Beginning in Real Estate Investing
Like most of us who begin to turn our interest of real estate investing into a real life strategy, we all must first do the proper due diligence of first figuring out what we can do and under what circumstances. It doesn't matter what type of idea you may have as far as how you will do your first deal or what form of creative investing you will learn (subject to, lease options, wholesale, etc). As a beginner the most important thing that we all must do is first create our "P.O.P" Plan On Paper.
I will admit that I to am a beginner when it comes to investing in real estate. However, I am not a beginner when it comes to putting proper plans into effect. I’m sure that investors that are truly successful will tell you that no matter who’s manual, book or course you buy that none of them will prove to be successful without proper planning. In fact I'm sure that most of them will rather that you do not purchase their materials unless you intend to plan properly because of the bad reviews they would receive due mostly to your or our poor planning. Poor planning brings about poor results, missed opportunities, and worst of all, MISGUIDED FINANCIAL DECISION MAKING.
MAKE PROPER PLANNING YOUR VERY FIRST STEP!! I am willing to bet that all of you that plan properly will be those of you that succeed the most with real estate investing. There is no question that with all of the available at-your-finger-tips information that is available to us in regard to “HOW TO” invest, that applied with proper planning can and will make all the profitable difference in the world. Lastly, it is often the neglect to complete the simplest steps, (Proper Planning), that cause the largest mistakes. However, when we pay the closes attention to the smallest things we often realize the riches of rewards. To all of us I say lets put more emphasis on planning properly in order to reap rewards regularly.
I HAVE BEEN KNOCKED ON MY BUTT ENOUGH TIMES TO KNOW THAT WHEN YOU DO GET KNOCKED ON YOUR BUTT ROLL YOUR LEGS OVER YOUR HEAD SO YOU CAN STAND UP STRAIGHT AGAIN. IF YOU DON’T ALL YOU WILL DO IS LAY THERE.
"EVERY GOOD PERSON I KNOW HAS BEEN THROUGH SOMETHING" CC
What would you say "proper" planing is? As in what kinda steps could the begining investor take to plan properly for all of their deals?
I love planning, some of the most interesting times of my service career where spent planning missions. Diversons. Electronic inserts. Air Order Of Battle. Oh I was really good at that, king of the war room, Chief Controller Eighth Air Force.
Of course flying the missions where people were shooting at me was another matter. Most of my flight time was spent with very wet pants and an enormously high pulse rate.
But as time went on and the years past and I was at last old enough to drink legaly I learned how to handle all the planning and all the airborne combat. . very simple
I Jes Dun Did It.
So is it in Real Estate.
Example:
I am running on a PreForeclosure, I approach the front door and I ring the bell. Two nice mediam length rings. And, my mind goes completely blank. I am standing there a total dummy I have forgotten everything, the name of the owner the lender the amounts oh my god everything. A total blank.
The door opens and there stands a Lady, "Good afternoon." I say, at least I got that right. "Ah I am sorry, but my mind just went totaly blank." She stands there looking at me oh what a dummy. "Well," she says, "My name is Mrs. Sanders like in chicken, is that any help to you?" The lights go on everything comes flooding back, I remember. "Please forgive me, yes of course. The Morris Plan has bought your Note and Trust Deed from Western Mutual, have you had any collection problems from them?" I am off and running. I am of help to her and to myself.
Morale:
I have a PhD and a JD and neither helps me pick up girls. I can go in buy drinks for the crowd and still stand there like a dummy unable to make the moves to achieve whatever.
Oh I have had some lovely conversations while sitting at a small table on the Champs watching the Parisian scene go by. Making highly intelligent conversation with some lady recently graduated from Vassar, the possesor of a rather interesting overbite and a love of horses. I think I ended up holding her hand.. All that education and I cannot seem to make it work.
The Answer is obvious to you all. Just go out and do it.. Bang on the door, and just keep doing it until success. Now thats how to suceed in Real Estate Jus Go An Do It.
I wonder, think it would work with girls?
Lucius My cat loves me.
What's up Jimbezy?
Thanks for responding to the article. I'm sure we will have plenty more.
I have been on both sides of a deal whether it turned out profitable or not. I can attribute the non-profitable deals to poor planning on my part. Therefore, I don't make one move without taking the all-important first step, which is making sure that my plan is sound. It doesn't matter whether we are talking about real estate investing or bob sledding, without a well thought out plan you will not be consistently successful. However since we are talking specifically about real estate investing here is a good start for all of us.
1. Research the different methods of investing first by intelligently investing in the various courses that are available, reading books and talking to other investors. This will give you a good idea as to what style best suits you the most.
2. After finding out which style of creative investing suits you start building a team of experts such as real estate, tax and business attorneys, sources of funds (private lenders, HML's, savings), loan servicing companies, title companies, inspectors, appraisers, carpenters, painters, plumbers etc. Word to the wise, Never Be The Smartest Person On Your Team. No successful business has just one person running it 100% of the time. If you are then you will tend to rely on your own intelligence, which in most cases isn't good because one person can’t know everything. Remember you’re a beginner! Let your team make expert decisions for you especially while your still learning. Very Important!!!!!!
3. Once you have found a COMPLETE team that understands exactly what you are trying to accomplish the next important step is to START INVESTING!! Period. You have to get into the game at this point. There is no need to hold off any longer. Begin your style of marketing in order to get the word out that this is what you do and once you get your first bite be ready to real in the deal.
I know that these three steps may seem easy but frankly it's not meant to be hard or confusing. The only way to invest successfully is to take every degree of difficulty completely out of the equation. Trust me I am speaking from both great and terrible experiences. Without making sure that you have completed the first two steps properly you will never execute step number three with confidence.
I hope this helps.
I HAVE BEEN KNOCKED ON MY BUTT ENOUGH TIMES TO KNOW THAT WHEN YOU DO GET KNOCKED ON YOUR BUTT ROLL YOUR LEGS OVER YOUR HEAD SO YOU CAN STAND UP STRAIGHT AGAIN. IF YOU DON’T ALL YOU WILL DO IS LAY THERE.
"EVERY GOOD PERSON I KNOW HAS BEEN THROUGH SOMETHING" CC
Hello,
Your point of your article is great. "No one plans to fail; they fail to plan".
But can I recommend taking one step further back in the planning process?
The first step should not be "What type of RE investing should I do??", it should be "Should I do RE investing or something else?"
Not everyone is cut out for REI. Being interested or excited about the subject is not enough. You must bring a certain skill set to the table, such as: Perseverance, Common Sense, etc. etc
For example, I think being a Major Hollywood Actor looks like a great job. I am very interested and excited about getting paid $15 million per picture. BUT, I know I do NOT have what it takes.
Just my two cents...
What do you exactly mean of planning properly?
Hello,
Here is what has worked for me. I hope this helps.
1. Research the different methods of investing first by intelligently investing in the various courses that are available, reading books and talking to other investors. This will give you a good idea as to what style best suits you the most.
2. After finding out which style of creative investing suits you start building a team of experts such as real estate, tax and business attorneys, sources of funds (private lenders, HML's, savings), loan servicing companies, title companies, inspectors, appraisers, carpenters, painters, plumbers etc. Word to the wise, Never Be The Smartest Person On Your Team. No successful business has just one person running it 100% of the time. If you are then you will tend to rely on your own intelligence, which in most cases isn't good because one person can’t know everything. Remember you’re a beginner! Let your team make expert decisions for you especially while your still learning. Very Important!!!!!!
3. Once you have found a COMPLETE team that understands exactly what you are trying to accomplish the next important step is to START INVESTING!! Period. You have to get into the game at this point. There is no need to hold off any longer. Begin your style of marketing in order to get the word out that this is what you do and once you get your first bite be ready to real in the deal.