Taking Action

9 Replies

Hey BP!

Looking for some advice on how to take action. Seems so simple when I think about it. Just get out there and try something right?

I've been thinking about investing for a few months now. I have read a ton of books and listened to a number podcasts. I have also joined the local rei club. 

I still find myself just spinning my wheels on where or how to start. Initially I wanted to start out wholesaling. Seemed like a great strategy at first pitched from all the guru info out there. After reading more info here seems like it may not be the best option to go with. Now thinking about doing some mobile home investing. Any thoughts on the Colorado mobile home market?

I do not have a lot of capital but so have a little saved up.

I would love to hear anyone's thought or stories on how they got started

Thanks

Hey @Erik Tollefsrud , welcome to BP!

I am here in Washington so I don't know anything about the Colorado market, but at this point I feel as though you should practice RAD- that means repitition, accountability and discipline. 

Find a small action related to real estate that you can begin immediately. It can be something like posting questions you need answers to here on BP. Point is repitition is key.

By accountability, I mean tell EVERYONE you know you have an interest in RE. By doing this you may even find a potential mentor. Soon your friends will constantly keep you accountable by asking, "So, how is the real estate thing coming along?".

Lastly, sounds like you already have the discipline I mentioned. Your local REI is a great place to network. Do what it takes to reach your goals, don't be discouraged by others who can't or don't understand what you are doing. Use any negativity as motivation to propel you forward.

Just my thoughts...

Much success!

Originally posted by @Tyrone Green:

Hey @Erik Tollefsrud , welcome to BP!

I am here in Washington so I don't know anything about the Colorado market, but at this point I feel as though you should practice RAD- that means repitition, accountability and discipline. 

Find a small action related to real estate that you can begin immediately. It can be something like posting questions you need answers to here on BP. Point is repitition is key.

By accountability, I mean tell EVERYONE you know you have an interest in RE. By doing this you may even find a potential mentor. Soon your friends will constantly keep you accountable by asking, "So, how is the real estate thing coming along?".

Lastly, sounds like you already have the discipline I mentioned. Your local REI is a great place to network. Do what it takes to reach your goals, don't be discouraged by others who can't or don't understand what you are doing. Use any negativity as motivation to propel you forward.

Just my thoughts...

Much success!

 Couldn't have said it better myself.  Tyrone is absolutely correct, especially the part about being discouraged.  I've been told "no" more times than I care to count, lost deals to someone who swoops in with an all cash deal, been told I don't know what I'm doing and how I'll lose it all (they were basing that on their father's experiences with real estate, not what I had done and researched)., etc.  Just keep moving forward, take every "bad" thing that comes your way as a learning experience, and you'll do just fine.

Good luck!

@Travis Beehler ,

Thanks for the mention, I am returning the favor.

Another comment you may have heard, or will hear is "That is hard to get into", or maybe even. "That is hard to do".

I like to challenge those people by replying, "hard compared to what?"

This reply will shut most anyone down because they will have a blank stare on their face. What they are saying is they are comparing RE "investing" to doing NOTHING, as they are most likely doing. And yes, RE is hard compared to doing NOTHING all day.

Originally posted by @Tyrone Green:

@Travis Beehler,

Thanks for the mention, I am returning the favor.

Another comment you may have heard, or will hear is "That is hard to get into", or maybe even. "That is hard to do".

I like to challenge those people by replying, "hard compared to what?"

This reply will shut most anyone down because they will have a blank stare on their face. What they are saying is they are comparing RE "investing" to doing NOTHING, as they are most likely doing. And yes, RE is hard compared to doing NOTHING all day.

 Exactly.  It's hard work...at first.  Now that I've got a nice feel for how things should go, it's a LOT easier.  I'm always in learning mode, and open to new ideas, but signing final mortgage documents on my first rental was mentally tough.  It hit me as "Wow, this is really real now, and I'm a real estate investor".  I did some reflection on the drive home from the title company's office, and ultimately was glad with my decision once I got home.  It's just easy to coast along and not take risks.  But in the end, you'll be happy that you did.

Hi guys,

Very good advice Tyrone. I enjoyed reading what you had to say.

It sounds like you are asking two questions, Erik. The first one being what type of real estate should you start pursuing. In the second question being more obvious, about the real estate mobile home investing market in Colorado. I'd be happy to give you some quick thoughts on both of these topics.

Many newer real estate investors believe that once you start pursuing a real estate niche you have to stay with that niche. In reality real estate investing is a journey from confusion to clarity, across many niches. Continue attending your REI seminars and networking events. These seminars will help clue you into different types of real estate that you may have a genuine passion for. The way you describe wholesaling and mobile home investing makes it sound as these are not a true passion for you, but merely a means to an end.

With that said no matter what type of sellers you are aiming to help, take immediate action to find the sellers and talk with them one-on-one. Because you are starting with limited capital I suggest that you use your time and energy to find these sellers, instead of spending money on direct mail or other costly advertising campaigns. What you lack in capital and experience you can definitely make up for passion and consistent drive. I hope this makes sense.

Concerning your mobile home investing question in Colorado. The market is obviously hot and very warm in most areas of the state, especially along I 25. Concerning mobile home investing there are four main areas where people mess up, these areas are; overpaying for the home, over improving the home, fill in the home with a high-risk tenant-buyer, and leaving thousands of dollars on the closing table when reselling. With that said I encourage you to only purchase mobile homes that you will know you will make back all your money within 10 months maximum or less. In Colorado you will have to have a fairly large farming radius to have a full-time business. If you plan on purchasing a dozen or more mobile homes every year you will likely be driving and covering a larger distance than other folks in other states.

In short, investing in Colorado with mobile homes is not only possible, it's happening right now. Some private buyers and investors are already finding and helping motivated sellers. However if you want to be the dominant force and the go to mobile home guy in your area this will take a concentrated effort, a serious plan, and daily effort.

I hope this was helpful and not too confusing. If you any follow-up questions or concerns don't hesitate to comment back.

Talk soon,
John Fedro

@Tyrone Green

@Travis Beehler

Thanks guys! That is some really great advice. The RAD method is great I am going to use that daily. I like that you said to find small actions. This is a great way of looking at it. Eventually those small actions will turn into large actions. I appreciate the advice guys.

@John Fedro Thanks for your post! It was a lot of help. The first part of my question. 

I don't necessarily think that I would not be passionate about wholesaling or mobile home investing, I think I just feel overwhelmed about making a decision. Your advice about not having to stick to one of these strategies for ever is great. This alleviates some concerns about picking a niche.

Thanks you for the quick analysis on the MH market here in Colorado. Your advice really inspired me to get out there and find a deal!! 

Thank you for all the great information. This really helped out!

@John Fedro

While I understand what you're saying about "messing up", I've made and am making some of those "mistakes" right now.  It's certainly good that you point them out but sometimes us "newbies" just haven't come across the advice yet or get ourselves into a situation where we don't know what to do so we make the "mistake" because we have to act.  

In my case, I bought a MH for $1000 in a 55+ park that doesn't allow rentals.  I started with a plan to do modest renovation only to discover that it had hidden leaks in a number of places.  Suddenly my costs soared.  But I had to fix the leaks.  The project time expanded from a month to months.  Hiring someone would have brought the time down but increase the costs far more than the extra monthly lot rents.  Since the costs have gone up so much just to get the leaks repaired, I figured I'd need to get a better buyer who would be more demanding.  So I ended up renovating the entire MH including new kitchen cabinets.  It's been 6 months, I'm within days of completing, the place looks gorgeous, a neighbor wants to buy it, and I've offered to finance it.

I'm not saying this to look for advice but to show what experience does when you've read the books, gone to the meetings, talked with the local gurus, etc.  

I don't consider my decisions mistakes even though I'll likely lose money on this ( I haven't set my price yet).   I love what I've done and could have spent a lot more than my losses in education expenses and still made the "mistakes" I did.

The problem that Erik and I have is that we have to find our own way.  It would be great to have a guru as a partner to tell us what to do all along but that won't help us to find what's best for us.  

Harold

"Failure is a component of success.The opposite of success is not failure,its mediocrity (playing at a level below one's capability)"-one author said.there is need for massive action by us newbies (generate leads,make offers,follow up)

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