Getting Started Again - Posted by Buck

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Posted by Ronald * Starr(in No CA) on August 16, 2002 at 12:39:12:

Again, this is a repost from July 21, 2002 off of board 2–may be helpful for those just starting out.

Buck------------------

I point you to my post for beginners. It can be found by putting “beginners
success” on the search function of this board2 of the CREONLINE.COM
website or on the main bulletinboard site.

I don’t encourage foreclosure investing, although it sounds as though the
program is a pre-foreclosures one, which would probably be less bad than
trying to buy at auction. You should definately read your state statutes on
foreclosures and possible special laws intented to protect homeowners in
default from the “Vultures” that swoop down on them.

You never said anything about your strengths, experiences, knowledge. I
think you are not looking in the right direction. You are trying to rely upon
some program to make money for you. WRONG. You have to rely upon
yourself to make money for you. And you thus need to assess your
strengths and weaknesses, especially in relationship to the activities that are
required to make money with different real estate investment programs.
Not all approaches will work well for all individuals who try them. Real
estate investing is a competitive activity. You have to be able to make the
deals using your own resources. Now, if you feel that finding the money
has held you back in the past, it makes sense to me to talk to a lot of
different loan brokers and find out what they can offer you, so that you will
be able to tell when you run across a potential purchase whether it is
something that fits the parameters of one or more of the potential lenders.

If you have not met and talked with other investors, that would be a good
way to go. You might approach them as potential employees, helping them
run their investment business. Most real estate investors are lone wolves or
work with a spouse, so most will probably say “foreget it guy.” But, so
what? You simply ask the next one. You only have to find one that says
"Ok, I’ve been thinking of expanding."

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

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Getting Started Again - Posted by Buck

Posted by Buck on August 16, 2002 at 12:36:02:

This message was originally on the Carlton Sheets (Board 2) buried in a thread that was possibly overlooked back on July 21, 2002 addressed to Ron Starr (in No CA). This “mini thread” is being reposted by Peter_MD. I think it will be both helpful and useful to those just starting out.

Ron,

Each in his own time, my friend, each in his own time.

Thank you for the response. I sort of expected a different answer. I’m not
going into what I would say as I am not interested in fueling the flames of
others on the list.

I really looked to see what it was you said so wrong and didn’t see it.
Sometimes it just doesn’t pay to be honest.

I am still trying to sort out what I am going to do.
One week ago I left my apartment, fortunately it was my last month, but if
my lease were longer, I would have been in trouble. Monday I found a
place on the internet that might offer financing.
(www.desert-mortgage-notes.com) I knew if he could produce the
financing and terms promised on the site, I would be able to go back into
the foreclosure business. I spent a couple of days putting together an outline
for what I might need and called him. He didn’t seem interested in talking to
me and refered me to this site and to Graystone Mortgage
(www.paperbiz.com). I looked into their program, but it looks like they want
you to attend a $22,000 training program in order to get financing from
them. I haven’t called them yet, but if I could get the financing without
having to pay to be accepted, I would have had something.

This site has been wonderful and very educational. I can’t remember when
I have learned so much in so little time. I have learned about flipping, lease
sandwiches and subject to’s.

My background in realestate is Carlton Sheets in 85. Great course, but I
had no one support my endeavor, lots of discouragement and a combination
of no assets and fear that something would go wrong and I’d be left with a
mortgage I couldn’t pay. I studied at two live seminars, but never quite had
the courage to commit to a mortgage that would wipe me out if it went
wrong. I got someone else’s manuals and tapes on another infomercial guru
(I cna’t locate) and tried to work that a while, but I was still wasn’t secure
with the risk involved. I got McCorkles program who promised to finance if
the property value was low enough. I actually worked McCorkles program
two different times. Once before I had a family disaster, and then again
afterwords. I worked the program for about six months, but didn’t quite
qualify for his financing and the only lead of financing near me was out of
town when I finally found a good lead I really believed I could work. I
contracted several homes, worked the numbers out, canceled the deals on
the ones I couldn’t work and sought someone who said he could finance a
deal like that. He was out of town. When he got back, he finally agreed to
see me the day before black tuesday.

I know he did nothing wrong, but I couldn’t help feeling stabbed in the back.
It’s hard to put so much time and work into something to watch it fall off
the horizon.

That was about three years ago. It seems every time I get started, I work
the program, but I find myself discouraged by a combination of swimming
upstream without support or without financing or fearful of the risk
involved.

Please don’t misunderstand my message, I am not looking for a pitty party
or sympathy, just stating from where I come. When asked what level of
investor I am, I think “Seasoned Beginner”. I have a lot of experience for
someone who hasn’t bought my own property.

Last week when I found desert mortgage, I thought for sure I could work
the financing out for the McCorkle method of finding foreclosures. (so far
his program worked best for me less the financing.) It also offered
information on how to sell it quickly and cash out.

Since I started reading on this site, and I think I have read almost every
article except mobile homes specific articles on this site, I have learned
about lease sandwiches, subject to’s and more about flipping properties,
wholesale and retail.

Someone sent me an ebook about subject to’s that opened my eyes, and I
read msibook.pdf from Peter Conti’s site. Now I am trying to pick a
direction to go. I don’t have a course specifically using these approaches,
and I don’t intend to buy one. I am home study course poor as it is. I am
sure I can put together something that will work but it probably won’t be as
good as a good course would offer.

Boy, I get all this way and don’t know what my purpose of saying all this is.

Well, I am open to suggestion. I need to figure out how to organize myself,
assemble the paperwork, forms etc and make a business plan or outline
what to do next. I think I am at the place where I can’t ask anything
because I don’t know what to ask.

Well, thank you for listening, and I’ll keep an eye out here for responses.

Thanks again, now go get 'em.

Buck

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Peter and Ed are both correct - Posted by Buck_GA

Posted by Buck_GA on August 16, 2002 at 17:14:29:

Peter and Ed are both right: I thought this simi-private thread was over.

I am past the stage of being confused and directionless, but I am still finding days that I learn something unexpectedly new.

Buck

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Re: Private conversation ? - Posted by Ed Copp

Posted by Ed Copp on August 16, 2002 at 16:59:45:

3

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Re: Getting Started Again - Posted by Peter_MD

Posted by Peter_MD on August 16, 2002 at 12:41:48:

Last message off of the original message from Board 2 dated July 21, 2002.

Buck:

I guess you thought that your post was over…think again. Just wondering
why you decided to stick this post inside with all of the ranting that was
going on. My feelings are that even though you can satisfy 99.99% of the
people, that still leaves 1 in 10,000 that’s not going to be satisfied.

Here goes. You have to pick something that you can do with a passion and
be able to complete entirely on your own. For example, you speak about
pre-foreclosures and foreclosure and the absence of money to do the deals.
In this business you need money (or the free access to money) for you to
establish credibility. When I started over seven years ago, I had some
money but not enough to plop down on one or two deals. My money would
be tied up and I would be back to square one. I got investors and I
guaranteed them a return on their investment. You bet, I gave them money
even if I had to go into my pocket to do it. Why, to establish credibility and
keeping to my word. One thing you never ever do is to go back on an
agreement (whether written or oral).

I stayed away from pre-foreclosure and foreclosures (for the same reasons
Ron Starr talks about). It takes a very confident individual who is trained
and knowledgable to do these deals. Flipping and lease options are simple in
comparison. Build up confidence, credibility, and establish your “team”
during the introductory phase of the flipping business. It is so rewarding that
you truly have to push yourself later into doing other things like rehabing or
foreclosures.

Why did I go into foreclosures? Because the economy now has easy, easy
money. Will be bubble burst? Yes. When? Don’t know, my crystal ball is in
the shop. However, I guarantee you (as we have seen before) the bubble
will eventually burst…and I want to be there already experienced and
knowledgable. Do I make a lot of money in my foreclosure part of the real
estate business? No, not now. I expect later when things change and people
get divorced, move, lose their job, pass on, etc., I’ll be there to pick up the
pieces and wheel and deal to my heart’s content.

Lastly, do I do this full time? No. I have been a CPA in private practice for
25 years. Have several businesses such as a Financial Services company,
Financial Funding company, and my Real Estate investment company. Each
one of these could render me a full time job…but remember about the
“team”? I hire trained, qualified, and knowledgable people. They know what
to do, how to do it, and when to do it. I pay them hansomely…to say the
least. Also, when I’m not too busy, I mentor two or three bird-dogs. This
gets them some money while they learn. Is it for everyone, No. I’m pretty
good at weeding out the ones that “just won’t make it”. Not too many with
pie in the sky ideas and attitudes, but you find them once in awhile.

Suggestion. If you don’t belong to a REI club, go to one for the next
meeting. Talk to people at your table and LISTEN TO THEM. It’s not
about how long they have been doing this or how many they have done or
how much they have made. Rather it’s whether they really enjoy what they
do.

It takes a special person (like all the contributors on this site) to spend time
at the keyboard clicking away with bits of wisdom to aide and assist those
who wish to learn. Your best seminar that you will ever attend is when you
get your face in front of a person that’s IN PAIN! They need to get relief
now and are despirately seeking that relief from who?..YOU. After doing
a couple of deals and realizing how you have affected someone’s life, you
kind of get that satisfaction that only a few will ever experience. Those few
are the mentors and the knowledgable instructors on this board and others
that, for no money, gladly spend their valuable time coaching and guiding
the inexperienced along the path to personal financial freedom.

Now, after this long post I’ll just keep quite. I don’t like to debate because
that is just trying to change someone else’s opinions and I think everyone
should have an opinion.

In summary, attend the club, get a coach or mentor if you can from the club
to let you go along and WATCH and LISTEN to everything. Ask questions,
and enjoy the ride. Once you have done a few with your mentor, start
getting together your “team” and start getting ready to do some deals solo.

Watch out for the good courses like the ones on this site. They are here for
a reason…they work. Each author has valuable experience that they include
in their courses.

Good luck and the best in your endeavors…