Lets beat this dead horse....

[Chris Hopper]

The new year has arrived, so let's discuss one of the dead horse topic I see here time & time & time & time again - 

I'M DOING MY RESEARCH AND HOPE TO PURCHASE SOMETHING WITHIN THE NEXT YEAR (OR TWO, OR 6 MOS, ETC).

For those newbies who are just getting started, great!  Glad you're getting interested.  What is it exactly that you are looking at, researching, team building, getting your ducks in a row, etc.  What is holding you back from buying something right now?  I've seen folks be presented with 100% true deals and pass on them.  Yet they turn around and make a post here or on FB asking for deals?  One of the contractors I use has been asking for deals for over 2 years now and still hasn't bought anything.  I've presented him with absolute deals just to get him started - even offering to partner just for the security factor for him (buy the way, I've bought every deal I sent him).  

So I'm wondering rather than spending so much time putting all the other stuff mentioned above into play, why not focus on what's truly holding you back?  I believe one of the biggest (probably THE biggest) factors is people are just scared.  And that's ok, and is the point I'm trying to get to.  So why not just mention that and partner up on the first (or few) deals until you get comfortable, until you find good contractors, until you know how to refi out a rental?  You can spend countless hours watching podcasts, reading books, going to events, etc and spend 6 mos "learning" before buying your first deal ------ only to realize you're still going to make all the mistakes!  You might overpay because you don't know the market or submarket, got screwed by a contractor, didn't estimate repairs correctly, unexpected delays or repairs you weren't aware of, and a number of other issues that can and WILL pop up.  Now, not to say any of these can't happen with an experienced partner, but the risk will definitely be minimized a great deal.

So rather than waiting 6 mos to buy 1 deal yourself, wouldn't it make more sense to partner up with someone RIGHT NOW and start learning hands on?  1/2 of something is better than 100% of nothing.  6 mos from now you could have 1-3 deals under your belt and now ready to run 100% on your own.

If you can do basic math, you're ready to go - I can buy it for "x" amount and sell it for "y" amount with "z" amount of repairs....Is there a profit there that I'm happy?  If so, it's a deal!  Everything in between (including the "z" number) isn't something you can read or study your way into.  You need the real world experience to be successful.  Don't let your ego or greed stop you from partnering with experience.  

Now, don't just jump into a partnership with anyone!  Ask for proof.  Have them show you stuff they've bought, any rehabs in process or houses on the market, etc.  There's plenty of guys with good names out there who can help.  If they can't show you proof of experience, move on quickly.

Happy new year everyone and good luck in your journey.....just don't take forever getting started, that drives me crazy!  Buy something now.