The First Hurdle in Real Estate Investing
I am not a real estate guru or a seasoned investor, but I just want to maybe help one person out there who is just waiting for their first perfect property to start their investing career. I, like so many others, ordered Carlton Sheets' course looking to make millions and make it quick. But, like so many others, I read it and studied it and then put in in the closet to collect dust because I just couldn't find the right property to start. That was two years ago and until two months ago I was in the same situation in life I was when I ordered it. What stopped me two years ago, FEAR, and FEAR alone. I still don't know if I was afraid to fail or afraid to succeed. It wasn't until two months ago that I came to realize that I was in the situation in life because of me and me alone. Unless you're lucky, noone is going to take you by the hand and do your first deal for you and give you the profits just to prove to you that this stuff works. Believe me, I am not harping on anyone who hasn't found their first deal because I sat idle expecting something to happen without changing myself or my outlook on life. I think I have been clinicly insane for the past two years because the definition of insanity is "doing the same thing over and over, but expecting different results." I cannot emphasize this enough. YOU CAN DO IT! Once I had made up my mind that I was going to face my fears and dive in the pool, I found that everything came alot easier than I expected. I bought my first rehab with my brother-in-law last month and I am closing on another one (myself) at the end of November. Best part about it, I haven't paid one dime for any of it because I met with a commercial banker that was so moved by my persistance to make this dream a reality that not only did he consider me a good risk, he is getting back into REI himself.
Granted, I have not sold the rehab for a profit yet but even if I don't make a dime off of this first one, all of the work was well worth the weight that has been lifted off my shoulders. I have read so many articles, forums, and success stories that would make your head spin, and I could hold up my end of a REI conversation with an experiened invester up until it was time to discuss our past deals. I have limited investing history but I could have gone the next ten years reading and studing and becoming knowledgeable about all aspects of REI but I believe you need to focus on one aspect to start and go out and DO IT. I will have years and years to incorporate "subject to", short sales, lease options, and every other concept, but I didn't need to be a master at everything to buy a rehab. I can't guarantee I will become extremely wealthy anytime soon, but now I am taking the calculated risks to find out. Like I said at the beginning of the story, if I can help just one person jump that first hurdle, then writing this story was well worth it. For the young guys out there, I am 23 years old. People will listen to you and believe in you but you have to believe in yourself first!
Best of Luck
Nick
Nick, great going - glad to see you youngsters out to make your fortune sooner rather than later.
Likewise, Nick, I am only 64, & I figure I have about 30 good years left , and am getting started in a new venture in Investing.
David
good work nick!
>I could hold up my end of a REI conversation with an experiened invester up until it was time to discuss our past deals"
this is me exactly. we're in the same predicament almost. it took me all that time to realize that if u don't put bids in, you'll never get your start! hahaha. i'm waiting for some unknown to happen and now i have a number of bids (over 20) out there and at least 3 i expect to come thru - based on conversations with the owners. very cool.
congrats and good writing!
congratulations Nick, I know exactly what you're talking about . I purchased carlton sheets and many other REI products, and some of them were collecting dust .Until a couple months ago , I said to myself " I'm either doing it or forget about it ". Guess what? I found a desperate seller,he is selling me the house for about 30k under FMV. It feels good, now I'm the one thats desperate to DO IT AGAIN!!!!
hello,
myname is john b. I am a licensed real eastate inspector in texas and a few months ago i inspected a four- plex and the deal fell through. i came up with the down payment and closed on them 12/01/03.
i come across good deals all the time, but like for many others, money is not allways there.
i came across a website of nation wide realestate discounters. i have found nothing but negitive remarks. can anyone tell me if they know of or have had deasling with them?
Yes, I've had dealings with them personally... About 5 years ago, I was foolish enough to order their course, which consisted of 1 rather large notebook that mostly covered property inspections. I originally bought their stuff because they also say that they'll fund deals and go "Partners" with you as long as the deals fall within their guidelines. I tried to work a few deals with them as the "funding" end of the deal, but when I presented my offers to the seller (in this case a bank) they told me that I was absolutley outta my mind! The calculations that Nationwide uses are so far removed from any real life applications that unless you want to get a bad rep right from the start as somebody who doesn't have a clue what they're doing with all of your areas Real Estate Professionals, I'd not only steer clear of these guys, but RUN LIKE HELL at the mention of their name. If you've already been unfortunate enough to, shall we say "financially jump into bed" with these clowns, you have my condolences. As it is, they've cost me about $550 that I could've better used elsewhere. Good Luck to you.
How did you purchase the property. As an inspector typically your contracts indicate that you have no current or future interest in the property. What did you sign with them?
I'm also an Inspector in Chicago, and would like to know how you did that legally?
Rick
Nick, I thank you for sharing the experience of your personal struggles. We all have them, but to hear it from someone else lends us confidence that we are not alone in our fears and that, we too, can overcome!
Yes, it seems the major hurdle in accomplishing anything in life is to take that first action. It's all downhill from there.
I am a newbie investor --at 44 years old (!). Many is the time that I wish I would have started this path in my early twenties. By now I would have been wealthy. But I don't have time to waste looking back. I'm excited about the potential and moving forward as fast as I dare.
I say, hurray for you!
My name is Del. I need info on how to get started. I know one person ready to invest. if I find the property then I'm in business!. Where do I start? what do I need? Tell me !
Nick ,
It took great courage to share your insights and I , as many others also , thank you dearly for your encouraging words of wisdom ! In REI there is more value to what you have shared with all of us then there is wealth in any program offered out there. Trial and error is a master teacher, I'am proud to say I'am it's student ! I wish I had stumbled on your words long ago. I , like others, was afraid, but now have the belief in myself to continue. I'm at a place in my life right now where even coming up with the boot for a Rehab would be impossible, I have, like everyone else, looked for that golden moment, that golden property, that golden deal that would just show up and grant me the rights to own it and would some how make it all work out. That hasn't happened yet. I live in sunny Arizona and the properties are plentiful, however, without the cash to put up there's little success here with any program.
Thank You again for all your help!
To Your Success Always,
BoundLess
Awesome story! That is totally me! Took every single word right out of my mouth..kid you not........Fear? if I could just overcome it and just jump in there....life would be a little better...ahhh..
BRAVO! Thats a great story and Congrats on your transactions. The bottom line is just DO IT!
Nick,
Congratulations for grabbing the bull by the horns!
I ordered Carlton's program 20 years ago and did nothing with it. I ordered it again about 8 months ago, and we now have six income properties and a rehab we're doing!
Our vehicles are now paid for and next year we'll pay off my student loan!
Just Do It!
Thanks,
OnTheWater
FEAR:
You're fear is one of the most common and most unrealized. Everyone has IT till one realizes what IT is. Once they understand what IT is, dealys due to fear are reduced. What is IT?
IT is is the fear of the unknown.
I just htink back to my parents. Go to school, get a good job and put your money into a savings account and only do no risk investments. Slaves. That's what my parents were and I might have been. I realized fear is what creates this mentallity. That's why I started in the stock market. I did well over the past 3 years and always said I can do better in the stock market than in real estates. Admittadly an excuse for hte past three years. Then I sat down and figured out what my annual return would be over 15 years if I put 20% down on a multi-familt income property with some safe numbers for rents, inflation, etc and did a very simple example.
I'm glad I stoppped being ignorant. Well, I'm going to buy my first income property soon! Sold off half my stocks and have enough sold for about 10% down.
Then I think back to jsut three years ago and what my parents always said. Just think about IT.... FEAR! The fear of the unknown.
Seems like you talking about me. Yes, FEAR of the simple "what if...". Also , what is the right poperty for first investment ? Too many questions for a newbee.
I enoyed reading the article.
Thank you
Goals are nothing more than dreams with a time frame. If you are afraid to make a step JUMP in it when the deal looks OK.
Good luck!
You learned one of the most important parts of REI that no program works until you do! Congradulations.
Dear Nick, I would like to talk to you by private email. How can I do that I have many questions to ask you.
Thanks,
Properties 82
I am one person.
Thanks for the encouragement.
Blessings in all your endeavors,
Peakent