, and I myself never, EVER want to work 9-5 again. I want REI to be a part of my life and to take me and my family to the next level.

• Is your goal short-term (I need cash now) or long-term (I want to build wealth and a monthly cashflow)... or both.
BOTH!!!! Need cash now! But really want to work on long-term wealth and cashflow!

• List the strategies you want to employ.
This part kind of has me stuck. I’m really interested in foreclosures, we have 3000+ foreclosures a month here and I know the opportunities are there, but since I’m limited on cash, I don’t know how exactly I would be able to catch a mortgage up and make it current unless I had partners (working on meeting people when I attend seminars at GAREIA). I’ve also been reading up on Sub 2’s and Lease Options, thinking those might be a good way for me to go. I’m really thinking of starting out wholesaling to get some cash, pick up a rental if I can along the way, then eventually do rentals FT. I also want to be a Roth and 1031 expert.

• When do you plan to get started.
Now. I wanted to have my first property this summer, and summer is winding down. I think I might just take the leap of faith and get some experience talking to people, learning what to say/ask. I need contracts, know how to word them to protect myself when wholesaling, and just get out there and do it.

• What are the first five actions you plan to take to get started?
- decide on what exactly I need to do/have to be a wholesaler, then do it
- get my forms, learn how to use them effectively
- network
- define/execute my marketing plan (postcards, bandit signs, etc)
- create databases of investors (what kind of properties are they looking for, where, etc) and other contacts

• What do you need to know before you get started?
Legalities (clauses to protect me), who I can wholesale properties to, how to structure deals

• What skills do you need to improve to become successful?
Analyzing and structuring deals with confidence

• How much time you plan to set aside for investing?
I will make 10-20 hours a week possible. My DH (dear husband) will have to watch the kids more

• Who can you depend on for support?
My DH is my support. He totally believes this is the way for us to go, but unfortunately he knows less than I do so its pretty much all on me. I’m going to start dragging him to more seminars (he has been listening to my REI books on CD) so he can participate more. I need the support and help. This is a “we” thing, not a “me’ thing. When it comes to other people, my mom is indifferent, no comment (that’s who I didn’t learn about finances from), I’ve gotten 2 “are you crazy?!” and most people are like “you make the money so we can see it can be done, then you help us.”

• Who will think you're an idiot for getting involved with real estate?
My brother-in-law (not like it really matters. He presents himself as if he’s a financial guru, but the more I learn about REI, taxes, Roth’s, etc., the more I learn that he doesn’t know has much as he thinks he does. Or he wouldn’t be working 80 hrs a week)

• What is your 4 biggest fears?
- not making it
- making it and people wanting money
- making it and not handling it correctly and losing it
- looking like I don’t know what I’m doing and losing deals

• How much capital do you have set aside to get started?
We can borrow $12,000 from our 401k

• Do you plan to use partners?
Yes, once I find some

• What are your top 5 strengths?
- desire to succeed
- honest
- independent
- analytical
- friendly, good at making people feel comfortable

• What are you top 3 weaknesses?
- pride
- fear of the unknown
- procrastination

• Credit score? Good? Bad? Pass?
Bad. We filed bankruptcy early this year.

• What are your reasons to invest in real estate?
We can orchestrate our own life as we see fit, spend time together as a family, help out other family members if they need it. I’ve always loved houses, I love to walk through houses for sale, love to envision in my mind the possibilities when remodeling, love to read remodeling magazines and what products contractors use (is that geeky of me?) and I love the possibilities REI can provide for me and my family. I really think this has great potential for me and I’m excited about it!

• Do you want invest part-time or full-time?
PT to start, FT later on

• Are you good with people and one-on-one communication?
Yes, I am friendly, can joke around with people to put them at ease, and have been told several times I am easy to talk to

This post has been edited by labellavita: 28 July 2004 - 05:55 AM

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#23 User is offline   Dealmaker 

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  Posted 28 July 2004 - 03:31 PM

Hi and thanks for your comments. I'm back in the saddle and let's get started...

[quote]A bit about myself, I've been interested in rei since the beginning of last year.Since then I have read over 20 books related to re and have purchased and reviewed over and over again steven cook's and ron legrand's courses.I think I'm suffering from a big case of the old "PARALYSIS OF ANALYSIS" and I hope it ain't terminal....[/quote]
It is terminal for the majority of wannabes but let's make sure you don't end up in that group! You like many others are suffering from a condition that is basic in nature.

As with Monopoly, when someone began explaining the game it was a bit overwhelming to learn on the ins & outs and which properties to buy and the strategy behind the game. However, it became easy as soon as your learned there's a starting point! You had to choose your game piece and then roll the dice! Easy..right? Sure it is. You just needed to know where to start then you could figure out the rest as you played the game.

All you need to know in the beginning was "where to start". Same with Real estate investing. As an investor, you to the point of getting started.

[quote]Presently I would like to make some cash now, enough so that I can quit my present job.It wouldn't have to be much, I can survive by making 15k to 20k a year which is what I presently make working full-time at my crummy job.Not to say that my goal is to make 15 to 20k a year from rei hopefully I will be making more but that is what I need if I want to stay alive and not die.
I am very interested in wholesaling because I NEED CASH NOW!! I need to build up my cash reserves before I enter into any other form of investing like rentals,rehabing,l/o, and sub2 which I'm very much interested in but I must build my safety net first.[/quote]
Great.. you know the min you must make as an investor. Now take that amount and determine how many deals you need in order make that amount. With flipping to wholesalers it could be 5 to 10 deals. Flipping retail it could be one or two a year!

One issue I'd like to point out is we tend to make or attract on the minimum amount to survive. The truly successful investor have a burning desire (passion) to earn more and do more with their money. Try to eliminate the vocabulary of "staying alive or die". Expect more from yourself [u]regardless[/u] of the past! Too many fail at this.. but not you!!

[quote]As soon as possible...but I've been saying that for the past 10 months :new: [/quote]Get an accountability partner..not someone in real estate but it could be. It could be someone from the Cafe' or it could be all of us. Post your action list each week and then follow up. Let us know what you accomplished and did not accomplish and why. Share what you need to eliminate from your schedule in order to make the time for real estate investing!


[quote]1.I've got these blank bandits that I've finally made a stencil for(after 2 months of having them) and will be finished with them by weeks end so I'll begin posting them up this weekend.[/quote]Not the most attractive but will do in a bind.
[quote]2.I've printed up over a thousand flyers and will begin distributing them this coming weekend to nearby neighborhoods.[/quote]Good idea.
[quote]3.Plan to approach at least 3 real estate agents to begin looking for fixer-uppers for me.[/quote]Be sure to follow up with them and make offers. When you don't perform.. neither will they.
[quote]4.Thinking about putting ad in the paper to begin building buyers list.[/quote]I'd pass on this one. Attract motivated sellers first! Trying to trap the bird in a cage then shoot is the fear talking.[quote] 5.Place mag sign on car finally,the hell with what people think. I think at this point,nothing.[/quote]Great.. when will it be done??

[quote]I feel as though I will have to improve my communication and organizational skills if I wish to succeed.Any suggestion on courses or books will be nice.[/quote]Sure.. try this..I still listen to it monthly myself! [url="http://www.performfirst.net/u/bt/b.asp?id=2269&p=catalog/product.asp?ProductID=4" ]Increasing your efforts..here's how..[/url]

[quote]I could devote 3 to 4 hours a day and possibly more on the weekend.What I would like to know is how can I spend that time more productively and do the things that will get further to my goals.[/quote]Attract sellers to call you by mailing postcards, letters, signs and ads. Then meet with sellers, make offers, sign a contract then sell it!!! Don't get caught up on business cards, office stuff, etc.. focus on the sellers!!

[quote]Most of my co-workers and probably the managers at the plant that I work at.I had one of the managers chuckle when I gave my business card to a fellow employee.Maybe that why I've procrastinated somewhat in placing my mag sign on my car.[/quote]He's laughing on the outside but he's really scare of you leaving because you'll supersede his success. It's important not to share your goals & dreams with others that don't approve..even family and friends. The embarrassment of one friend could cause you not to move ahead.

[quote]1.Fear of failure
2.Fear of looking like an idiot
3.Fear of communicating with people one on one
4.Fear of criticism[/quote]
Nothing unusual about those because the majority of American feel the same way.You MUST read this book!! Today!![url="http://www.amazon.com/exec/obidos/tg/detail/-/1576752356/qid%3D1091049476/ dealmakerscafeco/002-2459402-0218406"]I RECOMMEND YOU BUY IT TODAY....[/url] After you finish the 1st & 2nd chapter, you'll understand why!

[quote]I have saved up about 3 thousand saved that I can use towards rei.[/quote]great!
[quote]I am trying to do this alone but if the right opportunity comes along I would bring in my girlfriend to be a partner.[/quote]
We need partners but never partners in the same situation as us!

[quote]1.Insatiable appetite for learning
2.Very honest and dependable
3.Openminded to new ideas
4.Creative
5.Very helpful to others[/quote]
Your parents should be proud.. I'm NOT kidding. Those are great qualities to have.

[quote]1.Tendency to procrastinate(purchased a daily planner just like ronlegrand said and have been procrastinating using it).
2.Lack of self-confidence due to lack of past experiences and successes.
3.Communicating[/quote]
The past is big obstacle for most. Don't let it bring you don't as well. Buy the book above today!

[quote]I see it as the only way for me to find financial freedom.My only way of escaping the rat race and something that I would really find enjoyable once I get over this newbie stage and begin doing deals.[/quote]
Start this week and you'll be ahead of 80% of the people reading this...

[quote]I want to invest full-time but I don't want it to become another rat race. I want to make enough to live by and enough to enjoy the better things in life.[/quote]The best to get there?? Increase your odds. Invest in yourself and stop doing what all your friends do in their spare time. Increase your odds by investing your time and money in developing your skills, knowledge (not only about real estate)
[quote]I guess I'm ok with one-on-one communication but I deffinately think I need help on this one. [/quote]I've got a course coming out to help you on this one. In the meantime, get...[url="http://www.amazon.com/exec/obidos/tg/detail/-/0671708635/dealmakerscafeco/ 002-2459402-0218406"]this book USED for a little over a dollar. One of my top 5 favorites of all time!![/url]

"If you have one eye looking to the past and one eye looking into the future you'll probably be crossed eye today."Carmelo Vasquez.

Love the quote!!

Start today.. determine where you want to start with your ads, flyers and signs. Your PHONE must ring with sellers calling you. Find vacants and look for fixers with Realtors. Get the books I recommended you. Don't pass them off as unimportant...I cannot recommend enough! Get them today!! Feel free to post your thoughts or summary of each chapter to hold yourself accountable! I'll expect at least a weekly post of your progress!!

Cheers to you my friend,

Dealmaker :talkface:
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#24 User is offline   Dealmaker 

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  Posted 28 July 2004 - 04:05 PM

[quote]A couple of months after I arrived I had my RE license because that was all I knew.  To sum it up, after 6 months in the general RE biz I left my broker and became a seminar junkie.  [/quote]
Seminars are good on average but you have to apply them. I've seen some circuits keep new investors so busy taking seminars that they do not have time to invest!


[quote]Now, in RE school investing was never mentioned; not in my RE firm either.  [/quote]Max could have told you that! ;) He's my reverse-brindled boxer! Even he knows they don't teach REI and most Brokers and Agents never invest.

[quote]My goals are I finally want to comfortable and for once not have to always be on my calculator figuring my budget.  If I become wealthy in the process, that's just an added bonus.  The main thing is I really want to be an expert in this field.  So, my goal for now is short term, because I'm in dire need of extra income.  However, I also want passive, residual income my family can live off of. [/quote]

You know where to start. You need to buy & sell (flip or assign deals) to get started. In order to do that successfully, you must find & sign up deals before the other investors. Doing the legwork for more experienced investors will give you a payoff of not only making some green but also watching the investors profit on those deals. You must have excellent deals for them! They cannot be "okay" deals.

[quote]The strategies that I'm most interested in now are wholesaling and optioning pretty houses. My issue is that I have knowledge about them both but not the step -by -step processes.[/quote]
Here it is....

Advertise!! Get motivated sellers to call you. Go out if they have a reason to be motivated. Build rapport, make conversation then find out their situation. The owners, the property or both must be distressed. Sign up the deal then find an investor to buy them. Forget options.. a purchase contract is much better!

[quote]Tenants, lease options, subject- to's and wrap arounds are great but I don't think I'm ready for them yet. [/quote]
And you're right!

[quote]I've already started! Sort of. I invested in a weekend workshop with a RE education group, I purchased some office equipment like fax,copier,scanner etc. I've also bought a couple of books like Ron LeGrande.  This weekend I took pictures of several ugly vacant houses and looked on the tax records for the owners, but the owner address was the same as the home address. So at this point, I', kind of stumped as to what my next move is. [/quote]

Darling, I've got bad news. You ain't started yet! None of the above will produce deals. All this is good if you have deals. As of now, you have nothing to fax, nothing to copy or scan. The books are only good to stand on to see into the window of vacant homes!

Your next move it the same as above...

Advertise!! Get motivated sellers to call you. Go out MEET them IN PERSON. You cannot do deals over the phone. Sign a purchase contract then start marketing to sell it!!

[quote]The first 5 actions I'll do are drive for ugly houses, place ads trying to attract owners of pretty houses so I could option them, put up WE BUY HOUSES signs (do those really work?) and - I don't know what else. [/quote]
All good except the option.. see above..

[quote]What I need to know before I get started are the details like what is the most cost-effective way for me to start wholesaling-what is the most amount of money I'll have to be prepared to spend to wholesale -including everything?  [/quote]Take back the scanner, copier, and other office products.. :new: okay.. maybe not. The best way to find wholesale deals... driving, mailing, signs, and the MLS.

[quote]I also want to know, in reality, when I get a house under contract and place and ad HANDYMAN SPECIAL , how many calls really do come in? [/quote]
You're letting the fear talk. It's the same as me asking you.. can you tell me if my life will turn out great or will be a waste of time. You're wanting to know the outcome before you start. There's no way to know how many will call. Why not get started.. find a deal.. run the ads.. then let's us know. Don't be offended... here's why... Too many will run a crummy ad..in the wrong newspaper.. on Tuesday only.. in the Rental or Investment section.. see my point?

[quote]How does being a Realtor fit into all this; is it a good thing or a bad thing? [/quote]
uhmm..uhmm.. you haven't read the post in the Hall of Fame Forum. You must read this one...[url="http://dealmakerscafe.com/forum/index.php?showtopic=3817"]RE License... the good the bad.. the ugly...[/url]

[quote]What exactly does it mean that I have to disclose that fact-in writing or verbally?[/quote] See above...

[quote]If I find a good house TOMORROW, should I do it in my name or run and get an LLC of land trust or something first?[/quote]

[url="http://dealmakerscafe.com/forum/index.php?showtopic=3826"]Another "HALL OF FAME POST" you missed ;) ...[/url]

[quote]The skills I  need to work on are communication with strangers face to face.  I'm OK with people I know or really nice people. How do I deal with the others?  Also I'm intimidated by the level of professionalism and organization that is required to do this business. Also, I'm 24 and I've never been put in a situation that really requires serious negotiating on my part. [/quote]One word.. experience...

[quote]I can do this all day, for now. My husband agreed I can try this full time or for as long as we can afford it.  He is very supportive of me, but I don't expect tangible help from him because he has his own business he's trying to get off the ground.  My parents, especially my mother will be helping me.  I think the only person who might think I'm crazy for doing this may be my brothers, but everyone is still pretty supportive. [/quote]Good... just make sure you of this... if your home all day.. and you're not meeting with sellers.. you ain't got started!! Get started today!!!!

[quote]My 4 biggest fears are the fear of leaving out an important step and messing everything up because I still don't feel confident I have all the details.  Also, that I'll get a seller who knows  a lot more than I do. [/quote]
[url="http://www.dealmakerscafe.com/Real_Estate_Investing_Articles/Getting_Started/Talking_to_Sellers% 3AWill_I_look_like_an_Idiot%3F/"]You better start reading my articles!![/url]

[quote]Should I take their word for it or do I still have to get a lawyer? [/quote]
Use a standard Realtor's contract with the addendums to suit your deal.

[quote]I don't have much cash at all, I could get together the $100 each needed for a few earnest $ deposits and I have maybe $2500 on credit cards. And I don't plan to use partners. I don't really know anyone that well down here yet. [/quote]
I recommend a part-time job to fund your REI...find a Broker that will let you work part-time.

[quote]My top 5 strengths are I'm really focused[/quote]
Good..

[quote]I'm a big researcher[/quote]
Bad.. Wait, you haven't researched the articles and post here yet!! ;)

[quote]I'm pretty persistent so I'll keep trying, I only want to do things honestly, and I can stay excited for a long time. Id say my weaknesses are I'm scared to move for fear I'll do it wrong, I procrasinate, and at present I don't take rejection that well(I know I'll have to get over that quick).[/quote]
Get the books I just posted above for last post...

[quote]My credit is bad.  At least since I moved down here.  But the good thing is all I need is a good $3000 to pay most people off.[/quote]Again, get the part-time job..

[quote]So that's everything.  Thanks a lot for the opportunity and I love this site, and hopefully you guys will give me the big push that I need.[/quote]

OKay..here you go...PUSH

Now, take the advice to heart and know that I suggesting this for your benefit. Don't be offended the comments. You can do this but you need to change gears!!

Thanks for your post and GET TO WORK!!

Dealmaker :talkface:
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#25 User is offline   *CJ* 

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Posted 29 July 2004 - 11:29 AM

Hi everyone! I'm a real newbie ~ not only to this forum but to REI in general. :talkface: I only started researching about a week ago so I have lots to learn. And this seemed like a great place to start.

Thanks DM for your generous offer to help out!! I'm sure I will learn alot from you and the others who post here.

My Goals?

I want to learn enough about the process to locate, rehab and resell single family houses in Northern NJ.

Short-term or Long-term goal?

I guess I would say both. I would like to buy and sell properties to make quick money now and after a few deals want to look into rentals for long term cash flow.

Strategies?

That's a good question!! Since I'm so new to this I don't really have any strategies yet. Any advice would be welcome. I can tell you that my idea right now is to buy single family fixer-uppers, increase the value with some rehab and sell for a small to moderate profit. Sounds simple ~ I hope I can do it.

Getting Started?

ASAP

First five actions?

Read, learn, read, learn and read some more!!

What do I need to know before I get started?

Everything and anything. Again any advice is appreciated. Don't get me wrong ~ I'm not stupid. I'd like to think this process is not that complicated. How hard can it be to buy a fixer-upper for a decent price, fix it up and resell it for more than I put into it. I'm not looking to become a millionaire overnight. I know that's not going to happen. I'm not even looking to make tons of money right away ~ although it would be nice. I'm looking to get into the game to see if it's for me and make a little money along the way.

Skills to improve?

Locating properties. That seems to be the hard part. I'm looking in the newspaper and was even think about getting info about becoming a scout or "bird dog". That way I can learn the ins and outs of the business without putting up any of my own money. I'd love to hear what you think.

Time?

Whatever it takes. I'm a Stay-at-Home Mom with lots to do but I can always find the time if it's going to make me money.

Support?

I have a few people who will support me through this and I'm sure I'll have more once I get my first check for 20 grand!!!

Who will think I'm an idiot?

Many ~ I'm sure! But I don't really care what they think. If I think this is the right thing to do for me and my family and it works out I'll be an idiot with money!!!

4 biggest fears?

Not finding properties worth buying.
The market going down while I'm in the middle of a deal.
Not being able to finance the project
And of course losing money ~ which I'm sure is everyone's biggest fear.

Capital?

I have a some money set aside but thought of putting it at risk makes me nauseous.

Partners?

I'm not sure yet. I have someone who may be interested in investing which would be great. The down side to a partner is I have to share the wealth and I'm not in total control. I like to be in control!!!

Top 5 strengths?

Intelligent
Detail oriented
Not afraid of hard work
Extremely determined
I'm an excellent bargain shopper ~ I hate to waste money.
And besides my personal strengths my husband is a General Contractor who can do all the work on the houses we buy.

Top 3 weaknesses?

Lack of knowledge of the business
Below average credit.
Fear of failure.

Credit Score?

Not so good but working on it. I just paid off all credit card debt so that should help. Any suggestions on how to improve my credit score?

My reasons?

I'm looking for an investment and a way to make some money. It's either this or the stock market. Also, my husband is in construction so I won't have to hire someone to inspect and fix up the properties. I think we'll make a good team. I'll find them, he'll fix them and we'll both reap the rewards.

Full-time or part-time?

Part time. I have a toddler and a husband who works long hours so full time is out of the question ~ at least for now.

People and communication?

I like to think I'm good with people. Before the baby I was in the health care field so I dealt with people all the time. I never had to professional negotiate any dealsa but I like to think I can do it. Realtors and sellers are people just like me. I might be a little intimidated by investors but I'll get over it. I'm determined to make this work and I can be very convincing if I want something bad enough .

Well thanks again for your advice. I'm looking forward to hearing what you think about my situation.

Best wishes to all!
CJ
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#26 User is offline   azimuth_gust 

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Posted 30 July 2004 - 08:18 AM

What are your goals for investing in real estate?

To never ever work again, and to fulfill other dreams I have.

Is your goal short-term (I need cash now) or long-term (I want to build wealth and a monthly cashflow)... or both?

Short term (I do need cash badly to move out of a bad situation), and long term

List the strategies you want to employ.

I'm interested in flipping and lease purchase. These are the strategies I'm very familiar with.

When do you plan to get started.

This month.

What are the first five actions you plan to take to get started?

Continue to read every article I can find on my strategy, look at the local classifieds, make copies of flyers I want to distribute, and get rates for running ads in papers.

What do you need to know before you get started?

That I can do this no matter what my background or ethnic group.

What skills do you need to improve to become successful?

Negotiating and knowledge.

How much time you plan to set aside for investing?

I'm not able to work, so I'd have to say at least 15 hours a week.

Who can you depend on for support?

I have my life companion and my three best friends.

Who will think you're an idiot for getting involved with real estate?

I don't know. I don't care. This is the only way to go for me. Doesn't matter what anyone else thinks. You get ahead in this world by doing what others don't dare to do.

What is your 4 biggest fears?

Succeeding, afraid of losing credibility with sellers because of my ethnicity (I'm mixed), being stuck with no way to reach my dreams, and succeeding.

How much capital do you have set aside to get started?

Truth be told, I'm lucky if I have a $100.

Do you plan to use partners?

Not very likely. Except for my two best friends.

What are your top 5 strengths?

I'm persistent.
I'm very able to focus on whatever task I take on.
I'm able to listen to people and focus on what they're saying, as well as what they aren't saying.
I'm able to do lots of research uninterrupted (which would include due diligence).
I'm very analytical when I need to be.
I'm honest and upfront.
I also ask a lot of questions when I want to know about something.
And I'm patient.

What are you top 3 weaknesses?

I can be irritable and ill tempered.
At times, impatient.
And negative when things don't always look the best.


Credit score? Good? Bad? Pass?

Pass.

What are your reasons to invest in real estate?

It's the only area that has great income generation and can offer the income I need to fulfill my dreams and not have to worry about being poor again.

Do you want invest part-time or full-time?

At this rate, because I"m not working (or not able to), It'll be fulltime.

Are you good with people and one-on-one communication?

I actually PREFER one-on-one communication at times. Not only am I able to take in more information that way, but I can get a feel of what the person is feeling. It's almost like crawling around inside their head.
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#27 User is offline   tony from philly 

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Posted 30 July 2004 - 07:07 PM

:dance1: Thank for the advice dealmaker.

So far I have placed my magnetic sign on my car and much to my suprise many at my job were impressed when they seen it and even began asking question as to what it is that I'm trying to accomplish, so that was good.

Tonight I'll be placing my signs up and tommorrow morning I plan to distribute all my flyers.I can't really afford to place an ad yet so I'll just have to wait till I get my first deal done. I will be taking your advice as to keeping myself accountable by posting my to do list at the beginning of each week.I think this will really help me to follow through and hopefully I'll be getting feedback as to what I have to add of subtract to my to do list.Also I have ordered the books you suggested so I'm looking forward to receiving them.So anyway thanks for you time and advice wish me luck..
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#28 User is offline   Wendy 

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Posted 01 August 2004 - 12:02 AM

Hi Dealmaker,
I've been around for a while mostly as a lurker. This topic definitely ignited a spark under my rear end. Here goes....

My goals for investing are short-term, to generate immediate cash to have some working capital for investing. Also, build a steady cash flow stream.

My strategies are to birddog and assign contracts to other investors and acquire Sub-to's as the opportunity arises.

Despite my own procrastination disguised by studying, I am starting now.

The five actions I plan to take to get started are, Involve myself with like minded positive RE creative thinkers such as in attending RE investor clubs(network), Hang the bandit signs that I have already. hand out business cards to everyone I come in contact with, place ad in newspaper and drive around the local with a pad and pencil and write down vacant or FSBO houses (farm area).

I have all the knowledge that I need to get started.

To become successful I need to improve my negotiating skills.

I will set aside 25 hrs a week for investing. More if necessary.

I have a great network of support in my investor groups.

Some of my family members think I'm absolutely nut's for daring to think that I will be a successful investor.

My four biggest fears are failure, not being able to survive off RE investments, loosing the posessions that I have and alienating those closest to me.

I am cash strapped(paycheck to paycheck).

I will definitely need to use partners at some point.

My top five strengths are verbal skills, hardworking, able to build great repoir with people, strong leadership skills, quick study.

My top three weaknesses are procrastination, credit score and lack of capital.

My credit score is bad.

I wan to invest in RE because it's agreat way to build a way of life by helping others out of difficult situations.

My ultimate goal is to be a FT investor.

I am great with people, especially 1-1 communication.

Thanks for any feedback....
Wendy
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#29 User is offline   blackburnri 

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Posted 01 August 2004 - 11:28 PM

Ok - I guess it is my turn.

Background/experience and where I am now:
===============================
I started in RE investing about 8 months ago with my first purchase. This wasn't really a creative purchase since I did it with traditional financing -- but it was a really good deal. The place had been on the market for about 7 months and had dropped in price a few times from a starting price of $170,000 - I offered $122,500 w/ no earnest money and ask the seller to pay most of the closing costs and my offer was accepted with no counters :dance1:

I put about 5,000 in updating into the place an now have a T/B on a Lease Option in the property with a purchase price of $155,000.

I also have closed one short sale that I call my expensive short sale course. This didn't go as well as I had planned because I didn't have the best exit strategy in place. After two other investors backed out on me taking the property for a finders fee I found an agent to list it on behalf of the seller since the foreclosure date was approaching. He was able to sell it and it worked out. I walked a way with a decent finders fee and a load of knowledge.

Currently I am working 2 more short sales and also working on some potential Lease Options. I have one couple that has a $356,000 luxury home that after meeting with them they have looked over my contract and had a reviewed by an attorney friend and want to move ahead. I will be calling them in the morning to set-up a time to tie up this transaction. I will also be hearing from a couple in the morning that is out of state trying to sell a townhome here and not having much luck. They are very open at this point of doing a Lease Option.

I also have a large list of vacant and FSBO homes that I found this week end to follow-up on this week.


What are your goals for investing in real estate?
===============================
My goals at this time are for both quick cash and building wealth to support myself and family. The quick cash will allow me to payoff debt and build a cushion to transition out of the job.
I have a good paying job that gives me a lot of flexibility, however I don't want to rely on the corporate world for a paycheck every other week. I want to be able to take my kids to the zoo or on vacation because I can that day and don't have to take the day off.

List the strategies you want to employ.
=========================
When I first started I thought that the best strategies would be fix-n-flip and lease options. For some reason however the foreclosure/short sale side has been attracked to me. I say this because the two short sales I am working on now pretty much fell in my lap. The first one the couple called on a rent2own sign and said they would trade thier current house that was being released from BK and going into foreclosure. The other one I am working on now my neighbor's brother passed it over and the owner anixiously awaited my call.

This being said the following are the current strategies I am looking at:
foreclosure/short sale
flipping
Lease Options
Fix-n-Flip
and also Subject-to - I had another property that I was going to take Subject-To but the owner's payment was too high. They were able to refi some but not low enough for the house and area. At this time they want to wait another year and then call me -- so this one may still be an option.

When do you plan to get started.
================================
I did in January of this year (2004)

What are the first five actions you plan to take to get started?=========================================
This is what I have done so far:
Read and Study others
Network - local real estate clubs
Advertise - I am using postcards currently to out of state owners. I was able to obtain my list from the title company for about $10 - this gave me over 500 properties that are non-owner occupied. (tip: I was able to build a relationship with a title company by calling them and telling them I was an investor and planned on needing to close several properties this year. This has given me access to FREE O and E reports and cheap farming lists)
Under advertising I am also sending out a 4 step letter to FSBO's that I locate in my farm area. So far I have had 5 appointments from a mailing of 30 and it looks like two of them will result in a Lease Option deal.
Drive Neighborhoods -- I do this a lot with my kids and log all vacant/FSBO and For Rent properties. My oldest help's me stop the houses and will obtain $100 on any that she finds that I close a deal on ($50 in savings and $50 to purchase something special)
Track Foreclosure Lists -- I scan these weekly and often mail to some on the list - however I am currently creating a package to deliver or have delivered door to door

What do you need to know before you get started?
===================================
One important thing I have found is that if you don't know the answer have a resource to find it. This being said prior to getting started have a place to go for answers if needed (www.dealmakerscafe.com )

What skills do you need to improve to become successful?
======================================
-I can always improve my presentation skills. Sometimes it goes really well and others I feel very very nervous and scared.
-Cold Calling - I know I need to make the phone my friend and sometimes I look at my potential list and get nervous to call it

How much time you plan to set aside for investing?
=========================================
I would say between looking for houses, research, meetings. mailings and my local nawrei (National Association Women Real Estate Investor ) meetings I am spending about 12-18 hours a week on this

Who can you depend on for support?
=========================================
My husband is pretty supportive
Other women (and men ) I have met at nawrei
- I also just brought on a couple as bird dogs to locate vacate properties

Who will think you're an idiot for getting involved with real estate?
===========================================
I think my husband's family is my biggest non-supporter or believer

What is your 4 biggest fears?
============================================
-Getting in over my head in terms of financial leverage
-Having a situation where I can't get rid of the property
-Not having the support that I need to do this
-Being forced to stop for some reason

How much capital do you have set aside to get started?
===========================================
I had 10k when I bought the first property but since we used traditional financing it didn't go as far as I would liked it to have. At this time I have about $4k in my account. I am hoping that once I complete the two short sales I have my bank account will look pretty healthy.

Do you plan to use partners?
==========================================
At this time no -

What are your top 5 strengths?
==========================================
- I am driven
- I am personable
- I am developing systems
- I know where to go for help
- I am great at multi tasking

What are you top 3 weaknesses?
===========================================
- fear
- not having enough time
- not having enough capital

Credit score? Good? Bad? Pass?
============================================
I have been working on cleaning this up over the last several months and I believe that I am almost back up into the 700's again.

What are your reasons to invest in real estate?
=============================================
Freedom and security for me and my family

Do you want invest part-time or full-time?
=============================================
I would like to be full time by next summer

Are you good with people and one-on-one communication
=================================================
typically I am - although sometimes I get really nervous
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#30 User is offline   Dealmaker 

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Posted 03 August 2004 - 09:37 AM

Okay Sprinkler Guy.. your turn!!

[quote name='SprinklerGuy']Get out of the businesses that I am in...they are not fun for me anymore.  Because they aren't much fun anymore...they also aren't producing the revenues that they should.  Burnout anyone?

Real estate is the answer I believe...I own one rental home now and I have fixed and flipped one time very successfully so I know it can work.  [/quote]
So, what's stopping you. Have you run the math on how many flips or rehabs, it'll take to replace your current income?? Do it now and let me know. (just the number of deals..not the dollar amount).

[quote]My goals are both long and short term...short term I would like to flip some homes to pay off debt.  (same as everyone I suppose)  Long term I would like to keep some homes and rent them / lease them and sell them as necessary for retirement.  (ever hear that one before?)[/quote]
Keep buying & selling to pay off the rentals and generate enought income to live comfortably.

[quote]The strategies I would like to employ are as follows:
Find a farm area within my town and work it like crazy....much like Tom Hopkins in his real estate book:  How to master the are of .......only for my purposes and not his purposes of selling and listing real estate.

I would run ads in penny saver etc.
No door knocking for me....just not my style...no offense to those that do.
No bandit signs....again no offense.
Door hangers will work for me, and if I happen to speak with someone...so be it. [/quote]
I love seeing a list of what someone will not tolerate or do and what someone is willing to do. Good list. Do it for every area of your life. What will not tolerate any longer? From yourself and others?

[quote]I plan to get started right after my last vacation this year....leaving soon for Yellowstone with the wife and kids for 10 days.  Will start around August 15th[/quote]August 16th is the DAY!! I want to see a To DO list for that week!!

[quote]My first 5 actions will be to drive the area I wish to farm....during my drives I will talk to people and put out door flyers....I will be searching not only for homes to buy, but people to help me find homes. 

2nd action will be to place the ads.
3rd action will be to call my RE agent and get REO list

I think I know enough to get started now.  I just need to leave my office chair and go.[/quote]I'll vouch for you.. you do so what's stopping? That bully that elminated you in dodge ball in 6th grade?? :) Come on.. get started!!

[quote]My organization skills could use some work.  I would like to start planning my days in the morning and sticking to the plans.  I am a failure at that right now...I put out fires all day and get nothing done...this includes my home and personal fires...not just business.[/quote]It's got to be done the day before. Each day around 4 to 5 PM you need to plan tomorrow. Every hour, every action. No excuses!

[quote]I would like to set aside 4 hours per day m-f right now and more when needed.  The 4 hours for now would be used in driving for dough and flyer generation/distribution.[/quote]You need to be including time talking with sellers, making offer, driving to look at REOs and making offers on MLS properties!

[quote]My wife is not too supportive.  She would be happier I think if I had a job making just enough to pay the bills.  She would like it if she knew my schedule.  She has been putting up with me now for 10 years....but she has been a stay at home mom now for 5 of those years.  I think I need  to sit down and talk with her.  There isn't any doubt in my mind that she would be more supportive if I asked her to.  Problem is, I am they typical male...don't need help and don't need to ask for directions when lost.  I should work on that and ask her for support, I'm sure I would get it.[/quote]
Not too many like to ask for support..yet it's a key factor in success. Having a spouse that supports you, encourages you, and has enthusiasm for you it the best. Let her know what you need from her, what you want from her, and how it will effect you, family life and share your dream (the big picture) with her!

[quote]I dont know of anyone off the top of my head that would think I'm an idiot actually.  Most of my peers respect my judgement, as I have proven to them my ideas work.[/quote]Then be the leader of that band. Show them what's possible if they'd apply themselves.

[quote]My 4 biggest fears are:
My biggest fear is one of commitment.  The businesses I own now are reliable.  I know what will happen for the most part from month to month.  I like knowing....even though there is some risk in my businesses...after 10 years with one and 3 with the others....I have a pretty good idea of what to expect.[/quote]
Common with most of us. We like security and knowing what to expect. Start thinking like a entreprenuer, break new ground, build a business from nothing, develop a passion for doing this business for the the payoffs it offers.

[quote]Other fear would be that I would become lazy after being a bit successful and start playing too much.  Meaning, I wouldn't work as hard.  I have found in my current businesses that I worked really hard to establish them and slowed down and maybe relaxed too much after that.  I have seen my propensity for that in the past...in Real Estate Investing I see that as a bigger problem to overcome.[/quote]
Umm. I can relate... :dance1:

[quote]I don't have any capitol set aside...most of my money is tied up in my businesses and in bad debt![/quote] Start with an investment strategy on how much to start setting aside from each job to build capital reserves. Get a plan and stick to it.

[quote]My 5 strengths
Quick Learner
Creative
Hard working
No fear of debt or taking chances with debt
Desire[/quote]
Excellent..stuff!

[quote]My 3 weaknesses
Organization
Not thrifty
Get bored easily[/quote]
Organization -- you need discipline.
Thrifty -- you need a plan.
Get bored -- you need a dream.

[quote]Credit score last checked was 694....was 745 2 years ago and then credit card debt and a new business venture.....high debt to income ratio.[/quote]
Get a plan to start paying it off.

[quote]The reasons to invest in real estate for me are that I can make my own hours...I can start out working around my current obligations and I enjoy it.  The one house I flipped after fixing up...that was the most fun I had ever had...and I earned pretty good money doing it.[/quote]What about lifestyle??

[quote]I am great in one on one communication...I have to be.  My businesses are service and tourist....therefore I am one on one quite a bit.  [/quote]
You gotta be great at communicating with others... or you'll just be buying listed properties! ;)

[quote]Thanks Dealmaker, you have given good advice in the past and I hope to hear about myself soon![/quote]
Thanks! Here's it goes...

You'll be pushed for time as usual until you get organized and scedule each day down to every 30 minutes and you still need to take 30 min every afternoon to plan for tomorrow. Put down on paper how many deals it'll take to replace your current income or how many rentals. Implement one of the free strategies on the net to pay down your debt every month. Rethink your money mgt or lack thereof. Start putting your income to work. Have a written plan on what to do w/ those funds.

Next, start your marketing immediately on the 16th. Make the move to attract motivated sellers to call you. Get started.. start meeting with sellers, & Realtors.
Make offers while you're there and proceed. You've got the skills and heart to do this.

Contact me around 19 to 20th August about another issue. We need to chat.

Dealmaker :dance1:
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#31 User is offline   REI_2_B 

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  • Location:Atlanta, GA
  • Interests:Making money and helping people. I'm married with no kids right now. When I have kids, I want to be able to spend most of my time with them because I'm very family oriented. Short term goal: Eliminate my fear. Long term goal: Provide for my family and leave and inheritance for my childrens' children.
  • City:Atlanta
  • State:Georgia


  • Level:New Investor

  • Hobbies: Reading and Playing Golf

  • Occupation: Bartender

  • Target Markets: Georgia (for now)


  • My Goals: Short term goal: Eliminate my fear. Long term goal: Provide for my family and leave and inheritance for my childrens' children.

  • Niche: Whatever will get me my first deal..

Posted 04 August 2004 - 11:19 AM

Hi Dealmaker,

I really appreciate you giving us newbies, who are still probably on the fence, the opportunity to express our fears and concerns and you provide us with some advice and how to proceed in spite of those concerns. Well here goes nothing:




• What are your goals for investing in real estate?

I would like to be able to provide a comfortable lifestyle for my wife and children (no children as of yet) and leave an inheritance for my children’s children. To put a specific number on it, I would like to start out in single family homes and eventually switch over to multifamily apartment communities with a monthly cash flow of, no less than, $20,000.


• Is your goal short-term (I need cash now) or long-term (I want to build wealth and a monthly cashflow)... or both.

Both.


• List the strategies you want to employ.

Due to lack of start-up capital, I would like to wholesale flip a few properties. After that, I would like to employ the strategies of purchasing through subject-to and lease option. (However, I would like to try my hand at other strategies to get familiar with them.)


• When do you plan to get started?

Immediately, I’m in the process of purchasing my marketing material with extra money I make from my rat race job.


• What are the first five actions you plan to take to get started?

- Put out bandit signs.
- Use Car Magnet
- Join REIA group
- Place classified ad
- Just do it!!


• What do you need to know before you get started?

I’ve been lurking for a while; I just need to get started.


• What skills do you need to improve to become successful?

Goal setting, prioritizing and being more comfortable and open when communicating with strangers.


• How much time you plan to set aside for investing?

I can devote up to 30 hours a week, most weeks, to investing.


• Who can you depend on for support?

My wife is tired of hearing about real estate investing, it’s put up or shut up; however, she is my biggest supporter of most anything I do. She will be even more supportive when I get that fist deal.


• Who will think you're an idiot for getting involved with real estate?

Some of my family doesn’t understand, so they don’t think it will work.


• What are your 4 biggest fears?

- Communicating with people one on one
- Loosing everything (not failure, I don’t think I will fail)
- Looking incompetent and stupid.
- FEAR ITSELF!! (I want to control it and use it to my advantage. I know it’s possible I just don’t know how.)


• How much capital do you have set aside to get started?

None, but my wife and I live well below our means and I have about $1000 a month in disposable income that I can use towards REI.


• Do you plan to use partners?

I would welcome the opportunity to use partners when it may be necessary to do a big deal.


• What are your top 5 strengths?

- Quick learner
- Considerate of others needs
- Hardworking
- Determined
- XXX


• What are you top 3 weaknesses?

- Procrastination
- Organization
- Communicating with confidence with strangers.


• Credit score? Good? Bad? Pass?

Very bad, in the mid-500s. I'm trying to payoff debt to get it better.


• What are your reasons to invest in real estate?

Taking charge of my own destiny and the future of my family..being able to leave a legacy behind once I’m gone..living the lifestyle I’ve always dreamed of.


• Do you want invest part-time or full-time?

I ultimately want to invest full-time.


• Are you good with people and one-on-one communication?

I’m good with people, but struggle with one on one communication with people I don’t know.


Well that's me in a nutshell. Thanks again.

Ty
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#32 User is offline   bb82 

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  • City:Fontana
  • State:CA


  • Level:Part-time Investor

  • Occupation: Physician Assistant

  • Target Markets: so. CA, AZ


  • My Goals: Buy and Hold/ Flips

Posted 04 August 2004 - 02:20 PM

I guess its time to put it all out there!

Searching this site for the last month and reading various posts I feel that I need to jump in and get started. I live in Southern California and last year I bought my first home and 4 months ago I bought a rental property. I am now in the process of renting my current home, and buying a new home in the next 5 months.

My goals for investing are pretty simple. I want to own rental properties. SFH, condos, and 1-2 four plexs by the time I am 45. I want passsive cash flow to live on without having to work full-time. I love my current job and don't want to give it up completely, but I want the flexibility to stop working if I feel like it.

Short term goals: I need cash now. I have $12,000 is savings for investment but I want lump sum of money for a bigger deal that can net better passive income.

Long term goals: Buy a property a year until I am 45. Then re-evaluate my situation.

Strategies that I want to employ is probably my hang up. I have thought about flipping properties, preforeclosures, and I am serious about holding the note on a second mortgage in a new developement to make some passive income. I feel lost with so many ways of putting together deals that I get overwhelmed at times.

I have started down the road already. I own condo with $30,000 equity that brings in $120 passive each month. I also have a SFH that I live in that I am trying to rent. This home has $120,000 equity. I plan on purchashing a new home during first phase of development and possibly holding the second or flipping. Not sure yet.

First five actions: 1) Posting this message
2) Looking up foreclosures at the county tax office
3) Find a real estate agent who deals with income property and
distressed properties.
4) Make an offer in 2 weeks
5) Take the risk without being an expert

Before getting started I need more information on "how to flip properties" and
"how to know what is a good deal vs. a bad one." I hear everybody doing these deals but I don't know where to start or even how to start. It all comes back to feeling overwhelmed by all the different tactics that I don't jump in and begin.

I need to improve on putting ideas into action.
"I have decided that I either need to crap or get off the pot!"

I plan on dedicating 20 hours a week to investing in the begining, if more is needed I will set aside more time. The one thing I won't sacrifice is time that I spend with my wife and four month old daughter. That is too precius to me. No amount of money is worth that sacrifice.

My support group is my wife and brother-in-law. We have the same goals and bounce ideas off each other all day long.

I haven't met anyone who thinks I am an idiot for involving myself in real estate. Most people wish they were as far along as I am, and that's not saying much.

Four biggest fears: 1) Losing my shirt and not being able to provide for my
family.
2) Not having enough knowledge about REI
3) Is REI really going to work?
4) Not being aggresive enough and the good deals have
passed me by.

Capital set aside: $8,000 cash and about $150,000 in equity, but I am scared to
use the equity. I feel like its my safety blanket.

I plan on using my brother-in-law as a partner. We have the same vision and excitement for REI. We are also at about the same place financially and own the same amount of properties.

Top 5 strengths: 1) open minded
2) responsible
3) goal orientated
4) eager to learn
5) caring

Top 5 weaknesses: 1) Fear,Fear, Fear
2) lack of experience
3) Get overwhelmed

Credit score: Good 720

My reason to invest in real estate is I don't trust the stock market and I want to be in control of my assets. I also find it fun and rewarding.

I would like to invest part-time because that's all I can do presently, but I would not rule out investing full-time.

I think that I communicate well with people one on one. I enjoy learning about people and what they have to offer.
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#33 User is offline   ck_gr8 

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  • City:Miri
  • State:Sarawak


  • Level:New Investor

  • Hobbies: Surfing the net,building friends' network.

  • Occupation: Waiter/Student/Son

  • Target Markets: Miri,Sarawak


  • My Goals: Earn and Learn!

  • Pets: Cat, Walkman-I feed it with batteries,so... :p

  • "When the going gets tough,only the tough gets going"

  • Niche: ...

Posted 07 August 2004 - 03:09 AM

Hi DM. Thanks for the opportunity. I guess it's my turn.
Well, Let me introduce myself. I am 20 years old and I start browsing this forum ans it was good! I read Rich Dad Poor Dad (hey William, guess we read the same book :p ) and it really motivates me. I am working as a waiter in a local hotel in my hometown- Miri.. in Sarawak, Malaysia. And I am in a multi level marketing business too.. oh well..
Let's start.

[quote]What are your goals for investing in real estate?[/quote]
My goals:
I want to be financially free.
I want to buy my own car with the money I earn from RE

[quote]Is your goal short-term (I need cash now) or long-term (I want to build wealth and a monthly cashflow)... or both.[/quote]
My goal- I think it's both.. because RE is an option to earn passive income, am I right?

[quote]List the strategies you want to employ.[/quote]
I think I need to read MORE posts here(maybe all).
I don't have any idea about RE at all, so I am going to make friends with some people who are involved in RE...

[quote]When do you plan to get started[/quote]
When I am ready... Give me 3 months to read more and learn more...
I will start 3 months from now..if possible..

[quote]What are the first five actions you plan to take to get started?[/quote]
1.Buy books on REI
2.Keep updating myself about RE progress in my area.
3.Find more websites about REI
4.Start saving money-(salary) and making more money-(my MLM biz)
5.Get more friends that are doing RE in my area.

[quote]What do you need to know before you get started?[/quote]
I want to know what I need to know so that I can get started :p
I must learn more about the procedures. I am going to read more of the posts!
Read more books.

[quote]What skills do you need to improve to become successful?[/quote]
I think I need to know more on how to leverage my time and money...
Communication skill, I am not shy talking with people, because I am a Sanguine,but, I need to know how to talk productively...

[quote]How much time you plan to set aside for investing?[/quote]
8 hours a day. As much as possible..

[quote]Who can you depend on for support?[/quote]
I guess no one won't go against my idea. So, basically, everyone will support me :p

[quote]Who will think you're an idiot for getting involved with real estate?[/quote]
No one will...I don't really care what people will say...I mean, I accept constructive comments, but I don't want to waste my time handling the type of losers who want to drag me down..

[quote]What is your 4 biggest fears?[/quote]
Nothing, except for God...
Fear of God is the beginning of Wisdom

[quote]How much capital do you have set aside to get started?[/quote]
I don't have any yet...even if I have it.. I won't feel proud to reveal it here :dance1:

[quote]Do you plan to use partners?[/quote]
I don't think so. We'll see..

[quote]What are your top 5 strengths?[/quote]
Teachable and able to teach
Consistent
Focused
Adaptable
Vision - See the potential of something and not just the present appearance

[quote]What are you top 3 weaknesses?[/quote]
Disorganised
Think too much which lead to procastination..
Persuasive - Sometimes...

[quote]Credit score? Good? Bad? Pass?[/quote]
I don't think I have any yet

[quote]What are your reasons to invest in real estate?[/quote]
I want to be financially free, better life styles, to educate my family about the potential of RE

[quote]Do you want invest part-time or full-time?[/quote]
I think Full Time RE Investor would be great!

[quote]Are you good with people and one-on-one communication?[/quote]
Yes, you are absolutely right :laugh:

I guess that's all for now. I am eager to hear what you have to say about me.
Thanks a lot and keep the money pumping in your pockets :laugh:
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#34 User is offline   tricha2u 

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  • Joined: 01-August 04
  • City:riverside
  • State:california


  • Level:New Investor

  • Hobbies: realestate realestate realestate

  • Occupation: sales

  • Target Markets: riverside ca


  • My Goals: My goal is to invest in 2 properties every year

  • Pets: none:(

  • God grant me the Serenity to accept the

  • Niche: Properties $100,00 or less

Posted 07 August 2004 - 09:38 AM

What are your goals for investing in real estate?

My goals for investing in real estate are:

· To create enough net worth so that I don’t have to work a regular 9-5 job
· Learn the ends and outs about real estate so that I can teach other single mothers how to successfully invest
· To have fun with real estate and learn from my mistakes
· Create enough income/net worth so that when I pass my family could continue
· So that I can sleep and still know that my money is working for me

What are your goals short-term or long term?

My short term goals are:

· Cash to pay off all my “bad debt”
· Acquire and hold at least 2 properties a year
· 6-7 months of cash reserves
· Buy a house to occupy
· Get my credit score to at least a 720

My long term Goals are:

· By age 30 have a net worth of at least $1,000,000
· By age 30 own at least 10 houses
· Sustain a monthly cash flow of at least $4,000 (part time)
· Own a block (of houses)
· Own at least one house in every state
· Own a vacation house for every season (winter spring summer fall)

List the strategies you want to employ

The strategies that I want to employ are the following:

· Initially I will focus on wholesaling and sub 2. I will wholesale a few properties so I can have my cash reserves for emergencies. After I have my cash reserves I attempt on all transaction that fit in my criteria.

When do you plan to get started?

· I have already started. Each day I contribute to my learning by reading posts, reading books etc. I am currently outlining my website and my goal is to have it running by Sept 30th. Lately I have been working on my advertising goals i.e. getting my fliers together have my contact number in line etc. Each day I am contributing to my learning and my goal is to start meeting people face to face in October.

What are your 1st five actions you plan to take to get started?

· Write down my goals and objectives for acquiring property
· Order a sub 2 manual
· Get fliers printed and distributed
· Get Website Built
· Drive around neighborhood look for properties/talk with neighbors of empty properties

What skills do you need to improve to become successful?

· I need to know different financing techniques so I can be confident and properly explain everything I will do successfully and be able to back my words up with actions
· I need to get organized
· I need to improve on my selling techniques

How Much Time Do You Plan to set aside for investing?

· I plan on setting aside a min of 2 hours a day. Initially my goal is to become a part time investor and work towards becoming a full time investor

Who will you depend on for support?
· I will depend on my current mentor for support. He currently owns 20+ houses and is very supportive of me. In addition he has the finances that I could use in
case I need to close a deal quickly.

Who will think you’re an idiot for getting involved with real estate?
· Everyone who doesn’t see my vision will think im an idiot for getting started in real estate. But the funny thing is those are the same people broke living from paycheck to paycheck.

What are your 4 biggest fears?
· Failure
· Rejection of sellers simply because of my age
· Fear of the unknown
· Fear of trying something new and different

How much capital do you have set aside to get started?
· Currently I have zero funds set aside to get started. However I will be refinancing my house within the next month and use that money to get started.
Do you plan on using partners?
· I plan on using partners when the situation calls for it. No use loosing money being selfish!
What are your top 5 Strengths?
· Determined
· I sound/look professional
· I am very caring/ good people person
· I am a positive person I can see a cup half full instead of seeing it half empathy
· Im young and full of energy (23)
What are your top 3 weaknesses?
· Im unorganized
· I like to talk instead of listening, I need to work on my listening skills
· Im impatient


Credit Score:

*650 676 680 no negatives just a lot of debt!!

What are your reasons to invest in real estate?

· I love real estate! It’s my passion. In addition I want to be able to provide my family with a more than comfortable living and future. Real estate is has a proven track record time and time again.

Do you want to invest part-time or full-time?
· I initially want to invest part-time with hopes of going full time by age 30.

Are you good with people and one-on-one communication?

· Yes I am very good with people and with one-on-one communication. I am very thankful that god has blessed me with this capability!
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#35 User is offline   Dealmaker 

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  • Level:Fence Sitter,Fulltime Investor

  • Target Markets: SouthEast US & Waterfront

  • Pets: Boxers: Max & Tiki

  • He that lives upon hope will die fasting. - Benjamin Franklin

  Posted 10 August 2004 - 05:52 PM

[quote] I want to take care of some immediate cash flow now.  I have 2 rental properties, (one is paid for) well it was, I used the equity in it to purchase an REO last week that we are rehabbing.  It is my first one, things aren't moving as quickly as I would like. But I am learning.  I want to make this my business, one that will give me the freedom to do things with my family that I have always wanted to do.
Right now I do quite a bit probably 20 hours per week.  Sometimes more, it is really easy to spend alot of time on it.  I enjoy it though. :tongue: [/quote]
Over-spending is one of the top mistakes on renovating houses. Rehabs needs to be clean, bright, and all new fixtures... not expensive fixtures unless it's an upper-end home. By keeping a detailed tally of all the work (labor and materials), it will help you from over-spending.

[quote] I do get support from my husband although he has yet to see the big picture, he is more of an immediate kind of guy.  I also have a friend that has been investing for 22 yrs.  that will answer any questions I have for him.

My husband, we have not seen the kind of money we were told we would see yet. He is somewhat frustrated with it.
[/quote]
It's not uncommon for most family members to be somewhat apprehensive or unsure of real estate investing. Treat this as a business and you can earn more respect and support from him. Having a written investment strategy will help him see the long-term plan. Sit down write out an investment plan for the proceeds and how you plan to reinvest them.

With rentals, it is a long-term game for most markets until you're doing a high volume. Try to buy & sell the next 5 to 10 deals and he'll see the fruits of your labor.

[quote]I guess failure is my biggest fear.  Although I know I won't fail.  I have no fear of talking to sellers or Realtors if they don't want to talk to me then that is fine, I will move on to the next person.  [/quote]
If you never stop even after several mistakes, you cannot fail. Why? Failure means you give up.. you've stopped.

[quote]I also am at a point where I need to find some private money, I think it is hard to ask for money and I have gotten here quickly. [/quote]
Why private money? Even though I'm a big promoter of private financing, if you don't consider the seller as your #1 partner, you missing tons of easy financing.

[quote]Another fear is hidden things in the house, I wish I knew what to definitely not buy in a house that is a big money pit.[/quote]
Buying right.. taking your time to set a plan and make your own rules... inspecting the house & not overspending is key. Here's an example of a rule...I prefer to buy home 35 years old and newer unless the area is extremely hot in that area of the market.

[quote]I have some money, I have used alot to already start, now I need to make some back.  We are getting really close to this point. [/quote]Start buying and selling more. Don't even consider another rental for a long time.

[quote] 1 - willingness to learn all I can
2 - already learning (active) 
3 - I have alot of materials that I have read and am reading again. 
4 - I am motivated and do something toward investing every day.  even if it is small.
5 - Honesty and wanting to make this a win/win as much as possible. (I got a short on a property and when I told the owner she said she wanted to kiss me (yech) but I was glad to help her while helping myself. Just haven't been able to find the money for it yet.  :( )[/quote]

Your first three are about "learning". Which is good.. but not for all three. You'll learn 10x the information when you're in the field more. Try to balance your learning with more actions. Try a 1:2 ratio for the next 6 months. I personally know that you're ready.. you know enough.. so get out there more!!

Win/Win is not always attainable. Some decisions made by the sellers have put them in a deep hole. They have no way to win. It's going to win/lose for most of those.

[quote]1 - private money
2 -organization (working on that)
3 - rehabbing shortcuts, not on quality on how to get them moving.[/quote]

1) Plan in February to be at my 3 Day Private Money Conference in Atlanta. It's 100% nuts & bolts.

2) Here's a couple I like..."Order from Chaos" by Liz Davenport and How to Get Organized When You Don't Have the Time by Stephanie Culp.

3) Dave Lindahls' course is a must. It is the best rehabbing course by far.

[quote] Freedom - to do the things I want, and have the money to do it.  I don't want to be rich necessarily just extremely comfortable.[/quote]
Spell out those reasons. Give me 20 reasons.. like "I want to buy 20 houses a year to sell to...
1) Take my daughter to the beach 5 times a year for a girls only weekend.
2) So I can care for my aging parents in-house rather than put them in a nursing home..

Make the reasons compelling!!

[quote]Whatever it takes, right now I am a stay at home mom with 5 kids, I do what I can.[/quote]...5..?? That's a rehab crew!! I'd give them hammers and paint brushes for their birthday to train them right! ;)

[quote] Yes, getting much better in it with this business too.  Sometimes I do more talking than listening, I must work on that. [/quote]
So does my wife!! :D Just kidding..

You have enough knowledge and skills. Spend more time in the field, on the phone and in front of sellers. Start looking for motivated sellers and work on your presentation to get them to finance your deals. Focus on buying and selling for the next 6 to 8 months to build up capital reserves.

Take photos of your deals along the way for inspiration and keep excellent records on your spending vs. your projections. Cut back on your rehabs whenever possible and always seek out better contractors. Don't ever think about doing business with contractors without a signed contract. Learn all you can about the basic materials of renovations, cost per square, cost per sq foot, etc..

You must get an investment strategy written in the next few weeks to give you direction, gain support from your spouse and to hold you accountable.

All my best to you!!

Dealmaker :walking:
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#36 User is offline   Dealmaker 

  • Matt
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  • He that lives upon hope will die fasting. - Benjamin Franklin

  Posted 10 August 2004 - 06:10 PM

Quote

You and I have talked many times in the last 1.5 years, and you've helped me out a ton with deals that happened and a bunch that fell through...
Thanks guy.. just glad I could help.

Quote

My main question is how to deal with the lack of the most valuable asset: TIME

Everything from marketing, to knowledge to do the deals, to money is already in place, and its working...just to slowly 

My main goal is to do this full time and make it last. 
First by doing enough deals to keep cash in the bank and then by buying properties to hold...

the problem is that i know i miss deals do to my lack of time.  if i had 40 - 80 hours a week to find deals I know that i could 2 a month easy (in my market thats 50k easy....50k a month would work for me :walking: ).

right now because i work, full time and commute 3 hours a day. I find myself juggling between keeping my job up, my relationship with my wife up, the real estate investing, and total exahustion.......
I know that at some point i need to take the leap of faith, but i don't wnat to do it until i have a steady stream of deals comming in, or a bunch of cash in the bank to live on....
My question is how do i find a way through the catch 22?  I know that a plan needs to be made and followed through....
I don't play golf, I shutoff my TV, don't make kites, only take naps when my eyes won't stay open........ok i do play poker once a month with freinds :D

I find myself wasting time because I am so spaced out that i try to get something done and i end up zoning out....
Yesterday I started excersising again....hopefully that will give me the eneergy i need to push through to Job quiting time...
I can see it and taste it but I'm not at the table yet...


Z..

This is probably the lease considered problem in investing. The problem is automation. Some "experts" :tongue: are trying to sell the idea of complete automation yet I know for a fact the deals this person has tried to do. The "system" he's selling has never been implemented in his own business. With automation you loose a considerable number of leads and you only skim the extremely motivated from the top.. on both side - buyers and sellers.

You do need some help. I'd suggest looking for a family member to help or someone you could train. Don't worry about someone stealing your "system" or knowledge because most just are adventurous enough to take the plunge. I have structured my business around other professionals to do a lot of my work for me. The Dealmaking and marketing is still down in-house. The rest is down by contractor labor.

I'm scheduling a night to share this with everyone soon. It's be a tele-conference in September/October... plus ways to better manage the time you have.

In the meantime, start putting the word out to friends that you're looking for someone to work 10 to 20 hours a week...from home. Telephone skills, computer-knowledge, and consistency is a must. Remember not to hire by skills but by personality and attitude... the 2 things you cannot change or teach.

Next, be more persistent with your marketing and hit the target groups hard..and more often. Get them to notice you...and call you. Start looking outside your area as well.

Congrats to your success thus far.

Dealmaker :(
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#37 User is offline   Dealmaker 

  • Matt
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  • He that lives upon hope will die fasting. - Benjamin Franklin

  Posted 10 August 2004 - 06:36 PM

[quote][*]What are your goals for investing in real estate?
I have taken an extremely early retirement due to my health. I receive generous disability benefits, but I don't like the idea of someone else pre-determining how much money I can have. That should be my decision. It is my goal to take charge of my financial destiny.[/quote]
Give me reasons.. like..

I want to succeed so I can help those less fortunate like the Women's...
I want success in REI so I can travel to Acapulco next April.
I want to succeed in REI so I can give $10,000 a year to establish a scholarship for...

Get specific and write the reasons out.
[quote][*]Is your goal short-term (I need cash now) or long-term (I want to build wealth and a monthly cashflow)... or both.
Both. Short term, I want my REI cash flow to equal the disability benefits. Long term, I want my REI cash flow to replace and surpass the disability benefits.[/quote]
That's a good reason.. read it twice a day...every day.
[quote][*]List the strategies you want to employ.
So far, I have bdogged and acquired two properties; one by LC and the other sub2. I also want to do some wholesaling.[/quote]
That's great. Seek out properties with equity to get a larger fee. Remember, great deals are created and not found. Keep honing your negotiations skills and your presentation.

[quote][*]When do you plan to get started.
Actually, I started in '99 when a friend became a mortgage broker and started harassing me about REI. I bought a duplex that already had tenants. I was hooked, but health concerns interrupted my progress. I reconnected with my mortgage broker friend last year and soon found myself lurking REI websites. Within a month, I was a birddog. Again, my health interrupted my progress, but that's ok. I just picked up a few months ago where I left off last year. The final property I looked at last year was still on the market this year. I snapped it up.[/quote]
I hope you're taking care of yourself to prevent or curb your health issues. Put your health above the real estate investing. Otherwise, you seem to be on-track!

[quote][*]What are the first five actions you plan to take to get started?
I've started, but what I need to do to maintain momentum: 1) Network more with local investors. I've been relying on Internet contacts for bdog and wholesale opportunities. Many of these experiences were not profitable nor pleasant. 2) Continue developing my "team" so I can maintain progress and not worry if I get another health interruption. 3) Celebrate even the small victories. 4) Don't dwell on mistakes (which have been many). Learn from them and move on. 5) Focus more of my efforts on short term deals, like wholesaling.[/quote]
Wow..those should be your chapters when your right a book! Good stuff!!!

[quote][*]What do you need to know before you get started?
I didn't know anything about REI when I bought my first duplex. I didn't know a whole lot more when I started bdogging. I just read as much as I can and ask a lot of questions along the way. I will attend my first one-day boot camp in a couple weeks. I'm psyched![/quote]
Good for you. Soak in all you can and ask tons of questions. Take what you can and what fits your system. Never treat it as gospel.

[quote][*]What skills do you need to improve to become successful?
I need to be able to analyze and structure deals better.[/quote]
I'll answer below...

[quote][*]How much time you plan to set aside for investing?
I put in a fulltime effort, but not fulltime hours. The spirit is willing, but the flesh ain't.[/quote]Keep your great attitude... it'll help keep you strong.

[quote][*]Who can you depend on for support?
A close friend and some members of my local REIA.[/quote]
A great support system will only benefit you.

[quote][*]Who will think you're an idiot for getting involved with real estate?
My parents, so I don't talk about it with them. Others around me are too polite to openly ridicule, but I know they are watching closely to see what happens.[/quote]You're very observant and smart. Others.. mirror her!

[quote][*]What is your 4 biggest fears?
I don't want to sound arrogant, but due to my health, I've lost everything more than once and on more than one occassion faced the possibility of living the rest of my life in a nursing home. What else is there to fear?[/quote]
uhmmm.. I am humbled by your willingness and desire to stay motivated. You're an inspiration for me this month. I delayed a few items since I'm having surgery on the 16th (Monday).. I cannot say that most of here would have the say positive attitude in your position. More power to you and God bless your efforts.

[quote][*]How much capital do you have set aside to get started?
I had planned to use several thousand dollars owed to me by Uncle Sam, but that could take another two years of legal wrangling. I refuse to put my goals on hold, so I'm operating on a frayed shoestring budget. [/quote]
As long as your courage and energy, you can get by without the capital.

[quote][*]Do you plan to use partners?
Definitely. I've used money partners already. A friend who put cash into a property I purchased told her mother about it. Now her mother wants to invest. Sweet![/quote]
Don't let it get out.. or you'll have even more partner!! :(

[quote][*]What are your top 5 strengths?
1) Tenacity--doesn't matter how many times my health interferes/delays/disrupts my plans as long as I keep moving forward. No excuses.
2) People skills--I'm good at talking to people in groups or one-on-one
3) Organizational skills
4) Time Management skills
5) I'm a quick study[/quote]
You need a job!!?? You're just want I'm looking for!!

[quote][*]What are you top 3 weaknesses?
1) I spend too much time trying to figure out if it's a deal or if I should pass.
2) I spend too much time trying to figure out if it's a deal or if I should pass.
3) I spend too much time trying to figure out if it's a deal of if I should pass.[/quote]
Easy...take this next 2 weeks and right out criteria for each type of deal. Then take the courses you have an use their worksheets to develop your own. Always use your own due diligence numbers...never the sellers or Agents.

[quote]What are your reasons to invest in real estate?
There are many things about my life that I cannot control, but I focus on the things I can control. REI is one of those things.[/quote]

Thanks for joining us here at the Cafe'. Your post is an inspiration to many and myself. You have all the skills. Just get yourself and criteria sheet for each type of deal and keep your chin up. The confidence to make quick decisions will soon follow.

May God bless your health and your efforts.

Dealmaker :walking: :tongue:
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#38 User is offline   godaddyo 

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  • Occupation: Agent / Investor

  • Target Markets: Southern Ohio

  • Niche: Foreclosure deals

Posted 11 August 2004 - 06:55 PM

What are your goals for investing in real estate?



My goals for investing are to create lump sums of cash, to tithe to my church on a regular basis , to provide for my family and to reinvest into bigger deals that will create long-term cash flow. I want to do more than just tithe to my church, I want to be able to give more of my time toward improving the lives of those in my community. I have been learning a lot about what my purpose and drive are and how I can accelerate that process. My efforts have been focused mainly on buying notes at a discount and creating exit strategies that will work for each individual deal, working my local preforeclosure market and creating equity by short selling mortgage notes. Some rehab or fix-up on those properties that I take over is also part of my plan. I want to graduate to bigger deals for long term cashflow and wealth building, such as apartment complexes, strip malls, storage units and other commerical ventures. I would love to be able to vacation with my family without interruption at least twice a year, somwhere where English is not the native tongue and my cell phone won't ring...






Is your goal short-term (I need cash now) or long-term (I want to build wealth and a monthly cash flow)... or both.


As stated above, my goals are both short term and long term, but I am barely keeping my head above water right now by providing short-term money to live off of and reinvest. I have created a JOB for myself at this point in time, but I do see light at the end of the tunnel as I learn the ropes.



List the strategies you want to employ.


I have employed mainly preforeclosure strategies by direct marketing to the local preforeclosure owners and by referrals from mortgage brokers, realtors etc. I have also created some relationships with notebuyers.



When do you plan to get started.


I have been at this for over a year now and I really enjoy it, all though at times it can be quite overwhelming when it is your sole source of income. I have learned that credit lines have been the main contributing factor to staying above water, while waiting for profits to come in. It is risky, yet I am willing to take the risk in order to create the success I deserve. There are times when I almost break out into a sweat when I look at my credit card bills. My area is not a high appreciating area and the judicial foreclosure process can be tricky and very time consuming. I am open to learning different areas of investing to increase my knowledge and income, but have not decided on which areas to explore at this point.






My five steps of action that I took to get started look something like this.


1. I learned my area, the values and the average days on the market. This really helped me when I was talking to homeowners to get realistic on whether or not there was even a chance to work a deal or not. If they are calling me, they are usually very motivated, but that does not mean that there is always a deal to be made and I like to honor everyone’s time, including my own.

2. I talked to foreclosure attorneys, BK attorneys, title companies, mortgage brokers, realtors, clerk of courts officials, recorder office clerks, auditor’s office etc...I did this to learn as much as I could about my area and the process that is used in my area.

3. I created credit lines to live off of, during dry times that money was not coming in. I talked to relatives and friends about investing in properties and a couple of investors in my area that were interested in buying properties that I tied up. I wanted to make sure that I had exit strategies and cash flow to survive and so far it has worked. I need to create more investor relationships (hard money/APR) for long-term success. It is definitely something I have put off for too long.

4. I took steps of massive action, I knocked on doors, I spent countless hours talking to homeowner and learning what got them where they were. I learned to be a solutions provider and a friend.

5. I didn't just read this stuff, I actually applied what I was learning and I wasn't afraid to make mistakes. I made many mistakes in the beginning and still do to this day.

What do you need to know before you get started?



Since I have started at this point, I need to keep educating myself and asking questions of those who are more successful than I, so that I can learn more about my strengths and weakness in order to improve over the long term. I have always had a hard time asking for help, but I am realizing more and more that it gets in the way of living and learning.

What skills do you need to improve to become successful?



More strategies that I can actually employ here in my market. I need to hone in more on what others are doing that are successful and borrow from their techniques. I have a tendency to recreate the wheel at times, which can be a real time waster when others have made the mistakes for me.

B]How much time you plan to set aside for investing?[/B]


It is all that I am doing right now, besides working for a local broker as a Realtor. I like being a Realtor also, but I am still trying to find the best of both worlds. I have been a Realtor for a little more than two months now and I have closed 3 deals, which has been nice extra income. But being a buyer’s agent is too time consuming when you are trying to create deals. I am going to focus more on listing in the future.


Who can you depend on for support?


I have a few friends that I talk to who invest in other areas, but my main source of support comes from my lovely wife and here encouragement. I see this board as a form of support also.

Who will think you're an idiot for getting involved with real estate?]


Most people who don’t understand it, especially family members. They just don't get it and that is OK. My father is coming around and I believe he is going to be a valuable asset in the future.

I]What is your 4 biggest fears?[/I]

1. Not figuring out what really works in my market and what really suits my skill set.

2. Things will dry up (unrealistic, but I thing it still sits in the back of my head)

3. Legal problems-(even though I know what to do to avoid them thanks to the dealmakers great advice) I know that they may happen from time to time.

4. Not creating passive income and working this business like a job for the rest of my life.


How much capital do you have set aside to get started?


$0 was set aside when I started.

Do you plan to use partners?

I have partnered on a few deals, but find that the profits can be really skinny and not a win if I am doing most of the work, which usually is the case. I am open to creating better relationships and finding partners that will work for my situation.


What are your top 5 strengths?




1.Persistance, Persistence, Persistence. I can’t stand watching a deal die...

2. Good communications skills, especially homeowners who are really down on their luck. I have to be careful at times, because there is a lot of power in being a good listener. I am good at creating bonds that beat out other investors who may be chasing the same deal.

3. A willingness to learn and apply knowledge

4. Doing what I love, which is doing deals. There is no doubt that I am a deal hound, so it is never a question of "Who I am and What will I do?".

What are you top 3 weaknesses?


1. Procrastination

2. Shortcuts

3. Organization and scheduling

4. Inpatient

5.Not savvy on proper entities to use for investing and tax strategies (something that I plan on learning more about in the near future)

Credit score? Good? Bad? Pass?


Good credit scores, but bad debt to income right now. Something I look forward to changing by doing more deals.

What are your reasons to invest in real estate?

Doing what I love, which is very important (somthing that I believe I was created for). Being a servant to others, I truly love helping a homeowner/family and look at it as a way to give back at times. Not every deal is a win for everyone, but I think there is a sense of relief in many situations for the homeowner when they know what the outcome will be. I always try to achieve a win/win when possible. I have a deep desire to work with other business owners at my church, go to the city officials and ask them what neighborhood would benefit the most from revitalization effort and to take on a neighborhood that no one else would consider. The most needy of neighborhoods would be fine with me. Enough income that would allow me to spend the time necessary and to invest in these areas, while still supporting my family. Enough passive income that would survive me if I were to become ill or pass away.


Are you good with people and one-on-one communication?




I think that I am good with one on one communications. I am not good at speaking in front of a room full of people, but I see potential there with practice.

My main concern right now is learning how to combine my real estate investing business with being a Realtor. I know that the Dealmaker has created a successful business and others who have posted here have seemed to find their niche. I am still wondering where to go with this, since I think there is a way to make it work in harmony...I am also going to find some good tax advisors and attorneys that can help me set up my business for long term growth. I am really interested in learning more about getting commercial lines of credit, but realize that I may not be in the situation to make this happen right now, so I am still open to using other outside resources in the interim.


I decided to write this out, since I know that writing it out is half the battle. Very motivating….!!!!! Even when you have a few deals under you belt, it is humbling to realize you are still a newbie at heart…


Jon

This post has been edited by godaddyo: 11 August 2004 - 07:13 PM

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#39 User is offline   dfsinvestments 

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  • Joined: 11-August 04
  • City:San Diego
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  • Level:New Investor

  • Hobbies: investing,outdoors

  • Occupation: Consultant

  • Target Markets: any where it makes sense


  • My Goals: buy two investments this year by 2005

  • Pets: none

  • Money is made when property is bought not when sold

  • Niche: new to investing

Posted 11 August 2004 - 07:19 PM

Hi, I am a new investor and recent college graduate. I invested very little in college. I used the money to help pay for school. I am writing because I am in a bind and need some advice. I am new to the game and could use some helpful information. I have some savings, with very little debt.

My questions:

Does anyone know of where I can find a list of all the investors clubs in southern California?

I am living out of the country half the month and wanted to know, where I can find information about investing where I don't live, how to find these property's, and know if they are a good deal since I can't see them?

I was thinking about attending Scott Scheels weekend camp, does anyone know anything about his camp?

Thank you so much to all of you who reply. This forum is really great and helpful.

Sincerely,

Derek
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#40 User is offline   apexDenver 

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  • Level:New Investor

  • Hobbies: skateboard, snowboard, paint, music, dream, hike

  • Occupation: Painter/entrepreneur

  • Target Markets: Denver, Vegas, Utah


  • My Goals: I plan to start out rather small by buying a condo or town home in a strong market such as Las Vegas and roll the profit over into a larger investment. I eventually want to invest in large rental properties(20= units) & Vacation homes.

  • Pets: No pets...lots of plants though; I've done a good job at transforming my home into a solarium (jungle).

  • "Learn how to play the game of life, don't let the game of life play you!"

  • Niche: I am a brand new investor, but my niche, I believe will be buying somewhat run down properties and fixing them up, because I am a tradesman and can do a wide variety of home improvments myslef

Posted 14 August 2004 - 12:40 AM

I just stumbled on to this site today and I am absolutely thrilled to have the opportunity to jump right in and discluss my investment plans. I am a young entrepreneur living in Denver, Colorado who has been interested in investing in real estate since I bought my first home almost two years ago. Funny thing is I havn't actually taken the inituative untill now.
My Plan: I am currently researching small investments in Las Vegas and in Denver. Over the last 6 months I have seen so many impressive investment results come out of Las Vegas that I have set myself up on a very progressive plan to buy a small town home or condo there and the intent is to sell it within 1-2 years and roll the profit into a larger investment. The date of purchase is growing nearer and I am prospecting having the property by November.
My education is very informal, but for about 1 solid year now I have been learning all that I can about Mortgages, Cash Flows, Owner/Tenant Policies, Growth Markets, Forclosures and so on.
As far as support is concerned, I bought my first home with my brother and he and I have made a great team up to this point. We are currently looking into another joint investment, but it probably won't happen for at least another year. Right now My best friend and I have formed a great partnership-She has a great job and has a lot of disposable income. I have the desire to research and learn every day untill I am a wise investor; most importantly we have an incredibly trustworthly companionship and together we are going to make great business partners.
Strengths:
*Highly motivated
*Quick Learner
*Good with people and negotiating
*Good with money and numbers in general
*Never settle for mediocrity
Weeknesses
*I have fallen for a scam or two in my day
*Not always thorough enough
*Lack of funds
Last time I checked my credit score it was a 743, but I am only 22 years old so my credit line is not as strong as I would like it to be. Both my brother and my close friend have 750+ scores.
My reasons for investing are almost to numorous to mention; Most importantly is to work smarter not harder (utilize leverage), Freedom, take control of my life and stop letting a BOSS make critical decsions for me, Insure stability later on in life, Build a legacy of worth for my children, challenge myself and become solely :dance1: accountable for my accomplishments as well as my shortfalls.
As of now I am only going to invest on a part time basis-I own a small painting company that I am absolutly passionate about which takes a lot of my time. Within the next two years I plan on building a strong foundation investing in real estate.
I just wanted to thank the host of this site. I feel as though I've stumbled onto a gold mine and I would like to humble ask for any advise that anyone may have for a brand new investor with a lot of heart but very little real world experience. Thanks again for letting me outline my story!

Josh,
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