P.S. - Posted by HR
Posted by HR on April 29, 2000 at 09:37:34:
If these posts have helped, you can tell me about your successes at the next convention. Buy me a beer. I’ll be the guy sitting next to Phil Fernandez and a bunch of others, buying my rei buddies/mentors beers for all their help to me.
Good luck. AND DO SOMETHING!!!
HR
The great Swiss psychologist Carl Jung would call you brilliant, Scott… - Posted by HR
Posted by HR on April 29, 2000 at 09:23:41:
Scott,
Are you familiar with Carl Jung, the great psychologist? He was a peer of Sigmund Freud’s, and both ended up creating interesting systems to explain human behavior.
One of Jung’s contributions I liked was his suggestion on how to deal with the imperfections of your psyche. Most folks try to change things about themself they don’t like. Jung suggested you bargain with your own psyche instead. You use your issues to your own advantage. Jung’s assertion (and I think he is right) is that trying to change oneself is too hard; bargain instead.
For example, if one naturallly tends to a type of thinking that says “what if”, trying to stop yourself from saying “what if” will be futile. O, one can turn one’s consciousness onto other thoughts for a bit, but eventually those deep, core beliefs will resurface. Most folks fail in their personal change initiative because they try to change their psyche; in this example, they try to rid themselves of the “what if” behavior.
Instead, use the “what if” to your advantage. Bargain with your fears. What if inflation rises and your 3% savings can’t keep up? What if you had just experimented with one, little rental property to start? What if you started small and part-time, instead of dumping everything first? What if you informed yourself with the best info out there and joined your local reia group and networked with real flesh and blood people in your market?
Don’t try to get rid of the “what ifs”; too hard. Instead, harness them to your goals. FAR more achievable and helpful. Good insight.
And good luck,
HR
That’s how I started… - Posted by HR
Posted by HR on April 25, 2000 at 22:56:09:
Jeff,
Thanks for the comments. As to your previous comments about me or my posts, I honestly don’t remember them. So no harm done. I figure everyone is entitled to a bad day (week, or year, myself included). In fact, when I first got here, I flamed some dude REAL bad. I mean I was a first class jerk. I guarantee you nothing you said to me even came close to my hazing of this guy. Well, Rob from FL appropriately jumped all over me; now Rob and I email each other privately. I consider Rob a re friend. There’s hope for us all, especially when mixed with a little honesty and correction.
I started how you started. My wife and I bought a duplex from a motivated seller. We rehabbed it and then got a home equity line of credit against the new equity. That line of credit has been the bank for all my deals. You may want to consider doing the same thing. In fact, to start leveraging more money, I’m going to look to borrow funds for the purchase and now use the home eq for the repairs. Anyway, it’s just a thought.
Man did I make a lot of really dumb mistakes with that first rental. But what a great way to start! Renting the other side of your house if perfect because when stuff goes wrong, you don’t have far to go to fix it (and you think I’m joking!). Make lots of mistakes on this first deal, and it will repay you 1000x on your next one.
I’ve really benefited from Jeffrey Taylor’s stuff; it’s excellent.
Good luck. Keep us posted.
HR
PS. When you pass thru the other side, and doing deals starts being easy and fun (and less anxiety provoking), remember to come back to this board to help those still in the beginning of the journey. I have a lot of respect for guys like Eduardo, Rob FL, Tim Conde, John Behle, and others who come here to help. If you want it bad enuf, you will get there. Helping others get there too is half the reward and fun.
Re: newbie question - Posted by Jerry White
Posted by Jerry White on April 26, 2000 at 08:58:59:
There is a subdivision full of older, run down MH’s and Manufactured Homes near me. This subdivision is close to a metropolitan area and exists within a sea of upscale site-built homes. Looks like a potential turn around opportunity. However money is easy to get in the area. Lots of new homes going up all over. Rental vacancy rates are high.
Any advice ?
IMHO, rehabs are a tough place to start… - Posted by HR
Posted by HR on April 24, 2000 at 19:29:54:
Steve,
I started with rehabs; it’s a really hard place to start. Would I do it over again? Yes. Because I don’t come home bleeding to death every day now from the brutality of the work, my ignorance, the subs, etc. If you don’t know construction now (and I didn’t), then you have a lot to learn: how to find deals, how to fund them, how to negotiate them, how to inspect them, how to create a crew and supervise them, how to manage a budget, how to be a harda$$ and fire the crews, how to fill out the forms, who has the cheapest materials, how the work should be done, how to schedule the work, how to bs the crews so they don’t know you don’t know what you say you know…
Get the picture. It’s a really, really hard way to start. After 6 rehabs, I’m just beginning to feel like I have a hang of this and am getting more control.
Now that I have better knowledge, skills, crews, and experience, it’s invaluable. Much of the distressed property one buys from motivated seller’s is real beat up. It’s invaluable being able to walk in and estimate how much (and how long; and who!) it will take to fix. I don’t regret it, but if I wasn’t so desperate to succeed, I probably would (should) have given up.
If there are Lonnie deals in your area, you may want to start with that. Or lease options. Do what interests you. Making ugly houses beautiful for a profit floats my boat. There were many hours and days, though, when I honestly thought my boat was sunk. This biz is like any biz: those with superior knowledge, skills, and systems win. Think long and hard about what systems you can create to win, or you will be out of the game fast. 95% of the folks here will just look; maybe 50% will dabble in rei. Of that 50%, 95% will eventually quit. Will you be one of the 2% who makes it to the end? I hope I will; I’m still on the journey. Hope to see you at the finish line, too.
Cheers,
HR
Re: Question for the newbies and those lurking at this site… - Posted by The Donald
Posted by The Donald on June 21, 2000 at 22:31:14:
DC - or suburban Md and Northern Va. I wouldn’t be caught dead with any DC properties - but suburbia is where the appreciation is.
You seem to be looking for a rent-to-own deal. If Northern Virginia (Reston) is good for you, drop me a note, I may have something for you.
EXCELLENT POST HR Thanks!! Also try this Liz - Posted by Crystal in Canada
Posted by Crystal in Canada on April 27, 2000 at 22:51:02:
I often wish I had a little guy on my shoulder telling me all the things HR told us 24-7. After reading a post like that you gain confidence, desire, understanding, motivation and more but like he says it soon becomes a “fading, disparaged memory.”
My birthday is coming up in a couple weeks and I’m going to give myself an invaluable present. I will take a momento from each part of my life (the good and the bad) and turn it into a permanent inspiration.
My collage will be placed on a plaque above my computer to serve as a constant reminder.
Included will be:
The name of a previous boss who always took the opportunity to degrade me. Just the mere thought of here name brings back the stress of feeling trapped between my pride and my need for a paycheck.
The date I started collecting unemployment insurance along with my doctor’s wording “must discontinue present employment immediately due to work related stress.”
Clippings from my credit card bills revealing my total debt and interest charges.
A picture of the home my parents were forced to sell. A constant reminder that I don’t want to work my a** off all my life and still come out with nothing. They still spend more than they earn.
You get the idea.
In the middle will be a photo of my husband and boys. Words can’t describe what they are to me.
The other side will display all of my qualities & strengths- reasons why I feel I can be successful.
Then end result may be a confusing mess of dates, numbers, names, words and a couple of photos but it will prove to be more than that… much more.
I know it will inspire me to follow my dreams and to never give up.
Believe me, I can relate to what you are going through-
totally. The bottom line is we can waste our time making excuses or we can believe in ourselves and start making a difference in our lives. Be sure to absorb yourself in doing something you love. You have to have a passion, an aching desire that you can’t shake. Find it and go with it.
Best of Luck- We are right behind you.
Crystal
Nothing kills fear like knowledge and … - Posted by HR
Posted by HR on April 23, 2000 at 23:31:18:
Liz,
If fear of not knowing the biz is really holding you back, consider becoming a realtor. Don’t let them brainwash you, though. You would become a realtor to become an investor. The training will teach you all the nuts and bolts, including paperwork, and give you access to the mls. It will probably cost about $1500 and you will make that back on your first deal.
IMHO, knowledge alone won’t get you past the fear, though. You also have to be desperate. You gotta have some rage in your belly. Tired of others having the good life? Tired of working too hard and earning too little? Tired of not having enuf money?
Meditate on that every day, and you’ll cross the fear bridge soon. I’m not joking. Re is like any other business: it ain’t that hard once you know what you are doing. It’s getting over the initial learning curve that’s brutal. The meek don’t inherit the earth in the rei world; the desperate, hardworking, informed, and persistent folk do. Is that you?
Finally, get your greed glands going. This stuff really can be as profitable as folks say. Right now, it’s Easter Sunday night. I just got off the phone with a fellow investor I flipped a house to (and made 15k profit on without ever lifting a hammer… greed glands flowin’ yet? This investor is also a woman, by the way)… she just told me about a two house package deal we may both go in on together. We each could make 30k. Sounds good to me.
There are SO many deals out there, because there are so many people inheriting property they don’t want, losing property because of bad decisions in their life, etc. While 80% of the re market will sell its goods at fair market value, 20% won’t. And 20% is a HUGE number of houses. And todays deals that are now off the board will be replaced by new ones tomorrow. And this will continue. Forever.
The question is: will you be in the game to make huge sums, or are you just gonna sit around and let fear stop you? The choice is yours. It’s your life.
In 2-3 months, my family will move into our new home. It’s an 8 bedroom, 5 bath monster I picked up from a motivated seller for 160k. It’ll take me 100k to renovate it, and when I’m done it will be worth $530,000. 3.5 years ago, Liz, my wife and I were living in a 900sf apt with 17k in credit card debt. We had no businesses of our own, and we both made less than 75k combined salary. We now have no credit card debt, four houses, multiple businesses, and this new personal rez on the way. My next house, our beautiful Victorian, no joke, is so gorgeous, every home magazine in existence will fight over putting the before and after pictures in its magazine (and I’m gonna let 'em, too!).
You want this life? It all can be yours. If we could do it, you can do it.
I just have one question for you: how bad do you want it?
Want the key ingredient for success, Liz? I’ve been very successful at many, many things, and I’ve studied the success literature and interviewed successful people to determine what led to their success. While there are many variables, there is one overriding one. Know what it is?
Desire.
When you want something so bad, that it consumes you, you will be successful. When you think about it all day and night, you will be successful. When it’s the last thing you think about before sleep and the first you think of when you wake up, you will be successful. Because there is no other choice. Literally.
When you want something so bad, that you have to have it, because life isn’t worth living without it… you will succeed. Want to succeed in rei that bad? Desperate ain’t just a word; it’s a depressed state of being, and some of us have been there. When you are so sick and tired of being sick and tired, then you got a shot. You got the first ingredient: desperation.
Mix it with character and effort focused on the right business (like re as opposed to network marketing, sales, and most other home based businesses) and you have the initial recipe for success in this biz.
If you don’t want it that bad, and you don’t study to learn and master this biz, you won’t succeed. Fear, procrastination, daily life, etc will envelope you in the fog of every day demands, and the dreams of rei will be but a fading, disparaged memory.
Meanwhile, others of us, who have crossed the bridge (and who are now fighting to cross new bridges) will make big bucks beyond your wildest dreams. It’s kind of God that you will never know what you could have had. You’d cry for a year if you ever knew.
So Liz: how bad do you want it?
It’s all in your hands.
HR
PS. Here are three great books to read. Investing in rei, 2nd edition by McLean and Eldred (2nd edition) $15; the 5 magic paths to making a fortune in real estate by Lumley; Creating Wealth by bob allen. Good luck!
PSS. Every day is a lucky day when you want it bad enough, especially once you know what you are doing!
JHill, I’m with you… - Posted by HR
Posted by HR on April 22, 2000 at 23:07:18:
The first deal is so scary. I too ran my numbers so many times I think I burn’t out the calculator! And then, you encounter so much you never expected (or at least I did) that you wonder what you were thinking about before.
And then the next deal is easier than the first, and the things that you got burnt on on the first didn’t burn you on the second (but new things did!). At least that’s my story. It’s just so important to keep failing forward until the profits start rolling in.
Congrats on your deals. Congrats even more on your courage. I used to think I knew what courage was until I had to step thru my fears by will into the unknown. I wasn’t sure I had it. Now I know. It seems you got courage.
All the best to you.
HR
Re: I’m surprised and disappointed by the lack of responses… - Posted by Laure
Posted by Laure on April 25, 2000 at 03:31:00:
The weather is getting nice outside. Thoughts have gone elsewhere for a while.
Laure 
You want fears? I got fears! Help! - Posted by Kelly
Posted by Kelly on April 23, 2000 at 13:47:14:
Okay, first of all, I’m a very confident person. Unfortunately, I have made some very poor financial decisions in my life, including what in hindsight was an avoidable bankruptcy. I’ve since divorced the person responsible, but because we filed jointly it is still on my credit record (for about another 8 years).
Is it realistic for me to entertain ideas of rei? It sounds intriguing and I’ve always been the person that turns others on to great deals (vehicles, real estate, horses, etc.) that ultimately work out great at least 90% of the time. I know luck has very little to do with this business… I’m willing to put in as much time as needed. I’m single, unattached, hardworking but I need to know whether this is even something to pursue in my predicament. I haven’t heard anyone else address this concern.
If you have conquered rei even with a bankruptcy or have suggestions to circumvent the restrictions on my credit report, etc. PLEASE give me all the recommendations you can.
This is by far the most informative site I’ve visited regarding rei. You’ve inspired me even more.
Thank you in advance for your suggestions and help.
Kelly
LOL; I don’t think so… - Posted by HR
Posted by HR on April 20, 2000 at 07:05:07:
SS,
Thank you for the kind words, but I’m no guru. I deeply appreciate how his site has helped me to jumpstart my biz, and I want to give something back.
Just a couple thoughts. 1) You have a MUCH stronger starting position than I ever did. That’s a powerful family background. Harness it right and you will be on your way. (and expect it to take a year or two to get it down right).
#2) consider getting your realtor’s license while you are at it. It will help not only find deals, but run confident numbers. It helps avoid that look (I know exactly what you are talking about).
Good luck and keep us posted!
HR
Technique for overcoming fear… - Posted by Eduardo (OR)
Posted by Eduardo (OR) on April 20, 2000 at 24:06:59:
Cindy–
Just go out and find a little tiny cheap property someplace (not in a bad neighborhood) and make a ridiculously low offer on it. If they accept it, fine. If they don’t, just say, “I’m sorry, that’s all I can offer,” then nod your head, smile, leave your telephone number and go find another little property and do it again. Keep doing this over and over again. You’ll find you have nothing to fear, because your offers are so low that if they accept you have nothing to lose and if they don’t accept, you are then (think of it this way) rejecting them. This technique can be called getting “on-the-job” education and experience. You just keep making offers until one day you find that someone accepts your low-ball offer. That day will come because you will find that as you make these offers day after day, week after week, you begin to make better offers (not higher, but better presented), you will have more confidence, and you will have less fear. All of these things can be sensed by sellers and are what they respond to. Remember, after you’ve made several offers, say a dozen or so, you have vastly more real estate experience already than the ordinary seller will have in a lifetime. Good luck! --Eduardo
Re: That’s how I started… - Posted by scott
Posted by scott on May 01, 2000 at 17:18:18:
how can you start with bad credit where you cant even get a credit card and no money
Yes… - Posted by HR
Posted by HR on April 26, 2000 at 20:01:03:
You should make an initial investment in Lonnie’s books if this is what your local market offers as an opportunity. I think both are only $40 or so. A worthy investment.
HR
Hmmm…stuff to think about. - Posted by SteveA
Posted by SteveA on April 25, 2000 at 12:22:32:
Wow. Sounds tough. And yes, I am one of the 2% you’ll see at the end. I’ve been getting involved in this stuff since November and I just get more and more wound up about it everyday. Fixing up ugly houses is what floats my boat, too. In fact, Robyn Thompson has been in our area and I’ve gotten to know her. (She did 50+ houses last year and teaches with Ron LeGrand). She led a mini boot-camp/bus tour 2 weeks ago that I attended and it was an eye opener. What she’s accomplished is astounding and it’s exactly what I want to do.
I run my first newspaper ad tomorrow and I’m active with a Realtor, etc. Can’t wait to get my hands on the first one and get it out of the way so that hurdle will be behind me.
Thanks for the advice. Keep it coming!
Re: Nothing kills fear like knowledge and … - Posted by scott
Posted by scott on May 08, 2000 at 18:31:22:
i dont have fear just very bad credit how do i get started what is the best route
Re: JHill, I’m with you… - Posted by Mark in Oz
Posted by Mark in Oz on April 23, 2000 at 19:34:55:
Here you can make an offer without any earnest money. I encourage you if you can do the same to make offers and get use to getting nos, finding out what works and then getting use to yes. If you make the right offer you will never have a problem finding somone to flip it and do the deal even if you make nothing. Buying right is 90% of the game. The rest is easy. Learning to buy right is just a matter of practice correction and more practice.
Mark
As they should! (You mean there’s more to life than re? 
nt - Posted by HR
Posted by HR on April 25, 2000 at 22:38:28:
nt
Re: Technique for overcoming fear… - Posted by Cindy (OR also)
Posted by Cindy (OR also) on April 20, 2000 at 01:09:06:
Thankyou Eduardo, great advice! I’m gonna do it! Actually, it sounds like fun! I know what you mean about the presentations getting better over time. My first phone calls (to qualify a seller) were pretty shaky at first but are getting smoother. I’m sure this will happen with the offers too. I will let you know when I do my first deal!