A toolbox versus a technique - Posted by John Behle
Posted by John Behle on March 19, 2005 at 12:37:00:
There is a way to make money in any market. Up, down or sideways. It is a matter of having knowledge and tools not just some book on a technique. I think that is probably the WORST development I have seen in the field of real estate education in the last 30 years.
Wannabee investors fail right and left because they are more concerned in using the technique they have been sold as being “The best” instead of actually investing.
It’s like the Saturday Night Live skit about the “Scotch Boutique” which was a store that only sold scotch tape. A store like that fails while Sam Walton becomes a billionaire.
If the market is going up, their are stategies and tools to use to make profit. If a market is going down, their are likewise profitable strategies.
If someone does not know what their market is doing, they are NOT a well trained investor. If they don’t know what to do when it changes - they will likely fail as an investor.
What is a truly funny discussion around here sometimes is people arguing one technique over another, one course over another or one guru over another. Picture a couple mechanics arguing over whether a torque wrench is better than a flexible screwdriver.
There are different tools for different times. Different techniques for different properties and situations. Most of my best deals combine many different techniques. I might be doing a short sale on a second loan, a paper trade on the third loan, a pre-foreclosure deal on the first loan then a refinance after improving the buyer’s credit. Or whatever. I might be using conventional lenders, private lenders and seller financing all on the same deal.
A successful investor should know about seller financing, private financing, conventional financing, marketing, rehab, sales techniques, negotiations and a huge toolbox full of techniques. A successful investor is a problem solver out to make profit by doing what few others can do to with tools, techniques and ideas few people have.
The successful investor is constantly learning from many sources. Investment courses, real estate licensing courses, CCIM courses. They are wise enough to learn from many sources and spend money on MANY books or seminars from many sources rather than throwing thousands at the promises of how some “coach” will lead them to success with a 15 minute phone call a week.
The challenge is there can be a little frustrationa and confusion in learning various options, techniques and strategies. There is a time where the confusion ends and enlightenment begins. Someone that is confused or challenged by trying to entertain multiple ideas is not ready to invest anyway.
I know my answer wasn’t too closely related to your question or observations about the market. It just triggered one of my gripes.