Posted by Mark (SDCA) on February 04, 2000 at 13:07:52:
Posted by Mark (SDCA) on February 04, 2000 at 13:07:52:
Am I Really Cut Out For This? - Posted by Arthur Montano
Posted by Arthur Montano on February 04, 2000 at 12:38:30:
For the past 18 months I have read several books on Real Estate Investing and studied several courses including Carlton Sheets, Ron LaGrand, Lonnie Skruggs. To date I have flipped one property ($5000 which I split 50/50 with a local investor who since has left town) and two mobile homes that I am holding paper on (approx $1500 profit made when paid in 12 months.
I attended the CROL convention last year in Dallas and found it to be very exciting and gave me many ideas. Upon returning I placed an ad in my local paper and had signs made up “I BUY HOUSES”. Soon the calls started coming in and thats when the trouble started.
When I would get a call, my mind would go completely blank. Here I am trying to talk to these people and my mind would be searching for words. You never felt so little as when an investor calls you up with houses for sale and you are completely frozen. While searching for ideas the investor picked up on this and told me I didn’t know what I was doing, just before he hung up.
I know that I have the knowledge to do this. I think what my problem is FEAR. Be it fear of success or fear of failure. Nonetheless, Fear. I hear this inner voice saying “Don’t do it because it’s to risky” or like something will go wrong. I compare it with a student pilot who has been through hours of training and has just been given the ok to solo for the first time and is sitting on the end of the runway with his hand on the throttle but just can’t push it in to take off.
I know that I AM able to do this! Why can’t I get my a-- in gear? Am I the only one who feels like this? I want to do this not just for financial gain (which would be nice), but also to help others that would could benefit from anything that I could do to help them. I know it sounds corny but I belive that the two go hand in hand.
By posting this here on the BB, I hope that someone here who has been in the same situation would share some insight and advice. This BB is probly the best if its kind on the Net and the people here are some of the most helpful and shareing around. Thanks for listening. Art
P.S. That pilot I was talking about was me. Since then I have had many hours of safe flying, just needed a little help.
I FROZE FOR 2 YEARS…HERE’S MY SOLUTION - Posted by JEFFD
Posted by JEFFD on February 10, 2000 at 23:37:43:
I AVOIDED THE PHONE CONFRONTATIONS FOR THE FIRST 2 YEARS, BASICLY BECAUSE I DID NOT WANT TO APPEAR STUPID. HERE IS WHAT I LEARNED:
TALKING ON THE PHONE IS JUST LIKE EVERYTHING ELSE IN LIFE…PRACTICE MAKES PERFECT AND THERE IS NO SUBSTITUTE.IT’S THE PRICE YOU HAVE TO PAY THAT MOST PEOPLE ARE NOT WILLING TO PAY (LESSENS THE COMPETITION)
ALSO YOU MAY WANT TO TELL THEM YOU HAVE A PARTNER AND YOU ARE JUST COLLECTING THE INFO SO YOU TWO CAN DISCUSS IT LATER…AFTER WHICH YOU WILL CALL THEM BACK WITH SOME POSSIBLE SOLUTIONS THAT WOULD WORK FOR THE BOTH OF YOU.
DO NOT TRY TO SOLVE THERE PROBLEM ON THE SPOT, I STILL TO THIS DAY COLLECT EVERYTHING I CAN ABOUT THE DEAL AND TELL THEM I’LL HAVE TO DO SOME THINKING ON THE BEST WAY TO STRUCTURE A DEAL AND CALL THEM BACK LATER. (THEY ALWAYS UNDERSTAND THAT AND CONSIDER IT REASONABLE,IF THEY DON’T THERE NOT MOTIVATED)
YOU SOUND LIKE ME, YOU CAN THINK A DEAL THRU…JUST NOT UNDER PRESSURE. ELIMINATE THE PRESSURE BY COLLECTING INFO ONLY AND CALLING BACK LATER AFTER YOU HAVE HAD TIME TO THINK IT THRU AND HAVE A FEW IDEAS TO RUN PAST THEM. I FEEL YOU ONLY LOSE THIS GAME WHEN YOU QUIT OR DIE , EVERYTHING ELSE IS A LEARNING PROCESS.IT’S NOW 10 YEARS LATER AND TALKING TO THOSE AROGANT TYPES THAT LIKE TO THINK THEY ARE BETTER THAN YOU(THE ONE THAT HUNG UP ON YUO)IS AS EASY AS WIPING MY ASS. BEST OF LUCK, JEFF
Re: Am I Really Cut Out For This? - Posted by Mark
Posted by Mark on February 07, 2000 at 16:49:43:
I can understand the fear. Write your questions down on a piece of paper and make a script of what you are going to say. Practice the script enough to where it sounds like you know what you are talking about and that you aren’t reading a script.
There is certain information you need to get from the seller. I would use the scripts that are in the different courses that you have. I have been using Ron Legrand’s information and it works well.
The other thing to do is networking. I go to invest Northwest and have met people there. I was talking to a seller and it seemed that there would be a deal with a lease option. I don’t like forms, didn’t know which forms to use and wasn’t knowledgable enough with lease options so I called up my friend Coni who specializes in lease option and we met with the sellers twice for 1 hour each. In preparing, Coni and I thought about what the seller wanted and what we wanted and we wrote up two sellers of intents and let them pick one.
I didn’t feel real confortable by myself. I could have done it but for me I thought I would rather have a great transaction and just share the deal with someone else. I now have someone who will work with me and I have a lot more confidence to do the next one by myself.
My point is make tools to assist you. We didn’t have to do much talking. We put it in front of them and they picked it. They asked if the $100 down was negotiable or were these the offers and we said those were the offers.
In summary, write your questions down and write your offers ahead of time so you have a sense of what you want and what you can pay for the property. Preparation and be willing to split deals. If I wouldn’t have involved Coni then I wouldn’t have gotten the deal at all.
Re: Am I Really Cut Out For This? - Posted by Ed Garcia
Posted by Ed Garcia on February 05, 2000 at 12:34:10:
Your post is well appreciated, because I think we can all relate.
The people below me have given you such great answers, there is only one thing
I can contribute.
Your answer is in your question, and I think you know that.
We all travel down the road of uncertainty.
In this life there are no guarantees, just the option of, TAKE A CHANCE.
There is an old cliché that say’s, there is nothing to fear but fear it self.
To tell you the truth Art, that’s a bunch of crap. We all have our fears, and with out
them we would never rise to out limits. It’s that fear that can keep you on the edge
and make you rise to the occasion.
I specifically like John G’s post because he tells it like it is. The more deals you do
the less you think about them. Yes it happens every day, we all become conditioned
to fear. When you listen to John, you realize that there is a price to pay for success.
I remember when I was young man, I herd an old saying that goes like this.
I cried because I had no shoes, until I met a boy who had no feet.
Art, that says it all, what is there to be afraid of.
My question to you is, do you think you like this business?
If the answer is yes, then your fears are just stepping stones. You’ll do what you have to do.
Are you cut out for this? That depend on if you want to be.
Ray mentioned personal development - Posted by CarolFL
Posted by CarolFL on February 05, 2000 at 08:47:48:
Let me put in a plug for taking this thing about personal development and growth a step further. There are personal development trainings which can help strong people get stronger, and good folks shake off useless, self limiting beliefs! One of those is discussed on John Behle’s site : www.papergame.com
You might want to check it out. It has been GREAT for us.
Thanks for having the courage to address these issues!
Carol and Dennis
Am I Really Cut Out For This? - Lets see … - Posted by JohnG
Posted by JohnG on February 04, 2000 at 23:15:58:
Am I really cut out for this ?
Today, I got a call from my on site manager of a townhouse complex that I own and I have a tenant who skipped because of a serious water leak and moisture problem that I have to fix yesterday (and I’m 3000 miles away).
Next, I call a fellow that owns a condo in a complex that I own the unit just below. Seems he had a leak and it went through my roof and now I have to get him to pay me for my damages and my lost rent.He doesn’t agree with my analysis of the situation.
Next, I have some NSF cheques that I am trying to collect on from a townhouse complex that I sold Dec 31 and I am still trying to get my cash.What is it with these tenants - haven’t they read the rules yet ?
Someone broke into a house that I have vacant and for sale - well, they didn’t actually break in - they just threw a 25 pound rock through the kitchen window and jumped in and made a mess of my new lino and made a mess on the carpet. I will give them credit though - they didn’t ruin walls, or wreck appliances or spray paint all over - they were “thoughtful” little punks !
And all this was before 9:30 am this morning.
So, I ask you - is anyone cut out for this ?
I asked a very successful real estate investor how he made so much money in real estate. I expected some great answer like how to find those great deals and some inside scoop on financing and maybe some little tidbit on flipping properties and pocketing big cash.
He looked at me and his mind went back to the hundreds of tenants he had dealt with and he sort of smiled and said “By putting up with tenants s*it.”
That says it all. We are paid in direct proportion of the amount of “tenants s*it” we put up with. The more problems we solve and the more situations we can handle the greater our returns will be. Not only in real estate but in the game of life - the more that you are able to offer and give without worrying who gets the credit, the more your returns will be.
By the way, when you finally pushed that throttle and took that Piper or Cessna from a start to a take off - at that moment you were your best self and you did what thousands are afraid to do - you confronted your fears and you mastered them. If I was you, every time I was about to do a deal or talk to some so called “investor” on the phone, I would put myself back in that sweaty seat in that plane and I would remember the great thing I did that day - then I would make an offer that would blow the guy away !!!
I’M REALLY GLAD YOU POSTED THIS MESSAGE… - Posted by ERICNSAC
Posted by ERICNSAC on February 04, 2000 at 19:42:12:
Thank you for the honest post.
I’ve been studying CRE courses for just over a year now and haven’t made my first deal yet. So let me tell you that in getting past that hurdle of doing “that first deal” and continuing to make more deals, you are already a good example for us hopefuls .
I like the answering machine idea … even for personal calls. And unlike that ding-dong that called you, we can always try to remain polite and professional on the phone, even if we think the person on the other end may be uninformed.
As for the fear thing… Ditto. We all have fears to face. If we start out a new venture with none, something’s probably not right. I saw a really good movie last year called “The Three Kings”. The movie’s not for everybody, but there’s a great line in it that’s stuck with me… When one of George Clooney’s soldiers asks him how to get courage, Clooney’s character answers, “You do the thing you’re scared s***less of first, and then you get the courage.”
Have a great day and success!
Join us at BAIES! - Posted by JohnWe (NoCA)
Posted by JohnWe (NoCA) on February 04, 2000 at 19:29:45:
If you’re in Northern California (NoCA), come and join us at the BAIES meeting. We meet on the first Tuesday of every month religously, at the Marine Memorial hotel on Sutter street in San Francisco. Like Jim said, you’ll get to network with other people like you, and that always makes you feel comfortable.
BTW, everybody has a fear story, and I’m sure you’ve heard your share. Fear’s great if you learn how to embrace it. That’s because the emotion feels almost like excitement, and it’s not hard to switch over. I remember the first time I went to the courthouse steps to bid on properties, or the county recorder to research property. It’s all scary, but then I know what’s right around the corner. The end result is always the same. Stick it out, and you feel comfortable with it. Now, you’re comfortable with a skill that not many people possess – and that’s power! You see, right now I know how to go down to the courthouse steps and bid on property. I can’t say the same thing for most of the other people I know. And that, my friend, is what makes me sleep good at night.
Re: Am I Really Cut Out For This? - Posted by K greene
Posted by K greene on February 04, 2000 at 18:45:55:
I have always gone with the philosophy that if you fall down seven times you get up eight. Never, Never, Never give up. If you stay down you lose . P. S. I hope you did not sit on the runway thinking whether you should give it the throttle . Fellow pilot
Don’t short yourself. At least you are in the game. - Posted by Ray S (Lakeland, FL)
Posted by Ray S (Lakeland, FL) on February 04, 2000 at 15:47:45:
You have at least taken the first step and done some deals. That alone says that you are ahead of the other 90% of “Real Estate Investors”. I too have done some deals and thought “oh, my goodness what am I doing? I can’t do this.” However, If you take action the fear goes away.
In our market there are some really rude investors who can make you feel like you just watched carlton last night on TV and are now trying to go out and do a deal. We know that to not be the case. But now that an investor has been rude to you it aint so bad. So what. You still have you legs and arms.
I would say keep on keeping on and think like Jim IL said. “what is the absolute worst thing that can happen to me?” Someone gets upset with you.
Another thing you might want to try is start off with something that is a little uncomfortable for you until it becomes comfortable. Then your comfort level expands and you don’t fear that “thing” anymore. You can start by calling sellers and then maybe bump up to an ad in the paper.
What you are really experiencing is personal growth. Don’t run from it, embrace it!
Re: Am I Really Cut Out For This? - Posted by William, Columbus, OH
Posted by William, Columbus, OH on February 04, 2000 at 14:49:33:
Art: Been there, done that! Sounds to me like you are cut out for this business. Everyone has already addressed the FEAR issue. Fear of the unknown…what if’s, etc. The script idea is great. If you have Ron Legrand’s materials there is a script in them. If you don’t, send me your fax # and I’ll fax it to you. I also sat at the end of the runway wondering if I was really ready. Piece of cake! Like you, in different scenarios I have felt fear and allowed it to mess things up. Have since learned to ask myself, whenever I experience discomfort/embarrassment, what lesson have I learned from this? The lesson for you was…
write down my questions or create a script to follow and print up a batch of them to use. You are just upset with yourself and you’re letting it fester. Let go of it and do what you need to do because you certainly have what it takes. May you be happy & well, Arthur
Re: Am I Really Cut Out For This? - Posted by phil fernandez
Posted by phil fernandez on February 04, 2000 at 14:03:55:
I remember meeting you at one of the convention breakfests last year in Dallas. To me you came across as confident so I know with a little practice on the phone talking to sellers and buyesr you’ll be fine.
I to believe that if you had a pad of paper with some questions and answers by the phone this will help. You can refer to your notes and not be under pressure to think on the run when someone calls. I also go along with not answering the phone , but to use the answering machine to prepare yourself. At least until you’re more comfortable when answering the phone when it rings.
I try to make the toughest call first. Get it out of the way. After the toughest call, all the other ones will seem easy.
Dealing with the phone is a skill that through practice will become second nature to you over time and with the improved skills you will be able to close more deals.
Me at the end of the runway in a plane. I don’t think so.
Re: Am I Really Cut Out For This? - Posted by Jim IL
Posted by Jim IL on February 04, 2000 at 14:00:40:
I think we met last year, briefly, over on the balcony where people were smoking.
And it is good to hear that you have closed some deals.
Aren’t you in California?
There have to be REI clubs there. Go to the meetings and talk to people. Exposure to others in the business will get you partially over the fear.
But, before you make any moves, figure out what it is that scares you?
Then, look at it, and ask, "What have I got to lose by doing this?"
See, I too was deathly afraid when I started, which was about the same time as you if I recall correctly.
As a former cop, I am trained to be always looking at things for the “Worst case scenario”.
What that means to me is, when I go into something, what is the absolute worst thing that can happen to me?
When talking to sellers, the “Worst case scenario” is simple, they will not sell to you on terms or at a price that works for you.
And SO WHAT! There are others out there who will.
Here is an idea, make a script for your calls, know what you want to ask the sellers ahead of time.
Make the questions you ask open ended ones, and let the seller tell you more than you need to know.
Go ahead and endure the stories about how little johnny helped his dad paint the bedroom, and the marks on the doorjamb showing how tall he grew each year.
Or the beautiful deck the seller built 2 years ago.
Who cares about that stuff? The seller does, and if you fain interest, the seller gets to like you, and will tell you the info you really need to know, like, “why they are selling” and “what they need” and about the existing financing on the home.
Let the seller do 90% of the talking, just steer them toward the answers you seek. Do not overwhelm the seller with a barrage of questions about the deal. Filter the important questions in slowly, as the seller tells you about the home.
Bottom line is, when doing this business, there is really nothing that can kill you should a deal go south. (I have yet to bleed from losing a deal.)
Just do your due diligence, and keep in mind your exit plan when making a deal, and you will be alright.
Trust me, my fear is there, but it has been pushed aside by my desire to make deals.
For me, that fear is, "what if I screw something up?"
Well, then I get sued, and SO WHAT?!?!?!
When you follow the advice given here and from other places for asset protection, there really is nothing to fear.
And, bottom line, if someone does successfully sue me and take EVERYTHING, I’ll just start over where I began in the first place.
(Heck, I’m doing that now, thanks to my lovely ex-wife.)
That is why we practice “Creative REI”.
We can and do make money without any.
So, Art, I hope you see, there is nothing to fear, except fear itself. (who said that anyway?)
Good luck, and perhaps we’ll both make it back to the convention this year.
I know I’m trying like crazy.
Re: My trick for handling the calls - Posted by richk (OR)
Posted by richk (OR) on February 04, 2000 at 13:04:15:
I don’t answer the phone. When they call me, I am immediately off-guard; don’t know who they are, don’t know what they want, don’t know their angle. So I let the call go to the answering machine. When I am ready, when I have the needed information at my finger tips, I call them back. Works for me.
You are actually ahead of many of us… I still haven’t closed that first deal yet! Just remember that fear keeps you alert and stops you from making mistakes. When fire walkers lose their fear, their feet stop sweating and they burn themselves big time! Good luck!
Re: Am I Really Cut Out For This? - Posted by Mark (SDCA)
Posted by Mark (SDCA) on February 04, 2000 at 12:57:04:
Everyone has these fears. It is those people who are able to work through the fear who succeed.
(In fact, that is what I consider to be the #1 reason for whatever success I have had to date.)
In terms of the phone issue, here is what I would do. Come up with a script (in advance) so you are prepared when an investor calls. THere are some basic things you will need to know about each property. Why is he selling? Square footage? # of bedrooms? # of bathrooms? Existing financing? etc. Write these down on a paper and keep it near the phone. Don’t worry if you can only think of a few now. You will add to the list as time goes by.
Also, when I get tongue tied (especially early in the conversation, I try to ask open ended questions and let the other person take the conversation where they want to go.)
Why are you selling is a good one.
Tell me about the property.
What were your experiences with the property. And so on.
Hope this helps,
Re: JPiper to the rescue! - Posted by Chris
Posted by Chris on February 04, 2000 at 12:54:11:
Try to remember what made you comfortable about doing the other deals, and what is making you freeze on the phone now. Don’t play this by ear-have it scripted.
If you can remember the questions that are now making you stumble that would be great. Write those problem questions down and brainstorm for the best answer. Also, post those problem questions up here so that you can get a script memorized with all of your answers.
A good article for you to read by JPiper that seems to have many of the characteristics you mention is included at the bottom for you to go to. I think using the machine to screen your calls and give you some control is part of the answer IMHO.
-Good Luck, Chris
Franklin D. Roosevelt (nt) - Posted by Brandi_TX
Posted by Brandi_TX on February 05, 2000 at 24:53:25:
Re: My trick for handling the calls - Posted by Jonathan Rexford
Posted by Jonathan Rexford on February 04, 2000 at 14:53:37:
I use a call capture system that allows them to listen to pre recorded information if they want more information they can dial 3 and patch through to me. When they dial my 800 # I am automatically paged with there telephone number. The great thing it is a great system that runs 24 hours a day.