Do I need to set myself on fire? Gouge my eye out?

Question

I have been working this real estate game for almost 10 months now and after several contracts that expired, missed funding on deals, and other sorted road blocks. I am no better today than I was when I began this venture. I have not seen one win yet. My frustration level has never been higher. I live/work in the Charlotte, NC market. I am looking for strong mentor in the area. Someone that is involved in this game first hand, and has real world experience. I would like to shadow him/her on a number of deals to see this process all the way through.

Michael Bowman · Answer

we spoke a couple months ago and I told you the model you were trying to pull off is a waste of time. You can't get a $35,000 house for $6,000 in this market. Your criteria is flawed. All the investors that I represent are slammed right there. I personally have 6 flips going on presently. The market is hot, and your numbers aren't conducive to a hot market.

I'd suggest taking a step back. Work on getting yourself more fundable from a banks perspective. These lenders you are talking too won't cut it.

I assure you, you don't need a mentor. You need to put your head to the grindstone, and work 110 hours a week until you have the cash to put a down payment on a $100k flip. Start small and invest the profits back into the business. The sacrifice of success is something very few people will take on.

Stick with it. 6 years ago I was a janitor at a real estate office making $25/night. Now I have a very successful real estate business with very little debt. Hard work and patience will get you there.

Alex Franks · Answer

You do not need a mentor you need a realistic approach to investing. When I read your last post. How can one buy, and sell locally, nationally. With out knowing their own market.  Refocus and start over , what ever course or Guru you are following. Throw that crap out.  I  am sorry to be so straight forward. I read the other post that you are looking for deals in Multiple states. Promise I might sound like the biggest ass. On the other hand I am going to save you alot more headaches. Reality you need to focus on a specific area. Keep in mind very hard for even experience folks to find deals. So when I see you posting crap that you are looking for deals in 15 different states. Come on this is a waste of your time.

Get to the local meeting , walk 100 homes in this market. I don't care what class asset. All types new construction, rehabs, rentals, educate your self on our numbers locally.

Alex

Joel Owens · Answer

The deals are hard to find but when you find them or negotiate them it is worth it.

Where do you currently work?

If you could go work for an investors company you would get paid to do a job there plus learn on the job experience of how they are closing deals and making money.

If you have to much debt where you need a higher amount of money then what moving to work for a company like that pays to start then maybe you have to work on chopping down debt and becoming more of a saver over a borrower.

Another alternative is to find a deal and then find a partner with you. A smaller slice of something is better than a larger potential slice of something that doesn't exist.

When I get inquiries from investors on the commercial side my number one factor is " Do they have the capability to buy and are they realistic for market conditions where they want to purchase? "

Everyone wants a deal and to negotiate a little and most sellers expect that but if someone wants something way off what the market is doing that is chasing a unicorn. If an investor wants to spend a year chasing a 1 in 1,000 property that may never show up more power to them but I won't be putting  all of my resources and time behind that for my business.

Brian Compton · Answer

The (Charlotte) Hobby Millionaire REI group on meetup.com is meeting tonight in Ballantyne. You should go there and try to network and connect with folks. Attend as many local meetups as possible and surely you will be able to find a mentor that will take you under their wing.

I'm brand new to REI so I plan on doing something similar. I'm unable to attend the event tonight but am keeping my eye out on others as they come up. I'll keep you posted and hopefully we can help each other out along the way.

--Brian

Account Closed · Answer

Start contacting people in your area here on BiggerPockets.  Make sure you've got something to offer as value for what you'll be getting.Not sure what your story is...How many deals have you put under contract that have fallen through?

Karen Margrave · Answer

I think it's always best to work in the area that you KNOW, because there is much less risk. However; the question is, how well do you know your local market? Get out and go to Open Houses, look at what houses are listed for, how big is the house, the lot? What kind of finishes are included (expected) at the price point?

If you don't have the money to do a house yourself, is the opportunities for Condos? Do you need a partner? Do you have any experience at all in finance, construction, real estate etc.? If not, you may be able to get a job working for someone and begin learning the basics and building your foundation.

This is not an easy business, and the low hanging fruit has been taken, so you have to have the commitment to stick with it. However; get your ducks in a row so that you're not just spinning your wheels. Good luck!

Gino Barbaro · Answer

@Carlos Diaz

Hi Carlos

What kind of deals are you focusing on?  You need to pick a niche and a market and focus all your energies there.  You've only been doing it for 10 months.  Not a real long time, especially if you haven't established a business plan. And you are better than you were 10 months ago.  You know what DOESN'T work

PM me if you are looking for help

Gino

David Dachtera · Answer

@Carlos Diaz,

Well, as Tony Robbins teaches, "When what you're doing isn't working, change your approach". There's also, "Taking the same actions over and over and expecting the results to change is the definition of insanity", usually attributed to Albert Einstein so I call it "The Einstein Principle".

Perhaps some education may be in order. Check my profile, then PM me if I can be of any help.

David J Dachtera

"Success is not a destination. Failure is not an event. Success is a process, failure is a choice."- DJ Benedict

Greg B. · Answer

Look at it this way...you're 10 months closer to cashing in on your first deal

And probably way more educated on this stuff than you were 10 months ago

Keep plugging away

Do I need to set myself on fire? Gouge my eye out?

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