Investors Who Do vs. Investors Who Don't
Joshua D.Pro Member
BiggerPockets Founder · HI · Member since 2008 · 16k+ posts · 5k+ votesI'm trying to figure out the difference between investors who do, and investors who just talk about investing.....
What finally motivated you to start investing in real estate? What I'm actually really interested in is what made you finally act on your interest in real estate, as opposed to merely thinking about it.
It's RISK. Some people can handle it and some can't. As I get older it's more difficult. just like jumping a ditch with a bicycle. When we're young, we don't give it much thought but as we age we remember that it hurt when we fell and we don't heal as quickly as we used to.
I'm with Jeff, sometimes opportunity knocks, sometimes it just walks past you and you have to run to the sidewalk, stop him and invite him in for a drink!
I was "lucky" enough to be in the process of a job transfer from the San Francisco area to Houston TX in the midst of the proposition 13 election in '78. If you don't know what that was, and it's current ramifications for the state of CA just google it to find out more. Prospective buyers would ask, "how much are your property taxes?". The answer was, somewhere between $700 and $2200/year, depending on how the election turns out. "Oh no! I couldn't buy a house without knowing what the taxes will be!" They all said. So I kept the house and sold it 25 years later for $270K instead of $50K. If you want to do the math, that's not an extraordary rate of return for a LT investment, but it did have a positiive cash flow for 24 of the 25 years.
Anyway, that got me off to a start. Since then I've bought and sold close to 100 properties, did rentals for a long time, now I strictly flip and seller finance them.
I try to star away from negative people and nay-sayers, although a LOT of people who've read my posts here and elselwhere think I'm pretty negative on most gurus and "get rich quick" schemes advertised today. RE is a great investment vehicle IF YOU CAN DO IT ALL YOURSELF. If you have to cut anyone else in on your profits I don't think it's that good.
99% of the people who call themselves RE investors, have never bought and will never buy an investment property. They paid for a course sold by a huckster, may have even found a few potential deals, but they lack one of the important W's, either WILL or WHEREWITHALL.
all cash
The most successful people set a goal, and follow a plan. They have a commitment to achieving their goal. If more people did that in real estate or other ways, they'd be much more successful.
Hello all...
For me the thing that got me started was MASSIVE ACTION. People always have fears of failing, looking stupid, and rejection. The people that are succesfull in life are the people that have mastered the art of ACTION.
Jared
People prioritize things in their lives. I'm not sure all people do, but most do in one way or another. I think it simply comes down to if soemone is driven enough to make the righ moves, they will. If it seems like too much of a hassle for them, they're going to re-prioritize.
Some people have got it, some dont. :wink:
Some people just get tired of being poor and seeing all their friends get wealthy. It is quite inspiring! A great motivator
Its interesting, most gurus have a sap story of how they were living out of their vehicles w/ only 5 cents to their name. In a couple of years, they are millionaires!
These people became successful because they had nothing to lose. Another way of saying it is, " Fear and failure was not an obstacle because fear and failure was already a part of their lives."
So, they took risks and with some knowledge, they made it! I think thats the key.. Secondary is, you need to make an effort.
I've made a couple of mistakes this year in investing, I passed up deals because of small issues. My mind told me not to do this, because it was not a no brainer of a deal. Guess what, the property appreciated so much this year, I would have made more than I ever imagined. I learned a lesson..
Good investing,
Bginvestor
What finally motivated you to start investing in real estate? What I'm actually really interested in is what made you finally act on your interest in real estate, as opposed to merely thinking about it.
The thing that finally got me investing was finding the right agent. And it was nothing more than dumb luck at that!
I thought about buying a house that had gone to foreclosure. I spoke with the agent that was there and made an off-hand remark that I was thinking about investing. Lo and behold, she told me that she had been investing herself for about 10 years. She and I talked (she taught me a lot) and after 3 months of searching we found a good building for me to start out with. Funny enough, it was one of the buildings that she owned. It was a rehab job that she had done herself and even at that she sold it to me for a fair (not great, but nice) price.
What finally motivated you to start investing in real estate? What I'm actually really interested in is what made you finally act on your interest in real estate, as opposed to merely thinking about it.
Every1's comments here R phenomenal! Kudos2ALL of U!
I got in, Biggerpo, after "watching"(as a mortgage broker no less) other folks stepping out onto that diving board & getting Wet (& rich) :wink:
As Investors "who DO"....they ARE!
"Investors" who "don't"....that's an oxymoron?
either You Pay & Play....or You are a "spectator" 2 the sport of getting rich...it's that simple.
Nothing else comes close,
Nothing else is more secure,
with a higher return,
where U can determine exactly how much work U're going 2 put into it,
U determine what U're going to sell/rent/1031 it for,
U determine who U'll lease option it to & 4 what amount....
there really IS nothing else Like it!
The mere fact of wanting something different for yourself. Knowing that there is a better life out there just for tha asking.
Some people are afraid to go to a REIA let alone a seminar. To these people investing is "Pie in the Sky".
Those that do...do
my 2 sense
For me it was the realization that just standing on the sidelines wasn't going to make me any money. Action was what I needed to take. I joined my local REI Association, started networking and found an investment group within the association I was comfortable with. Investing money within a group is an excellent way to get some first hand knowledge that you can use in future deals on your own.
My sister bought in the 70's and I have invested off and on. When my daughter got out of college with too much debt I told her real estate is the ONLY way she can retire this debt. I helped her buy a great bungalow for $110K, she took a roommate and made the mortgage payment...a year later sold it for $135k and bought something bigger in a better block.
She spent a fortune rehabbing/living in that one..and after 5 years took on the financing. She's building a large house on the coast right now because she learned from the small investments that really aren't small anymore.
She's been in real estate for 8 years now and the triplex will be her only retirement plus there's the cash flow. It's great to help your kid learn early on about real estate. Gives them something $$$ can't buy.
My story probably wouldn't make a late-night info-mercial. I was motivated by what I didn't want. I was sick and tired of being sick and tired. I lost money on my first deal. I did my second deal because I HAD TO (hey, I lost money on my first deal and I had to get it back!). So, my career began and was motivated by a failure. I eventually persisted and ironed out the wrinkles and now pretty much make money on every deal. I've had some slim ones, but I haven't lost since those first two. (I didn't really lose on the second one except if you count that it was a break even minus my time and effort after deal number one).
Believe it or not, it was Robert Kiyosaki's "Rich Dad Poor Dad" book. That book totally opened up my eyes back in 2000. I did my first deal that year and my partners and I have bought dozens of properties since.
And I was so bad at it back then (overpaid!), but once you have the first purchase behind you, it gets much easier.
I grew up in a family that didn't have a lot of money and my dad was laid off quite a bit. So when all my friends were walking around in their new leather shoes after Christmas, I was walking around in my converse chucks. I didn't want my children to have to live a life with nothing. I paid for college with a credit card. Believe it or not, I got interested when I saw Carlton Sheets on TV. I later found that most of those deals do not work, but he inspired me. I made several offers from what I learned from Carleton and people laughed at me. I then ran into a Realtor that helped me out a little bit and I was on my way.
I don't believe in the TV informercials either but it is motivating to catch them on TV and see the deals people talk about. I am sure most are not real deals, but if you take out the deal, the concept of making a lot of money in Real Estate is real! It takes a while but very possible to retire rich one day!
i did not read all the responses - it's late, but great question.
simple answer for me:
risk reduction/elimination
how?
slowing down
education
building operating funds
approaching rei with entrepreneur attitude.
What finally motivated you to start investing in real estate? What I'm actually really interested in is what made you finally act on your interest in real estate, as opposed to merely thinking about it.
I have been pondering this same subject, it seems there are endless people who know what to do, but very few who do what they know.
Its in those moments of living in the now that people begin to move forward. People need to begin to think more like 5 year olds. If you want to learn how to take action watch a 5 year old. If they want a friend they go talk to people, if they want a cookie they find one, if they are mad at you they tell you. Adults should use this same philosophy, if you want to invest start investing.
Too many people spend all of their waking hours in analysis paralysis, getting ready to get ready, preparing to prepare, Start doing something besides reading. One of the main factors that moved me forward in investing was
Action
Compensates
Tremedously
Act, do something, anything to move you toward where you want to go. This is not some motivational thing that I read, it is just what I have found to be true. Action is what makes you the money. You can know all of the real estate rules in the world but until you take action nothing will happen.
what if you take the wrong action?
i'm not saying that people shouldn't DO. DOING is what moves you and gives you the experience.
you can't learn to ride a bike by reading about it - you have to DO IT.
but when people are taking out HELOC's and borrowing 1000's of dollars or "investing" their life savings WITHOUT actually learning about what "investing" is really all about - that's just not a good thing.
i agree that what kids do is amazing. they just live the day TO THE FULLEST. now that's something i can really get behind.
"analysis paralysis" does happen to many people. but learning about investing is an entirely different realm.
the financial world around us passes MANY of us right by...and i'm not talking about just real estate investing...i'm talking about how money really works and what money really is!
most people live their whole lives thinking that earned income is the only way - these people believe simply in the value of money and never take into the account portfolio income and PASSIVE INCOME.
i believe that many people on these forums and out there getting all pumped up about being a real estate millionaire is awesome, but i feel that alot of them need to educate themselves FIRST about the basics of finances and business before running out and buying a junker to "rehab" and sell.
DO, BUT PREPARE TO AT THE VERY LEAST, DO IT SMART.
I would completely agree. Applied knowledge is power. You have to have the knowledge to apply, and you have to actually apply the knowledge you have. Both steps are integral in any endeavor.
I personally knew very little when I started investing in real estate. I learned the hard way, and though that does give me a ton of real world experience in investing, it cost me a lot of time and money to learn what I now know. I didn't read any real estate investing books, or investigate forums like this one, or take any guru courses.
I would completely recommend that a person interested in real estate investing or any business endeavor get as much knowledge about what you are planning on doing for as cheap a price as feasible. Now set your initial action goals also. Don't take 5 years to learn before you start. Taking a couple months of intensive researching can do the trick to start investing. You can also start looking at property now. Looking is free, and looking at properties and interacting with the business can help you start your learning process.
Remember, applied knowledge is power. Get the knowledge and start applying it.
I think a person should take 2 or 3 months to learn about real estate investing and find out what will work and what will not work for them. There is just nothing more sad to me than when a 60 something calls me up to start investing and he/she has been "thinking about it for years", or when I speak with people and they say that cant afford to invest. As far as im concerned you cant afford not to invest. Do something, if you have no money learn to wholesale, or lease option. Sit down with some investors who have done what you want to do and do what they did. I only say investing is easy because I can do it, If I can do it anyone can.
When I refer to do something, I dont mean run out and buy the first property, but lay out your road map to where you want to be and get on it. Set your goal and break it down into large steps then break those large steps into baby steps. Baby steps are great because if you break them down small enough, you can go at each one with the confidence that you need to get each one done. You can walk around the U.S if you want, as long as you just keep taking one more step.
You do not "think about real estate investing" for more than 2 or 3 months, if no action is taken after 2 or 3 months you are no longer "thinking about real estate investing" you are now thinking about why not to do real estate investing.
I used to think that real estate investing was something only wealthy people could afford to so. The rest of us struggles to afford a second "vacation" home and called it a real estate investment. When I met my husband he had done a lot of reading from various "gurus: and showed me some real life ways that non-wealthy people can still invest in real estate.
I was so attracted to it because I am one of those people who never had a career, but just a job. I have no calling. I have had jobs in several fields and not really liked any of them because I simply do not like working for other people. What I really want to be is a philanthropist. I know it sounds funny, but I want to help people, a lot of people, and on a large scale. What people like Bill Gates George Soros and Warren Buffet have been able to do, just amazes me.
I have found real estate investing to be a very viable means to an end.
I was inspired by FAILURE!
Casey Serin
iamfacingforeclosure.com
---
Just kidding... When I found out my new wife shared my lifelong dream,
we found and forced a deal (we could barely afford to do it).
For those of you who haven't discovered Casey (link above) go check it
out. It's funny, heartbreaking, maddening, and plain unbelieveable!
-Terrence
That's exactly what got me started. Along with a little desperation.
I was working for a family member as a salesperson on a land development. When that project was done, I didn't want to go back to a regular job so I started a small development of my own. Luckily I learned from other's mistakes first before I made too many of my own.
I actually believe that individual deals are often due to luck, but overall success is not.
To be honest with you. What got me interested is that one day I would like to have a family. I would like to have time for my family and the financial means to do so. I know SO MANY people who have at least 2 kids and are living from paycheck to paycheck. I know people so far in debt that they plan 2 paychecks ahead for bills that they owe on. Just looking at that is too much stress for me. So while it is just me, I wanna work smarter not harder.
I'm trying to awaken my financial genius. :mrgreen: