What do you think about... - Posted by Ed Eaton

import · March 18, 2001, 9:33am

Posted by Nate on March 18, 2001 at 12:37:06:

Ed,

If you think you can’t do more than one thing at once, then you’re right, you can’t do more than one thing at once.

But I have to agree with Phil - get out there and try stuff, rather than having a blinders-on type of attitude like “I do _____. I don’t do ______, ______, or ______. Therefore, if you want to do anything except the thing that I do, go away, because you will confuse me.”

Sure, you may find a technique or techniques that work better or worse for you and focus on them AS YOU GAIN MORE EXPERIENCE and can decide, based on EXPERIENCE, what to do.

But to decide AT THE OUTSET that you will only do certain things may be cutting yourself out of a lot of good deals. Besides, how will you ever determine that you “know one strategy well enough” and it’s time to start a new one. My limited knowledge of psychology suggests that in fact it won’t happen, that you will get comfortable with one strategy and stick with it.

Like Ed Garcia always says, “Do something, even if it’s wrong.”

Good luck,
NT

import · March 18, 2001, 9:33am

What do you think about… - Posted by Ed Eaton

Posted by Ed Eaton on March 18, 2001 at 10:33:27:

My wife and I are looking to spend about half of our time investing in real estate. We’ve read at least 25 books over the past year, and have learned a lot, but I fear that we might be studying too much. I know it’s time to get started, and we are ready to, the thing is that we just don’t know where to start. I think we need to just pick one strategy and stick with it for awhile and get real good at it but we just can’t decide. Lease-options, flips, fixer uppers, foreclosers, pre-forclosers, buy and hold (rent it out) on and on and on. I know there is no cut and dry answer but does anyone have any ideas on which strategy is a good one to pursue for someone just starting out? Is any one strategy “easier” to get started with?

import · March 18, 2001, 5:22pm

First things first… - Posted by Carmen_FL

Posted by Carmen_FL on March 18, 2001 at 18:22:04:

Although it may all seem confusing at first, I think the key is this: FIND AS MANY POTENTIAL DEALS AS YOU CAN! THEN figure out what to do with each one.

So I say - Focus all your energy on generating CALLS FROM MOTIVATED SELLERS! After you get them on the line, get all the possible info from them (what their situation is, what they want, what they need, what they pay, are they behind, do they think they need cash, if so for what, etc.). After you have this info, it’s amazing how much easier it is to decide WHAT to do with the deal! Some people just want to dump a beat-up property on which they owe nothing; others are over the barrel and facing foreclosure on an over-financed house. Obviously, the answers on what to do with each are different. But they are both potential money-makers.

If you get 10 calls, and start “working” the deals in your mind, even if by the time you call back with YOUR solution they have moved on, you’ve gotten some on-the-job training - the best kind in REI. Come back here, ask questions, get answers, figure some stuff out, make offers - and eventually you will get one accepted that will stick. You’ll get faster at figuring out what to do with each call, and eventually you can put together deals “on the fly” - and that’s the fun part. Solving other people’s problems is how you get paid.

The first time someone signed their deed over to me, I almost fainted. I mean, someone actually SIGNED THEIR DEED OVER TO ME! They didn’t ask for my credit, references, nothing - they just said “where do I sign?” At the time, we did not expect that people actually did this, so we had no clue what to do with it. But let me tell you - the possibilities opened themselves up real quick. We dabble in just about everything - right now we’re doing one rehab and looking for more with a partner; a L/O; a rental; we have couple of notes out; a few PacTrusts; and are getting calls almost daily from people who want to sell their house. We tell them what we can do; if they accept, great. If they don’t - NEXT!

So don’t get into “analysis paralysis” - if you’re uncomfortable, treat the first few calls as “training” - don’t put pressure on yourself, just treat it as a mental exercise. And you might be surprised - they may accept, and you may make some money by mistake!

import · March 18, 2001, 11:54am

It’s not rocket surgery . . . - Posted by JoeKaiser

Posted by JoeKaiser on March 18, 2001 at 12:54:37:

The problem a “one trick pony” encounters is having to shoe horn every potential deal into one strategy or technique. Actually, it’s the other way around.

Identify their problem, figure out a workable plan, and then present them with your tailor-made solution to that problem drawing from ALL the tools, tips, stratagies and techniques you’ve assembled.

Problems come at you from all different directions and you need to be able to offer more than one possible solution. In reality, it’s not that difficult if you’ll just take the time to sit down and think through your options.

Joe

import · March 18, 2001, 10:08am

Re: What do you think about… - Posted by phil fernandez

Posted by phil fernandez on March 18, 2001 at 11:08:57:

Instead of worrying about which technique to use, think of yourself as a problem solver. Use whatever technique that will solve your seller’s problem. I don’t think there is one best strategy to use in real estate investing. Use them all, but apply the particular solution to the specific problem.

import · March 18, 2001, 5:46pm

That’s An Excellent Post Carmen nt. - Posted by phil fernandez

Posted by phil fernandez on March 18, 2001 at 18:46:10:

nt.

import · March 18, 2001, 12:16pm

Thanks to all…so… - Posted by Ed Eaton

Posted by Ed Eaton on March 18, 2001 at 13:16:43:

So basically what you guys are all saying is that rather than a pick a strategy to focus on before I get started, that I should just get out there and start looking at potential deals and determine at that time what I can do with it? It just seemed to me that there’s a lot of specialized knowledged involved with each different type of deal, and if I find a potential deal flip tomorrow for example it will probably be gone by the time I learn everything I need to know in order to do that type of a deal. That’s why I was thinking it would be better to focus on one strategy at first, so I could at least bone up on much of what I’ll need to know before I go looking for deals.

import · March 18, 2001, 10:45am

Thanks, but… - Posted by Ed Eaton

Posted by Ed Eaton on March 18, 2001 at 11:45:38:

Hi Phil, thanks for your reply. I tend to agree with what you’re saying, but it just seems like it would be better for us to focus on learning one strategy and learning it well. Then once we’ve mastered it, move on to another. Don’t you think? If we try to learn and do 15 different strategies at once it just doesn’t seem that it would work out too well…

import · March 18, 2001, 6:35pm

Re: Thanks to all…so… - Posted by Dave Mckee

Posted by Dave Mckee on March 18, 2001 at 19:35:05:

Ed,
FIRST, find the MOTIVATED SELLER with a property you are interested in. If you need ideas on how to structure an offer, or how to make the most of it, ask the people on this list. You’l get lots of expert opinions that way. Soon you’ll know all the tricks!

Good luck!

Dave

import · March 18, 2001, 1:57pm

Re: Thanks to all…so… - Posted by David Alexander

Posted by David Alexander on March 18, 2001 at 14:57:36:

If you focus on one strategy… you will invariably lose alot of deals.

Instead focus on solving sellers problems… looking at the numbers trying to find a solution that helps them and you make a profit.

You will naturally gravitate to one type of deal or another.

I would suggest you seperate the deals into two categories the way you might buy, and the way you might sell.

David Alexander

import · March 18, 2001, 12:03pm

Re: Thanks, but… - Posted by George

Posted by George on March 18, 2001 at 13:03:50:

I agree with Phil,

Reasons?

Each seller and situation is different. By asking questions you may know what they want. Do they want payments? A lot of cash at front? Do they want to stay on the deed? Do they have an assumable loan? Due on sale? Little equity? Can they transfer the deed? Only cash? The property is in need of a lot of repairs? Is a fast moving neighborhood? Can you make a trade? RE, cars, securities, paper? Is the property going to foreclosure? How much money do you need? Etc, etc…

The more weapons you have, the more property will be available to you…

Saying that, you may want to specialize in one or two areas, but to increase your potential, always is nice to know other methods…now…

Do not expect to learn everything now! go out and make offers, the street is the best university