Posted by camgere on July 09, 2008 at 11:16:06:
You seem to be very weak on analysis. I personally like analysis. Doesnâ??t everybody make recreational spreadsheets? The rule of 72 for the years it takes to double money should actually be the rule of 69.32. Everybody uses calculators anyway. I could tell you to get better at analysis, but I doubt it would do any good. So what are you good at? You seem to be good at actually doing work. You just want an equity position rather than being paid for services rendered. You need to partner up with an analysis/money guy. (S)he provides the money and plan and you do the work. Some people really hate doing the work. You donâ??t get paid up front when you work for equity. You get paid on the back end. So keep your normal job, this is bonus moonlighting, until it becomes big, consistent money.
On the one hand all progress in human civilization is based on social organization. In the long run villages beat out hermits every time. On the other hand all management is based on the principle that every employee will steal office supplies and products, waste time and extort bribes at every opportunity. Managers do this too, but it may be within their discretionary authority. I learned that at court required ethics training when senior members of our company were caught in corruption scandals.
I the hardware guy partnered with at least a dozen software engineers over the years. One of them was good, fast and dependable. The rest thought that they should have all the authority and take credit for success and I should do all the work and take responsibility for all the mistakes or failures. Time after time they lollygagged through code writing and left the project â??90% doneâ?? leaving it to me to find all the mistakes and actually make the code work. This usually takes 50% - 75% of the project time.
So how to find the mythical â??good partnerâ??? Start out with low risk, low dollar deals and only continue with people who get past this first level. Go to more risk and more money and test again. You never know how ethical someone is until they have to deal with a big loss. It is possible you may eventually find a reliable partner.
Good Luck!
advice - Posted by chapo
Posted by chapo on July 08, 2008 at 14:53:13:
Hello, out there. I am a guy who has worked with local investors here in the Chicago area and I have done everthing from scouting thousands of properties for the local auctions taking pictures and reporting the conditions due to my construction experience. Negotiate rent or removal with occupants of aquired properties, short sales, pounding the pavement and such but when I have tried to do these things for myself I continue to fail and put myself in financial jepordy. I have come to the conclusion that I doing something majorly wrong here and am putting it out there for your advice how the heck can I succeed and GET OUT OF SECOND GEAR!!! I am open to your help Note; Mentors who want to contact for fees DO NOT CONTACT
Re: advice - Posted by IB (NJ)
Posted by IB (NJ) on July 08, 2008 at 17:52:27:
Chapo you’ll have to give us more information as to where exactly are you stumbling? Finding properties? Talking to owners? Making offers?
We need to narrow your request for help a bit.
Also, you mentioned something I’m going to email you off board about. But in the meantime, please post more information so that I and others can help.
Ib
Re: advice - Posted by camgere
Posted by camgere on July 08, 2008 at 17:51:20:
You would seem to have good pertinent experience. How did you “fail”? Did you lose money or just not make enough to keep up with your standard of living?
Profit = Income - Expenses.
You have the estimated and actual. What was your estimated profit? Actual? What went wrong?
Re: advice - Posted by chapo
Posted by chapo on July 08, 2008 at 19:16:49:
Hello Ibrahim, I got paid a in a variety of ways. The first is whenever I found a deal whether on the street or a canidate for short sale, whenever that deal closed I got a percentage out of it approx. 10%. Second, If I was included in the investment deal itself my return would be whatever % I put in from the profit. Third I would manage some of the aquisition and the occupants with either negotiatingrent or removal that paid about $150 per negotiation if it was just a regular visit more if it required more work. Fourth, sometimes they had a home that needed cosmetic work or rehab and I would be able to jump on that and keep busy. Plus while I was out on the street if I kept my eyes and ears open I would see abondoned or run properties research them and try to creae a deal. I would also speak to a few people in the neiborhood, briefly explain what I was doing(sometimes I was asked) and find out all kinds of information, sometimes the people themselves would give me leads. I hope this was helpful contact me if you have any more questions. ? Are you doing any thing in the Chicago or Chicagoland area?
Re: advice - Posted by chapo
Posted by chapo on July 08, 2008 at 19:15:15:
Hello Camgere. It was just as you mentioned, I was sitting on the sidelines working with a friend who owns a investment co. Because I didnt have enough money to do anything major I was always picking up whatever I could to pay the bills hoping I could make enough money to do some real investing and get ahead. That decision almost cost me dearly. My friend couldnt take anymore risk due to him just opening the business and I could not make enough money to support my dream so I backed out and concetrated on my construction business. I have been blessed so far in finding work but I know deep down inside that there are those still making a good living in this business because they have enough knowledge and heart to find there way and adapt. This is what I want to learn and do the same. Thanks for your response