Posted by Jonathan RexfordFL on February 12, 2002 at 20:24:34:
What area is of interest to you?
Newby putting off getting started - Posted by Mike FL
Posted by Mike FL on February 12, 2002 at 20:08:58:
OK I have a few courses but absolutely no money. I’m tired of playing the lotto and not winning and I need to do something (early 40’s with little time on my current job) to start to provide a future and a solid income. So how does one get over being afraid of getting started especially in an area where houses are high priced?
Re: Newby putting off getting started - Posted by Jim - OH
Posted by Jim - OH on February 16, 2002 at 20:47:14:
Mike —
You and I are about the same age, and, quite honestly your post could have come from my computer also. I first attended a real estate seminar in the late '70’s, and have always been enamored with the idea of REI. But, it was always “someday I will do this”. I also have no cash, lousy credit, but I am in negotiations right now for my very first deal — 25 years after I started thinking about it.
Here is the gist of how this deal is taking place: My next door neighbor (elderly man) moved out of his house about a year ago to live with his son. Over that time, the son and others have periodically stopped by to work on the house (mow the lawn, etc.)A couple of months ago, I asked him when he was going to put it on the market, and told him that I’d always been interested in investing. He said he’d be more than happy to talk to me about this house, since he would love to avoid a broker’s commission. I sent him several letters, letting him know I was still interested, and could I have access to the house for inspection, etc.
A little background : Basically, as many others on this site suggest, I talk to people about real estate. Not everyone — I don’t walk up to perfect strangers, etc., but when the opportunity arises, I try to steer the conversation in that direction and see what happens.
For example, my job takes me into people’s homes, as many as a dozen a day. In the past couple of months, I have probably met four or five people who own investment property. I keep their phone numbers. and jot down any pertinent notes to remind me of how we met, etc. About eight months ago, I was doing some work in a house and noticed the Carlton Sheets course on a bookshelf. I asked the owner if he had put it to use, and he told me about several deals that he had done, had in the works, etc. (Side note: never forget that people LOVE to talk about themselves, especially their successes, and ESPECIALLY their financial successes.) In the course of our conversation, he gave me his business card, which had his e-mail address on it.
So, back to my neighbor’s house. I was excited about having first crack at the house, but very quickly started talking myself out of it — how can I possibly do this with no money and no credit, etc. — basically just more words to describe the “fear” that you mention. So, as a stab in the dark, I found the business card of the investor I had met and e-mailed him, giving a brief description of the deal, and told him I could not do the deal on my own, and was looking for a partner. He responded that he would be interested, he looked at the house, and we have since offered, been counter-offered, and re-offered on the house next door. This “partner” doesn’t live real close, but is very interested in investing in my area, and would like to explore doing more deals with me.
This does not mean that this deal will go through — right now it might be 50-50. But, I cannot express enough how much of burden I feel has come off of my shoulders for finally “putting myself out there”.
The point here is this: I have no extra cash, just like you. I don’t place classified ads or bandit signs (yet), I don’t scour the paper every day (yet), but I am still in line to make 10K or better on this deal and/or subsequent ones. I promise you that you know, casually or otherwise, quite a few real estate investors. One of the people that I mentioned above that I have met in the past two months owns a beauty salon, another owns a pest control company. Carry a popular real estate book around with you, leave it on your desk at work, read it at lunch — you’ll be amazed at the number of people who will tell you that they’ve read it, heard of it, read other books on the subject, or by the same author, etc., and there you have a conversation starter.
I do not plan to work with partners for very long. Right now I?m just trying to get some cash together to be able to finance some of my own deals. But, if this deal works out, it will be a 100% no money down deal for me. If not, I?ve established a relationship with an experienced investor who doesn?t mind putting up the cash for a worthwhile deal. So now I have the ability to make as many offers as I choose, with the “subject to inspection and approval of my partners” clause in there, which will get me off the hook on bad deals.
Give it a shot, Mike. 25 years is way too long for me to have procrastinated. Good luck, and let us know how it goes.
Jim - OH
Re: Newby putting off getting started - Posted by Steve-DC
Posted by Steve-DC on February 13, 2002 at 08:48:18:
Mike,
Two ideas for you:
- Fear can be overcome when you want something bad enough. You may have to remind yourself on a daily (or even hour to hour) basis of why you want what you want.
Find a motto, something that motivates you, and paste it on your bathroom mirror…carry a copy in your pocket…look at it all the time…Start introducing yourself as an investor or entrepreneur and see how it feels…act the part…get going…do something small everyday to get to your goal…change…do something BIG everyday to get to your goal…massive action…stay up all night reading…get out of your comfort zone…visualize your highschool coach yelling at you…get angry.
- Fear can also be overcome by community. Get out and start talking to people- agents, lenders, sellers, other investors, etc. When you see other people doing what you want, it’s sometimes more comfortable to jump in with them.
Just my thoughts,
-Steve
Re: Newby putting off getting started - Posted by Aaron
Posted by Aaron on February 12, 2002 at 23:58:42:
The Rich Dad books are great, but don’t let them go to your head (check out the rich dad forums for a reality check), they have given me so much insight and helped me get started. Honestly, you will always be afraid, you just have to set it aside long enough to make your first offer, then your second, then your third, until finally one gets accepted, then you think to yourself, now what do I do?? Set the fear aside again and sell the property, after you collect that check, for some reason, that fear doesn’t seem to become a problem anymore. That’s how it was for me anyways.
Change your attitude… - Posted by skillet
Posted by skillet on February 12, 2002 at 20:40:07:
…by which I mean change your perspective. If you’ve got some courses, then you’re already ahead of 95% of the people out there. Right now you’re stuck in the 95% of the people who buy the courses but never do anything with them.
If you haven’t read any of the Rich Dad series, I highly recommend it. Even though I haven’t done my first deal yet, I am actively looking. I can honestly say that reading Rich Dad, Poor Dad changed my life. It may not be everybody’s cup of tea, but from a “wake up and smell the roses” standpoint, it’s good.
I could cheerlead endlessly, but the bottom line is only you can decide whether you are going to get up tomorrow morning and go looking for your first deal. As long as you understand the forces that drive the market where you live, it doesn’t matter whether you’re looking for a $10K deal or a $10M deal, you’ll be all right.
As Kiyosaki says, even if you fail, you’ll still learn. And as long as you don’t quit, you’re ahead of where you were.
skillet