Armed - Posted by Bailey

Posted by Shenesa on June 20, 2000 at 09:13:05:

You have the basics.

Build off of that foundation.

You will learn more as you go.

Don’t procrastinate.

Make offers.

The street is your best teacher.

You will make mistakes.

Just Do It!

Much Success!

Armed - Posted by Bailey

Posted by Bailey on June 20, 2000 at 07:29:27:

I have purchased several programs such as Carleton and Diamond the basics.My question is why is it I feel that I am still not armed enough to proceed in any real estate transactions.I just really need some words of encouragement.
Thank you

Re: Armed - Posted by Steve-Atl

Posted by Steve-Atl on June 20, 2000 at 15:43:23:

I felt the same way. Fear of a mistake was a powerful deterrent for me. Its one thing to listen to tapes but its another to do something.

The key for me is to do something every day to expand my education or experience, no matter how small. If its only calling one realtor, or calling 2 FSBO ads, or going to meet a mortgage broker, etc. its another step to doing a deal.

I agree with Eduardo on looking at houses in the beginning. You need that experience for the reasons he outlined.

After a while you will learn its better to look for motivated sellers than houses. Almost any house can be a deal if the seller is motivated.

You’ve taken the first step by beginning your REI education. Take pride in your accomplishment and do something today to reach your goals. REI does work if you are determined to make it work.

Good Luck!

Re: Armed - Posted by Eduardo (OR)

Posted by Eduardo (OR) on June 20, 2000 at 09:33:22:

Hi Bailey–

The reason you don’t feel “armed” is because you haven’t done anything yet (except look at those courses). Step two is to familiarize yourself with your market. You should go out and look at 100 houses. The only reasons you’re going to do this is to get familiar with houses, with talking to sellers and, thus, with values. This is a totally non-threatening easy thing for you to do because you make no offers (even when you think you spot a “good” deal). What you do is pose as a potential buyer, call FSBO’s on the phone, set up an appointment, go let them show you their houses, ask them questions about everything, including financing. Then tell them you’ll think about and leave. After you get out of sight, you think about each house, make notes, compare and contrast features, advantages, disadvantages, asking prices, etc. Keep track of all the houses you see in a notebook with pertinent details, asking prices and your estimate of value based on your comparing and contrasting with other houses. You ask yourself, with this house, am I getting more or less for the money than with similar houses. You write down your estimate of value after asking this question each time you view a house. After you’ve seen 100 houses, three things happen: 1. You find that you are comfortable viewing houses and talking to sellers. 2. You find that, amazingly, you now feel that you know more than most sellers (a real confidence builder). 3. You find that you now have the confidence to make an offer on a house based on your analysis of value and the sellers asking price; that is, you see the property as worth $100,000 but the seller says he’ll take $80,000. After seeing 100 houses, you are able to recognize a bargain when you see it. Throughout this whole process, analyze each sellers motivation. Ask yourself, “Do they really want (need) to sell or are they merely testing the market?” The key to this strategy (recommended by gurus) is not to cheat–you must see 100 houses before you allow yourself to make an offer. Good luck. --Eduardo