Scared Money Dont Make Money
Investor · San Diego, CA · Member since 2008 · 62 posts · 32 votes
I just love this saying...
and,
"analysis paralysis" = someone (usually a numbers guy) who over analyzes every deal to a point where he can never jump in the game.
Dave Ramsey always uses "leave the cave, go out and kill something and drag it back."
All this is good motivation but make sure you jump in well educated!
There is never a reason to be afraid to invest because........
There are lots of people out there that are willing to help you.
I take people by the hand all the time and lead them thru a couple deals untill their knees quit wobbling and they don't fall anymore.
Gee that is how I learned to walk.
Ride a bike.
Drive a car.
Rappel off cliffs.
Windsurf.
Skydive.
Talk before huge groups. Anybody need a speaker at a seminar?
Hey In my life I could give a seminar before a nudist colony for a check.
Hell I might even do that one free just to get past that fear.... :roll:
Point is everything we do that we have never done before triggers flight or fight response. Recognize this and do it anyway.
Take Nike's Advice..........JUST DO IT!
Just be afraid of the guys who want to charge you up front to teach you before you have made anything.
My thoughts on FEAR
Brice
Taking action is one of the many keys to success........most of us "failed our way to success".
Over analyizing a property is simply manifested fear of risk. Action always conquers fear.
Take action...but know what you're doing.
Warren Buffet said it best:
My guess is most of these folks have legitimate reason for their fear...they don't know what they are doing.
Get the education to know what you're doing and the fear disappears.
Good Luck!
Get the education to know what you're doing and the fear disappears.
This one works for me and surely works to everybody,,, knowing what you are doing leads to success!!!
Thanks cookarikappou,
I didn't want anyone to think I was being flippant or condescending...
the real solution to fear of investing...is to know exactly what you are doing...
Anyway...glad you liked it.
Another one I like, and have been guilty of... "Getting ready to get ready", meaning spending too much time getting your office set up, getting lists, getting cards, etc., and procrastinating actually making the calls or contacting sellers, placing signs, etc. :roll:
There is never a reason to be afraid to invest because........
There are lots of people out there that are willing to help you.
I take people by the hand all the time and lead them thru a couple deals untill their knees quit wobbling and they don't fall anymore.
Gee that is how I learned to walk.
Ride a bike.
Drive a car.
Rappel off cliffs.
Windsurf.
Skydive.
Talk before huge groups. Anybody need a speaker at a seminar?
Hey In my life I could give a seminar before a nudist colony for a check.
Hell I might even do that one free just to get past that fear.... :roll:
Point is everything we do that we have never done before triggers flight or fight response. Recognize this and do it anyway.
Take Nike's Advice..........JUST DO IT!
Just be afraid of the guys who want to charge you up front to teach you before you have made anything.
My thoughts on FEAR
Brice
Take Nike's Advice..........JUST DO IT!
"Just do it" might be good advice if your goal in life is to speak at a nudist colony, but it is TERRIBLE advice for starting a business as a real estate investor. The truth is that the vast majority of newbies that "Just Do It" fail in a relatively short period of time. The real estate investing business is very unforgiving of mistakes.
Mike
Sorry guys No offense but I think I just went on a tirade don't take it wrong.....I had lots of people tell me I would never be succesful in this business......today people are always telling me ....you can't do this or that for various reasons......It isn't customarily done that way.....the client will never do that.......people in this neck of the country don't do that....there is a law against that......(((I don't accept such things....it's time to break custom......at least offer it to the client, give them a chance to say what they will do....in this neck of the country someone will.....and as far as legality tell me the legal way to do what i want don't tell me it is illegal))))) I look for solutions and am very optomistic....I don't accept failure it isn't an option.
Anyone can make money in real estate......ANYONE new investors or old salts.........
You know that all of life is unforgiving.
I learned from the school of hard knocks.
Mistakes, hmmm I've made a few ....is an understatement.
JUST DO IT ..............is how we get over those fears.
If you don't take the first step then you can never finish the journey because you will never start.
L....abor Luck is never had by those who do nothing.
U....nder
C....orrect
K....owlege
When I say JUST DO IT...........I truely mean that
It must be followed up with NEVER GIVE UP NEVER SURRENDER....
This business eats up long time investors too.
70 percent of the millionaires in this country come from real estate investing.
Your in the game like it or not
at the age of 65 only 3 percent of the population will be financially independent.
Your in the game like it or not ....will you be the 3% or the 97% that is dead broke or still working?
Your in the game you might as well play where you have the greatest chance of success.
It is all about risk assesment in my humble opinion
I prefer to risk everything I have because if i lose what I have I will have it all back in under 5 years most likely in 2 years.
If I don't risk it I know I will be broke and unable to retire.
Hmmm what is retirement......I don't think Ill ever do that one because my definition of retirement is to be able to go where I want when I want and do what ever I want to do.........So I make a few phone calls during the day and make more money for doing so......I will never quit teaching people This business because It has made me a truely free man.
One will never be free until one has no attachments in life because attachments by the nature of the word attach us or tie us down......
I am not attached to my money or things....I can't take them with me
I am not attached to life.......when i die my body stays here
I am not attached to my wife and son .....I love them but they are their own spirits.......
If we had never taken the risk to travel to the moon we would have never reaped the benifits of such a great undertaking..
Sorry but I believe that all things are possible to him that believe...
I guess it's kind of a sensitive subject for me. :lol:
Forgive the long windedness but I feel it's important not to scare people too much especially since this is such a simple easy business to do.
I have never done anything in my life that was so easy as investing in real estate.
according to Ron Legrand you should buy a few books, while getting started. He mentioned get out there and make a mess, you can always clean it up later. Don't know if i agree, but that type logic sure got me off the fence. I think he means, don't let education stop you from getting started. Also don't let lack of money hold you back because the person who said it takes money to make money was broke. That also helped me get started.
The less I do, the more I make - RIDICULOUS!
It's equally ridiculous to get out there and make a mess. You can't always clean it up later. Many (most) new real estate investors fail in a short period of time because they didn't know what they were doing. In my opinion, it is absolutely inexcusable not to learn the business before you buy. With a little effort, you can learn it with very little money.
Mike
investers sounding desperate or motivated to buy on here are posting on here what they want to buy in detail, but, i get great deals, exactly what they want, and then ??????? nothing! im even skeptical of posting these two new deals im gonna get under contract on here, and they are the best deals money can buy i think,,,owned outright free and clear, movein ready at a huge dicount, one is over 70% below market,,and if i post em, i might get alot of reviews but probably no replies like the ones thats already posted!!! its really the people who has the money are the ones scared of what?? if there in this to buy an investement, to make more money on that investment, isn't that is why were doing this? or are they all talk and no show! its all about the risk!
THE BIGGEST RISK OF ALL, IS NOT TAKING ONE!!!
There is a bottom line here. As far as investment is concerned, it is better NOT to do something than get into something you don't understand--same goes with flying an airplane.
I have seen too many people crash just "Going for it". Everyone I know who has made it has done their homework.
Dwayne
justifying isn't going to get it.
You have to take it little by little, one step at a time. Doing a list to be done is a lot different from Doing a list of things that has to get done
You must start somewhere.....there is no time like the present......What is the worst that can happen........Bankruptcy........big deal then you come back and learn to do it with no credit and no money.....the important thing is to start and never give up......get knocked down get back up....keep getting up untill you have learned the lessons and are where you want to be.
If someone knocks you down and you do not get up you just lost your freedom.......
Most are full of excuses and most will have excuses for why they never achieved anything in life.....
the only reason is they had excuses
Excuse and what wouldnt have happened if they were made.
the moon is too far away.
It will cost to much money.
no one will ever beat mark spitz record.
columbus .....you will fall off the edge of the earth.
orville and wilbur
if man was made to fly god would have given him wings
Nuclear power..
Jet engines
The internet
television
Las Vegas
The pyramids
the great wall of china
the telephone
the electric light
even much simpler thing in life like
the clapper
slinky
skate boards
Where would we be if EVERYONE made excuses
Can the moderator please delete Dwayne Buckners post, it's all positive here on my thread except him. I think he's scared of "flying." I dont want his attitude to rub off on anyone. ha
I hope you were just joking about deleting Dwayne's post. It seems perfectly relevant to me.
If I had known you did not want a serious reply to your post, I would not have replied.
Look at the posts of the well-season investors on this site including the moderator of this thread. I have learned a lot from them, because they approach deals by a process of analyzing them and using their experience. If someone asked to have their deal analyzed and the response to the post was GO FOR IT; DON'T HAVE ANALYSIS PARALYSIS; I would not take that person seriously. To paraphrase MikeOh, this business can be very unforgiving.
The reason I chimed in on this post was because I have seen people have consistently terrible results, when they let emotion rule their investing. Cute one-liners don't take the place of doing your homework. One example. I know a couple who about three years ago got on the speculation bandwagon. They were not familiar with investment. I make it rule not to get involved with other's financial business, but I saw they were about to make a serious and most likely irreversible mistake. They were just getting ready to retire, had an ok and solid retirement, but "wanted more", so they got the idea to buy rental properties. Long story short, they started out with one home and ended up with four! They used savings, HELOCs and everything they could get their hands on and ended up putting ten times their annual income into these properties. It doesn't matter what the investment is, that is just too much exposure in one investment area. They were open about their plan so I was able to ask them some questions. Every reply was emotionally based and sounded like something they got off a misguided talk show. Before they finished the deals, I asked if they knew that real estate can depreciate; "Oh no, real estate only goes up". I almost pleaded with them to please have a competent investor look over their deals; it was obvious they were not doing the math. Again, I got more emotionally charged We are Going for it quips from them, and I was even seen as being negative. They were on a Feel Good roll and wanted to stay there. So they got into highly negative cash flowing properties (on an over 700K investment, they get about 3K in rent!) and now the houses (in Ca) are not worth anywhere near what they paid for them. They bought at the top of the bubble, paid full retail and fully rehabbed (down to the studs) four older homes. They put in upgraded carpets and appliances and now have piles of kids and dogs and cats in the rentals. A good part of the investment was made through a HELOC (with an option ARM) on their primary home in Stockton Ca, which is now underwater and at the bottom of the sea. They planned to sell that house about this time and clear off the HELOC, which obviously isn't going to happen now, and they are paying less than the interest rate on their option ARM just to get by. They built a financial house of Cards, that has had the bottom cards pulled out. Can you imagine the nightmare they are living in because they Went for It? There was no analysis paralysis here!
These people are not alone! A high number of of Alt-A loans that are coming up for adjustment are Non-owner Occupied homes. They only saw the positive side of their investment and did not look at it the whole picture. This was so avoidable for people who said Just Go for IT instead of getting into something they didn't understand.
Oh these neighbors. They are not retiring--not with loans out until their 90's!. In fact, she has picked up another job to subsidize the month-to-month loss. Retire and travel has become--get another job. They have painted themselves into a very dark corner. A corner where they are waiting for their exotic loan to adjust. Then sadly that extra job won't be enough.
I have made my investments mistake, but success came when I learned from them. Instead of getting out the Pom Poms or watching someone on TV give another sickening Feel Good speech, I use my calculator, consult with solid sources and understand my investment--whatever it is.
Dwayne
PS: My airplane; I fly a Cherokee Piper. For those of you who only focused in on the "flying" comment in my original post, you missed the point.
the people that you refer too obviously didn't come here or other forums to learn about investing. it seems like they didn't even pick up a book. its good to educate yourself, but don't just sit on the sidelines waiting until you figure everything out.
speculating is not an investment strategey, its just taking an uneducated approach, "i hear all the good news now its time for me to jump in.".
you can't speculate and i think the poster knows better than that as well as all the views of this thread. coming to forums like this is what separates the speculators from the ones that really want to build wealth.
I don't know much, but most of what I have learned was by doing it wrong.
I got the point on the flying analogy.......
It makes sense....
BUT
Anytime someone says but it means they don't agree......
in this case I agree but have something to add.............
BUT
If you do not know how to fly you can still get in an airplane and go from point A to B
You just need an experienced Pilot
If you do not know Find Someone who does........
Find a way to enlist their knowledge
Pay them if it neccessary
But get the knowledge.
Most people could learn to fly in a single hour of instruction.
Landing may take only 10 hours the min requirement to solo
40 hours min to be certified.
Cost 5 to 7 K $
Of course your learning to fly shouldn't end there....
Flying is easy
Taking off a bit harder
Landing the hardest
Investing First Deal
Difficult to get off the ground
easy once you have a property to hold or rehab....like flying
Landing.....the most difficult ....getting out of the deal with a profit.
In Investing As In Flying
You should plan your trip before you leave the ground.
Inspect the vehicle to be sure nothing is wrong with it.
File your flight plan (business plan)
Be sure you have enough fuel (funds) to reach your destination with some reserves.
Be ready to abort your landing if it dosen't look right....(do not contract a sale or rent to tenants if everything isn't looking right)
Once you have done your first flight the next will be easier and so on.
Just don't quit learning.
And because you have had a scare don't quit learn from it so you won't encounter the same situation again.
Brice, You are so right! It is easy to take off in airplane, but just try landing it. It is the same with investment. Easy to get in to and easy to crash and burn if you don't know how to land. Try cleaning up that mess. You may recall the night that JF Kennedy Jr took off into the fog. The experienced pilots at the airport said as Kennedy lifted off, "Kennedy is going to kill himself". They knew he had gotten into situation that was way above his ability to deal with.
As for Donte, I will give you a one-liner (something you apparently relate to), that jumps back to the original post--please read that. Looking at the current state of the economy of foreclosures, over-analyzing of investment properties was not the problem.
Even with the best analysis, properties can still go negative for an unseen reasons--you can count on that. The best of the investors on BP consider all the angles. This is not an easy business to live in long-term, but if you approach it like the moderators here, you will have a much better chance of being successful than GOING FOR IT, when you don't fully understand what you are doing.