Why Are RE Investors So Encouraging
Hi All,
I'm as green as you get. No deals under my belt yet, but getting ready to take the plunge into RE investing. My question is why are RE investors so friendly and encouraging to newbies and so open about their ideas and experiences (REI groups and this site are prime examples). Dont get me wrong, I think its great. Please dont stop. Its definitely great for new guys like myself to read about other peoples experiences and get ideas, and generally feel pumped about getting into it. I can understand that gurus have a product and will have icing on the cake by selling their ideas and strategies. But to all the other REIs, wouldnt we be considered competition? Just wondering why this business behaves in complete contrast to any other business where trade secrets are closely kept under lock and key.
I guess it is a new concept for me, one that I definitely like, I would just like to understand the motives behind it. I guess I will only really understand once I have made a few deals and I start sharing my ideas on these forums, which I hope to be doing before too long. I could also see that many deals happen between investors, and educating each other will make for better and easier deals?
Thanks and best of luck - especially all the fellow newbies out there.
[ Edited by harmmg on Date 06/04/2004 ][ Edited by harmmg on Date 06/04/2004 ]
Being a neophyte myself, I can only say what I've heard and what I've discovered: there are plenty of properties and deals out there for everyone in this business. That isn't to say that there isn't any competition among investors, but all the seasoned pro's have said it: if you're not greedy and plan this like a business, there's money to made in RE.
. Why burn bridges in this basically relationship-based business? Also, I've received so much help, I feel obligated to pass it on if I can.
You're also right when you say that many deals happen between investors: for my sake, I've turned a couple of deals that don't fit my investment strategy over to another investor who was friendly and helpful on the phone at the beginning of my RE learning curve (the hustler, snooty types got no chance at them...
Good luck and keep on learning!
Andy
I think Arykatz hit it on the head, when I was just starting, a LOT of people helped me, so I figger it's only right to pass on what little bit I know. Kind of a Karma thing, ya' know?
I can see what you guys mean - I think that is why I am so excited about getting started. I am already telling everyone I know, and even some strangers, what I want to do, so I know that I would return the favor once I have value to add.
Just a secondary thought though - does anyone ever worry about their market getting over saturated with REIs? or are there really more than enough deals to be made in any market?
Well Harmmg, there is some over-saturation even now. In some local markets there are more people chasing foreclosures than there are foreclosures to chase.
None-the-less the market is very big and each individual investor is very small. That makes for lots and lots of investors. The odds of any one investor being able to capture enough of a market to not need to co-operate are pretty small. In addition when you figure all the REI types there are all together they are still pretty much a minority in the gen. population. Therefore there is a certain amount of comraderie from being a minority.
I find it is fun to share with someone who is excited and wants to learn.
Another reason is you sharpen you game when you are comparing notes with other investors. Even new people run into something different or ask questions that make you think about how a deal could be improved.
John
[addsig]
I tend not to look at it as competition. I prefer to consider it networking. I have made deals work by having a network of investors that I get a referral fee from if it is a deal that is not quite my niche, Have partnered with another investor, or just simply assigned a deal to them and got paid.
Just my opinion.
Dave
[addsig]