Posted by J.P. Vaughan on January 09, 1999 at 19:40:20:
Thanks for a great post. The only thing I would add is this:
People come up with creative ideas and solutions because
they have information floating around in their brain.
In other words, they have tools in their tool kit.
Those tools are called KNOWLEDGE and EDUCATION.
John Beck and I were talking about this very thing just
yesterday. The more tools you have, the more ways you
have to put deals together. If the only thing you know
is lease options, for example, the only thing you can
do is lease options. What happens if you’re in front
of a super motivated seller who has a lot of equity and
a lease option won’t work? If all you know is lease options,
I guess you lose the deal.
What beginners need to understand is the absolute necessity
of eduacation. You need ALL the tools you can gather so
you can put ANY deal together.
Let me give you an example. When we bought a bunch of
houses from a HUD auction as “all cash” buyers, we did
not know how we were going to close those deals. We
DID know, given our background and experience, that we
WOULD close the purchase one way or another.
As Terry and I were chatting on the drive home, an idea
"popped" into my head. “Why don’t we just create our own
mortgages,” I said. And that’s what we ended up doing.
I had never done that before. In fact, it never occurred
to me before. But all the information from the real estate
and paper books and courses I had consumed over the years
was floating around in my brain. The solution "presented"
itself. Like MAGIC. Ideas can pop into your head when
you’re not even thinking about them. But you have to
lay the groundwork so your wonderful mind can put some
creative ideas together for you.
It’s really amazing when you think of it. That’s why
we always say, “all problems create opportunities.”