Getting Ready to Start Getting Ready

4 Reply

Tim Ryan

Investor / Mentor / Contractor · Arcadia, CA Buying Out of State · Member since 2015 · 655 posts · 622 votes

Ha, good and funny read Don!

0 Reply

Nathan GesnerBusiness Member

Moderator

Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

Quote from @Don Konipol:

Great stories!

I started a local investors group. Almost 20 people showed for the first one. After six meetings, it was down to me and three others and I knew they had no intention of buying anything. They were dreamers, not doers.

The DIY Landlord Book4.7247 Reviews

3 Reply

Chris SeveneyBusiness Member

Moderator

Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes

Quote from @Don Konipol:

These are actual instances of people not understanding what entrepreneurship is about

1. A good friend of mine told me he started a company to purchase and manage surgical centers. He had no capital to contribute, no particular expertise in the area, and was looking for financing. He told be that he had “already” purchased a $92,000 company car and spent $4,500 setting up a company defined benefit pension plan.

2. I received a financing request for $10 million. It was accompanied by a 35 page business plan that had been put together by a consultant that charged the entrepreneur $7,500, a glossy brochure generically talking about commercial real estate, and a resume of the principal. Virtual assistants followed up with calls to me to qualify my interest. When I mentioned we would be happy to look at financing request for individual property, the principal told me that he was “going a different route”.

3. I was contacted by an individual asking if I would be open to giving him investing advice. He told me he had started his real estate investing “journey” 6 months ago, but hadn’t purchased any property yet. I asked him in what ways was he educating himself in real estate. He told me he hadn’t. I asked what he had been doing for 6 months. He said it had take a lot of time lining up his “team” - an attorney for each of the 10 states he was going to invest in, accountant, real estate agents for each of 10 states, title companies for each state, and insurance agents. I asked him how much money he was intending to invest. He said that was dependent on how much I was willing to lend…

4. I met an “investor” back 20 years ago at the RICH Club (Realty Investment Club of Houston). He told me he had been a Rich Club member for 17 years and never missed a monthly meeting. He also told me that he had not found a property worth buying yet.

5. Back in the Middle Ages, when I was a commercial broker, there was a guy named Minh Ho who made three or four offers on properties per WEEK. However, all his offers were so outrageously low that they had absolutely no chance of being accepted, or even countered. So, he acquired the nickname “Low Ball Ho”. One day miraculously an offer of his was accepted. He immediately rescinded the offer telling us that if someone accepted an offer of his there must be something very wrong with the property.

I realized this pretty early on once I got involved in notes. I typically acted as a loan wolf, meaning I am not a big conference guy, but when I went to one of my first note conferences I was shocked. When I talked to people on their experience they were like "yep been doing this ten years, bought 3 notes (And these were not $500k loans). People would want to continue to educate but not take action. Or as you mention they were focused on the wrong things. I think too many focus on everything BUT capital thinking getting money is easy. Getting money is easy when you have money, but when you do not have money, it is not easy.

7e investments53 Reviews

Jonathan GreeneBusiness Member

Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes

[email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro

These are all awesome. If I had to boil all these down to one issue, I would say it's self-awareness. These people are all trying to be someone they are not, someone they can't be, or are too lazy to become that person.

There's a reason every new investor says they are stuck in analysis paralysis. It's because they are building "teams", spending too much time "evaluating" deals online without ever seeing one in person, trying to use other people's money with no collateral, and vetting systems that they have nothing to put into.

Zen and the Art of Real Estate Investing59 Reviews

Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

Podcast Guest on Show #222

Quote from @Chris Seveney:

Quote from @Don Konipol:

These are actual instances of people not understanding what entrepreneurship is about

1. A good friend of mine told me he started a company to purchase and manage surgical centers. He had no capital to contribute, no particular expertise in the area, and was looking for financing. He told be that he had “already” purchased a $92,000 company car and spent $4,500 setting up a company defined benefit pension plan.

2. I received a financing request for $10 million. It was accompanied by a 35 page business plan that had been put together by a consultant that charged the entrepreneur $7,500, a glossy brochure generically talking about commercial real estate, and a resume of the principal. Virtual assistants followed up with calls to me to qualify my interest. When I mentioned we would be happy to look at financing request for individual property, the principal told me that he was “going a different route”.

3. I was contacted by an individual asking if I would be open to giving him investing advice. He told me he had started his real estate investing “journey” 6 months ago, but hadn’t purchased any property yet. I asked him in what ways was he educating himself in real estate. He told me he hadn’t. I asked what he had been doing for 6 months. He said it had take a lot of time lining up his “team” - an attorney for each of the 10 states he was going to invest in, accountant, real estate agents for each of 10 states, title companies for each state, and insurance agents. I asked him how much money he was intending to invest. He said that was dependent on how much I was willing to lend…

4. I met an “investor” back 20 years ago at the RICH Club (Realty Investment Club of Houston). He told me he had been a Rich Club member for 17 years and never missed a monthly meeting. He also told me that he had not found a property worth buying yet.

5. Back in the Middle Ages, when I was a commercial broker, there was a guy named Minh Ho who made three or four offers on properties per WEEK. However, all his offers were so outrageously low that they had absolutely no chance of being accepted, or even countered. So, he acquired the nickname “Low Ball Ho”. One day miraculously an offer of his was accepted. He immediately rescinded the offer telling us that if someone accepted an offer of his there must be something very wrong with the property.

I realized this pretty early on once I got involved in notes. I typically acted as a loan wolf, meaning I am not a big conference guy, but when I went to one of my first note conferences I was shocked. When I talked to people on their experience they were like "yep been doing this ten years, bought 3 notes (And these were not $500k loans). People would want to continue to educate but not take action. Or as you mention they were focused on the wrong things. I think too many focus on everything BUT capital thinking getting money is easy. Getting money is easy when you have money, but when you do not have money, it is not easy.

to me one of the worse lines on BP is if you have really good deal the money will find you. So I agree Chris raising capital if you dont already have it saved up is not so easy.

JLH Capital Partners51 Review

Account Closed

New to Real Estate · TX · Member since 2024 · 44 posts · 26 votes

Quote from @Jonathan Greene:

These are all awesome. If I had to boil all these down to one issue, I would say it's self-awareness. These people are all trying to be someone they are not, someone they can't be, or are too lazy to become that person.

There's a reason every new investor says they are stuck in analysis paralysis. It's because they are building "teams", spending too much time "evaluating" deals online without ever seeing one in person, trying to use other people's money with no collateral, and vetting systems that they have nothing to put into.

So well-put, Jonathan. Thank you for that. I'm facing that down, myself, realizing I have to actually take action, and that's terrifying!

Jonathan GreeneBusiness Member

Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes

[email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro

Quote from @Account Closed:

Quote from @Jonathan Greene:

These are all awesome. If I had to boil all these down to one issue, I would say it's self-awareness. These people are all trying to be someone they are not, someone they can't be, or are too lazy to become that person.

There's a reason every new investor says they are stuck in analysis paralysis. It's because they are building "teams", spending too much time "evaluating" deals online without ever seeing one in person, trying to use other people's money with no collateral, and vetting systems that they have nothing to put into.

So well-put, Jonathan. Thank you for that. I'm facing that down, myself, realizing I have to actually take action, and that's terrifying!

My best advice is to know that taking action is building momentum, not buying. You don't have to buy to move forward, but you have to take the real steps to buy, like seeing properties in person, getting your finances ready, and locking in on an agent (the rest can all wait). Going to real estate investor meetups is usually the thing that springboards new investors to purchase because they get offline and realize all the people at the meetup are just like them and doing deals.

Zen and the Art of Real Estate Investing59 Reviews

Account Closed

New to Real Estate · TX · Member since 2024 · 44 posts · 26 votes

Quote from @Jonathan Greene:

Quote from @Account Closed:

Quote from @Jonathan Greene:

These are all awesome. If I had to boil all these down to one issue, I would say it's self-awareness. These people are all trying to be someone they are not, someone they can't be, or are too lazy to become that person.

There's a reason every new investor says they are stuck in analysis paralysis. It's because they are building "teams", spending too much time "evaluating" deals online without ever seeing one in person, trying to use other people's money with no collateral, and vetting systems that they have nothing to put into.

So well-put, Jonathan. Thank you for that. I'm facing that down, myself, realizing I have to actually take action, and that's terrifying!

My best advice is to know that taking action is building momentum, not buying. You don't have to buy to move forward, but you have to take the real steps to buy, like seeing properties in person, getting your finances ready, and locking in on an agent (the rest can all wait). Going to real estate investor meetups is usually the thing that springboards new investors to purchase because they get offline and realize all the people at the meetup are just like them and doing deals.

Wow, thank you so much for that encouragement! So good to know that it doesn't have to happen this second, but taking real steps counts, and that there are real people in the same boat, or at least, taking the steps like I am. I love the vision of building momentum, and when the time is right, I'll see it. And I am resolved to put myself out there, too. Thank you, again!