Posted by Terry (IN) on February 12, 2000 at 10:00:51:
Hi Michael,
Check out my response the post “Best way to contract on preforeclosure” by Al-Aj. (Above)
Terry
New Investor - Posted by Michael A. Miles
Posted by Michael A. Miles on February 12, 2000 at 24:52:03:
I have been reading this board during the day at work and late into the night at home and feel i’m ready to go out and
start looking for my first real estate deal. But I have so
many questions, and I’m scared of messing up on my first time. I made up my mind to deal in forclosures. I think this
is the best little or no money down with a quick resell. Only trying to make 1 deal by the end of march. Any advice
for a first timer.
Re: New Investor - Posted by Nancy Cason
Posted by Nancy Cason on February 12, 2000 at 17:44:25:
One of my first deals. Everything done was “wrong” in someone’s opinion. However, all outlay has been returned and the next 10 years of payments are pure profit.
I went to a foreclosure sale at the courthouse steps. Got in a bidding war with the husband of a friend. Only drove by the house (doublewide) never even walked around it. (not a good idea!!) Did talk with the bank and got all kinds of info.
Won the bid, talked to the owners who were still in the house (another no no - buying a foreclosure with people still in it !) Amicable meeting and departure of previous owners.
My husband and I start cleaning up the place and get disgusted with the mouse droppings, pet feces matted in carpet etc. So I decide to try a Lonnie Scruggs type deal. I put an ad in the newspaper, Owner Financing. Sold the home in 9 days. Signed the purchase agreement 26 Dec, closed in attorney’s office Jan 6. That was 6 years ago. Sold the house with a 15 year note. All capital invested was returned in 5 years. Final 10 years of note, will pay down debt on other investment properties.
As TRandal and SCook stated. Go ahead you can break all the rules but one. Never go into a negative cash flow deal. That is my only firm rule.
Also, once you sign on the dotted line you are subject to buyer’s remorse just like anyone else. Just make up your mind that somehow you will make the deal work. Get stubborn!!!
HAVE FUN AND KEEP A POSITIVE MENTAL ATTITUDE
Nancy
Re: New Investor - Posted by TRandle
Posted by TRandle on February 12, 2000 at 15:56:58:
Ditto what Steve said! You have to find the balance between education and inactivity. I read about real estate for years thinking some day that might be fun. About a year ago I decided to get serious. I was scared and excited at the same time. What I discovered is that I “messed up” numerous times on every single deal and still ended up okay. I’ve learned a ton and it’s not until you’re actually in a deal that you discover “creative real estate”. Analyzing your entry is one aspect, but intestinal fortitude, creativity and persistence aren’t tested until your anticipated exit blows up.
I think you’re on the right track with determining the pace at which you’re comfortable. My suggestion would be to post for assistance prior to inking the deal if you’re not reasonably sure you know what you’re doing. One of the great things about real estate is you can mess up continually and still make money. I’m living proof. I’ve changed my thinking some after each deal, learning as I go. If you wait until you “know what you’re doing”, you’ll never do anything. I’m personally in a drought right now. I’ve raised my expectations for what I want out of a deal and my marketing, presentation skills, and persistence are obviously not at the level necessary for me to achieve my goal of a deal a month. Ebb and flow, but no quit. My guess is that the long-timers can attest that these experiences never end. Anyway, this site is great and there are genuinely caring folks here who are willing to assist anyone who takes action. Good luck…
Re: New Investor - Posted by SCook85
Posted by SCook85 on February 12, 2000 at 11:42:13:
Michael,
Messing up is inevitable. You and no one else on this board is perfect, we all mess up. What seperates us is what you do when you do mess up. Some just give up and walk away, others find a way to fix it and move on. Fear of messing up will keep you from ever getting your first deal done. Realize it now that you are going to mess up somewhere along the line. Having read this board (and hopefully you are still reading it over and over) you are armed with all the information you need to get started, to fix mistakes, to move forward, etc… The key now is to get out there, do a deal and deal with your mistakes when they happen, and remember they are going to happen.
Happy Investing!
Steve Cook