Gee thanks, My Dad once told me even a broken clock is right twice a day :cool
Keep in mind, anybody’s input must factor in father-son time. I can tell you right now if your ideas interfere with that, they won’t work. They just won’t.
My father worked 7 days a week when I was a child…My father-son relationship begain with carrying 4x12 sheets of 5/8 sheetrock up flights of stairs at age 9…Or how about the many weeks I spent building various homes on the eastern end of long island with my dad…My childhood time with my dad was spent working %90 of the time…Point of my short post is that work ethic is more important than any coddling time a parent can give to a child…Baseball games and boy scouts doesn’t build businessmen or hardworkers…I know some will disgree…The apple doesn’t fall far from the tree…You raise your kid to watch you being Mr.Mom and not into business and earning he will think this is acceptable (and for some it may very well be)…If you aspire to be a real businessman who makes an above average income you will have to sacrifice play time with the kids(sometimes)… I couldn’t thank him enough for giving me a real work ethic…The most memorable times I have with my father are working on projects from start to finish and getting a real taste for completing something that I put my mind to…I will take that anyday over a ballgame with a bunch of nutty parents screaming about why their couch potatoe kid hasn’t played one inning…
Nothing against anyone who thinks differently…Everyone has their opinions and driven people a like will agree that with success comes sacrifice…Discipline,focus and sacrifice…
nods Good point, rookieNYC. I’ll be sure to work that into my equation(s). My Dad was like that, too. Very strong work ethic. He grew up on my grandpa’s 100+ acre beef cattle farm. Near the end of my grandpa’s carreer, he still hauled bales of hay on a flatbed drawn by a tractor. No mechanized bale loading machine for him. :shocked Talk about work ethic! Now here’s the odd twist. I’m one of the laziest SOB’s I know. Hahaha! It is a daily constant challenge to self-motivate, dedicate and focus myself. I truly don’t get how the genes didn’t pass on to me. I suppose my ADHD doesn’t do much to alleviate things. chuckle In any case, its something I recognize and acknowledge and take steps to deal with. In the end, I would say that it probably contributes one third to what hinders my success. Anyways, sorry again to hijack the thread. Carry on.
Dean
If you have an answer for this, I need to know it, because it sure as hell kills my confidence in trying that same trick to the next seller when I still don't have an answer for them.... Sellers talked to last week: Since I've been focusing on pre-foreclosures, they're not technically "sellersAnd a few dozen offers that, if the sellers even responded, they weren’t at all interested in…Now before you all say that I need to talk to more people…
The reason that you’re not getting deals is that you’re using a failed, out of date strategy. The “pre-foreclosure” fad is OVER and never was very successful. It was one of the many “guru” strategies that were invented to sell expensive courses and bootcamps. What is the “pre-foreclosure” strategy? Contact someone who is upside down on their mortgage and in great financial distress and offer them half of what they owe. Even if they agreed to sell the house to you, they don’t have the money to pay the other half of the mortgage. Otherwise, they wouldn’t be in financial distress and in pre-foreclosure. Sounds ridiculous when you say it outloud - doesn’t it?
If you want to be successful, forget all that outdated guru nonsense! Get out of the house and meet people. Tell everyone you know that you buy houses and be prepared to follow through. You need to find people who are DESPERATE to sell.
I can’t even imagine making dozens of offers just to get one deal. I talk to about 3 people for every deal I buy, but then again I don’t waste my time calling people who are upside down and have no money. People call me when they are desperate to sell and can sell at a huge discount!
Good Luck,
Mike
My dad told me that even the blind squirrel finds the acorn sometimes! LOL
Keith
Right on, the only way I see myself overcoming the “scared” money is to have a stash. so that’s my excuse, not enough saved up.
Well having at least 6 months of reserves is a good idea before investing money in anything. But we are entering a time where smart investors use their heads and take advantage of opportuniyies available. In my local area, the RE is not dropping much yet. But I believe that will change in the coming months. There are a lot of homes still on the market with prices that only dropped by about 3%. These are homes that have been on the market for over a year. The sold homes are the ones that I’m concerning myself with.
To add to this great idea you can also pay to have the yard and exterior cleaned up along with paying for a few minor repairs (with the homeowners approval of course) to add even more profit to your bottom line.
My first post here/anywhere.
I’ve just opened my eyes to the real estate market and am very mad I haven’t done that sooner. Everything that I’ve heard and read all makes alot of sense to me.
I just dont know where I can start. I have no money saved and a 569 credit score. I stumbled upon an accelerated mortgage seminar two weeks ago and right now have a plan to get into a property and live on rice and beans while I fix up the place and dump all my money into it. I am not buying their program but figure the faster I drop down the principal on it the better. This way I can put a renter into it and begin the process on another property.
I’m hoping alot of you with more experience (meaning any, ha) can tell me an easier way to get started. My plan seems like it will take years to become profitable.
Also, I was invited to a seminar offerred by N R. I came upon this site to check their credibility, which doesn’t seem to be too high. Is it a total waste of time to go? I am not planning on giving them any money.
No one goes planning to give them any money…
If you go, don’t drink the Kool Aid at intermission.
Keith
My reason I havent started investing:
Reason 1: I am extremely afraid of screwing up…I mean stomach nausea afraid. Im “young and dumb” as my sister puts it, and my family thinks that I will fail and my dad says, “I wont be able to bail you out $100,000 if you mess up”, meaning that if I get a house and it doesnt work out he cannot give me loads of cash to fix my mess up.
Reason 2: There is sooo much information to absorb, I have been sitting here for months learning as much as I can, and I know about 2% of what I think I should know.
I know less than 1% of what I should know and I’ve been doing this business for a few years. Somehow less than 1% is still enough to get going.
Stop talking to your family about your endeavors. Just go out there and do your own thing. Your family has implemented that fear of screwing up inside of you and every time you speak to them it compounds itself more and more.
I’m “young and dumb” as well and my family won’t bail me out either if I screw up completely. So… your excuses hold no ground.
What type of REI are interested in? Just pick an area that interests you and learn as much as you can on that area. Don’t try to absorb it all. As far as your reasons, your family is transferring their fears on to you. Never put results before effort. I suggest you find people that support you and advise you. Your local REIA or landlord assoc. is a good start. By the way,
- How old are you?
- what’s your FICO?
- What’s your income/savings?
I suggest you take time to learn as much as you can while bulding up savings and a good credit score. Books are cheap. I can suggest a few.
- “The Millionare Real Estate Investor” by Gary Keller ($25).
- “The ABC’s of Real Estate Investing”, by Ken McKelroy($15).
Also, you can go on ebay and buy the Carleton Sheets course. I got one for $40. They have more. Just be to get an up to date version. Education will ease much of the fear that is based on incertainty.Good luck.
Great motivational rant from eric medem. Reading you guys is like a big jolt of coffee!
My take on getting into real estate:
Having a roof over your head to keep out rain is a basic necessity. You gotta have it. All of us are paying for a roof if we are not still living with ma and pa.
Look to your own roof first. How much are you paying? My goal has always been to live free! Have someone else pay for my roof. So I have other choices of what to do with my money. So…
If you own your single family home, swap it for a duplex or 2 on 1.
Cut your living costs as a first step. If you are renting, get a roommate. Move to cheaper quarters. Save every penny for a downpayment on that 2 on 1. Buy whatever you can afford as soon as you can. Get in it and start fixin’! Getting a loan is much easier for owner occupied, so move into another “deal” ASAP.
Find your own path. Don’t do what everyone else is doing. Don’t even think of marketing (what are you selling?), options, wholesales, assigning,etc. until you have taken care of your own FREE roof.
Four years ago I bought a $52,000 owner-carry house with a boarded-up cottage in the backyard. I bought it BECAUSE of the free backyard cottage. The day escrow closed I was prying those boards off the windows. Then I fixed it up, an expensive and necessary learning curve, and furnished it and rented it out. Immediately that cottage made my housing costs $0. I liked my path so much that I continued, and now I have a thriving ( and Mike says “inefficient”, okay maybe) Furnished Rental Home business.
I found what I love to do, my path. I have dreams of my retirement resort hotel. Pool, restaurant, bar, my view apartment. Furnished, of course, and I will live free.
Find your own paths, sparrows, and Fly!
My excuse: I’m trying to wear down my husband, and it’s a difficult task. Because I’m a SAHM with very little income earned by myself, I don’t feel that I can just go out and take out equity in our home (for a down payment and property improvements) without DH being on board.
This is difficult for me because I’ve been wanting to buy rental properties for several years, but DH is afraid of risk to the point of getting stomach aches - and I suspect he is too comfortable in our current situation of living paycheck to paycheck, and he’s very much not an entrepreneurial type (he’s happy to have his “secure” job, and doesn’t want the responsibilty of management). His REI fears are strengthened by the fact that his coworker owns several rental properties that are not doing well, and this man’s son also owns rental properties and is going into foreclosure.
I’m at the point where I’m just about ready to just do it, with or without him, because I’m afraid of NOT investing. We don’t have much in savings and nothing for retirement, and REI seems to be best way to build wealth for the long term.
My wife was the same way. She’s starting to come around a little. REI IS risky if you just jump right in without knowing what you’re doing. What experience/ education do you have on REI? If you feel you’ve studied all you can and have your goals and a plan of action, then perhaps its time. You may find it difficult to get financing without using your husband’s income/ credit. Perhaps you can find a good deal with an owner financing.
EVERY landlord/investor that I’ve talked to said they have problems when they go against the “rules” or their criteria that is designed to filter out these problems. Proper management is key to success. But the success is a LOT of work. but well worth it. I think it may take a successful deal or two to convince your hubby though. Good luck.
Forget talking to your husband about real estate. People either support you or they don’t. It isn’t a wise idea either to partner up businesswise with someone that is not entrepreneurial or afraid of risk. Not a wise idea at all.
Most real estate investors start off in that boat, i.e someone close to them that does not support them initially and constantly raises doubts / fears about the entire real estate business.
It is not a viable excuse either. It is not impossible to go out there alone and headway yourself through real estate.
And not having money either is not an excuse. There are many ways to get started in this business without using any of your money. Don’t fall trap to the traditional line of thinking: pull equity out of personal residence —> use it as downpayment for rental property.
Most real estate investors start off in that boat, i.e someone close to them that does not support them initially and constantly raises doubts / fears about the entire real estate business.
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This is so true. When I got started over 5 years ago with just taking some classes on investing a lot of my friends and family were skeptics and they thought they were looking out for me by saying “Don’t get involved with the Real Estate Thing because most of of it is a Scam and its Way to Risky and you will loose money” :rolleyes
I am glad I remained focused and worked hard, because today they all want what I have BUT they are not willing to do the hard work needed to achieve what I have.
I see this with about 90% of all would be Real Estate Investors.
The path is laid out all you have to do it to “Take the Path”
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Educate yourself on the type of Real Estate Investing you want to do and learn all you can.
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Work very hard at it (Harder than you have ever worked in your life)
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Take action to do a deal
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Rinse and Repeat