Definately for the time being keep that full time job. I know you didn’t mention not keeping it, but you also need to know that if you are borrowing money your income and ability to save will be scrutinized along with your credit. Sure there are ways to borrow without going through all that scrutinization, like borrowing from the seller and all those other creative ways, but it’s good to be able to borrow the traditional way too.
Whatever you do don’t turn this into another job. Jobs aren’t fun and as much as the virtues of hard work are preached, most people would rather not be working. So let this be your hobby. Hobbies are fun, they are not about other people, the results are judged by you alone, and you don’t depend on your hobbies to put food on the table. You never depend on your hobby for survival.
Make people depend on you. Never show any hint of desperation or need when dealing with anyone, sellers especially. Make sure they believe that they need you more than you need them.
You’re pretty young and will be dealing with people much older than you for the most part. Many people will try and make you feel inadequate in order to gain an advantage over you. This is the one power play you will encounter most often. Even a buyer or seller who knows nothing about real estate will act as if he knows more than you because of the years he has on you. You need to be more than a little c*cky(I can’t believe this word got censored) without being rude and insulting. Your confidence in yourself should never be a question in other peoples mind.
Haul a#* to a real estate investors club in your area and find a good mentor. You should have no problem at your age, since those with a lot of experience want nothing more than a young protege’ to brag about. This is one group of people you don’t want to be c#cky with though. Your mentor and other insiders will put you on the fast track to becoming an insider, by introducing you to the people that will help you the most. Being an insider is like being a “made man”, people will want to do things for you because of who you are associated with. Sooner or later people will take pride in being associated with you.
Who you know is always more important than what you know. Which is why I’ve not told you about learning how to flip homes, and do Lease Options, or take title subject to, or using notes etc. You need to know all of that stuff too and it abounds in articles and courses offered at this site. Being an insider in your market and having the right attitude are the biggest tricks of the trade though.
Here’s the story I’m nineteen and I would like to start dabaling in real estate, I have no money, but the little credit I do have is immaculate, I was on another board and asked what I should do, and a person replied “come to this sight and look up paper notes, that is the best place to start” out. But I alway’s get a second opinion. Where is the best place to start in real estate. I work full time and go to school full time and it is wearing me out I need some thing to take place of my job. I know this business is tough, from what I understand, but it’s got to be better that working for some one els.
P.S. I am also looking at the big picture. I would like to make this a weel tuned money machine, I want to learn all aspects of this business, any suggestions are greatly appreciated.
P.S.S. I also live in Las Vegas if that is a factor.
Thak you for your advice in advance,
Michael Hoffert.
My rich dad always told me, " don’t learn the tricks of the trade to you learn the trade". Meaning get knowledge, join a club, and start don’t proscrastinate and secondly’ DON’T LET SOME SNIOOP TELL YOU YOU CAN’T DO IT. SNIOP = succeptible to the negative influence of other people.
PS. I couldn’t resist the Rich Dad part. Read Rich Dad Poor Dad and then Cashflow Quadrant…
The best place to start is by investing in KNOWLEDGE. Buy as many different “No Money Down” type courses as you can find. Lots of cheap used ones are available if you just search for them. If you live in Las Vegas look in the weekly “Recycler” paper. If you are not familiar with it look for it in convience food and/or liquor stores. Locate the section that lsts books etc, for sale and read it every week. In a year you will find 15-20 good used courses for sale at half-price or less. Practice your negotiating skills and tell them you are a young student just geting started in life and can only offer about half of their asking price. After studying a lot of such courses you will be ready to go out and conquer the world. If you want a mentor by e-mail I’ll be happy to help you get started by answering any questions that I can. Best wishes. c
Definately for the time being keep that full time job. I know you didn’t mention not keeping it, but you also need to know that if you are borrowing money your income and ability to save will be scrutinized along with your credit. Sure there are ways to borrow without going through all that scrutinization, like borrowing from the seller and all those other creative ways, but it’s good to be able to borrow the traditional way too.
Whatever you do don’t turn this into another job. Jobs aren’t fun and as much as the virtues of hard work are preached, most people would rather not be working. So let this be your hobby. Hobbies are fun, they are not about other people, the results are judged by you alone, and you don’t depend on your hobbies to put food on the table. You never depend on your hobby for survival.
Make people depend on you. Never show any hint of desperation or need when dealing with anyone, sellers especially. Make sure they believe that they need you more than you need them.
You’re pretty young and will be dealing with people much older than you for the most part. Many people will try and make you feel inadequate in order to gain an advantage over you. This is the one power play you will encounter most often. Even a buyer or seller who knows nothing about real estate will act as if he knows more than you because of the years he has on you. You need to be more than a little c*cky(I can’t believe this word got censored) without being rude and insulting. Your confidence in yourself should never be a question in other peoples mind.
Haul a#* to a real estate investors club in your area and find a good mentor. You should have no problem at your age, since those with a lot of experience want nothing more than a young protege’ to brag about. This is one group of people you don’t want to be c#cky with though. Your mentor and other insiders will put you on the fast track to becoming an insider, by introducing you to the people that will help you the most. Being an insider is like being a “made man”, people will want to do things for you because of who you are associated with. Sooner or later people will take pride in being associated with you.
Who you know is always more important than what you know. Which is why I’ve not told you about learning how to flip homes, and do Lease Options, or take title subject to, or using notes etc. You need to know all of that stuff too and it abounds in articles and courses offered at this site. Being an insider in your market and having the right attitude are the biggest tricks of the trade though.
Read, study and most of all NETWORK. Since I am a newbie myself, I can say that networking and reading all I can has started to open up the most doors for me and teach me the most. Go to your local library and find books on investing in real estate. There are sooooo many ways you can invest so you will need to pick ONE WAY that interests you and stick with that way and learn all you cana about that strategy. If you jump around or try to learn a little about everything you will end up on the fast track to confusion and not knowing enough about any area to be any good at it. I am starting with FLIPPING HOMES. Most newbie’s start this way because you can start it with basically no money down and turn a good profit on only a couple deals a month. Well, that is my take on the subject. Hope it helps. GOOD LUCK and hang in there. Remember, Nothing worth having ever comes easy !
Re: Newbie trying to figure out the tricks of the trade. - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on August 27, 2000 at 09:15:22:
Michael,
If I was 19 again and just knew some of the things that I know now my life would be different today. Now that said let me talk a bit about leverage. My plan would involve leverage, a little management of tenants, and inflation. I think you guys in Las Vegas still have a little bit of inflation.
My idea is this, you will need to learn how to buy a house with no money down. This is quite a task in itself but it is possible to learn. Now you need to buy 1 house with no money down, and financing of 15 years or less. The 15 year part is important.
Purchase 1 houes per year (only) with no money down, and with 15 year financing. So at the end of 15 years the tenant in house will have paid the house off for you. At that time it would be reasonable to assume that the house will have doubled in value. My plan at that time would be to refinance the house, borrowing about 70% of the new value of the house. Borrowed money is not taxable, and would go right into my pocket for whatever I wanted to do with it. The tenant would repay the loan. I would be in a position to do the same thing for each house that I owned for the next 15 years. It would then be necessary to buy 1 house each year the same way, so that at age 34 you would have 15 houses all rented out.
Let me use some numbers here, lets say you buy a house today for $100,000 as explained above. In 15 years the tenant will have paid the house off for you, and it will be worth $200,000. You borrow 70% or $140,000 just for pocket money (you could probably live O.K. on that) and the tenant repays the loan. This process can repeat for the next 15 years.
So it is important that you understand that my little leverage story has no guarantee, but does have the potential of putting an annual check of $140,000 in your pocket each year starting at age 34.
My question is this, if you do not learn how to do this how old will you be in the year 2015?