Re: A thought crossed my mind (quite a novel experience for me) Three kinds of Creative Financing Investors - Posted by Ed Garcia
Posted by Ed Garcia on April 14, 2000 at 11:56:12:
You are a Genius.
No matter how you answer a question, or conduct your postings.
If your answer doesn’t end with Pactrust, then you some how strive to plant the thinking.
I respectfully say that because I think you should know that it’s obvious.
If that’s not your intention, then you surprise old Garcia.
Bill I plan to attend one of your seminars in the next few month because your subject matter is
one of my weakest area’s, and I’m sure you will enlighten me.
Yes, I agree that there are different types of Real-estate investors.
Although there are different levels of investing as well different types, I’ll just give you 5.
First I’d like to say that this board attracts your Tire kicker, Dreamer, Wantabe, Newbie, Talker,
Procrastinator, and the list goes on.
Now lets back up for just a second. If were honest, we all wear one of those titles at one time or another.
What makes us different is that we finally go into ACTION.
So now you have the small investor who starts out with nothing. No money, in some cases no credit,
just a DREAM to get a head.
They come to this board and learn techniques, concepts, the language, how to analyze property, and
the list goes on.
They start out doing lease options, flips, seller carry backs, because they’re not resourceful enough to do
their deals any other way.
The deals that they attract or develop in most cases are mediocre, because at this point with the weapons that they have to use, they can only attract highly motivated or desperate sellers.
In some cases they take courses to expedite their education and growth and are now considered the first
This investor now has been around for a while. They are either a part time investor with a good job, or an investor that has now gone full time.
The product that appeals to them are fixer uppers or distressed property. They now have learned how to
wheel and deal around fix up cost and have a combination of CASH and CREDIT.
Since they are more resourceful, they can negotiate better deals, and become more aggressive in their profit
structure. They now consider themselves true DEAL MAKERS and the main difference between them an a
the first investor, is that they cut better deals because they are a finished product at this stage of REI.
This investor is with out a doubt a seasoned investor who is looking for bigger and better ways to invest in Real-estate. If they stay in SFR’s they want to find ways to cut better deals, by either obtaining a credit line
to purchase their properties, or having financing sources that afford them to call the shots.
They now are looking at other product such as Multiple Units, or some kind of small Commercial investment.
They now have money, but want to buy properties only with upside potential. This investor finds themselves going through a different thinking process then when they were in a one and two.
They see things differently. They are now aware of other investors more them ever before. They
on one hand, pat themselves on the back for getting to this level, and on the other hand, come to
realize that they are just a small frog in big pond.
They start to learn all over again, and either at this point quit, because they are in a comfort zone
and are satisfied with their accomplishments, or become even more motivated then before.
This investor is looking for a place to Park their money. This investor is resourceful.
This investor is still looking for some up side in their deal, but at the same time they’re focused on a
return for their money. They invest in commercial deals such as Multiple Units, Shopping Centers,
Office Buildings, and are active with what’s going on in their community.
This investor is now talking Cash on Cash returns or Cap Rates.
This investor depending upon their age, will either purchase major properties with up side potential or
coupon clippers such as a Wall Mart or K-Mart. As a matter of fact, they’ll do both.
This investor could be a group of Doctors who have passive income or income derived from their practices
and are looking for alternative investing.
This guy is a Donald Trump type of an investor. This guy doesn’t just go along with the flow, he takes the flow. He makes things happen.
He don’t just look for properties with upside, but creates them. Every time you see a new shopping center
go up, your seeing this guy. This investor has more than just CREATIVITY, he has VISION.
Bill, I could go on and on, and be more descriptive as to my perception of the different types of investors.
But I found it interesting when you brought this subject up, as to not only where do we think we are
in the in REI, but how do we view ourselves as an investor.
You always have to be asking yourself, Where do I go from here?
Although the DESTINATION is the Goal, it’s really all about the JOURNEY.