Re: Newbie needs direction - Posted by js-Indianapolis
Posted by js-Indianapolis on December 31, 2002 at 01:45:39:
First, let me tell you that I just started into REI 4 months ago. I too, was overwhelmed in the first few weeks, and didn’t know whether to scratch my watch, or wind my arse. The only thing you can do is just start in.
Now before everyone sends me 1000 emails about being irresponsible, I’m not talking about going out and writing up contracts tomorrow. I mean taking baby steps, and not throwing your cash, credit or good name all over town, until you know what you are doing. I know even though I was well schooled, I had no idea how things work outside of book/seminar land.
What you do is up to you, and depends largely on what area of investing you’re going to go into. First thing I did was call totally unmotivated sellers. Not to find a deal, but to get some good practice talking the talk. Called some landlords that were in town and asked if they would consider selling their rental outright. Called some FSBO sellers that were asking stupid money for their house, and asked if they would do a lease option. I figured I wouldn’t screw up any potential good deals, talking to these people. Guess what? They were the roughest calls I’ve ever made. It’s much easier when you finally graduate to actual motivated sellers.
Looking back, I don’t know why I was ever concerned about what sellers would say. Who cares? One tells you that you’re crazy, that doesn’t make you crazy. Simply thank them for their time, and call another. If someone from your unmotivated pool actually gives you a chance, go ahead and write an offer. Make it 50% of FMV. If you flub the details, and they agree, I’m sure you can work something out, and eek out a profit at 50% FMV.
One other thing, don’t worry about how high end your area is. I’m smack in the middle of the conservative Midwest, and live in the 6th most affluent county in the country. I know which “Millionaires” are getting foreclosed on, and whose “mansion” will be up for sale, like everyone else’s, every Thursday. It’s just numbers. Think of this, you don’t have $100K cash to purchase a $100K house, just the same as you don’t have $900K cash to purchase a $900K house. So what’s the hang up?