Why do you people help others??? - Posted by Pat

Posted by Ronald * Starr(in No CA) on September 25, 2003 at 15:22:27:

Nancy–(PA–>CA)-------------------

Yes, it will take work. However, it is not impossible. Some people will succeed, as there are a lot of rundown houses in older parts of the cities there.

I rarely respond to direct emails anymore. I am much more likely to respond to questions posted in public. And do respond usually to those with my name in the subject line.

Good Investing*Ron Starr

Why do you people help others??? - Posted by Pat

Posted by Pat on September 24, 2003 at 14:08:07:

seriously - I’m curious what gives?

hear me out, I’m new and it looks like there is alot
of successful people on this board and I want to know
what do you get out of helping people you don’t know?
Taking time away from your business?

I think it’s great - I just wondered why do some
care if people are a success or not? saving them from
mistakes, etc.

I’m not trying to stir up anything bad, I’m working at
a job that’s back biting - back stabbing, cut throat.
So this that I see here is not the norm for me.

thanks to all,
Pat

Do you really want the truth? - Posted by Scrooge McDuck

Posted by Scrooge McDuck on September 27, 2003 at 16:08:20:

People love to talk about themselves and their interests. Golfers will bore you to death about their last golf game, Star Trek fans will talk for hours about Star Trek trivia, grandmothers will show you pictures of their “cute” grandchildren. And real estate investors like to talk about real estate investing. The more “gone” they are on the subject, the more likely they are to be successful, and the more they have to talk about. The trouble is, no one is willing to listen. But on the internet you can find like minded people no matter how weird and off the wall your tastes. So we cone here to pass the time talking about our most fascinating subject.

Another reason is to show off and act like a big shot.

One more, is the desire to help others.

Those are the Big Three reasons, since you asked.

Re: Why do you people help others??? - Posted by Nancy PA

Posted by Nancy PA on September 24, 2003 at 22:14:09:

I’m a beginner and finding this website is the best thing ever happend to me. I learned so much here through other people’s posts and articles. Experienced investers always take time and answer my questions in depth. This is such a great community where people are very generous in sharing knowledge to help each other out.
My learning curve has been reduced tremendously and I am no longer wasting money on those infomercial seminars. I am learning so much more from this site.

I’ll be moving to Los Angeles, CA soon, and hoping to jump into this business full time. I feel so good knowing that if I have questions, I can get help from the comunity here, it’s like having so many montors guiding me. When I become successful one day and have more knowledge, I’ll definitly pay it back through helping other people.

Re: Why do you people help others??? - Posted by michaela-ATL

Posted by michaela-ATL on September 24, 2003 at 20:38:06:

Pat,
I’ve been on this board a little over a year and I’ve learned a tremendous amount. It makes me feel good, if there’s a question, that I can actually contribute to. Also, most of the fulltimers don’t work 40 hours per week, so it really doesn’t take a lot of time away. At least, that’s how it is for me. I have plenty of free time. I work when I want to work.
I’ve kind of worked in 2 niches (victorian renovations and flipping abandoned lots), but have learned about a lot of other things by just reading this board.

Another thing is - My normal local networking is with my competitors and there’s only so much that we tell each other. Here you’re dealing with mostly people of other markets, so you don’t have to hold back, because you’re not educating your competition.

It’s really kind of a community. After a while you get to know the names and know who knows what.

Michaela

Re: Why do you people help others??? - Posted by scottese

Posted by scottese on September 24, 2003 at 20:32:49:

I have learned a ton from this site. I don’t add much…I post sometimes, when I see someone with less exp. than me. I also don’t want to give bad advice so sometimes I keep my opinion to myself. Even though I post infrequently, I give back when I can, and It feels good to share.

Re: Why do you people help others??? - Posted by keith hutson

Posted by keith hutson on September 24, 2003 at 18:47:00:

just proves there are a bunch of good people left on this earth! If you are serious about this business you’ll find great help here and all are like family.

It’s a shame that we have to assume that there are no people willing to share information etc. These people are genuine.

Keith Hutson

` - Posted by Ronald * Starr(in No CA)

Posted by Ronald * Starr(in No CA) on September 24, 2003 at 17:18:06:

Pat----------------

It’s the real estate guru groupies. You wouldn’t believe all the sexy young women who throw themselves at me all the time.

Or, … let me think a minute… Maybe I’s me that would not believe it, because it is not true. The above is a lie.

However here are my motives:
I like to help people.
I like to show off what I know.
Some people say nice things about me.
I sometmes get to argue with people, which I find fun.
I learn a lot. I know much more than I did about real estate investing when I started hanging out here in Feb, 2001. From reading other people’s views, opinions, experiences.
I increase my own understanding by tackling the questions that people post. So I learned by reading others thoughts, but also by doing more focused thinking myself.
I feel a community of interest here. I feel a part of a group of humans who know a lot about real estate. I can read other people’s activities. Thus I feel less alone.
I can talk about real estate for many hours on end. WHere else am I going to find an audience that will tolerate this monomania?
I sometimes sell my list of recommended real estate investing books. Not a lot a money, but it is a snall profit.
I hope to help other people keep from making big mistakes.

Well, I suppose that is about enough reasons.

Good Invewsting*********Ron Starr************

Re: Why do you people help others??? - Posted by Brent_IL

Posted by Brent_IL on September 24, 2003 at 16:29:38:

I had several strokes and started posting on CREonline.com to force myself to remember things about creative real estate that I knew, but didn?t connect. The knowledge that I?ve gained by reading the posts is so much greater than anything that I have tried to give back. I estimate that I know about 30% more about CRE than I did two years ago because of CREonline.com, and I’m not exactly humble in my estimate of my previous level of knowledge.

I started investing in real estate ?creatively? before the internet was available. If I had had access to CREonline.com back then, it would have shaved 25 years off of the learning curve. I failed twice before I got it right. Once because I didn?t know what I didn?t know, and the second time because I thought I knew it all, and I got so far overextended that a slight jolt in the market send my real estate house-of-cards crashing. I continue to post because if I can tell someone something that I’ve learned that may save them from a ?seminar? experience costing hundreds of thousands of dollars, or one that takes years for them to recover from, they, and their families, might have a smoother and less tumultuous life. A life that I?m sure my family would have preferred to have.

Re: Why do you people help others??? - Posted by Randy

Posted by Randy on September 24, 2003 at 14:57:16:

To add to BobJ comment, many times we learn from each other. I think I can speak for many who post here when I say ?I read this board to learn myself?. Sometimes I can pass on one of ?Life?s Little Lessons? or to paraphrase another poster ?A $2,000 course Learned the Hard Way? but mostly it?s that I learn something new every day? watch out, it?s addictive. Read the new posts every day for 21 day?s and you?re hooked.

Re: Why do you people help others??? - Posted by Heather -Tx

Posted by Heather -Tx on September 24, 2003 at 14:46:20:

REI is all about networking. With helping others, you in essence are also helping yourself. Not to mention that it gives you that good warm feeling inside :slight_smile:
Helping out other investors that seek to do things right, but might mess up if they don’t have somewhere to turn to for answers… Makes Investing as a whole seen in a much better light. The more of us out there doing this right, instead of getting homeowners in deeper debt by not following through, and not knowing what we are doing can only be good. The ones that get into these “schemes” and get busted are enough bad publicity to sour some peoples minds into thinking one bad apple spoils the whole bunch.
Also on another side of this If there is someone new starting out, and someone experienced helps them along… who are they going to turn to when they find a good deal and need a partner. Or who will they call when they have a birddog… or a flip under contract.

Just my veiws, and I’m new myself… but I do try to help with others even newer ask me questions. I don’t want to be in a business like most others, with all the backstabbing and such. It makes for an unhappy me :slight_smile:

Re: Why do you people help others??? - Posted by BobJ (Md)

Posted by BobJ (Md) on September 24, 2003 at 14:36:00:

Some would call it the law of sowing and reaping. Others would say, “What goes around, comes around.” From a strictly business standpoint, it never hurts to be part of a community that works together to make everyone smarter. There’s so much business out there that we don’t have to worry about stealing deals from each other.

BobJ (Md)

Re: Why do you people help others??? - Posted by RichV(FL)

Posted by RichV(FL) on September 24, 2003 at 21:35:55:

Amen Keith.

I enjoy helping and learning from this board.

I feel no matter what position we are in the REI biz, newbie or full timer, we all pick up something from each other.

Thats what keeps me comming back here.

Regards,

RichV(FL)

Ron Starr- regading people making big mistakes - Posted by John V, FL

Posted by John V, FL on September 24, 2003 at 18:20:45:

>I hope to help other people keep from making big mistakes

Then you should tell Californians to be cautious before buying that little 40 yr old ranch for 650k. There is incredible risk now and the bigger the boom the bigger the bust.

I disagree about risk. - Posted by Ronald * Starr(in No CA)

Posted by Ronald * Starr(in No CA) on September 24, 2003 at 21:16:27:

JOhn V–(FL)------------

I disagree with your projection. I expect that in general property values will increase greatly over the next 20 years or so in California. The higher-priced properties may not go up as much as the lower-priced areas.

The projections are that CA will have the greatest increase of population of any state in the Union. Not surprising, since we already have the highest population and just average rate of growth could cause the largest number of new people. But, we are also projected to HAVE THE GREATEST RATE OF GROWTH of population of any state. So the demand will likely increase greatly. Think about that, the number one state for RATE of growth. Not average growth. Not above average growth, but the very top rate in the whole nation.

For a couple of decades the supply has not been built fast enough to take care of the demand and there is no prospect that it will do so in the next few years. Consequently, there will be increased shortages and prices should continue to go up. Not necessarily steadly, there might be some flattenings and declines.

There is, as far as I can determine, nobody who has a model of how high the property prices should go up or how high they should be. So nobody knows how much more the Coastal CA housing prices will go up or how to judge it. Those who said in the past–for the last 20 years at least–“The prices cannot go up much more” have been wrong. They may be right in the future. But I doubt it.

I think that there is no evidence that “… the bigger the boom the bigger the bust.” Maybe the bigger the boom, the potential for a bigger bust. But whether that bust will develop or not is not forseeable, I’d say. The higher the prices the greater the evidence for strong demand. Unless the supply starts shotting up, there is no reason to expect the property values to decline, I’d say.

And I know that it does sound crazy when you look at the prices here compared to other parts of the country.
No, if you want to make easy money in real estate, I’d suggest buying rental properties or houses in the non-Coastal parts of CA and hold on for the automatic escalater to wealth: appreciation.

Good Investing*************Ron Starr**************

Two problems with your thinking… - Posted by randyOH

Posted by randyOH on September 25, 2003 at 13:43:45:

Ron,
Your optimistic outlook for the CA market seems to be based largely on population growth. I see two problems with this theory.

  1. Population trends can change very quickly. CA could go from net inmigration to net outmigration overnight. There are some pretty compelling reasons to move out of CA and a lot of people are doing just that.

  2. I cannot back this up with any hard data, but I believe the demographic trends are not favorable. I am referring to the financial profile of the people moving in as compared to the people moving out. In simple terms, the people moving in are low income/low education, while the people moving out are high income/high education (on average, of course).

This combination of high prices and low incomes is a prescription for a train wreck. If we are lucky, prices will just flatten out.

What say you?

Regards,
Randy

Re: I disagree about risk. - Posted by John V, FL

Posted by John V, FL on September 25, 2003 at 12:49:00:

Did say the same things in 1990 too? This the first time we’ve ever come out of a serious recession without a big downturn in housing as well. Housing has been running solo the past few years, especially in your area with a decline in income levels for those that still need to work for a living. Check the vacant brand new office buildings south of San Jose off 101 in Morgan Hill that are vacant. Yet a tremendous supply of new homes in that area continues going up in this low rate environment. I’ll agree with you one one thing. If you are sure of living in the home 15-20 years and can afford a 15 year 5% fixed rate mortgage go for it. You’ll have built up a ton of equity even if prices go sideways. Guess we’ll revisit this issue in a few years to see who was right. Funny how our rolling depression doen’t comprehend with the masses looking to get rich quick in real estate or even the gurus who keep the dream alive…

Re: I disagree about risk.-- question to Ron Starr - Posted by nancy PA

Posted by nancy PA on September 24, 2003 at 22:36:14:

Ron,
I’ll be moving to Los Angeles in Nov and hoping to get involved in realestate business full time. I’m planing to look for some fixer uppers in lower middle income area, once I gain some experience, I’d like to buy foreclosures. I want to work at a title company first to learn title search. I know you teach foreclosure courses, (probably not in LA area). Do you have any good books to recommend? Will I be able to purchase the reading material of the course? does it explain title search method and foreclosure process with reference to CA?

Thank you very much!

Nancy

Re: Two problems with your thinking… - Posted by Ronald * Starr(in No CA)

Posted by Ronald * Starr(in No CA) on September 25, 2003 at 15:17:29:

Randy–(OH)---------------

I obviously do not have a crystalball. You are right, I am using population projections as a main support for my views.

It is true that in the mid 1990s there was a serious depression in real estate in CA and there was a year or two when more people moved out than moved in. The reason: terrible financial times here.

So, I suppose that could happen again. I’ve heard no projections of it happening.

I don’t know about the demographic projections. There are many people coming in from other countries. Some of them are very low income. Some are high income. Some of the low income people work extremely hard and live very frugally. The overall effect of inmigrationi seems to be good.

Good InvestingRon Starr*

Re: I disagree about risk. - Posted by Ronald * Starr(in No CA)

Posted by Ronald * Starr(in No CA) on September 25, 2003 at 15:09:11:

John V–(FL)------------------

In 1990 I was not making projections of future real estate values in CA. However, I was pretty optimistic about things here. I had acquired a couple of houses in below-below average neighborhoods in Sacramento in 1988 and they were up some in value in 1990. They continued to go up into 1993, when Sacramento went into the slump. The properties were worth about $40-45K in 1988. They dropped, but I don’t know how much. As a long-term rental holder, I just kept the properties fixed up and rented out. I just pulled some comps, as one renter is interested in buying. Seems the property may be worth about $125K now.

Yes, commercial property is hurting in San Francisco area, the Silicon Valley, and environs. But that is unrelated to housing values and demand, as your post indicates.

As I said, I am going just on the basics: supply and demand. Now, I am using population projections of other people. If they are wrong, so am I. If they are right, I may be right.

Good InvestingRon Starr***