Digging myself out of a hole

9 Replies

Hello Everyone, 

i'm about 2 minutes old to this group. I was wondering anyone in this forum has started out with on the Real Estate Investor education programs before. This is how I started. (In retrospect this was not my brightest moment but probably my most confident moment.): I charged the huge amount of my they asked for there education on my credit cards and even opened a new one (dumb)  with the cheers that I'd be able to pay it off in the first 3 months. I'm afraid that may not be the case for me while working. It's hard to prioritize, I NEED THIS TO WORK SO I'M WON'T BECOME HOMELESS and I'm not even kidding. Any advice on home to prioritize my time, more specifically, marketing efforts with little to "0" money?  Thanks guys

Its hard to effectively do marketing for zero.  What are you looking to do, wholesaling?

I can tell you most of the successful wholesalers in my market are taking advantage of bandit signs and direct mail.  Both of these will cost money.

You can start with 100 bandit signs for around $350 from supercheapsigns.com

I am sorry you spent so much and received so little for your RE education.

Thanks Curt,

Yes, I want to to start doing wholesale assignment deals because that's the least amount of money that you need. Do Band-it signs really work? I have made some but they are taken down almost the next day. So the time and effort doesn't seem to have a good return with people actually looking to sell their homes but, I did get a couple other people looking for investors.

Thanks for your words and thoughts :-)

Erika

You need to become a schedule junkie. Out line the entire week, all seven days. I used to fill in the must dos first, like go to your job and do it well. Then I looked at those hours and said what can I do there to promote my future. That meant lunch hour could be studying REI or making a phone call, not possible if you couldn't use the company phone in the old days but with cell phones now, easy to do. Same thing with coffee breaks. Listen to real estate on your commute, and if your drive maybe a little driving for dollars on the way home.

Keep filling in the blanks until they are full. And yes schedule sleep time, wearing yourself out is not a great idea. Always ask yourself if this is the best thing I could be doing. Do you realize that 10 minutes a day for a year is roughly 3600 minutes, or 60 hours. As an investor you time is worth at least one dollar a minute or $60 an hour.  That ten minutes is worth $3600 dollars. Throwing 10 minutes a day away is like throwing away $3600. The old saying time is money is true. I realized that one day standing in long line at the bank and said to myself how can I take advantage of this time waster or avoid it, my first thought was to just leave and do it some other time but that would have upset my wife, so I said what do I do for a living?  

Answer, talk to people and prospect. so I started a conversation with the guy behind me an said by the way do you know anyone who invests in real estate, and he said why so I gave a reason, he said his brother was looking for a home, if it was a deal maybe he would be interested, and as luck would have it I sold a house I had just locked up. 

But I would often say I would like to ask some investors for their opinions and it would be great if they could spare me a few minutes to help me out. Sometime I would say something about a current deal but would add what I am really looking for at the moment is someone with some money that they have earning money in a savings account at 1% and are losing 3% to inflation. I borrow it at 6% secured by real estate ( they usually ask for more so I start at 6). this has led to private money. Especially when I ask them if they know about the rule of 72.

@Ericka Wigfall

I started out very very similarly as you stated in your post.  About 10 years ago I went to a seminar, jacked up my CC debt to buy the program, and knew I did not have the money to pay it back.  I also had no money for marketing at all.

The only effective way to find wholesale deals when you don't have any money to market, is to get over your fears if you have any, and door knock potential motivated sellers. Unlike 10 years ago, the amount of information online was no where near what it is now. So I would go to the county recorders regularly and research the NOD lists and then start knocking on doors. It was very scary for me since I am a default introvert, but it was the only way I could do it with having no money.

Action and activity is the only thing you can control at this point in the game since you chose to jump head first in.  Control you schedule, know your motivation for doing this, research as much as you can on your off time, and start chipping your teeth until you get good at this.  You will not pay that debt off until you start moving forward.

It took me a number or months of stress and hardwork before I was good enough to finally close my first deal.  After that things got a lot easier.  And I paid all those CC's in full (after negotiating them down since I was in collections by then).  And I have never been in bad debt again.

Good luck!

Marketing will require at least a little money for mailings or other such things. It would probably be best to learn as much as you can while saving at least enough money for a marketing campaign. 

Thank you Brian and Tarl!! I truly appreciate your practice wisdom. Tarl you mentioned a NOD list. What is that?

Anyone else with good practice wisdom keep the advice coming!

A NOD is a "notice of default". The legal filing that starts a foreclosure. Some states use a "lis pendens". That's also the legal filing at the start of a foreclosure. In some counties you can get this data for free off the county recorder's web site. Some have it available at the courthouse. Some charge for it, especially if you want it in a format that's useful for mass mailings.

Direct mail is not something you can send a few letters and get a deal.  You're going to need hundreds, if not thousands, of names and addresses and you're going to need to hit them will multiple mail pieces to get a deal.  As @Tarl Yarber suggests, you might try door-knocking.

You will also need to learn how to estimate property values and rehab costs.  Wholesaling gurus make that sound easy.  Its not.  So, start trying to find what data about sales you can in the county recorder and county assessors data.  Zillow may have data, too, though DO NOT trust their "zestimates".  Get on realtor.com or the local version in your area and start pulling up listings.  Follow those until they have sold.  There's really no substitute for actually looking at a lot of houses and following the market in an area to learn values.  And there's no substitute for experience when estimating these numbers.

Does the company you spent all that money with offer a money back guarantee?  Have you tried getting your money back?

@Ericka Wigfall

Interesting you are reaching out to a free network. Did you share your fears with the mentor you paid with your cc?

I hope you are successful and work through your mental plan.

To keep me mentally straight i read 10 pages of a grant cardone book at night.

Frank

Originally posted by @Tarl Yarber :

@Ericka Wigfall

I started out very very similarly as you stated in your post.  About 10 years ago I went to a seminar, jacked up my CC debt to buy the program, and knew I did not have the money to pay it back.  I also had no money for marketing at all.

... I paid all those CC's in full (after negotiating them down since I was in collections by then).  And I have never been in bad debt again.

Connecting the dots: buying expensive course using credit cards = bad debt 

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