Posted by SteveA on April 27, 2000 at 12:04:58:
Posted by SteveA on April 27, 2000 at 12:04:58:
Question for the newbies and those lurking at this site… - Posted by HR
Posted by HR on April 19, 2000 at 18:30:22:
What are you afraid of about rei?
That’s not a loaded question; I’m not suggesting there are not things to be afraid of. (There are many). My question, though, is what are YOU afraid of? What is holding you back from getting started in rei?
What we may find is that there is a commonality among the fears. Also, you may get some strategies to determine if a) your fears are legitimate and rei is not for you; or b) how to overcome your fears.
I’m also curious; if you have done a deal or two (or more), do you really feel the fear like you did before you did your first deal, or is it more like caution now?
After having done two flips and five rehabs this past year, I no longer feel fear about rei. In the beginning, I was nagged with questions about: is this for real? can you really make this much money? (you can). Is it really this easy? (it’s not; at least for me). How do all these techniques work? etc etc etc. That’s no longer a problem; I’m no longer afraid of the biz (of making offers, making a mistake, offering too much, budgeting too little, getting sued, etc). I’m no longer afraid of the biz (thank God).
Now, I just worry about missing some things to rehab on a job, overpaying the subs, not making enuf profit. I worry about not finding another deal (but that’s never been a problem finding the next one). It’s not fear, though. Just worry. And not a soul-crushing worry at that, either.
Getting started and doing your first deal are by far the hardest thing to do. It’s like an invisible barrier that once you cross, you will never go back (thank goodness). You can read all you want about rehabs, l/os, etc. but until you do a real, live deal, it’s all hypothetical. And the real thing is so much more fun.
What helped me take the leap? Probably desperation. I honestly don’t think taking the leap into this biz is a rational decision. Don’t get me wrong: it’s not irrational. It’s just that reason isn’t ever going to help one overcome the fear and anxiety of getting started. What does? I think desperation: folks that break the barrier are people who are ready for a change, at any cost, and they take a thoughtful, calculated risk that rei is a venture worth pursuing. You gotta be a little desperate to change your job, finances, future, etc, though, to start, i think.
So those of you lurking and reading, waiting for when your ready… you ain’t ever gonna be ready. Excuse the analogy, but it’s a lot like sex. You can read all the magazines and books you care to peek at. The real thing, though, is going to be way more than you ever imagined. So, just take your proverbial clothes off and jump in!
Just my 2 cents.
Re: Question for the newbies and those lurking at this site… - Posted by Andy
Posted by Andy on May 25, 2000 at 19:26:28:
It is my understanding that to succeed in RE, one needs either cash, credit, or the ability to sell. Unfortunately, I have none of the above, so even though I’ve read some of the books, I don’t know how to do a successful RE deal. Ironically, I had an RE sales license for a few months my last year of college, and while doing RE only a few hours a week (I had another job in addition to also taking classes), I did sell one house because a motivated and qualified buyer came to me on floor. But I can’t imagine being able to sell another or to do a deal.
Now, this turned out to be an interesting thread, didn’t it?.. - Posted by HR
Posted by HR on April 29, 2000 at 09:33:02:
I want to thank the participants in this thread. This was fun. It also, for me, was yet another example of that old, eternal truth: giving is just as good as (and may be better than) receiving. I appreciated the chance to share some ideas, and I’m glad they have helped some folks. That’s a nice feeling to know these posts have helped.
To those who had the guts and courage to post: bravo. Keep posting here. You will find this a very helpful and supportive community when you post with serious intent and decency. (Sophomoric posts are not looked to favorably upon).
PLEASE take some kind of action. One mistake Newbies make is to get into the all or nothin’ thinking. This is silly. There is nothing wrong with starting with one small deal in one area of rei that interests you. In fact, that’s probably the smartest way to start. Don’t look to make 50k the next year in rei. Look to do one deal that helps you learn the ropes so that in a couple years you can pull in 50k (a very realistic goal).
Good luck. Just do something. It’s very frustrating to watch folks make the same posts over and over again on this board. It makes me wonder: is anybody doing anything over here? Or are they all just paralyzed by fear, indecision, skepticism, and paranoia?
Re: Question for the newbies and those lurking at this site… - Posted by Scott
Posted by Scott on April 28, 2000 at 23:41:34:
Thank you, thank you very much. I have had carlton sheets course for about 6 years now (got it for my 20th birthday) I have toyed with the idea of rei for this whole time. But geez, what if I screw up and end up bankrupt, what if it doesn’t work out, what if, what if, what if. Now I am happily married and I have been discussing the possibility of rei with her since I first started dating her. She grew up in a family that was hard working and put their money in safe things. Things like savings account (3% interest, of course) and the like. She is worried about the what if’s. She trusts me and knows that I have studied up on this subject and that I am as educated as one can be without stepping up to bat. Now my what if’s include what if I fail her. Well, I’ve got a new one. What if I don’t start rei. What if I don’t become independently wealthy. What if, what if, what if. Now I’m turning my what if’s to work for me. Hey, what if I get off the computer and make a deal on some real estate. Hmm, might just work out after all.
Re: Question for the newbies and those lurking at this site… - Posted by HeatherVT
Posted by HeatherVT on April 27, 2000 at 19:23:44:
Thank you HR and all you other kind advisors! I just got a CS package this morning and am going start going through it tonight. I am so glad I found you guys! Because I am scared to death. I bought it because he’s been on so long (test of time) and I have a slipped disc in my neck that left me unemployed temporarily and more importantly made me reasess my goals in life. But knowledge is power and I wanted to find out what other people had experienced. This isnt the first board I found but it’s definately the best, most informative and encouraging one. So I want to say THANK YOU! to everyone and especially HR for taking the time to encourage and advise people like me. I know this is long, and I apologize for that (I’m a talker), so I’ll get to my questions.
1.I have 2 young children and am scared that this is a mistake because it could turn their lives upside down along with my own. My fiance is my biggest cheerleader in this but doesn’t make enough money to support us by himself. Does anyone think this is too risky for me?
2. I have one big advantage; we want the house we live in now, the landlord owns it outright and wants to sell. But I have very bad credit (its been very good for the last 2.5 years but I also have current debt), and being a single mom nobody wants to give me enough money with a conventional loan. I feel REI is my answer to this and would like to know if anyone agrees.
3. There are three houses right on my street for sale and I know the owners of them all. Is it a good or bad idea to do this with people you know?
Thank you for reading this and I really appreciate the advice for newbies.
Re: Question for the newbies and those lurking at this site… - Posted by Jeff
Posted by Jeff on April 25, 2000 at 09:01:12:
This is truly a great post.
I was all wrong about you in the past and I apologize for my ignorant post about you sometime ago, I was the ignorant one.
Your success stories have inspired me and motivated me.
Congrats on your new rehabbed home, please let us know if it makes the mags.
It sounds beautiful, and I envy you.
If I ever become half as successful as you I would be thrilled to death.
I’m working on a nice 2 family home of my own to occupy and rent out the other half.
I’m scared to death,it’s a big leap for us.
I’ll be doing an inspection on the property tonite and going from there.
I have a motivated seller,she’s retiring to Arkansas and wants out very soon.
I went past the other day and they were already moving things out.
So i am hopeful.
Once again i am truly sorry for doubting you, your successes are an inspiration to me and the many others who come to this board.
Congradulations again HR and much more success to you in the future,
Re: Question for the newbies and those lurking at this site… - Posted by RickR
Posted by RickR on April 24, 2000 at 11:27:12:
Another newbie here and I have to agree with HR and say that desperation is going to make you do something. While I have not read as many books as I should (particularly Deals on Wheels since we decided MH’s would be a good start) I am not going to let that stop me from doing my first deal. The wife and I have made a conscience decision that we HAVE to do this. I truely believe that peoples biggest fear is that of the unknown. As Robert Kiyasaki said, you just need to learn how to play the game.
The other fear factor I see from this post is the money thing. We do not have any money to use for offers as of yet but we feel so strongly about REI that we are selling the only thing (other than children) we own outright… property. We will use this to invest in more lucrative RE deals. I feel for Kelly!! We too have made bad financial decisions and also had misfortunes resulting in bankruptcy. All I can say is DON’T GIVE UP!!! It will be tough for a few years but we have been able to re-establish our credit with persistance and allot of explaining. Finding a good broker willing to work with you helps and there are allot of them looking for that next commission check!
Anyway, we are excited and fearful about making our 1st. This is a awesome site and is really the inspiration for our decision. Hope this has provided some insite.
Advice not to do rehabs in the beginning? - Posted by SteveA (FL)
Posted by SteveA (FL) on April 24, 2000 at 08:35:22:
I was listening to one of RLG’s conference call tapes last week and he posed the question to some successful investors on the call “What one thing would you do different in the beginning?” There were two men on the call who were partners and one of them said he would definitely NOT do rehabs to start, that it was too difficult for the novice to tackle. Well, that’s exactly what I intend to do and from what I read here, so are lot’s of others!
What’s your take on this?
Re: Question for the newbies and those lurking at this site… - Posted by Liz
Posted by Liz on April 23, 2000 at 19:16:15:
I am just afaid because of the no money situation and bad credit. I am afraid because of the forms you have to fill out. I know everyone keeps saying just do it. It is so easy to say but its hard for me to do it. I want to flip some properties to gain some type of fast cash.I live in DC and things are just out rageous with price. Its hard to find investors interested in DC property, but in about two years tops you will not be able to purchase any property in DC for less than 200,000.00.
Thank for listening and any help or support will be greatly appreciated. As one person stated on this board i do not expect anyone to give or do anything for free.I will not give up.
Re: Question for the newbies and those lurking at this site… - Posted by Dean
Posted by Dean on April 23, 2000 at 14:31:18:
I, too, am a newbie that’s letting fear and apprehension get in my way. Please allow me to ask you a few questions:
What RE books do you recommend for a newbie?
Are No Down Payment or Low Down Payment methods realistic these days? I live in CA and it seems to me like people would not be open to those kinds of things.
How does one “flip” a house without actually taking possesion of it?
What is the best “technique” for a newbie? Flipping, lease-optioning, fixer-upper, etc.
Thanks for your post. It is excellent.
Re: Question for the newbies and those lurking at this site… - Posted by Wayne
Posted by Wayne on April 23, 2000 at 02:57:40:
My main fear for not starting seems to be the good old paralysis analysis. I try to “learn” as much as I can before starting hoping to never fail that I procrastinate and never get started. I got the CS course about 7 months ago and I’ve gone through it twice plus read books from Robert Allen, Wade Cook and others. I follow this newsgroup frequently and have read a lot of the success stories but it sometimes sounds too good to be true.
I read HR’s advice about Sheets’ course may not be the best place to start and that flipping properties may be better for most people. I think that may be where I should start because of my credit situation. Small positive cash flow wouldn’t help me a great deal right now even though every little bit helps. As HR said, being a landlord may not be the best move right now. I also check the Mr.Lanlord site frequently.
Where did most people start when they got into REI?
Re: Question for the newbies and those lurking at this site… - Posted by JHill
Posted by JHill on April 22, 2000 at 21:44:35:
I am a lurking newbie on this site and read the posts here almost everyday. I am in the middle of two deals. The first I bought with conventional financing / 10% down, 30yr morgage for a selling price of $62,500. It needed a cosmetic fix up of about $3500 (almost complete). The FMV is $75000, I should make about $7000 after closing cost and other out of pocket money. I was scared to death to make to offer on this property, I went through the numbers a hundred times thinking I was missing something. I realized I either had to make the offer or forget about REI. My second deal is a bit better. The property has a FMV of about $68,000 after a $20,000 rehab. The purchase price is $30,000. I went through a morgage broker and took out a loan for $50,000 with no money down. Payments start in 3 months on the purchase money and interest only on the fix up money as it is used. In the end, all the money uised will be rolled into a 20 yr morgage @ 9.5%. I am planning on keeping this one and renting it out. There was very little fear with the second deal, just caution.
My fears were of the unknown, taking that giant leap and hoping you land on your feet. This was one of the hardest and most fulfilling things I have ever done.
I’m surprised and disappointed by the lack of responses… - Posted by HR
Posted by HR on April 22, 2000 at 19:00:00:
I’m surprised, frankly, that more folks haven’t responded. I’m curious why that is.
Is the subject matter (fear of getting started) irrelevant? I doubt it. Are folks afraid of voicing their opinions? I hope not. This is a caring and sympathetic community. I’m surprised, honestly, that this has not turned into a longer thread.
For me personally, it’s fun to turn on the 'puter early in the am and read (and make) posts. Lately, I find myself bored by the posts on NGI and II. I was hoping this topic would spur an interesting discussion that we all could benefit from.
I’m not sure what the lack of discussion means. I’m absolutely sure, though, we have a number of newbies who follow these messages daily, and have done so for months. I don’t get it. But it won’t be the first (or last) time I didn’t get something.
Want the Best Real Estate Advice Ever? Read This! - Posted by Robert M. Campbell
Posted by Robert M. Campbell on April 20, 2000 at 10:34:54:
Great advice . . . and thank you for the inspiration.
Robert M. Campbell
HR is The NEXT GURU - Posted by SS
Posted by SS on April 19, 2000 at 23:41:22:
HR, I always enjoy your posts. They are full of humor and helpful suggestions that has gotten me excited about this biz again.
Things that are holding me back are…
Fear of rejection: Last year, when we started this, I was rejected so many times that I got seriously depressed! I know it’s part of the biz, but it still got to me. Especially the looks that I got! You know the look, the “Are you serious?” look.
Previous commitments: This is the end of my 2nd year as Parent Teacher Organization President for my childs school of 900+ students. A full time job in itself! Plus I have a 2yr old and no support system to help watch him while I wheel and deal.
Nagging spouse: My husband nagged me all of the time about how many calls I had made, how many did I go look at, how many offers I had put in, HE drove me crazy!
Even though these things hampered my progress in the past, I am about to begin again. We are moving soon, back to the town where my family lives. All of my family is in the construction industry, so we are forming a company (I will be President). I have told my husband that there will be no more nagging me, that I am to be left alone or else! I will find the deals, my mother has worked in almost every bank in town and has the contacts that I need, within the banking industry and within the private sector. My father and one brother are electricians, another brother has done framing, drywall, painting, and finish carpentry. My husband lays floors and has done masonry and landscaping. So our company will be able to take a run down place and totally rehab it with out having to “contract out” hardly any of the work. I plan on going to school to get my inspectors lic. so I can inspect the homes while I am veiwing them for purchase potential. I have worked out babysitting with my sister-in-law, and am very eager to get started!
We are trying to figure out what we want to do with our property we have here. Sell it, rent it, lease/option it, we just don’t know what we will do yet, because we will be 800 miles away from it. Oh well, we will figure that one out.
Wish me luck!
Re: Question for the newbies and those lurking at this site… - Posted by Cindy
Posted by Cindy on April 19, 2000 at 20:01:55:
I am afraid to make my first written offer. I have gone through “CS’s course”, twice, read: “Rich Dad Poor Dad”, “Building Wealth”, various books from the library and am halfway through “Fast Cash” by Ron LeGrand. I work well under pressure and don’t have much pressure right now because I’m blessed with Mr. Right who is a good provider. It disgusts me that I am not moving forward. I have read most the articles on this site and have been studying RE investing for nearly a year. Hours slip into days, days slip into weeks and weeks slip into months! I look in the paper every day, drive around and even look in houses after calling Realtors. I think I need to set a time limit for myself, quick!
THIS IS ONE OF THE BEST POSTS I’VE SEEN ON THIS SITE! THANK YOU~ (nt) - Posted by Eric (LA)
Posted by Eric (LA) on April 19, 2000 at 19:29:22:
Re: Question for the newbies and those lurking at this site… - Posted by kaye
Posted by kaye on April 19, 2000 at 18:58:51:
Well I am a new be and I do still Have fears but they didn’t stop me I read a book at the Libaray and it got me to thinking.
Well I found a realitor about 6 mths ago and he found an investor with 4 houses for sale He wants $1000 down and $500 a month for 6 months at that time he wants cashed out I can get refi. no problem the house are worth 25,000 a piece but getting them for $80,000 May not be a big profit but sure beats other returns If you have any Q’s or concerns ask and ye shall recieve
Re: Now, this turned out to be an interesting thread, didn’t it?.. - Posted by scott
Posted by scott on May 01, 2000 at 17:15:54:
i understand what you are saying i have been looking into real estate investment fdor a while i have a vry poor credit and no money to put up so how do you get started i am very motivated have you evere partnered up with a newbie thanks