What to do? - Posted by Matt


#1

Posted by Mike (STL) on November 25, 1998 at 02:34:09:

I could have written that post. I had a similiar
experience with AMWAY. I would not trade my 3-4 years
of AMWAY experience for anything in the world. It
changed the way i think and i still get a monthly
check (not much) even though i have been inactive for 2 years.

Also,
Rich Dad Poor Dad pg 125
"Often I reccommend joining a network marketing
company, also called multi-level marketing, if they want to learn sales skills. some of these companies have excellant training programs that help people get over their fear of failure and rejection, which are the main reason people are unsuccessful"

in a multi-level marketing program, people will teach you success principals for free (because they benefit)


#2

What to do? - Posted by Matt

Posted by Matt on November 24, 1998 at 02:08:20:

I’m not quite sure where to begin… all I do know is I belive real-estate to be an alternative to traditional means of making ends meet. O.K. heres the problem… I’m just 18, a senior in high school… who would lend me money? I suppose I’m possibly a “C” credit rating at best, but probably not. Currently I have two crazy ideas. The first I can do, the second (HAHAH) yeah-right.

  1. I have heard about something called “Section 8”, that is the infamous low-income tenant housing division of HUD, in other words I would be providing housing to underachievers and continue the essence of “the Projects”. I’m not quite sure how to become a certified “Section 8” house, but it probably involves money. In a neighboring mid-west city (average home cost about 96k), I have found housing in an area better off destroyed, the avg. home in this slumland is about 15k, this home is in unsightly condition, but nothing structural is problematic. It cost about 7k, in fact I have found 3 homes, 7k, 8k and 11k. There’s nota chance I can do any creative seller-financed buying… because these people are moving from one rat-dump to another. And a mortgage for me? At so little? HAHA, so I guess that means I’m going to have to convince a lender… Oh, on top of not having graduate HIGH-SCHOOL!! I haven’t lived at the same address for more than 3 years, and I’ve just started my second job, (the first lasted 5 weeks!), my income is 6.50 / hour, and 30 hours of work a week. That’s slightly under 1k / mo, I know that on housing (a house or two) this cheap, theres no way I can miss a payment… but I’m sooo young. (22 is old… :-> I also suppose that althoug I have more than 37 hours of college credit (!!! how you ask? !!!) that doesn’t matter… I don’t even have a diploma! Not to linger on the topic.
  2. Ideally, I can avoid the guilt and shame of providing someone I’d be afraid to meet in person with sub-standard housing (by my grandpa’s 96k housing standards), and get into apt. buildings. Recently 108 units, cash flow of 50k, was sold for 700k… 700k! How in sam-hill can I even cough up 1% down-payment! So… that’s clearly out of my ball park. I’ve looked at duplexes and quad’s, but the rental-business would barely make me break free at estimated 13% and 15% interest rates (!!).

I know I have a good deal with the lean-to’s, (provided Section 8 is all it’s cracked up to be), I just can’t get the finacing for either the house or the closing cost. Ack! What do I do? Fall asleep, avoid easy (not easy, but not as hard as Wal-Mart) money, rack up 1k’s of $ in debt to Sallie-Mae while I work up a B.S. to flip burgers at McDonald’s?? Real-estate could help put me through school, and not have to worry about “tommorow” or have to work full-time to subsist in my own “lean-to”.

Oh! I suppose I could have someone co-sign, but my mom has a BK from last year, my dad’s a goner, and my grandpa (net wealth of 750k) is a supreme tight-wad (^_^), theres basically no-way he’ll sign

Well… thanks a lot to whomever may respond. I suppose I’m doomed, but scoring a 1450 on the SAT, and being #18 (out of 800) in a highly-competitive institution… I’m willing to learn whatever it takes to make it… but book-smarts =! street-smarts.

Thank you again!

Matt Gentry (^_^)


#3

Re: What to do? - Posted by ss (mi)

Posted by ss (mi) on November 25, 1998 at 11:40:17:

Matt,
I am a 26 year old investor. I have five properties and am only now beginning to diversify into other areas of RE investing. Anyway, I have a debt-financed expensive graduate degree from a top rated school. I don’t regret going to college, but I do regret not following my instincts when I was your age. I have always known that I was an entrepreneur but I listened to my “poor dad and brothers” and took the easy route. I have a good degree but I also have debt.

I agree with everyone on this board that says do your homework. Speak with other small business owners and real estate investors. Don’t expect to get rich overnight. As I said, I’m 26 and don’t expect to retire from my corporate job until I’m 36. But in the mean time I’m building my real estate education step by step. Don’t hurry, just learn. I have only been in this a few years but I think I have learned more doing this than I did in my six years of college. I don’t regret college because not only was it a great experience but now I have something to fall back on and support my business. Best of luck.


#4

Re: What to do? - Posted by Rob FL

Posted by Rob FL on November 24, 1998 at 22:30:52:

I got my flair for being an entrepreneur through being in Amway. I started in it when I was 20. I spun my wheels for 2 years with minimal success. I guess I was still immature. But the big things I learned from that experience was (1) that you will never make any real money unless you are self-employed (2) most of the income you make needs to be residual in nature, in other words it needs to be income that comes in whether you go to work that week or not (like rents, paper, royalties, etc.) and (3) you need to stuff your brain full of as much knowledge as possible about becoming successful, making money, and your business (ie real estate).

After Amway I started looking for another way and found real estate. I bought my first property (a duplex) when I was 22 years old. Now I am 29 and still slowly but steadily working the RE business.


#5

OK, kid, here’s whatcha do… - Posted by Soapymac

Posted by Soapymac on November 24, 1998 at 17:02:48:

  1. Stop taking yourself down. Funny thing about ears and eyes. They have an amazing effect on the brain. What your eyes see and your ears hear YOUR BRAIN BELIEVES TO BE TRUE. Feed your brain good things, and for gosh sakes talk positively to yourself.

  2. You know more at 18 than some of my friends who are my age (and I’m 50-something!)

  3. So, your grandfather is a tightwad, eh? Ask him to spend about $35 at Barnes and Noble or Amazon.com to buy TWO copies of the book, “Rich Dad, Poor Dad” by Robert Kiyosaki. The deal is this: he gives you one to read, and he KEEPS one to read. Then ask him to be your rich dad. He did not come by his wealth without some sweat. He may want to teach you how, but he does not KNOW HOW to teach you. If you BOTH read the book, that’s the start of learning what he knows. He can be the teacher…and you can be his student.

  4. BTW, there is an Amway distributor I know who put together an organization that distributes 50% of what Amway Corporation markets to customers…world-wide! He didn’t complete high school, either. He has seven kids, each of which has more wealth earned on their own then many of the seasoned citizens who frequent this board.

They are not educated book-wise, but they are extremely “street smart” individuals…just like you.

That’s whatcha do, kid…read “Rich Dad, Poor Dad” with Grandpa.


#6

Re: What to do? - Posted by Chris

Posted by Chris on November 24, 1998 at 14:48:49:

Matt,
Hey man, don’t worry about age. I’m only twenty and so is another visitor to this site(check out “20 year old buys 7 mobile homes” in the success stories section.) This success story is not about me but it shows that age doesn’t matter, the only thing that matter is to be professional and know what you’re talking about when doing the deals. If you can overcome the age factor , then nothing will get in your way(except maybe you’ll spend to much time at the mall with the money that you make. :slight_smile: ) Good Luck and please don’t give up. I’ve haven’t been doing this that long, but if you look at the success stories on this site you’ll see that if you stick with it, someday your success story will be on here.
Chris Rock


#7

Re: What to do? - Posted by Bud Branstetter

Posted by Bud Branstetter on November 24, 1998 at 11:38:57:

Matt,

When you use the phrase ?in other words I would be providing housing to underachievers and continue the essence of “the Projects”. ? it will make some people bristle. A stereo-type, I?m sure. True for some but not others. I have a lady that has been renting from me for 7 years and is finally going to get assisted housing. She works two jobs to make ends meet. I would have loved to sell her the house but without some money, bad credit and a lack of action she is going to rent a house for $200/mo.

To get a house accepted into the section 8 program the landlord has to go to their seminar and the house has to be inspected. The house has to be in decent shape. It gets rid of the slumlords.

Ronald Reagan said he would not take advantage of this opponent?s youth and inexperience. You will have to overcome those as well as ?the attitude?. As you learn more you will hopefully realize that borrowed money is not the only way to invest. Find one of those ?rehab deals? and flip it to an investor for some of your grandfather?s pocket change. Learn how to deal with people and do lease option without using any of your money.

Make some deals without using your money to put yourself through school and maybe you will appreciate your tight-wad grandfather’s wisdom that knew you weren?t ready yet. Finally, you are correct in that book smart does not equate to street smart.


#8

What to do?learn, earn & churn - Posted by dave

Posted by dave on November 24, 1998 at 08:35:58:

keep reading books on real estate investing. get a credit card or two and be responsible with it. save as much as you can, and remember-time is on your side.
i only wish i knew what you know at 18 when i was 18. i waited til my early 30’s till i realized real estate has tremendous potential for finacial well-being.