Bum from Salem, Oregon

[Christopher V.]

A bum? Really? No, but I made you look.

Thinking back, I'm pretty sure this is the first forum I've posted in...ever. I'm usually just a lurker. But! Here I am! So here's the lowdown (for all who are interested):

(Holy cow, this post got gigantic! Don't care about the long-winded history? Skip the next few paragraphs.)

The Origin Story

Once upon a time, I was a wee lad. Then I grew up. I was always a smart kid, so when I wasn't accepted into a university, I was pretty taken aback. See, the problem was my GPA--I really wasn't motivated to do my homework in high school. That said, I had to find some less-than-appealing jobs doing what I found ludicrously boring. I've always been a computer guy (finished the first two years of college programming classes in high school), but getting a computer job without a degree is pretty much impossible.

Fortunately, however, I knew a guy. I grew up with him, but we kinda lost contact. He's a businessman in the truest sense of the word, and he offered me a deal: We'd start a company, he'd market it, and I'd be one of the two original developers and co-founder. What what? Needless to say, I snatched up the opportunity. I mean, I dump lots of time into it now and it doesn't give me much return, but the future holds great things. This was my first step in planning for the future.

My next step leads me here. I heard about real estate investing a few years ago, but the whole idea of buying houses didn't click until it was explained to me how I didn't need to already be a millionaire to get started. I've since been been absorbing all I can from Google which, naturally, lead me here.  After lurking in the shadows for a while, I'm finally stepping out. Hello, all!

Now What?

And now to my goals! Still being pretty strapped for cash, the idea of wholesaling really interests me, and I've read a lot in the wholesaling category of the blog. My problem, however, is that I'm still fuzzy on the technicalities. I need to scrape together the money to start the LLC, but...how? There are, I'm sure, all kinds of legalities involved that I just don't know about. I've learned that there are, of course, all kinds of ways to fund creatively, so not having money on hand or the ability to get a traditional loan isn't a deal-breaker, but it certainly does make it harder, doesn't it?

My plan is something as follows (but is still very much open for adjustment as I learn more about the market I'm in):

• Start wholesaling to generate a solid base of capital
• Start obtaining rentals to generate a solid passive income
• Um...that's it?

I still face a few hurdles, though (A few? Ha! Surely you jest!), and money isn't the greatest of them. In the end, it really just comes down to being painfully introverted. Still working on that one, I am.

Wrapping Up

Finally!

We've labored through to the part where I ask questions now. Made it! Well, here they are:

• I've gotten the impression that my area isn't really a great market, but I don't really know how to tell. What are some indicators whether it's a good or bad market?
• Again with the LLC, how do I go about protecting myself in its birth? (Keeping in mind, of course, the whole legal spiel where you tell me you're not an attorney and aren't giving me legal advice...unless you are, in which case...um...thank you kindly!)
• I'm a young guy. I drive a Geo Metro (not the classiest of cars, I know, but it's so efficient!). I'm still working on my people skills. In my mind, I'm walking up to potential sellers and investors and they're laughing at me. Firstly, how real is this possibility? Secondly, what can I do to instill confidence in my ability in both groups of people?

Alright. I think we'll call that the end. Any advice y'all can give will be greatly appreciated. I look forward to hanging around and getting to know and work with you all.

[Taylor Shields]

@Christopher V. 

I am painfully introverted as well. And you are right, in the end it all comes down to that. 

A good question to start asking yourself is "What is the absolute worst that could happen?" Then think it out in painstaking detail. Then think, "If the worst happens, how is it going to affect me permanently on a scale of 1 to 10". 10 being something that permanently scars you for life and is impossible to recover from. Almost everything is usually a 1. Remember, whatever you are most afraid of right now is likely what you need to do the most.

If you haven't read "How to win friends and influence people" by Dale Carnegie go on amazon right now and order it.

You mentioned starting an LLC several times throughout the post. Starting an LLC is very easy and can be done by other people for you. Don't get caught up with legal issues right now because you don't have much for anyone to take from you and you don't need an LLC to do your first deal. You don't have a lot of money to take so no one is going to be suing you.

Right now you should forget about everything that isn't going to make you money in the next 60 days. If you don't you are going to get caught up in the minutiae and trivial details that suck your focus, energy, and motivation (like the legal structure of an LLC). Since you are introverted you need to deal with this aggressively, if you don't you will spend 2 weeks working on your website, and you haven't talked to one seller or made any offers. Ask me how I know. You are a web developer so it might be even worse!!!!

Also, you sound like you are good with people and self deprecation is a great way to make people like you, thats one of the reasons Ben Franklin was so good with people. The best part of it is, when you meet with a seller and talk with them on the phone you will do about 5% of the talking, the rest should be active listening and focused attention. 

I am 22, I have never had anyone laugh at me or even think I was that young. People usually think that I am 35 (trust me, I don't look 35). My hypothesis on this is that people are not expecting a young person so they subconsciously see you as being older than you are. Also, If you show competence and confidence, it doesn't really matter how old you are. 

About the market. I don't know salem at all. Portland has low inventory and is highly competitive. I would say that compared to markets around the country the northwest is very difficult. But that doesn't really matter and should not be used for an excuse unless you are seriously considering moving to an "easy market". Forget about the market...there are deals everywhere. Worry about the market when you are established. Remember, forget about the minutiae, cut the fat.

Consider making the drive up to Portland for the Rarebird Investor Network on Monday at 6:30pm. Its free for you to check out the first couple times. You need to get involved with other investors.

If I was teaching myself from where you are now the first thing I would do is prescribe this solution. Make yourself uncomfortable.

Being an introvert is not bad, I think that is it good. It makes you a better listener. You just need to know when to control it. 

Here my proposition:

Go to a mall and ask people, "Excuse me, I really like your shirt (or hat). Would you give it to me? I would be extremely grateful" (don't ask women for their shirt)

What's the worst that could happen? You get super nervous for the first 10 people  and they tell you no and give you disgusted looks, 1 person tells a security guard and he confronts you, you ask him for his shirt, he says no and asks you to stop. You go to the other side of the mall and ask more people. Now its easier and you feel more confident with it. I guarantee you will get someones shirt or jacket.

Go do this tomorrow and come to the Rarebird Investor Network on Monday to tell me how it went.

A person's success in life can usually be measured by the number of uncomfortable conversations he or she is willing to have and the quality of life is also related to the quality of your questions.

What is the absolute worst that could happen?

If the worst happens, how is it going to affect me permanently on a scale of 1 to 10?

What scares me the most?

Is this going to make me money within 60 days?

What don't I know?

The list goes on