Updated over 14 years ago on . Most recent reply
50% 0f Something Vs. 100% of $0 Nothing
There is a tendency for investors to think if they are not hitting a home run all the time, that they're not being a successful investor. I was fortunate enough to be very poor when I started investing. That meant a little bit of money went a long way with me. If I made $5k - $7k it really improving my conditions.
Being greatful for the "base hits" ultimately made a huge difference in being able to hold out and stay in the game until I was mature enough in the business to move up.
At first, I was just a house finder with a money partner. I'd make half of the deals I brought to THe table. I'd make 50% of $8K - $10K - 15K - $20K.
Back then, I would Find/Buy/Fix/SellOwnFin/SellNote... If I was starting in today's market I'd do it a bit different. I'd Find/Buy/Fix(or NOT Fix)/SellOwnFin/TurnOverNote to MoneyPartner for a fee.
You see, my wealthy money partners simply hated selling notes at a discount for Cash. I, on the on the other hand, needed the cash! It cost me some partners (not mad at each other...just different motives). In retrospect, I should have had an arrangement (in advance of the deal) to turn the note over to them for a price that worked for everyone. NORE: THIS IS A GOLDEN NUGGET!
The point is to get into a position where you can liquidate as a young investor but still stay important to, and connected to, your veteran/mentor investors who don't need to liquidate.
This Topic is in the psychology section because "psychologically" you have to look at the house flipping business with a different mind set...see yourself as an intern for the first few years. See yourself taking some baby steps and don't get disappointed when you don't make $30,000 all your own.
Using this "50% of something is better than 100% of nothing" theorey, you'll be able to sell when you need to, get ahead in the savings department, and then buy an occasional deal yourself when things are smooth and you are confident...or when the exact right deal comes along for YOU.
I had a years worth of salary when I found my very own private lender. That was when I decided to go full time.
It all started because, while I was definitely an entrepreneur, I pschologically put myself into the a worker bee mindset, so I could learn by helping others achieve their goals. I helped others make money. I found outstanding deals and then gave up 50% of the profits. I did all the the work...and gave up 50% of the profits.
In time, I got a good reputation and some much needed confidence but more importantly, I got connected, I got knowledge and eventually, I got known. All my wealthy investors' networks became my networks. Their successful mind set - became my mind set. I was working for knowledge...and it is a mind set.
Most Popular Reply
In retrospect, Bill was right to question the OP...
Turns out he came to BP to promote some eBook he had written, and when he got about as many customers as he thought he was going to get (after about 12 posts), he stopped contributing...
In other words, in my opinion, he was more interested in using people here than helping them... (just my opinion, of course)