CURVE BALLS & TRAPS!!! - Posted by pcm
Posted by pcm on April 11, 1999 at 16:52:24:
I need your feedback!
I believe the business of real estate investing is extremely lucritive. However, like any other business, it is my opinion that I should not go for it without being extremely smart about the decisions that I make! I’ve studied some courses (Carlton Sheets, Russ Whitney, McCorkle). They make it sound very easy, and I don’t doubt that. It’s just that business in itself takes objective decision making without much emotional pull. The decisions must be based on knowledge. I believe there are a lot of traps in this real estate business that could get a novice investor, like me, in some real mess.
For example, I do not want to develop a reputation for not being able to perform at closing because I can’t get the MONEY! If I did have a reputation like that, who would want to deal with me? Also, I was told that an investor should have sufficient cash reserves ($2,000.00/unit) before acquiring rental property. A person like me without such cash reserves could get into real problems. Especially since I depend on tenants to pay me and others that I may owe money to. What happens when something happens to the property and I can’t get it fixed because I dont’ have the MONEY? Another opportunity is fix-up/rehabs. How do I account for holding costs if the property doesn’t sell? My profit is eaten up. The techniques in the courses are creative and smart, but they are not 100%. Earnest money is another situation that may cause difficulties. If I don’t have it then I can’t deliver. Who wants to deal with someone who can’t deliver?
Don’t get me wrong. I want to be successful like all of you do or have already. I also believe that real estate offers the path of least resistance toward liquidity because that’s what it’s all about. My gut tells me that I need to ‘just do it’, but I also need to use some caution along the way because these courses can’t prepare me for the reality of the business. I wonder how many “would be” successful investors that have gone out there on an emotional high and have not recovered. I think that real estate is a great vehicle but it needs to be done right. Therefore, I belive I must use some patients.
Many, many of you are successful. Since many of you have been where I am right now what is your feedback? How long did it take? What are realistic goals? How do I learn the ins and outs of the “REAL” estate investing business without getting hurt too bad? I’ve found these courses have great information. What are some of the things that they can’t tell us?
Someone once told me that the best qualified buyer is the one with the most MONEY!