It seems like everyday someone is launching a new product or system to follow for success in Real Estate investing. I have to say I have purchased quite a few myself on pretty much every investing technique in RE. I have to say I enjoy learning the many different techniques and I know this will help in my investing. So basically I believe I have information overload with all the reading i do looking for the easiest way to get started. I know being successful in RE investing will take time and work and I’m starting to tell myself that maybe i need a coach or mentor to guide me and keep tabs on me. With all the coaching programs out there I just cant decide on who to pick and follow. What to do? :banghead
I agree, it can be a difficult decision, and you need to definitely choose wisely. I used to work for a real estate guru, and sold his coaching programs for $6500, and in the 4 years I worked there I maybe saw 1 or 2 people actually purchase some homes, some of the coaches didnt even invest in real estate.
And, the coach only got $800 per deal. So that means I got 20% ($1,300) the coach got $800, and the guru got $4,400, and he didn’t do s@#* - so the majority of the money these people were spending on coaching wasnt even going towards the coaching aspect of it. so they were paying $6500 for a $800 service. I’m not against paying $6500 if it worth it though.
you should check out Michael Q, he’s a member on this site. Spoken with him a few times, and his program seems fair and affordable. He has a plan where he tells you how to do the deals from start to finish, and you just have to share the money with him up to a certain amount. However, you have someone show you how to close the deals, so you are getting the experience, and after the program ends you should be ready to invest yourself and keep 100% of profits.
or, you should probably try to find someone who will work with you and has a financial interest in the deals with you… this way they should be inclined to give you the best advice because there is a reason for them to do so…
don’t hire a coach that works for a guru in my opinion, they get paid a certain amount no matter if you do any deals or not, so they really don’t care at the end of the day whether or not you become successful
Good Luck…
First and foremost, figure out what you WANT to do. You’re right. There are tons of different ways to invest in REI. My wife and I are investors. We buy and rehab homes for rentals to hold long term. We buy them with normal bank financing.
We’ve bought some REOs as well as other homes that were individually owned.
We don’t do Lease Options, Rent to own, Sub-2, Wholesaling, Tax Deeds. We don’t provide financing for other people by being a Hard Money lender.
So we don’t need to know all these other strategies. All we need to know is how to do what we’re doing for Buy and Hold and Landlording.
You can’t go in 100 directions at once. You’ll get lost. Focus on something that seems viable and that you’ll like doing. Once you figure that out, study the crap out of what you need to do that. Don’t worry about everything else for now. If you want to branch out later and try something new, then you can worry about finding another path all over again.
Most people are just scared to take the step. You just heard from taxlienadvisor how few people really take action. You can pay your money to keep buying courses or rent a coach, or you can put your money into your first deal. You shouldn’t have to spend thousands to figure things out. There’s probably someone in your area who would be willing to at least answer some questions for you and you have the forums here to read.
Well I purchased, rehabbed, and sold a thousand square foot house at the start of 2010 with bank financing that went pretty smoothly. I now have one that should be closing by the end of the month that will be my primary house and plan on renting the one I currently live in. I wish I would of done at least one or two more last year which I know I could of done. I think my biggest problem is I’m impatient and feel like I had the ball rolling and it just stopped. I like the buy, rehab, and selling of single families but with my horrible credit I have to find credit investors to work with me. My plan is to do this type of investing until I can build up some cash reserves then I will buying with cash and add to the reserves then start picking up some rentals that will cash flow nicely.
Justin0419, how many homes are you able to purchase a year with banks money?
Thank you for the replies.
I’ve been able to do up to 9 in a year from bank financing. Every bank will have their limits. We reached the limit of our first bank and then got involved with another bank. We reached our limit with them on our last deal so now it’s time to settle down and re-think. The plan now is to get all the properties paid for asap. The business world is littered with businesses who got too big too fast and failed. I don’t want to follow that example. We’ve got a good amount of places now so I’m fine with changing modes to pay things off.
Eventually we’ll get more, but we want a break for now.
Justin is right, you have to find what YOU want to do. 8 years ago when I was looking to get into real estate, I was a daytrader and options trader, and as I was looking at RE, I realized it was just like trading. There were 15 or 20 ways to make money at it. HOWEver, just like trading, you couldn’t be great at ALL of the methods. If you lined up 10 very successful traders, and said “OK, now, you trade using his method, and you use his method, etc.” these successful traders would now fail. Why? Because they were no longer trading using their method. Same as RE. You have to find what fits you, and what your comfort level is etc.
I looked at various methods and found that lease options were an intriguing fit, due to the low risk, but I had to take what was out there, and do a LOT of tweaking, so that I could really build a business out of it.
You have to look at things such as what level of risk are you comfortable with? What is your exit strategy going to be? What is your target area going to be? Don’t simply ask “How can I make the most money per deal?” as that may cause more grief than glory. Maybe make a list of the 4 or 5 areas in particular that you find INTERESTING, and list pros and cons for each, and you’ll start narrowing it down.
Keep in mind, regardless of the people that try to sell courses on how to utilize 20 different strategies…the pros typically only do 1 or maybe 2 eventually.
Hope that helps some…