Getting Started . . . - Posted by StarkeyB

Real Estate Investing
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Posted by Rob on May 14, 2004 at 09:42:43:

Which ever way that would for any investors in fine. If there is a better way, I am all ears.

Remember, there are style of each individual investors. Some are going to move fast, others at medium pace, others slowers, and the rest, well maybe like a snail, learning, reading, watching, researching, and maybe doing?

"Without the Motivation, & ACTION! NOTHING HAPPENS!

So get motivated (I have to pay bills, the car, for my wife, or girlfriend, get married, want to retire early, hate my job, or whatever reasons?)

And the ACTION ( Like Nike says: Just do it!!!)

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Getting Started . . . - Posted by StarkeyB

Posted by StarkeyB on May 13, 2004 at 16:11:56:

First of all, I’m new to this. My wife and I desperately want to get into investing, and we want to BEGIN this summer and as soon as possible. I have spent the last couple of years reading RichDad, Carleton Sheets, etc. But I’m having trouble knowing exactly HOW to get started as the mountain of information that is out there (in a negative sense) can be paralyzing. It is important that we not fall on our face on our first deal, as we truly have long term goals with all of this.

I went to a thing last night called Financial Power Group that was being offered here in the Midwest. Seems like a “hands-on training program” where an investor actually works with you for about 3 days showing you the ins and outs. They were also showing a bunch of techinques I knew nothing about (paper - getting in the middle of a transaction, and two other techniques) that seemed to be able to deliver cash quickly. The cost to enroll is around $3,000 and comes guaranteed as they say you’ll make it up on the first deal. My wife and I don’t have college to pay off (although we are saving for our kids - another reason we NEED to get into this), so I have no problem buying into an educational program like this. I like the idea of working (even paying for) hands on with a mentor (someone who has done this) who I could ask hard questions person to person. And then later there seems to be great follow-up. But you also worry about scams, etc - I want to make sure I’m getting into something that will BENEFIT my family if I’m going to pay $3,000.

The town I live in seems to be an absolute no-brainer for investing. And I’m ticked I haven’t pulled the trigger on anything yet. Columbia Missouri is a great college town (the University of Missouri) that hasn’t turned into Austin or Cinncinati yet but should be moving in that direction over the next two decades. Holding property here could be a good thing years from now.

We have done a ton of work (sweat equity) in the home we live in, and seeing how we have changed this house has given us confidence that we can do it again. We got in for 130K and put 25% down at the time of purchase 3 years ago. This is NOT the same home we moved into three years ago. The house next door to us just sold for $160K. We are in the process of having the exterior painted, and our plan is to reapraise as soon as the paint job is done so we can see how much money we have to work with. We are thinking (at a minimum) that the house will reapraise at $150K which should then give us a good solid chunk to work with. But I don’t want us to tie up that entire chunk in just ONE other house. We are talking to a few mortgage companies/banks and going through the paperwork so that we are approved and have the money when the right deal/vehicle shows itself. We are trying to get our ducks in a row before even looking at properties. We are serious about this, but we also want to work smart.

I know this may seem to be all over the place, but hopefully it is just a start. Any thoughts would be greatly appreciated.

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Re: Getting Started . . . - Posted by Rebecca

Posted by Rebecca on May 14, 2004 at 22:25:55:

I’m a newbie too. Your story sounds familiar to me. I ordered my first Carleton Sheets course about 8 years ago! We were living in Illinois then, and never planned to stay there longterm-so I had a good excuse for a few years not to do anything about investing. Then, we finally moved back home to Upper Michigan about six years ago. I still was reading Carleton’s course, and sort of looking at properties. I just always found an excuse not to make any offers. Here is the exciting part of my story. I am a CPA who just had my 4th baby 9 months ago, and decided this was finally the time I would stay home and do something for us instead of going back to work! I searched on the internet and found CREOnline and read all the success stories, how to articles, and money making ideas. I contacted a friend of mine who is a real estate agent, and seriously started looking at properties. We looked at an average of 5 properties every week (I was getting a feel for the market). I finally, after 6 offers in the past 3 months, had an offer accepted on a fourplex in the town I currently live. I had enough of the excuses, especially since I’ve also read most of the Rich Dad books, “Deals on Wheels”, a few by Peter and David, and a course by Bill Bronchick. I seriously had “Analysis Paralysis”. However, I also met up with a local mortgage broker a few months ago who was just starting up an investment club in my area. I think that’s what really got me motivated. She opened up some areas to me that I hadn’t really thought about before and made me realize more possibilities for financing. I’m grateful I found a small group of people to meet with who are interested in the same things I am!

Anyway, to make a long story short, I know exactly what you are feeling. I finally decided I wasn’t really going to learn anything without being out there making offers. We are going to be selling our home and moving into half of the fourplex this summer. I want the total experience of being a property manager while we look for more land to live on. I wouldn’t call our deal real creative, since we are using a HELOC for the 10% down, and then financing the remaining amount interest only at least at the beginning so we can get started with cash flow. We are thrilled to be taking our first step forward and hope to write a story in the Success Stories someday soon. My best advice to you is start looking around. I even looked at properties a few months ago just to look at them to get a feel for what the market was like. That way, I was learning without putting any pressure on myself to make offers. Just take that first step–I find that reading CREOnline is really one of the best ways to find tons of information. I’ve always wanted to post questions and stuff, but this is actually my first time posting. I’ll wait to hear about your first success story also! Happy Investing!

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Re: Getting Started . . . - Posted by B.L.Renfrow

Posted by B.L.Renfrow on May 14, 2004 at 24:01:52:

You do NOT need to spend $3000 on mentoring to begin investing in real estate. Instead, spend a few days or weeks reading EVERY article on this site and reading ALL of the boards…yes, every one of them. Total cost: free.

Then, find David Krulac’s post which contains a link to his real estate book reviews on amazon.com. Read throught that, and pick out a book or two on the topics in which you are most interested. Read them. Total cost: less than $50.

By now, you’ll know more than the vast majority of beginning investors. You hopefully at this point have a better idea now of where you want to go.

Then, spend a few hundred dollars on a course in your area of interest. Read every word.

Join your local investor’s group, if one exists. Go to the meetings, listen, make contacts and ask questions.

Start looking for motivated sellers. If you get stuck, come here and ask questions.

That’s really all you need to do. You don’t need to spend thousands of dollars on a mentor. You don’t need to refinance your personal residence. At least seventy-five percent of what you need to get started is right here on this site, if you seek it out.

Brian (NY)

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Re: Getting Started . . . - Posted by Emmett B. Whitten, Jr.

Posted by Emmett B. Whitten, Jr. on May 13, 2004 at 23:05:29:

StarkeyB,

From one Newbie to another…I just finished Peter Conti and David Finkles book “Making Big Money Investing in Foreclosures”, just started “Multiple Streams of Income” (same authors), and also have been reviewing Carlton Sheets “No Money Down”.

I was at one of those “one day conferences” where they were selling the $3,995/Special One Day Price of $2,995 Three Day REI Seminar - wasn’t for me!

I have found everything I need in the recommended books, forums and PEOPLE - Just Ask Them, i.e. other REI, real estate agents, lawyers, developers, plumbers, carpenters, landscapers, etc!

As Nike said " Just Do It".

I have been making at least 4-5 calls a night since I started (2 wks ago)to a variety of “possible deals/sources”. Made first offer today on a rehab project. It is posted in this forum. They are out there! And I don’t live in a college town!

Also I too found a local REI Club that meets every month and they embraced my wife and I with open arms, Find One and Go!

Remember, the Journey doesn’t start…till You Take the First Step!

E. B. (Jamie) Whitten, Jr.
ebwhitten@yahoo.com

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Analysis Paralasis - Posted by MikeJ-Fl

Posted by MikeJ-Fl on May 13, 2004 at 22:14:23:

Like Nike said…Just Do It.

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Re: Getting Started . . . - Posted by Stew(NE)

Posted by Stew(NE) on May 13, 2004 at 19:05:37:

Total Est. Time: 1 hour, 56 minutes to drive to this group.
http://www.mareinet.com/

Keep your 3K in your pocket and go to this Investor Group in Kansas City, next month. I went last week and the contact and people are excellent. They have a mentor program that is a lot cheaper. Ok, I am going to mess with you a bit.

“My wife and I desperately want to get into investing
(Why?)”

“I have spent the last couple of years reading RichDad, Carleton Sheets, etc”(Go lose some money)

“It is important that we not fall on our face on our first deal, as we truly have long term goals with all of this.” (It is Ok to lose short term, if you don’t keep it up for the long term)

“and comes guaranteed as they say you’ll make it up on the first deal.” (Do you believe this? Since you read Rich Dad, Poor Dad, the only guarantee is that there are no guarantees)

We are trying to get our ducks in a row before even looking at properties. (Why)

Good Luck, You can DO this (Emphasis on DO)

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Re: Getting Started . . . - Posted by reistheway

Posted by reistheway on May 13, 2004 at 17:04:12:

what is so great about Cinncinati

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Re: Getting Started . . . - Posted by jeff

Posted by jeff on May 14, 2004 at 07:06:56:

Why waste 3K on a course. Use your home equity with a line of credit. Purchase your rentals with a down payment. 0 down is cool, but cash flow and risk is reduced by putting a down payment. Plus there will be more properties available to you if you do not need seller financing. HELC can be interest only for 5 years that will give you good cash flow to get on your feet. Why have 3 properties with high leverage and little cash flow when you can have just 1. Say you can purchase 3 rentals off your HELC with 10-20% down (that gives you a low interest rate), then next year you get a HELC on one of the rentals and purchase 2 more, in 4 or 5 years you have 10+ properties. Find properties 5-20% below market that way when you pull your equity out you have something to work with. There is no need to be creative if you can use home equity to purchase, keep it simple. If your plan is to do rehabs then still use the HELC purchase the property with a down payment, and get interest only loans, fix it and sell it quick. Remember with rehabs you pay capitol gains tax, if you rehab, then refinance to pull your cash out and rent the property, you pay no taxes. You have equity in the property, cash flow, and you still own the property for future appreciation. I know this style is not creative, nor would a guru get 3K to tell people this, but investing is hard work, there is no need to make it harder than it already is. Best of luck.
jeff

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Re: Analysis Paralasis - Posted by gloria chavez

Posted by gloria chavez on March 18, 2005 at 24:22:54:

question: if you have been diagnosed as being paralized from the waist down, would you feel your feet getting cold or hot?

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Re: Analysis Paralasis - Posted by gloria chavez

Posted by gloria chavez on March 18, 2005 at 24:20:59:

question: if you have been diagnosed as being paralized from the waist down, would you feel your feet getting cold or hot?