Posted by Sue on February 09, 2001 at 08:56:59:
HR,
Thanks for your response. Also, thanks for the reading tips. Do you know anything about Hicks’ “International Wealth Success” newsletter that he promotes in his book? He indicates that it’s a source of potential financing, etc. Just more hype?
Again, thanks and any input would be greatly appreciated.
Sue
Yes, it works - Posted by Dan
Posted by Dan on January 31, 2001 at 01:03:00:
First, let me say that this is a great site. The support and encouragement that everyone is giving is wonderful.
I’m a newcomer to the site, but let me answer a few of the doubters with my story.
I bought the Sheets course, and then did nothing with it for about two years. One day, I got it out, and really focused on learning it. It’s fairly simple to understand, so it didn’t take too long.
One Sunday, I decide “what the heck, I’m going to start calling on some ads in the paper.” The first one I call is a FSBO five-plex. He wants 10% down and wants to sell for $195,000. I talk with him, meet with him, get comps on the area, and offer him zero down and $185,000 at 9.5% interest. He takes it.
I’ve had it for two years, and I’ve made some mistakes with renters that I have learned from, but pretty much every month I am clearing about $500 after expenses. Its a start.
Even if it were break even, I would still have a property that I own when I retire that will net me $2200 or so per month, or I’ll just sell it and take the profit that my renters were so nice to give me in the form of their monthly rent.
The biggest obstacle is procrastination. If you can beat that, you’re on your way.
Re: Yes, it works - Posted by JeffN-MI.
Posted by JeffN-MI. on January 31, 2001 at 13:23:27:
Hi Dan -
Congrats on your success!! How did you structure the deal (pay the $185,000.00??) Thanks -
Jeff
Re: Yes, it works - Posted by evelyn
Posted by evelyn on January 31, 2001 at 08:39:29:
okay, dan. I too have bought a course (LEGRAND) and have been sitting on it almost a year. Just reading this site a lot…I really should be making some calls. thanks for the post. Time for me to get started.
evelyn
“BRAVO!” - Posted by Jim CA
Posted by Jim CA on January 31, 2001 at 03:01:40:
“BRAVO!”
Dan, you have done what most people who buy these courses fail to do. “Move to that FIRST deal.” Once they do, then the realization that “…it really works” sets in and they move to the second and third…
That’s great! Here’s to your sucess!!! 
structure of the deal - Posted by Dan
Posted by Dan on February 01, 2001 at 01:38:45:
Jeff, it is structured as a regular 30-year mortgage, payoff in 10 years. It is a 100% owner finance.
Re: “BRAVO!” - Posted by Tammy Thomas
Posted by Tammy Thomas on January 31, 2001 at 08:41:52:
I was wondering if this is something that is for me. I am 24 and I have a 4 year old daughter. I am not the type of perosn that likes to take risk. I need to know that this is a sure thing if I apply myself. I have always been intersted in real estate and the income it can bring to you. Please advise me on my next move and do I really need to by the program from TV or is this something I can be told how to do and just do it?
Here is how to avoid RISK… - Posted by HR
Posted by HR on February 01, 2001 at 09:13:53:
Tammy,
I HATE RISK!!! So, I don’t blame you that you don’t like it either. Who wants to put their family, their future, their credit, their savings, their mental and physical health in jeopardy over something? I sure don’t, and I’m glad you don’t either. I want to take low-risk steps: steps that will ensure my families health and wellbeing in the future with reasonable certainty. If you want that low-risk kind of stuff, here’s what you need to avoid:
Let’s analyze this rationally, Tammy. You and I live in the richest nation on earth and the richest civilization ever in the history of humanity. (Wow). Tammy, over 95% of the folks that retire won’t be able to support themselves like they are accustomed to, and many will have an economically downsized golden years. Know what that means?
It means that the 9-5 work grind of job, savings, consumerism IS NOT GEARED TOWARD FINANCIAL FREEDOM! Analyze the numbers. Our whole work life is geared toward consumerism and financial bondage. Meditate on this for awhile. Look at all your neighbors, your friends, you daughter…95% of them will end up in the hole at the end of their life. And that includes you.
So, want high risk? Do nothing. Nothing could be more high risk, and more certain, to lead to financial struggle, physical and emotional stress, hardship, and hassle than doing nothing. Antidote: Don’t stay on the same path. Learn to invest so your investments can eventually take care of you. RE is the BEST investment vehicle around.
High Risk Stance #2) Start a business you don’t understand. It never ceases to slay me how many people here get into rei and don’t know the basics about contracts, re law, landlording, etc. Want big risk? Take on a money area like rei and have a beginner’s level education. Ohhhhhhhh-weeeeeeee! Are they headed for an expensive, emotional lesson from the school of hard knocks!
Antidote: become at least an intermediate level investor before you jump in. How? 1) Join your local real estate investing group (reia; chech national’s website for a local directory near you: www.nareia.com). 2) Read everything here and post questions; 3) Read everything at your library; while some of it is dated, the concepts are timeless and that’s what you need to know. 4) Buy Investing in RE by Eldred and McLean, 2nd Edition (about $20) and Creating Wealth and Multiple Streams of Income by Bob Allen. They are the best primers available. 5) Visit your local bookstore and browse frequently if you don’t have much cash (I think, so far, you have only spent about $100 if you do all this, and, if you do it, your knowledge level will definately be enuf to start). Finally, start with one area of rei and consider buying a course so you can master that niche. All the courses available here are excellent and reliable.
High Risk Activity #3: Succomb to paralysis of Analysis. Know what that is? It’s the fear of making mistakes. What if my numbers are wrong? What if I projected rents too high? What if it costs more to renovate? yada yada yada. If you have joined your club, read those books, focused on a niche, and have some other, more experienced folks to bounce this off of, they will help you avoid deadly mistakes.
Make no mistakes about it, Tammy: you will make mistakes. It’s how you learn. No course, mentor, or reia member will tell you everything you need to know. As Ed Garcia correctly says, the street is the best mentor. So hit the street. Just hit it with a reasonable level of preparedness and not reckless abandon (High risk action #2 above).
Fear alone can’t motivate us, though. Read the success pages to see what others have done. Remember, Tammy: few of us are geniuses. If we can do it, you can do it.
Tammy, this month I bought 4 houses no-money down. When I finish rehabbing them, rent 'em, and refi 'em, I will have a positive net cash flow (after all expenses) of over $3000/month. Could you use an extra 3k a month?
I know folks in my local reia group that have just started and make an extra 5k on their first flip deal. Could you use an extra $5000? I’ve made $15,000 once on a flip where I didn’t even lift a hammer. Could you use an extra $15,000? Then 1) Take the Right Action in a Business (re) that you are committed to and are learning to master.
The choice is yours, Tammy. I, too, have a daugther. She will be three next month. I know for a fact this little girl will inherit millions when we die and pass on our estate to her. How’s that for a legacy? Want to give it to your daughter? Anyone in America can do this… if you learn how and persist, persist, persist.
Your accomplishments will eventually speak just how bad you wanted it.
Wishing you unrelenting desire to succeed,
HR
THE BOOKS YOU SAY TO READ are THESE IT - Posted by BRYAN
Posted by BRYAN on February 24, 2001 at 24:22:14:
ARE THES THE BOOKS YOU SAY TO READ
Multiple Streams of Income: How to Generate a Lifetime of Unlimited Wealth
In Stock:Robert G. Allen,Robert Allen / Hardcover / Wiley, John & Sons, Incorporated / March 2000
AND
Investing in Real Estate
Available: Andrew James McLean,Gary Eldred / Paperback / Wiley, John & Sons, Incorporated / April 2000
Re: Here is how to avoid RISK… - Posted by Sue
Posted by Sue on February 07, 2001 at 10:47:54:
HR,
WOW!!! What a great post. I just started lurking here and found your post just what I needed. I even printed it out to give me the kick in the pants I’m sure I’ll need again one of these days!
I bought the CS program 3 months ago and have been listening to the CD’s. I have also just finished reading “Making a Fortune Quickly in Fix-Up Properties” by Andrew James McLean and “How to Make Millions in Real Estate in 3 Years Starting with No Cash” by Tyler G. Hicks. I’m at that taking in as much info as possible so that I’m as intelligent about this as I can be to make my 1st offer. I have also set goals, both short and long, for myself. My goal is tax day for at least making my first offer if not having it in place.
I am a low risk taker but I have recognized for a long time that no one is going to hand me anything. No one is going to get me out of debt and no one is going to invest in my future so that I can retire someday. Heck, how many can really afford to retire these days? I see Senior Citizens everywhere working because they simply can’t afford to sit on their porch and relax after decades of putting in their time. NOT ME! I’m not going to be doing that. Maybe I’ll be doing REI into my later years but by choice.
Thanks again HR for charging me up!!!
Sue
Re: Here is how to avoid RISK… - Posted by Randy Joiner
Posted by Randy Joiner on February 01, 2001 at 17:07:10:
Great posting HR…go get’em Tammy!
Re: Here is how to avoid RISK… - Posted by HR
Posted by HR on February 09, 2001 at 05:08:58:
Sue,
I agree with your analysis completely. Congrats on recognizing the limits of your situation and doing something about it.
Let’s upgrade your reading. CS is ok; Hicks is terrible (in my opinion. Although he is great at promoting himself, isn’t he?) Read these books: they have better info with less hype:
the 5 magic paths to making a fortune in real estate by Lumley ($15)
creating wealth and multiple streams of income by Robert Allen.
investing in real estate, 2nd edition, by McLean and Eldred.
also, if you are looking into rehabs, pick up Kevin Myers book, buy it, fix it, sell it, profit.
Follow the steps I outlined, and you will have low risk investing. It’s the only kind for me.
Good luck,
HR