Posted by JT - IN on July 02, 2001 at 20:51:53:
Those brother-in-laws really take it on the nose, don’t they…
HELP! My brother-in-law is building $300K home! - Posted by Greg
Posted by Greg on July 02, 2001 at 06:53:25:
Hi Group,
This may need to go to other board, but here we go.
Yes, my dear, dear B/I/L is building a $300K home, and my motivation goes into high gear.
Some of you may know the feeling.
I’d rather be jabbed in the eye with a sharp stick.
I’m not trying to be better, just pull even.
So my plea for help is actually a question -
Can a 40-something guy with marginal credit make it as a RE investor?
I understand the up and downs of RE, but it still looks to be the way to go for long-term financial freedom.
Any suggestions?
Thanks!
Greg-I can’t let my brother-in-law out do me-Keller
Only if you think you can! - Posted by Mark-NC
Posted by Mark-NC on July 02, 2001 at 09:20:04:
Greg,
Sure you can make it in this business. Your age or credit should have no factor in making it work. What will matter is your determination and drive.
Many people get into real estate for the money. While that’s a good reason you won’t be successful if you are not totally fascinated by real estate and the art of the deal. At first you may have to live it and breath it to comprehend and understand it enough to put together your first deal. It may even take several months before you get the opportunity to put together your first one.
So Greg, here are some of the Questions you have to ask yourself to know if you will make it in this business. If you answer yes to most of them there is a good chance you may make it.
*Do I like real estate? obvious question, but very important.
*Do you like dealing with people? This is a people skills business. It doesn,t matter if you are buying or selling you are always selling. You will be dealing with people in all walks of life and professions selling yourself as well as your deals.
*Do you mind putting in long hours? This can take a lot of your time and energy at first to get off the ground.
*Do you understand the concept of Marketing and how the right marketing or lack of it can make or break your business? After your education process of the business here is where any money you may have needs to go. This is a marketing business and if you are not persistant with it, “you will fail”.
*Are you good at playing number games without getting discouraged? What I mean by this is, most of your offers will not get accepted. Instead of learning from each rejection and becoming better at it untill they do get one accepted, many people get discouraged and give up.
*Are you ready to take some Risks? There are risks and rewards involved in this business. If you are careful you can protect yourself from many of them but be aware that if you are in this business long enough there is a good chance that some how, some day, some one is going to take you to court for something. I am not trying to scare you but it does happen.
*Can you take control of situation? There are times when you may have to become thick skinned to stand your ground by making the choice of being soft hearted or Business minded.
*Are you intimidated by contracts? This is very important in this business. You will need to understand and learn the procedures and concepts of this business for your best protections and advantages.
- Are you prepared to keep studying this business? This business is a constant learning process. Much of the information will come from courses and others you talk to and a lot of it will come from real life experiance. Although this business has always had it’s basic concepts, it’s methods or ideas change constantly and you need to stay on top of it to be successful.
These are just a few things I came up with for now. I am sure many others on the board can chime in with others. You have to understand it is a big life changing decision to jump into this business. I am not trying to discourage you I am just being realistic without glamorizing the business.
The thing is if you like Real Estate like many of the people do on this board and are able to make it work the rewards are fantastic. If you surround yourself with these type of people, learn what they are doing and find out what they did to get started there is a great chance that you could become successful too.
One last thing, there is nothing greater than negotiating a deal and walking away with a substantial check. It just makes it all worthwhile.
Good Luck what ever you decide!
Mark
That 300k home… - Posted by Tim (Atlanta)
Posted by Tim (Atlanta) on July 02, 2001 at 07:59:32:
What makes you think that our B/I/L is doing better than you??? Why would you want to pull even??? Believe me, the last think I would want to do is pay the mortgage on a $300k home. Why waste that kind of money? Do you think he is closer to financial freedom by building that home, or is he farther away? Maybe you need to read Kiyosaki’s books to find the answer. That huge home is NOT an asset, but a liability. It is a weight around your neck, keeping you from reaching true financial freedom. Why not find a more reasonable home? Maybe even a fixer upper to repair and then live in. After two years, you can sell the home, keep the profit tax free, and go find another fixer. Can you see that if you do this a few times over, you can have a substantial amount of money to do deals with, or you could be living in a debt free home? Will your B-I-L be living in a debt free home within 5-10 years? I don’t think so. I would bet that he will be paying on that home for quite some time. That is if he doesn’t move up again and start that higher mortgage payment.
And of course, a 40 something guy with marginal credit can make it in RE. You are the only one that determines whether you are successful or not. Educate yourself and get out there and do some deals.
No, you have to be at least 41 ! - Posted by GL
Posted by GL on July 02, 2001 at 07:38:45:
Just kidding! I bought my first income property, a 9 unit apartment house, at age 22. I paid $65,000 and sold it 18 months later for $110,000.
If you want to read a true story of a young guy with marginal credit pulling off some big real estate deals read The Art Of The Deal by Donald Trump.
Notice how he made deals using lease options, borrowed money, etc. He still operates the same way because it works.
You should be able to find books on real estate investing at your local library. Robert Allen, Nothing Down, Creating Wealth, The Challenge, The Road To Wealth.
The last 2 are the same book with different titles. They tell how he took a group of people from the unemployment line in St. Louis and taught them to make $$$ in RE in 30 days.
Don’t underestimate the bro-in-law! - Posted by JohnG
Posted by JohnG on July 02, 2001 at 20:23:17:
Never under estimate the value of a no-good sheep-stealing loudmouth brother in law in providing unlimited motivation for doing LOTS OF DEALS !!!
Re: Nice Post, Mark. - Posted by Stacy (AZ)
Posted by Stacy (AZ) on July 02, 2001 at 11:36:14:
Amen, Brother.
Stacy
I just loved that TRUMP book! (nt) - Posted by Carey_PA
Posted by Carey_PA on July 02, 2001 at 08:11:10:
.