Is it heredity or environment? - Posted by gk (MO)

Real Estate Investing Billboards
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Posted by Ben (NJ) on January 06, 2004 at 13:14:51:

When we were kids, they used to have a “head shop”
in our area. They would basically sell bongs, pipes, rolling paper etc. (Did they get banned?). Anyway, we used to drive the Asian proprietor insane. I would say to my friend across the store in a loud voice, "Dam, Mike this looks like a pot pipe, but it can’t be because isn’t pot ILLEGAL!? The poor guy would have a stoke, chase us all over the store “no pipe for you, no nanchukas, nothing… OUT, OUT !!”. ROTFLMAO!

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Is it heredity or environment? - Posted by gk (MO)

Posted by gk (MO) on January 06, 2004 at 07:38:01:

A quick question:
How is it that we can have one guy who recently shared on this board that they got “22 deals” last year in an area where their competitors complained because there weren’t any deals, and another person (http://www.creonline.com/wwwboard/messages/8765.html) who said that they couldn’t find a deal no matter that they had good credit and a boat load of cash? Is it the person or the area? Is it true that a skilled investor will make money no matter where you put them? (and vica versa?)

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Chuck Yeager vs. 2 Lt. - Posted by eric-fl

Posted by eric-fl on January 06, 2004 at 14:52:17:

My dad was a fighter jock, he flew F-4’s. One time I asked him, “Dad, if you put Chuck Yeager in a P-51, and a fresh inexperienced pilot in an F-16 with no missiles, who would win in combat?” He replied that it would totally depend - the advantage would still be to the F-16, but that Yeager’s experience would certainly make him a difficult adversary. He would have a chance. Ok then, what about Chuck in the F-16? Chuck wins. Newbie with missiles? Newbie 1, Chuck 0.

To now TOTALLY switch metaphors, in Norm Abrams (This Old House, New Yankee Workshop) book, he mentions that he KNOWS everyone thinks he is power-tool dependent. However, he states emphatically, that he learned on hand tools, and were he forced to forsake power, he would proceed just as confidently with hand tools as with power tools. Since it’s Norm, I’ll take his word for it.

My point to all this is, this question has been posed before, in many different arenas. Though the consensus, as you have seen below, is that the operator is more important than the environment, the undeniable truth is that the best operator, in the best environment, with the best tools, will win nearly every time, regardless of the endeavor. It would therefore, be my suggestion that, you get yourself the very best training, outfit yourself with the best tools (whatever that may entail), and pick the optimum environment. In other words, always, do whatever you can to stack the odds in your favor. Actively seek a sustainable, overwhelming competitive advantage, and then exploit it to it’s maximum potential. That’s how you get to the big time.

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Your timing was perfect - Posted by Scott (NJ)

Posted by Scott (NJ) on January 06, 2004 at 13:03:20:

This was one of the best post I’ve read in a long time. I am just one step behind Gary … have been studying for about 6 months - about to create my company - got most of my team in place (attorney, CPA, Broker).

Then I went over to the County Clerk’s office for the first time to begin to understand how the online tax roll systems work and how I can use the information. I walked into a room with about 15 other REI/RE Agents/etc. all sitting there looking up properties. I felt my heart drop.

While at the County Clerk’s office, I noticed a message on the wall that foreclosure information is now available online from mid-2003. So I got a little excited about that. I went home and looked up some info from one of John Reed’s books regarding foreclosures I got awhile back. Ugh … it kind of put a cloud over my excitement. He talks about even the pros having success rates of only one foreclosure bought per 1,000 letters sent out. Geez …

So let me ask you folks … I absolutely understand about having multiple strategies to overcome obstacles and such. But when you experienced folks are talking about purchasing 20-40 homes last year, what are you actually describing (wholesaling, rehabbing, foreclosures, probates, etc.). And which strategy seems to be best for beginners.

Btw, I was a teacher, and now am in Sales, so I like people and get along with people easily. People tend to trust me. So in that regard, any advice on how to start out to build up my confidence.

Thanks so much!!

Scott

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It’s the environment… between your ears - Posted by JT-IN

Posted by JT-IN on January 06, 2004 at 11:20:29:

It is not what the situation is before you… but how you think about the situation before you…

Attitude is paramount…

JT-IN

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Re: Is it heredity or environment? - Posted by Rob FL

Posted by Rob FL on January 06, 2004 at 11:18:44:

It’s definitely the person. Several years ago when I first started out, I found it the same way. I couldn’t find any deals, there was too much competition, etc. Now that I’ve learned better how to find deals and how to deal with people, deals are easier and easier to find. Closed 19 deals last year.

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Re: Is it heredity or environment? - Posted by Rich Hyams

Posted by Rich Hyams on January 06, 2004 at 10:00:35:

Definitely the person. Some people engender trust, some don’t. I really think that is more of a requirement than knowledge or skill. Knowledge and skill are important and can be learned and improved, I think engendering trust is more of a given. Either you have it or you don’t.

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Re: Is it heredity or environment? - Posted by Marcos

Posted by Marcos on January 06, 2004 at 09:19:13:

I think it comes down to mindset. Clair knows she can do this business. She has experience. She knows she can do it no matter what.

A newbie has too much noise running in her head. She wonders if the risk is worth it. She questions everything about the deal, and stands still while it goes right around her.

Experienced real estate investors have that mental edge. They know what it takes to put a deal together. Nerves aren’t much of an issue, they are at ease. This is what they like to do. It becomes less of a big deal.

Getting deals is so much easier than most new investors think. However, it’s hard to make them believe it. Yet all experienced investors know this.

Just my opinion,

Marcos

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Re: Is it heredity or environment? - Posted by Frank Chin

Posted by Frank Chin on January 06, 2004 at 08:53:55:

GK:

I beleive its several basic ingrediants

1- The most important is Personality. I’m an REI, and businessman, and I observed customers like to deal to people (employees, REI) who are cheerfful, knowlegeable, and easy to talk too. You’ll notice in many cases that people who can’t find deals sound defensive and angry.

2- Entrepreniurship. You’ll notice some people need a step by step guide, and/or a script before doing anything. If a situation arises that’s not in the script or guide, they’re lost. Then, there are others who goes with the flow and finds, or invents a unique solution to a problem.

3 -Book Knowledge. This is the easiest to acquire but useless without the other two.

As an example, I grew up in on a street with many retail stores. One guy who owns a laundry/ cleaners several blocks away always looked grumpy, and his business was struggling.

Several blocks the other way, same business, but a cheeful owner who spoke little English. On the coldest days in winter, he’ll say “so hot”, and on the muggiest days in summer “he’ll say: very nice day”. You always get a chuckle with him.

In fact, my dad was in the same business, and this latter cheerful man’s business was so good that he often had to send some overflow work over. The grumpy guy always comes by to complain how business s*cks, and his customers stink.

Is it the environment, where the two businesses are only 10 blocks apart??

As an REI, you got to be an entreprenurial, creative salesman, and cheerful.

Frank Chin

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Re: Is it heredity or environment? - Posted by Marcia

Posted by Marcia on January 06, 2004 at 08:46:25:

I am a definate newbie. I believe (do to my situation) that some of it can be contributed to “time”. I myself work full time as a registered nurse (therefore not able to take personal calls through the day), I am a mother with teenage children (which requires a lot of involvement with many activities), verses what I would assume a “skilled investor” probably works rei full time. I also believe that “skilled investor” have an easier time seeing the possiblities and seeing them quickly whereas a newbie has to work on thinking stuff through. I can run circles around the new nurses in the operating rooms but that is because by the time I think about something I was actually already in automatic pilot doing it. Get my point?

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Re: Is it heredity or environment? - Posted by Clair-MO

Posted by Clair-MO on January 06, 2004 at 08:08:38:

Gary, I think it is a matter of the skilled investor verses the unskilled investor! I can go to any area of the country and I will purchase several homes in matter of days because I have done it so I know it can be done. In Springfield in 2002 I purchased 35 homes in a 2 week period and Springfield has alot of competitors but I had the personality and know-how to achieve my goal of buying properties walking away from the seller’s home with a contract in my pocket. I’m not a genius or a brain surgeon in accomplishing what I set out to do…I believe very strongly in the idea if “People like you and trust you they will do business with you,” does this make sense to you?

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Cup Half Full or Half Empty… - Posted by Stew(NE)

Posted by Stew(NE) on January 06, 2004 at 17:56:01:

only you can decide. In my market about a year ago someone started putting up We Buy House Billboards. To me, that means there is a market or why would someone spend that amount of money?. To someone else it could me they have the market cornered, why bother?. You have to decide this, no one else can, but you. Good Luck.

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I’m a GUY, Marcos! - Posted by Clair-MO

Posted by Clair-MO on January 06, 2004 at 19:02:16:

My mother when she had me thought she had a little girl but she was wrong…Its a BABY-BOY! She still named me Clair…I felt like the song by Johnny Cash “The Boy Named SUE,” but in my case The Boy named CLAIR!!! It is a common mistake and I don’t feel bad when others think that I’m a woman. How many guys do you know named CLAIR?

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I think Clair (MO) is a HE…(nt) - Posted by Brad (IL)

Posted by Brad (IL) on January 06, 2004 at 13:37:03:

.

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Then again… - Posted by Ben (NJ)

Posted by Ben (NJ) on January 06, 2004 at 10:52:24:

you get a guy like the soup-nazi and people line up just to get abused! Go figure!

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Re: Is it heredity or environment? - Posted by rm

Posted by rm on January 06, 2004 at 10:07:43:

Is it the environment, where the two businesses are only 10 blocks apart??>>

Actually, it’s because one of them read the Wall Street Journal.

(You’ll only get the joke if you’ve received their letter)

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Re: Is it heredity or environment? - Posted by gk (MO)

Posted by gk (MO) on January 06, 2004 at 09:50:02:

Thanks Frank, I know exactly what you mean! We have a small business in a rural county of 25,000. Our competition (actually there are six others) is struggling but we are doing well due to pleasant customer relations and INTEGRITY. (I’d like to think we have that entreprenurial gene too!) I had just assumed that these same tools would carry over to help us enjoy success in REI.

Thanks Again!
Gary

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Re: Is it heredity or environment? - Posted by gk (MO)

Posted by gk (MO) on January 06, 2004 at 09:53:38:

Hi Marcia,
I’ve had the same thought; REI must be like driving…at first you had to think “ok, key in ignition, foot on brake, turn key…etc…” now you just get in the car and GO! The more driving you do the quicker the learning curve…same way with real estate probably.
Thanks!
Gary

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Re: Is it heredity or environment? - Posted by gk (MO)

Posted by gk (MO) on January 06, 2004 at 09:44:41:

Hi Clair, I suspected that this was true but the board has been on a rather negative note of late (maybe it’s just me?) and I was starting to second guess my decision to give this profession serious focus and effort. Over 2003 we completed Chuck Smith’s course, Steve Cooks course and Ron LeGrands Cash Flow Generator and have slated 2004 as our “hit the ground running” year. I really appreciated the posts from Frank Chin and Marcia on this thread as I’ve had the same thoughts myself from owning (or being owned by)our own business. We just completed our LLC and are now in the process of looking for HMLs and/or private funds before we hit the marketing.

Thanks again Clair - once again you have been a voice of encouragement for me!
Gary

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Re: I’m a GUY, Marcos! - Posted by Marcos

Posted by Marcos on January 07, 2004 at 12:27:42:

My bad Clair. I think I met you at the convention two years ago too. I should have known better. Can I say it was because I hadn’t had enough coffee? Anyway, sorry about that. I’m sure you would have been just as successful if you were born a girl.

M