Posted by JohnK(CA) on April 11, 1999 at 18:13:28:
Pete
Sounds like you are lacking more in self confidence, than in knowledge. Start by making an offer, for less than FMV on a fairly safe property. Plan your exit and if it doesn’t look like it will work, exercise a weasel clause. You just need to take the first step of writing an offer. Don’t let your fear be an excuse for failing.
When I was a young fellow, 12 years old I was a good marksman with a rifle, I went deer hunting with my dad one year hoping to shoot my first buck. We came in sight of a big dude within easy range, no problem. I took aim and put the cross hairs right behind the left sholder. Then I proceeded to watch for a full 30 seconds while the deer quietly walked off into the brush. I just wasn’t SURE that I had a GOOD ENOUGH SHOT. It’s called “buck fever” or “Paralysis of analysis” Take aim and pull the triger Pete.
Good luck
JohnK(CA)
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!
I can tell you from just my own experience the first step is the most difficult just as riding the bike the first time without training wheels. Once you realized you could do it everything went fine. I have been in the bus 18 yrs. and its easy to tell you now to just do it. I don’t know what the prices in your area are like but if they are 200000 for a 2 br home that is a lot of risk. When I started I like you found it difficult to just do it. I had a friend who also wanted this bus as badly as I did. We joined together on the first couple of deals. I would not commit for more than that because once you have the training wheels off you won’t want to ride that 2 seater. you might even get the first two with the full intent to split up or sell the props in one year. This should allow you enough time to see if this is something you really want to do. You ought to look for a really good deal to start with so that you can get out in one year with this person. You may even find that you will want to buy this other person out in that time frame. As I said it’s like riding a bike and once you get rolling it’s not hard to stay up. That origianl partner has been out of the bus for 17 yrs now but we are still good freinds and I don’t know if I’d of started without him. Just a thought!