newbie at a crossroad, advice needed - Posted by len

Posted by James McRae on September 10, 2003 at 02:19:42:

To whom it may conern
We are Tradesman from the Plumbling, Electrical, and
HVAC Trades. We are interested in started a Real Estate
Investment Club. We have just started to fram the business plan any help in this endeavor would be greatly appreciated

newbie at a crossroad, advice needed - Posted by len

Posted by len on August 14, 2002 at 11:29:59:

Hey all
Ive been on this board for quite some time and I have to admit that my passion for real estate has been like a roller coaster. Real estate seems like a grea buisness to bein for the fact of what it can allow you, to work for yourself, make your own money, have no finincial ceiling, and purely freedom. But my problem is that as much as I study and learn at times I get distratcted with day to day stuff and next thing I know its weeks later, and I still have course to get through, tapes to listen to, and books to read. I am a motivated person and know that if I can find a niche or maybe a deal to show me exactly how this buisness works that this will be my launching pad to applying my own creative mind to real estate and to make this buisness my own.
Im at a crossroad now since Im debating getting my agents license, I think that maybe this may help me learn more about traditional real estate, and also give me a title to boost my own self esteem that I can do this. My only problem is that IM not sure Im doing it for the right reason…I might be doing it just because Im scared to actually go out and do it on my own, a path that seems hard to even know where to start. So i guess im just venting but the more I read about REI especially from an agents point of view the more i get discouraged of it. How else do people cope with just trying to get out there and starting, and whats the best first steps…thanks for listening.

Re: newbie at a crossroad, advice needed - Posted by Tim Fierro (Tacoma, WA)

Posted by Tim Fierro (Tacoma, WA) on August 15, 2002 at 18:16:09:


Clean your office and get organized.

Is everything now in reach of where it needs to be? Do you have paper, notebooks, pens, and phone all within a work area that is easy to work with? Did you clean off the desk so that you have space to spread out ‘CURRENT’ project you are on before going to the next?

Now that everything is set up, DECIDE what you want to do next. Do you want to listen to the tapes, or do you want to read that course, or did you just want to read that book covering the overall subject? Etc…

You do need to be able to go from task to task as things come in, but then you need to regroup during that slow time before taking on something new, and so that you are ready for when the next hectic time comes sweeping through.

Before you even think about getting a license, you still have a book to read, a course to go through, and some tapes to listen to; why start a new learning curve when you haven’t finished the 3 things on your plate already?

I hope the above helps with you getting distracted. It is ok to get distracted, and you want that phone to ring with business and be prepared to stop what ever is going on; but when you have nothing on the agenda, regroup and stay organized. Complete the projects you already have opened, and the distractions will become less hectic for you.

Re: newbie at a crossroad, advice needed - Posted by M

Posted by M on August 14, 2002 at 14:47:58:

One thing that is helping me as I go along is the realization that the completion of “THE FIRST DEAL” should be my main goal. This keeps things simple (once i reach this plateau, I’ll set new goals). “What do I need to do to get my first deal” should be your thinking.

Start a business plan. This may sound a little intimidating if you’ve never done one, but it’s really quite simple. Just start summarizing on paper what it is you plan to do. Once you start, you won’t stop. Every time after this, write down every to-do that comes to mind (ie order bandit signs, don’t know when exactly i need to do this right now, but i know eventually i will need to, so right it down, can organize later).

You’re goal should be to eventually have something that your grandma can read and totally understand what it is you do, why and how you’ll accomplish it (as Einstein once said, “if you can’t explain it simply, you don’t understand it well enough”).

You want your business plan to have all the necessary components, even if you don’t know things yet, put in placeholders so you at least know you need to address that issue.

Some sections of my plan are as follows:

  • Executive Summary - purpose of my biz
  • Key objectives - complete first deal by ?
  • Organizational overview - will form LLC as holding company and acquire and dispose of properties using a combo Land Trust/new LLC as beneficiary
  • Description of techniques used - quick one page summary of L/O, Sub 2, Short sale, k for Deed, etc. (incl overview, ideal scenario, forms needed, etc.)
  • Marketing plan - the most important…be as detailed as possible
  • Management - summarize strengths of self and your team (these will become selling points when discussing w/ people…even if you’re a complete newbie, if you join your local RE club and you get to know experienced pro’s there, you can count their experience as your consultants)
  • General rules of thumb (ie always get the other side to commit to price first in negotiating, ask more ?'s and listen rather than blab on, etc.)

All throughout, I list specific names and numbers of people I will call at that point. For example, I know when I get to the final stage of deal and i need my docs notarized i know the exact traveling notary i’m calling (you get these contacts at your local RE club).

Your biz plan certainly won’t start off pretty. but it will help you organize your thoughts and see what it is you still need to take care of.

Hope this helps.

Re: newbie at a crossroad, advice needed - Posted by Ronald * Starr(in no CA)

Posted by Ronald * Starr(in no CA) on August 14, 2002 at 14:35:30:


In my post for beginners (found by putting “beginners success” into the search function on either this main news board or on the Carleton Sheets board2) I suggest that it might take 6-18 months before putting out money for the first deal. I also make suggestions about the activities in which you should engage so you are ready to do real estate investing.

What do you need? What are you asking for from use? What is it you lack? There may be some people who will suggest that you continue on. I don’t know whether that is good advice for you or not. Could it be that you have to make up your mind whether this is the correct path for you or not? Understand that probably over 90% of the people who start looking at real estate thinking of becoming investors do not become investors. Maybe you are in that 90%?

So, what can we do for you?

Good Investing****Ron Starr

Oh, I can relate. - Posted by Justin (MN)

Posted by Justin (MN) on August 14, 2002 at 14:01:59:

Here it is: Goals. Have a nice day.

No, I’ll say more. I’ve been in your shoes many times. Real Estate one week, other matters the next. “Am I going to do this, or not? How can I stay focused? How do the others do it? Maybe it isn’t my thing.” Get out a sheet of paper and write down a few goals (a few long-term and a few short-term). You don’t have to date them just yet. “I want to own a 10 unit apartment building” or “I would like to have a net worth of this”. Nothing is more important than these goals. Remember to add a few personal ones in there as well. Next, get out another sheet of paper and write down what you want to accomplish for tomorrow in matters of RE or what have you. It can be a list of one or twenty things. “Look up the definitions for these words” or “learn what the exact process for foreclosure is”. Be realistic. Make sure to follow through! It would be better to put the more important “big rock” items at the top and the “pebbles” at the bottom. Makes it easier for you. Do this “to-do” list for one month. Do not skip a day. Even if you go on vacation - write down “enjoy the day by the beach” and have that be all. After the month has passed, it will become automatic for you. Take your short-term goals and break them down into little slices. What will it take for you to accomplish them? You can make a list of “Step One - Step Two” items, or however it works for you. Set a date for these little “slices” to be accomplished as well! In your situation: Listen to tape 1 by the end of this week. Read chapters 2-4 by Thursday. And so on. I can’t stress the importance of goal setting. One more thing - keep a daily journal of the things you accomplished for that day and any other information you would like to include. It keeps you moving and focused. You asked about getting a license. Anyone will tell you it has its advantages and disadvantages. The latter being disclosure to sellers you are an agent. As a Realtor, I’m glad I chose to get the license. Many things were put into place. I know the feeling you’re trying to convey though. I would encourage you to get it! Just a word of caution - prepare to spend some money. Startup costs are high. E-mail me if you want any more information on getting a license.

I hope this helps. Actually, I guarantee it will - start right now!

Re: newbie at a crossroad, advice needed - Posted by Len

Posted by Len on August 16, 2002 at 11:11:37:

thanks thats great advice- your totally right, thanks all for your feedback. Not much help from Ronald Starr this time, but youve helped me tremondusly in the past.