Re: Real Estate Investors Cry SCAM,SCAM! - Posted by Jim FL
Posted by Jim FL on July 08, 2002 at 22:18:33:
Well, the last thing you stated in your post caught me eye.
It was when you said that REI was your “only hope”.
Frankly, that is B.S. too…(Stick with me here, this is NOT a slam.)
There are PLENTY of ways to make a living, and ways to create and build wealth, how ever you define that for yourself.
However, since you claim to feel that REI is your “only hope”, beleive it!
Get that thought into your head, and use it to DRIVE YOU!!
Knowing that you HAVE to make something happen will help you in the long run to achieve your goals.
Ask me how I know this?
After reading your entire post and the responses here, I’d like to add a few thoughts of my own.
First, what makes you think just because someone has invested in real estate for 20 years that they are someone YOU want to be like?, or that they are successful by your definition?
The old adage of “associate with those who as successful as you want to be” comes to mind.
Anyway, speaking of investors with 20 years experience and whether or not they are good advisors/mentors for you…
Let me give you an example:
I have a relative who has been investing for about 20 years.
He is a “Buy and holder”.
He buys decent houses in decent areas, at LOW prices…well below market value.
He buys about 2-3 houses per year, and only got to that level recently.
I was of course directed by the rest of our family to talk to him and get his advice in order to be "Successful."
Now I do think that he is successful, by his own definition, but he is not at a place I want to be 20 years from now.
He told me during one conversation that when he hit 20 rental units he would retire from his day job, and get something part time, along with his rental income.
Good for him, I think he is at 18 houses now.
However, for me, I am using REI as my vehicle to generate funds, and income streams so that I can pursue other things. (The old making money as you sleep routine REALLY appeals to me.)
20 houses would not even come close to giving me what I need to get to my end goal.
Did he say some things that were helpful to me?
Did I offer him my take?
Nope, I went to meet with him, under the impression that he would be advising me.
I walked away with a few tips on managing tenants, making repairs cost effectively etc. Things I could imcorporate into my business plan.
However, his buying houses for all cash, and using his own credit did not appeal to me in the least.
I don’t mind leverage, but only when my name and credit are not on the line.
One of the responses you got here told you to not offer your take at meetings like this, and that was smart.
Just attend meetings with people like this and listen to what they have to say.
There very well may be nothing for you to gain from them to help you conduct your overall business, but I’m sure there would be a tip or two exchanged that could be applied to your business model.
Also, you talked about being close to giving up on REI all together.
Think this over real hard, and if you are still unsure, then YES, QUIT!
You NEED to be fully committed to any business venture to get it off the ground and to the end goal you have set.
Half hearted attempts will remain just that.
Hence the reason that 95% of the people who buy courses and books NEVER buy one property using the techniques included in them.
Now, take a step back from the situation, in other words, lose the emotional aspect with regard to your feelings about this meeting and its attendees.
A THICK skin is something you will NEED to have in order to survive in this business, it is not for the faint of heart.
Ask yourself a few questions about these people who treated you with disrespect.
- Are they who I want to be in the future? (if the answer is yes, then listen to them.)
- Do they do the things I want to do in the future, and are they good at them?
- Do I KNOW that this creative real estate investing works? (Trust me, it does, even in YOUR area.)
- When these people told you that subject to the existing financing type deals, and Wholesaling was illegal, what was this based on? (I’m assuming ignorance, the MOST rampant disease in our nations Real Estate industry, all sides.)
See bottom line is, you presented something to these people in with a very small glimpse of how it actually works, and probably in an excited manner.
What are these “Seasoned investors” going to think?
Of course the same thing most people think…“uh oh, here is another recent course or seminar graduate seeking a million dollars within 30 days.”
I say, ignore these people, avoid them, and move on.
You seem to think, based on what you posted here that you cannot, or will not move forward unless you are surrounded with positive people, and some mentoring.
While these are good things to have, and it does make the trip a lot easier to handle, they are NOT needed.
Take a long hard look at those naysayers, and see if what they have to offer for advice will help you toward your goal?
Are they where you want to be?
Do they have a CLUE about this business?
If not, ignore them!
We get posts here all the time from people saying, “I just bought such and such course, have read this website for x number of months, and WAS about ready to dive in…then suddenly my family, friends, RE professionals and others all told me I was nuts, this stuff does not work here. What should I do?”
Same things apply there as well.
Do the naysayers have anything to offer to help you get to your goals?
Most don’t, just criticism of your plan.
Don’t you think that the people who invented some of the GREAT things we use daily for our convenience heard in the beginning that they were crazy?
Sure they did, and thank goodness they did not listen.
This is YOUR DREAM, and the ONLY person who can make it happen is you.
This is NOT a “Get rich quick” scheme, it is a business, which takes persistence, HARD WORK and education to get going and maintain.
Why on earth would you want a teacher who has not been there and done that?
Hopefully after reading all the responses here you will be able to make a final decision for yourself, armed with a little more encouragement and info.
The choice is yours.