Point well taken !
I would submit that the number of people who jump on a bad deal is way way smaller than the number of people who over analyze a deal to death and do nothing.
I bought 25 houses last year and I bought 24 of them because an awful lot of people were into disecting the deal into a million peices. Now, I will say that I have been doing this for a long time and I do know what I’m doing out there. That makes a difference.
But, I just re-read Donald (I still love you in spite of some of the silly things you do) Trump’s - The Art of Staying on Top and one of the great advantages he has is that he can make the decision - it doesn’t have to go back to a big bureacracy for 3 weeks at a time.
Let me give you a small example. I am involved in a 104 unit condo corp. I got so frustrated with the management company that I got rid of them and now we are managing ourselves. We used to have great long meetings that took 3 hours. Now, since we have taken over ourselves we do in 30 minutes what took 3 hours and we are saving a lot of money to boot.
So, by all means study your marketplace. But don’t over analyze the deal because 9 times out of 10 I will buy it out from underneath you before you know whats happened. And its still better to learn from one bad deal than 25 deals you coulda shoulda woulda done.
So, make a game plan. Thirty days to your first purchase and thats if you just started real estate investing today at noon. Read lots, study your market, and most of all, find a motivated sellar - forget the property - its the sellar that’ll pay your way.
And then write a success story for all the others that are sitting on the fence till they get just a little more finesse.
Don’t Feel Like I’m Making Any Forward Progress - Posted by Steve (FL)
Posted by Steve (FL) on January 30, 2000 at 10:23:24:
I’ve read a good bit and drove around looking at a lot of properties, and I’ve got an agent providing me with MLS listings. I’ve also sent out a dozen or so letters to out-of-town owners and even pre-qualified with a mortgage lender for $100K., but…I have yet to actually look at a house or make any offers. I just can’t seem to get this machine rolling. In fairness, my Realtor (who is also my neighbor and friend) has been sick. She said she’d be ready to go looking today or tomorrow.
I’m looking for porperties to flip wholesale and if I can’t find a buyer, do the rehab myself and retail.
I’m really bummed. I wanted to try and get my first contract before the convention (not to mention we sure could use a boost in our income). I feel like I’m hitting a brick wall and don’t know what else to do at this point but keep sending out letters and wait on the Realtor to show me properties.
You are not paid to put in offers or look at homes or all the other thousand things we do to make a deal. The only thing that counts is an accepted deal.
So, Set a goal that is specific and has a time limit on it. I will buy a property in 30 days. Then do it. No matter what. No matter if its not a great deal and you have a thousand fears about the house, the furnace, the wiring, the appliances and a million other things.
The greatest satisfaction in the world (both moneywise and more importantly, for your sense of confidence) is to go and do something - make a deal happen. Whats the worst that can happen ? Now, whats the best that can happen ? See what I mean, now go buy a house right now !!!
Steve,
First let me say, you’re not alone. The important thing is you’re doing something. The question then becomes what to do that is most effective in my market? I think this is an ongoing “work in progress” for most investors that are serious and don’t give up when things don’t happen quickly enough. I’m trying different things to see what works best here in Phoenix. I’m sending out postcards weekly(hundreds) to pre-foreclosures and hundreds more to “out-of-town owners”. The out of towners have had very little response. The pre-foreclosures are about 0 to 3 calls a week response. I run a “I Buy Houses” ad every weekend in the local major newspaper. I get 0 to 3 calls a week from that. MLS offers have been a total flop for me so far after about 100 or so offers. My feeling for my market is I simply have to get to the sellers before they are listed. I will be starting next week to knock on doors of pre-foreclosures and try to get a deal. I also will be direct marketing to people who have sizable tax liens and also owners who have filed evictions recently. It’s becoming more and more evident to me with each passing day that I have to do a combination of many things to get enough deals to meet my goals. I have to do all of the things that my competition is not willing or able to do. By the way, a totally different combination of techniques will be the answer for you in your market. I hope this puts things into perspective for you. The reality of it is that driving around with a Realtor and mailing “a dozen” letters out ain’t gonna cut it. Turn up the volume my friend, and do what most are not willing to do to get the job done!
k.f.
You won’t find treasure on a well traveled path. - Posted by Todd (St. L.)
Posted by Todd (St. L.) on January 30, 2000 at 13:32:59:
Ditto, Ditto, Ditto to the other posts here.
Steve you’re doing the right things - especially taking action. But take charge of finding properties yourself and realize that you may have to look at quite a few properties before finding the “right” one.
Realtors can be an asset, but they shouldn’t be your only one. Other realtors are also looking on the MLS for properties for their investors. If it’s a really “hot” deal some of the realtors will buy it themselves. Go where the majority is not (FSBO’s, rehabs, REO’s, etc.).
Most of all, keep reading all the great post on this newsgroup and HANG IN THERE!
Do something, and something will happen.
Do nothing, and nothing will happen.
You need to employ several methods of locating properties…To me, running ads, placing 4 x 8’ signs around town, sending postcards to owner of vacant properties, and using a realtor to search MLS are just a few.
Your over-reliance on the realtor is a big stumbling block. Why should your success be controlled by someone else? You use the explanation that the realtor is sick is one reason you haven’t found anything.
I only use a realtor to locate properties that need work. The I drive by and look into the windows to get an overall idea to the work to be done. Then I pull some Comps…then I make an offer. I do not WAIT for the realtor to show me the house…it TAKES too much time.
My advice to you is to develop a system of finding properties within your buying criteria using SEVERAL not 2, not 3 but several methods of locating properties.
Your success then will NOT be limited by the actions or IN-action of others…
Re: Don’t Feel Like I’m Making Any Forward Progress - Posted by Billy Cook
Posted by Billy Cook on January 30, 2000 at 12:45:49:
Perhaps the brick wall you feel that you have hit is a property. Nothing worth much is easy to get. Like wise you can give up. I recommend that you don’t wait on your realtor friend. Go out your yourself. Keep looking. Keep calling. Keep learning. Keep making offers. Keep believing and keep working…and all this from a guy who, like you, has not obtained a property either. But I have to keep going until I strike it - the confidence, the prosperity, the knowledge, the experience and the right properties. Be encouraged, your labor is not in vain
Re: Don’t Feel Like I’m Making Any Forward Progress - Posted by Jeff Short
Posted by Jeff Short on January 30, 2000 at 11:25:13:
Steve,
Not an expert – because I haven’t done a deal either… but
One thing that I noticed in your posting was that you are waiting for the Realtor to show properties. Why not get out there and look at ones that are not realtor-based (i.e. FSBO)? If you have an idea on what the comps are in the area… then you may be able to make a decision on a property w/o your Realtor’s help.
Posted by Brandi_TX on January 31, 2000 at 15:36:19:
If there are 3 frogs on a log and 1 decides to jump off, how many are still sitting on the log?
When you say: “Set a goal that is specific and has a time limit on it. I will buy a property in 30 days. Then do it. No matter what.” I have to disagree.
In my opinion, making a goal like this is pointless. I think you have to realize that, although “know-how” is a factor, it is a numbers game. The more people you talk to - the more opportunities there will be.
So, with that in mind, I think goals should be set separately to accomplish the ACTS that it takes to get to the end result. (i.e. buying a property in 30 days) My goal was at one time to “do at least one deal this month”, now it is a few simple questions each day. One being: “What will I do today to make my phone ring?”
This way, if your ultimate goal doesn’t happen, you only have yourself to look to for an answer. You will either feel confident that you did all you could (unlikely - we can all do more), or you will see exactly where you fell short.
And at that point, you can re-evaluate which of your smaller goals may need to be tweaked or which ones you may have let slide.
Just my thoughts… oh, and there are still 3 frogs on the log. DECIDING to do something and actually doing it, are not the same thing.
While I agree one should not over-analyze deals, I think you make it sound a little too easy. I see people every day getting into deals that are sure to lose them money. People are paying too much for properties for bragging rights that they did a deal. So, I just want to add a bit of realism…spend more time and effort cultivating real deals than rushing into one that you’re going to regret.
k.f.