Posted by robert on April 18, 2003 at 18:58:32:
good call. i, too asked for references. all they would tell me is the state deals were done in. my red flag came up when they told me a lady in the bay area, ca had done a deal with wells fargo bank there (my brother actually is in charge of foreclosures at wells fargo and told me no deal ever happened like that in about 7 years). any info i have ever needed, i got here. so just keep buggin ron and joe and terry and you will be successful.
Jim, Chicago, asks about Company, FCs - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on April 18, 2003 at 17:05:48:
I received this e-mail and post here for others to read and, if desire, comment. I have eliminated Jim’s last name for privacy.
–---THE E-MAIL--–
Ron, I have been going through all of the posts on CRE Online and have found your advice to be sound and obviously well thought out. I am anxious to get started in this business and understand that it will take a lot of hard work and commitment. I have done a lot of research and read some of the books on REI. I believe that my first ventures will be in Flipping Properties.
I have been in touch with a company called ?Real Estate Millions? who appear to be a division of ESBEX. See: http://www.esbexlending.net/aboutus.html
They are trying to get me to sign up for their ?Success Team? which would cost several thousand dollars. For that they have promised quite a bit of coaching through the first few deals, plus guaranteed financing through ESBEX?s lending network. The ?hook? here is that they are looking for success stories.
I am somewhat skeptical of sending them money with no guarantees that they will perform. I am willing to put the effort into this and would love to have expert advice and handholding through the first few deals. I am in the Chicagoland area and through my research so far, it looks like there are a ton of foreclosures available. The person I am talking with at Real Estate Millions is a very good sales person, but I?m still feeling somewhat edgy about sending them money, especially after reading all of the threads in the discussion forum.
Do you know or have you heard anything about these guys? If not, how could I research them to insure that they are legitimate.
Thanks in advance for your cooperation and help.
Jim Anonymous
-—--–* RESPONSE -----*
Jim Anonymous–(IL)--------------
You’re right to be skeptical. Just send me $5K and I will research them for you.
JOKE.
Ask for references name and telephone numbers of 15 or 20 people who have bought their services and are happy with them. If they don’t profide them, forget them.
If they provide the names and numbers, call every one and ask their experiences. Also, even if those people are satisfied, ask them for the names and pohone numbers of any other people that they know used the service. Then call these people. They are likely the ones who will tell you the bad parts about the company.
I do not advise beginners to do foreclosures. I commend you to my article on the topic in the money making tips part of CREONLINE.COM website.
Good InvestingRon Starr****
Re: Jim, Chicago, asks about Company, FCs - Posted by Rick Long
Posted by Rick Long on April 20, 2003 at 03:31:18:
I always tell people to skip the costly mentors and start by networking with people in your own area. Chicago has plenty of groups that are quite good.
Jim, if you want to talk to people who won’t charge you a dime, go to a Windy City Round Table meeting. Their monthly meetings are free and stress networking between attendees. Of the various groups in the Chicago area, I’ve found this to be the best one for learning from others.
The CCIA is also quite good, and at $10 a meeting it will take you, what 300 months before it costs as much as that mentor group, hehe.
Rick
Jim, Chicago, Returns - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on April 19, 2003 at 11:08:23:
I received the following via e-mail after Jim read my article in the “money ideas” forum of this CREONLINE.COM website on foreclosure investing.
--- THE E-MAIL -----*
Thanks Ron, quite a bit of eye opening information. Again I am very committed to doing this. My main goal at this time is to create cash. I have been laid off from my job (first time in my life at 57 years old) and need to do something quickly. I understand that this in not a ?get rich quick scheme?. I have a friend that is willing to invest in me and I am trying to put together a sound plan as to how to do this. The initial plan would be to create good profits and get myself stable. After that, it would be to create good cash flow and equity for the future. That being said, what area would you start in REI? It appears that the profits from foreclosure investing is what I am looking for in the near term. Is there another way to purchase properties and turn them around quickly for a profit. Hopefully for a minimum of $10,000 per property? Also, do you know if there is anywhere I can find a business plan that addresses the REI business?
Are there any members that would be willing to mentor me through the first deal or two for part of the profits? I am a quick learner and am looking for some direction here. Do you know of anyone in the Chicago area that is successful in this business? I have to believe that it is a good area for REI.
By the way, I owned a 42 unit building creating a positive cash flow of $2,500 / mo back in the late 70s. I still kick myself for selling it, but young and foolish, what can I say? Maybe it is still not too late for me to do it again.
Again thank you. Your advice has been invaluable.
----RESPONSE ------
Jim Anonymous–(IL)----------------
Many people ask the same question you do. Many people are trying to make money quickly with real estate. In general, I think real estate investing is a long-term activity and that it is one that takes a while to understand and develop an approach.
I have a post for beginners which I put up from time to time. I put it up last about 2 or 3 weeks ago. However, I do not see it. So I am providing the URL for a somewhat earlier version, from Sept 2002:
http://www.creonline.com/wwwboard/messages/22128.html
I have a couple of other posts which I feel complement and extend it–
Pick an investment strategy:
http://www.creonline.com/wwwboard/messages/47628.html
Why it might take months to get a first building:
http://www.creonline.com/wwwboard/messages/58469.html
Because there are many people who have asked the same question over the years, there are many people who have answered it. My materials in those three posts gives my best thinking on the topic. However, there are other views out there. You can search the archivesa for these topics, which people seem to feel are good ways to start: subject to, subject 2, lease option, birddogging, bird dogging, wholesaling, wholesale flip, flipping.
I think it is good that you have previous experience in owning real estate investments. However, you will find that what people are advocating in the posts that the above searches will pull up is not investing in real estate. It is doing real estate merchanising–the purchase and quick resale of a property for a profit. Very different sort of thing than real estate investing, which involves holding properties for longer period of times, either for the cash flow or for the appreciation, and getting tax benefits usually as one goes along.
Good InvestingRon Starr******
Re: Jim, Chicago, asks about Company, FCs - Posted by Jim
Posted by Jim on April 18, 2003 at 17:24:08:
Ron, thanks so much for re-enforcing my skepticism. Actually, I did ask them for references and was told that was illegal. That’s when my antennae went up. I will look for your advice on the money making tips. Thanks again for your wisdom