Making progress, not excuses.
I want to begin by saying that this is not directed to any one individual here on BP, as a matter of fact, this is one of the few communities out there that have so many people that are go getters and active in the business!
With that said, I can not believe the amount of people that ask me in my real life every day " How can I get started in investing and be full time like you are?" I never turn someone down that wants some sound advice, so I usually tell them to shoot me an email and give me a couple of times that would work for them to either come into my office or talk on the phone for about an hour. This is where the trouble begins for a lot of them.
I wish I had a nickle for every time I do not hear from them again for weeks, or they shoot me an email to set something up and they have to reschudule because "something came up". The first key to sucess in this business in my opinion is to take action in the right direction, RIGHT AWAY! Even if it is a small step and it only gets you thinking in the right direction to set up some goals for yourself.
Well, lets skip ahead to the ones that I do talk to, and they do set up a meeting with me. The next problem I encounter is all of the reasons why they cant do this business. I hear everything from they lack knowledge (of course I refer them to BP!) to they lack credit, or they do not have any cash to work with. These are all good reasons, but should they be enough to hold you back from your dreams?
I notice in the world of investing, most of us do not ever use our own cash or credit on deals, it is mostly the novice that is running to the bank with 20% down and a personal guarentee. So many people think that that is the only way to make it, and it is quite the oppisite. If you stick with the bank and down payment method, you will run out of cash and credit far quicker than the creative investor!
So in closing, do not let the past control your future. If you drive lookin in the rear view mirror, you will crash! Set goals, set up an action plan, and do not let ANYTHING stand in your way!!
Comments (6)
Thanks Rob, You get my Mentor of the Day Award...5K I made Newbie mistake and overpriced property. Live and learn,any advice on going to seller and trying to get price reduced. I offered 10k or maybe use my inspection clause to get out contract. If anyone does not purchase the contract. I really appreciate the advice. Thanks p.s. No room for extra bedroom
D'andre Prosise, over 12 years ago
D'andre, Congrats on putting a deal under contract!! Two bedrooms are a lot tougher to do something with, is there any way to squeeze a third bedroom out of the house? This could drastically increase the ARV. Look to chop a large bedroom in half, finish a second or third floor, etc... If you can't get the extra bedroom, lets just talk numbers. Logic tells me by the price, that this home is in a marginal area. When I deal in these types of homes, I only want to be all in for 50 percent LTV with buying it, repairing it, and holding costs. So lets work it backwards. 40k cut in half to 20k. Take out repairs and holding costs, 12k. You will need to make something, so take out your assignment fee 3k. This means, you should have this in contract for 5k to sell it to me. Now lets go back to the adding of a bedroom, this can be a complete game changer. You could pull a 60k appraisal! Now lets say that you find a buyer that is more than happy being all in for 70 percent LTV. Now you can make some coin!!! It is all about the packaging and being creative. You will also want to have a private money lender committed to the deal and have a couple of solid real estimates to show your potential buyers. Give them nothing to think about, a confused mind will always say no. Good luck!!! Keep up the good work!!
Rob Gillespie, over 12 years ago
Hi Rob, I took action, have a property under contract to wholesale. I just wondering if its a good deal.Its a 2bd1bath 1,022sq.ft. for $13,500 ARV $40,000 repair est.$10,000 to retail or $5,000 to rent. Can you do a little mini-mentoring and advice me on if you think the property will move?or any one reading this can help Thanks
D'andre Prosise, over 12 years ago
Well someone help mentor me, I would more than welcome the help and can't wait to get started. Please contact me as soon as possible. Email me and I will give you my number to call. Don't let me down.
Maranette, over 12 years ago
Yeah it's hit or miss. One college of mine was all into it. Even managed to go out looking at properties once but then all the excuses about why he couldn't do it came rolling in. This was after we found him a damn good deal, close to where he lived, little to no deferred maintenance and very little money down. Even when you present them something on a silver platter they don't bite. As you said most of us do not ever use our cash or credit on deals. I do. But then again I am Mr. Moneybags ;)
Robert Steele, over 12 years ago
I ran a coaching program for about 1.5 years Rob and closed it down because about 95% of the people wanted to pay a few bucks and watch the money wash all over them. It is very hard to coach motivation and passion.
Bryan Hancock, over 12 years ago