Here's Your Kick in the Rear

I have read almost every "go get 'em" real estate paragraph, book, or article out there and that's just what they do...they get you to go out and "get 'em". Well, that's just great, but now that you're revved up higher than an Indy car on race day (nice anology huh ...all of a sudden, BAM! At this point you either fall apart or you make it. So what exactly am I talking about? Let's be real straight forward and honest with each other and everyone out there. Real Estate Investing is overwhelming. Why? Well, because it takes the most basic fears that most people have and pushes them to their max. The biggest one? Of course, it's failing.



Failing is a hard, hard thing to wrap your hands around and squeeze the life out of because it really hits the basic core of our existence in a sense. With the utter of my mouth to someone, I can say one line of speech and make them feel like crud, as can you. Life, in it's own quirky way, has built for us an internal alarm system. Almost a safety valve as you would call it. Our minds for some reason or another can instantly turn on an alarm when we become scared, uncomfortable, nervous, unsure, etc and it will freeze us in our tracks. Think of it as the first time you ever went off the high dive at a pool. Brand new experience...way too high...body sets off an alarm. Some people end up jumping, some climb back down the ladder. I know I did the first time when I was a kid.



So where does that leave us? Well, this alarm, in my opinion leaves us at our most vulnerable because this safety valve essentially protects us in our minds from doing anything that could hurt us physically or emotionally. Not to be weird (too late) but it's like love. Either you learn to let go or you always are cautious to "protect" yourself.



So what would make investing so much easier? Aside from giving away free money, obviously taking away that fear. But it's not that easy is it? What I have learned is that if you can follow some simple steps and I MEAN follow them, you will find yourself going down a so much easier path and things may make more sense.



Problem 1: Over-information



Look at all the forums on here for Pete sakes! It is so easy to see how instantly this can become overwhelming. First you get pumped by some book, video, or group you attend and you all ready to go and make millions of dollars in real estate and then you realize, "oh crude, how do I do that again?" So here's what you do, and what I am saying has been said before by other people I am just adding my own touches. First, you analyze your own situation. BEFORE you even think about doing one deal or looking at house, you sit down and FORCE yourself to analyze your money situation. I don't care if it hurts to look at it, you still need to know exactly where you are. Because if you can't figure out how you are in the situation you are in now MONEY WILL NOT HELP your problem. I know plenty of lottery winners that are now broke as can be for that same reason.



So you figure out what kind of financial situation you are in, how much you can spend each month, what your credit is like, etc. Then and only then do you look at yourself in the mirror and say, "What do I want to do?" Your answer should not be, "make money". Any idiot can make money, you are here hopefully to make a career or do something lifelong. REI takes time and hard work and sometimes luck, so keep that in mind. So after you look in the mirror and ask yourself that question, you realize what your current situation is. Maybe you would like to make some cash first, build up credit and then start getting into rentals for long term goals. Maybe you have a good amount of cash available and you want to start rehabbing on the side and get into multi's, etc. The point is, knowing what you need to do to get your from point "A" to "B" is crucial.



I know it sounds crazy but you had to put on those frickin training wheels before you could ever take them off, so why in the world would you think that you don't need training wheels when you get older? So let's say you decide that you need to gain some cash first before you can do anything. Well, that sounds easy enough right? Well, yes and no and here's another stick that stops people. Legallities and taxes. I don't care who you are or what you do, it is very important to have a decent lawyer and CPA on your side before you start anything. Can you start investing without a CPA or laywer...heck yes, but I would recommend spending some time finding both of those things first because they will be able to help you start on the correct path and save you money in the meantime. Now you're saying, "Can I do a couple deals and then use that money to find a good CPA and Laywer?" Sure you can, I'm not saying that...I'm just saying that if you get into a bind while doing stuff without them in the beginning, you may be in much more trouble than before you even started out in this gig. Which brings up another point..money. Let's say you do a couple deals before you get a CPA and Lawyer. Money is sensual, appetizing, and seductive...so are strippers, which is why they make so much money. Meaning, don't go blowing your wad right away on things, that is stupid...stupid...stupid. (I've done it, so I know) Take that money, go to a dang CPA and financial planner and say, "I made this money, how can I use it to better my current position, pay off debts and keep doing what I am doing?" Work to get those debts paid off the best you can to ease your mind. Why? Because let's say you get tired of doing REI, would you rather know that your debts are paid off or that you have a brand new car you will have to sell now because you didn't pay off your existing debts with the money you made.



So back to where I was going, now that you know what you situation is, you pick one or two paths that fit what you need. For example, bad credit + no cash = bird dogging or wholesaling. "But I don't want to do birddogging" I hear you say, it's too hard. Are you fricking kidding me? If you even think that, then get out of this forum and go back to doing whatever you did before because nothing here will help you. Aside from proving to others that you want to change, you have to do this to prove to yourself...that is the biggest key, doing it to change the inner fear based alarm system to never go off again. So you realize that with your situation you should really only do wholesaling or birddogging. So guess what? You know are on to step 2!



Step 2: Become a sponger



Yeah, cheesy title, but true. You know what options you have, so read everything you can. Read all the posts you can AND here's the great part. As you are reading posts or books, write down every question you have or don't understand and keep a document of those questions. I guarantee you will come up with a ton. When you have about 10 of them, start to find people who know alot about the subject you are trying to learn and throw them some of the questions. If they can't answer, ask someone else. Keep asking until you understand.



Everything has steps; you get up in the morning, you grab keys, you unlock door, your put keys in ignition, you turn keys, car starts, etc. Same thing for REI, if you learn each step, it becomes so much easier. So now you are starting to understand how your certain area your are interested in, starts to work. You are becoming more and more familar with what you need to do. Now all you have to do is do a deal right? Well, sorta...it sounds easy but in my opinion this is biggest part of the internal alarm system that you have...dealing with people. It's tough, especially when you don't what to say or how things are going to go. So here's some great advice, "You are going to messup bigtime talking to people." It will happen, don't even try to pretend it won't. Every person is different and every situation always lends itself to a possible new scenario. So how did I get past all of this? Well, I finally realized that the "best deal in the world" that I messed up on, would be around next week again and then the next week, etc. Deals come up all the frickin time. Don't think for one second that if you don't get this one deal, everything is a loss. Not even close, because there is so much stuff out there you haven't even tapped. So use your first 20 or so phone calls as experience. Use your first 10 personal visits as experience. User your first 3 negotiations as experience. Don't expect everyting to go right the first time, because it probably won't. If it does, congrats, but don't get discouraged if it doesn't work the first, second, third, or fourth time. The best advice I can give here is DON'T TAKE THINGS PERSONAL! Life goes on and so will you if you realize that everytime something goes wrong, you're not an idiot, you're not a loser, and you've got 999 times to fail before you come close to Edison's record.



Step 3: Make a deal



So you've read and talked to people and you've got a pretty good understanding of what to do. You've made a few mistakes and now you think you've got stuff lined up. Don't worry about doing everything perfectly, use the people around you and the people you talk to on forums and clubs to give you some help. It's very easy to fail alone, because people are afraid to ask for help, like it's a sign of weakness (especially us guys) but you either suck it up and learn to take advice and help or you fail again. The first couple times I did something I split deals like 80/20 just so I could learn how to do stuff. It was worth every penny I didn't make if that makes sense. Those 80/20 deals were my training wheels in a sense. And some days I still need my training wheels...



So you found this deal you think you can work with and you get everything you can think of lined up and let's say everything goes perfect...don't get greedy! Learn to take less on your first couple deals in order to learn. Again, this isn't about scoring a million in 6 days, it's about learning to score a million and the best way to do it. Remember, at any given time while doing this, you are farther along then you ever thought you could be...so that's progress...remember that.



Step 4: Do deal



Okay, so let's say it goes great and you do a deal. Now what? Well, you sit back and make sure you covered all your bases. Maybe even post your deal on a couple forums to get any pointers on how you did it. Take that money to your CPA and talk to them about how to start a company and how to use the new found money in the best way to help you get going. BUT take a little bit and buy yourself nice meal,nothing huge...just something nice to shut up that little internal fear alarm clock that all of a sudden is starting to lose power.



Step 5: You're going to fail



Last but not least, remember that no matter how great you do or how many deals you do, there is always a chance that you will screw up big time. Even the most successfull people in the world have done it, so don't get mad, always try to follow your steps and make sure that once more money starts coming in that you find good people (ie lawyers, CPA, and financial planners to help you keep your money and make smart decisions.) Think of these people as constant training wheels for your money.



There is so much more to talk about, but I hope that maybe this will help some of you get past that hump and fear alarm clock and understand why you are stuck.



No matter what, always remember, pick one thing...ONE THING to learn with a second thing to learn as a backup. Learn as well as you can and don't be swayed by the newest way to make money, etc. You can make money doing anything, so pick that one and start making money. The other ways will always be there...promise.



I love good quotes, not those cheesy inspirational ones, so here's my parting words, "Cry in the Dojo, Laugh on the Battlefield." Which means, don't be afraid to take your bumps and bruises and to make your mistakes, because you will be much more prepared for the real battle when the time comes.



Best,



Christian Beebe "The Solutions Kid"