Real Estate Investor · Colorado Springs, CO · Member since 2008 · 96 posts · 4 votes
19y
My two cents, and probably worth that much...
This may sound too tough and/or cynical, but I would counsel that anyone who does NOT have the following should NOT YET get into this field:
1. At least 10% down
2. At least six months of expenses available
3. At least average credit
4. A carefully-thought-out financial plan for any considered property
I've seen too many new business owners fail and lose everything because they really weren't financially prepared and organized when they opened the doors.
Trying to jump into this without sufficient funds and without a good plan means you're dealing from a position of weakness. And very few businesses are so easy that the owner can expect to get away with that.
If you're not ready, take your time. Read books, talk to people, continue to visit this great site. Ignore gurus and get rich quick schemes. If you make a mistake because you jumped too quickly, you could wreck your credit and set yourself back ten years.
And until you're ready, save every dollar you can so that when it's time to jump, you're dealing from a position of strength, not weakness.
There are exceptions, like finding trustworthy partners or getting lucky with a deal; it can happen, keep your eyes open. Everything that you learn from your reading may help you nail a great one.
But be careful. Sometimes the best move is to not make a move at all....at least not yet.
I heard a good one from a lady at work once, she was waiting for the intrest rates to go up, because she said that would make the prices of the houses go down
Residential Real Estate Broker · Bay City, MI · Member since 2008 · 29 posts · 0 votes
19y
There are some here that say RE investing isn't for everyone and I whole heartedly agree! To be successfull you need a spirit inside of you that will allow you to objectively view a situation, make a rational decision, have a good math, business, and negotiating backgrounds, and in my opinion the two biggest attributes that are needed are the ability to make a decision (it sounds easy but it iw harder than most can possibly believe). Let me put it this way if you go to the drive thru at Taco Bell and it takes you 10 minutes to decide on what to order then you probably shouldn't be thinking about real estate investing because sometimes decisions need to be made and they can be large decisions and sometimes they need to be made quickly. The last attribute needed is the determination, people will say what ever it is that is there fear is to tell someone why they can't do it and if a person is somewhat unsure of themselves and their decisions they will sway and convince themselves that it was a bad idea to be an investor and that is a horrible thing to do to your REI career.
In my opinion there are times for everything in the market in cycles. When the market is going up hopefully you have a whole portfolio of properties to sell and make a pretty penny, when the market has hit its absolute max (as it did in many areas of the country a couple of years ago) hopefully you have sold ahead of the game and can spend some time reaping the rewards. When it is starting on the downside maybe it is time to contemplating solidifying your team ie. RE Agent, Mortgage Brokers, Banks, Construction people, and also look at other things as to determine when your market will come back, is there other areas of the country you should be investing in? Is there other types of real estate that you should be looking at? I generally consider the first part of a down turn market a contemplation phase and preperation period. When nearing the bottom of a down market I believe you should be buying everything you possibly can and then buy some more. Once the market starts trending upwards you need to find the deals on the ones that still believe the market is going further down, and startgetting ready to liquidate because everything goes in cycles.
I know that I kind of went off topic a little with this thread starting as an what was/is your excuse thread, and to summarize on that I believe that if someone still has an excuse why they shouldn't invest, I believe they shouldn't because no matter what the market conditions, their financial status, or anything else they have to have the mindset that they are going to do it and be able to succeed without it everything else is just a moot point.
By following the advice of several people on this forum, I haven't found a deal that would come CLOSE to the parameters posted by these people. Plus, of all the people I've spoken with and discussed these parameters, every one of them said I'll never purchase anything in Arizona if I continue to stick to them.
So, I'm actively on the sidelines researching, learning, etc. There are many investors in Phoenix, I can't believe all of them are losing money. I just need to find the right people to learn from.
Wholesaler · Amarillo, TX · Member since 2008 · 1k+ posts · 659 votes
19y
Mark, I used to have a lot of people tell me that I wouldn't be able to find the deals that I told them I was looking for. I had realtors, old time investors, bankers, mortgage officers, and just about anyone who knew anything about real estate tell me that you just couldn't find deals like that anymore.
Well at first when I started finding them I wondered if it might just be a fluke. Maybe I got lucky, but I kept on finding them. What I found is that it requires some specific skills to be able to consistently find them, but they are out there. I just had to learn how to look for them.
Since then I've met many investors that still don't think you can find deals like that anymore. Not only do I disagree with them, but I tell them I'll sell them one to prove it. :groovy:
Not only do I disagree with them, but I tell them I'll sell them one to prove it. :groovy:
Want to sell me one? :wink:
I'm not doubting you or anyone else on this board. I AM saying that I've never met a single person that has done it. The OP's question is a good one. However, some people haven't pulled the trigger because the target isn't in site.
I agree with Mark. We havent gotten started yet because well, we just dont know where to begin! The hubby and I have been looking around this site and asking questions for a few months now, and we still have more questions.
BiggerPockets Founder · HI · Member since 2008 · 16k+ posts · 5k+ votes
18y
Originally posted by "vsteven1130":
Biggerpo what advice can you give me and where should I begin?
You've already started . . . this site has helped thousands of people learn real estate. Set aside some time every day and get reading! The forums have infinite amounts of wisdom to help you learn what you need to become a successful investor. I'd also have a look at our article directory and blog (see left sidebar for links).
Fort Morgan, CO · Member since 2008 · 12 posts · 0 votes
18y
At first there is a lack of action because maybe you personally don't know anybody that has done what you want to do. It's kind of hard to say,"that's what I want," when everyone you know doesn't have that mindset.
To conquer:
Just start somewhere!!! Think of 1 person who can start to lead you in that direction, and take him/her out to lunch. Read these forums that are full of helpful knowledge. Get out of the comfort zone that does absolutely nothing for your character!!
Real Estate Investor · Millbrook, AL · Member since 2008 · 55 posts · 0 votes
18y
For myself I can not think of a logical reason for not investing.
Oh well maybe It's I have no money! (this is true) Wait a minute there are still ways to get into realestate without money.
You can start out by birdoging and the information you learn about your area will prove invaluable when you do find your nest egg. Meet people and learn to wholesale, birdoging taught you where and how to find the deals. In the meantime you will be starting relationships with buyers and investors that if... you prove yourself reliable may well help you in the future with your goals.
This is a people business it is both what you know and who you know.
Anthony, I would think that if you truly found a great ivestment deal and could show the value, you could find some one you know willing invest for a profit.
Real Estate Investor · Chicago, IL · Member since 2008 · 28 posts · 1 vote
18y
Well, I think I might need a mentor, or someone who's done this before to walk me throug the process. I think I might learn from the reading, but it's always good to observe and get feedback from an expert.
Investor · Bellefonte, PA · Member since 2008 · 1k+ posts · 88 votes
18y
For everyone that is saying "I can't find a good deal". If that is your excuse you will never invest in RE because you will never find a good deal. Good deals can not be found, they have to be made.
I got a phone call today because i was talking to an old high school friend and he asked what I have been up to lately so I told him I have been buying multi-unit houses and apartments and renting them out. He asked if I am still buying and I told him I am always buying. He told me he had a friend that NEEDS to sell his triplex. After I got off the phone with my friend my phone rang 5 minutes later and it was the guy selling the triplex. I took down all his information and the info he could give me over the phone and from what he told me on the phone I know that if he listed it with the MLS it would be gone instantly and probably would be scooped up by an agent. But I ran the numbers and his price is over what I would pay by 35%. I told him I would talk to my partner and would get back to him. I really don't have the time right now to buy another property but I have found that that is the best time to buy a property because if he says no I just walk off, but from what i was told unless he has an abnormally high debt service on it I should be able to get it at my price.
Real Estate Consultant · Murrieta, CA · Member since 2008 · 117 posts · 0 votes
18y
There's a saying that goes, "You can be rich, you can make excuses, but you can't do both."
While a situation may not seem perfect (and let's be realistic, there really is no "perfect" situation in life), there is always opportunity out there.
Real Estate Investor · San Francisco Bay Area, CA · Member since 2008 · 38 posts · 1 vote
18y
my biggest fear is debt... and not having money. the whole "what if it all goes wrong" thing holds me back... But whats really holding me back right now is my lack of money to invest!!
Real Estate Investor · Chicago, IL · Member since 2008 · 28 posts · 1 vote
18y
Someday I should write a list
Of all the deals that I have missed;
Bonanzas that were in my grip—
I watched them through my fingers slip;
The windfalls which I should have
Were lost because I overthought
I thought of this, I thought of that,
I could have sworn I smelled a rat,
And while I thought things over twice,
Another grabbed them at the price.
It seems I always hesitate,
Then make up my mind much too late.
A very cautious man am I
And that is why I wait to buy.
When tracks rose high on Sixth
and Third,
The price asked was, I felt absurd;
Those apartment blocks—black
Were priced a thirty bucks a-foot!
I wouldn’t even make a bid,
But others did—yes, others did!
When Tucson was cheap desert land,
I could have had a heap of sand;
When Phoenix was the place to buy,
I thought the climate was too dry;
“Invest in Dallas—that’s the spot!”
My sixth sense warned me I should not.
A very prudent man am I
And that is why I wait to buy.
How Nassau and how Suffolk grew!
North Jersey! Staten Island, too!
When others culled those
sprawling farms
And welcomed deals with open arms . . .
A corner here, ten acres there,
Compounding values year by year,
I chose to think and as I thought,
They bought the deals I should have
The golden chances I had then
Are lost and will not come again.
Today I cannot be enticed
For everything’s so overpriced.
The deals of yesteryear are dead;
The market’s soft—and so’s my head.
Last night I had a fearful dream,
I know I wakened with a scream:
Some Indians approached my bed—
For trinkets on the barrelhead
(In dollar bills worth twenty-four
And nothing less and nothing more)
They’d sell Manhattan Isle to me.
The most I’d go was twenty-three.
The redmen scowled: “Not on a bet!”
And sold to Peter Minuit.
At times a teardrop drowns my eye
For deals I had, but did not buy;
And now life’s saddest words I pen—
“IF ONLY I’D INVESTED THEN!”
—Anonymous