Dallas-Fort Worth Real Estate Investor Club

Tip of The Month

  • 09 Dec 2009 6:58 AM
    Message # 254728
    Deleted user
    I thought about coping a link here, but sometimes that doesn't work well. So here goes!

    Real Estate Investing - One of the Oldest Lies in the Book

    You may have heard that wealthy people are wealthy because they make decisions quickly. This is true, and it is one of the most misused “facts” out there.

    Don’t Believe Them
    I’ve heard this used in a number of settings, but most often at guru real estate seminars. The presenter at the front of the room will inform you that one of the defining characteristics of the wealthy is that they make decisions quickly. Thus, if you want to be wealthy, you’ve got to stop thinking about whether or not you can afford to go to the seminar or boot camp that they are selling and you must go to the back of the room RIGHT NOW to buy their seminar or boot camp. Because the wealthy jump on opportunities when they see them, right?

    Let’s shed some light on this situation, shall we?

    Not long ago an acquaintance of mine gave me a call and asked if I’d be interested in helping him fund a resort project. That’s not what I do particularly, but I could certainly look it over and give him a quick decision or pass it on to others in my network.

    He then told me about a deal where I could invest in a gold mine in the Congo. That’s right–gold in the Congo. The rate of return was great if I were to put money in it, but what in the world do I know about mining gold in the Congo? Absolutely nothing!

    A 20-year real estate veteran can look at a house and decide if they’re going to buy it within a few minutes. Place an opportunity to buy into a gold mine in the Congo in front of them and they won’t make a split decision on it. If they wanted to expand into gold mine investing, they’ll study it out over days, weeks, or months before they start making decisions involving money.

    Moral of the Story
    The wealthy only make quick decisions in areas they are experts on. If anyone is trying to pressure you into making a quick decision and you don’t have the experience to know if it’s good or not, the decision should likely be “no”.

    I can’t think of a single time I’ve regretted turning down someone who pressured me into making a purchase (especially a large purchase). If I’m at a real estate seminar and they cut their seminar price by 80% and start laying on the “once-in-a-lifetime” pitch, I’ll go home and think about it. Most of the time I wake up the next morning glad I didn’t jump at that opportunity. If I still want what they have a week later, I can always fly to the next city they’re presenting in and get the special price at that time. You will always have another chance at a good thing.

    Your First Deal
    This includes your first real estate deal. Sometimes beginning investors are so gung-ho about getting their first deal under their belt that they dive at the first opportunity they find. That’s admirable, but there’s a higher than likely chance it won’t turn out well.

    It’s okay to make decisions slowly. Yes, good deals will pass you by at first but guess what? As you get better at this you’ll find that the deal of the century comes along about once a week. It’s true, but it’s only after you’ve studied many deals that you will be able to tell the difference between a great deal and a mediocre one.

    You want to make your first deal a great one. It’s worth the wait as your knowledge and experience catches up to your ambition.

    I saw this from:
    -Jarom Adair
    Real Estate Investing for Beginners

  • 10 Dec 2009 10:51 AM
    Reply # 255369 on 254728
    Robin Carriger (Administrator)
    I agree with about 90% of this article.  However, the flip side of the coin is that if you get caught up in "analysis paralysis," you'll never do a deal.  You may feel better the next day that you didn't sign up, but do you really feel good if you never make a big decision?  I don't.  It makes me feel empty; wondering "what if."  I spent over $20K myself for real estate guru classes several years ago, and I experienced a tremendous amount of fear and turmoil over it before, during, and after that decision, but it was one of the best things I've ever done in my life.  The momentum of the step of faith we took back then got us off to a huge start, and we've never looked back.  Are our results typical?  Probably not.  Why not?  Probably because most people don't employ the "failure is not an option" approach like we did.  It's incredible to me that any one who's paid $20K for guru classes doesn't have that same intensity.  In fact, without that kind of drive, I'm not sure how any one ever achieves anything big.  I'm not saying that any one should signup and pay huge money for classes like we did, but I am saying that you need to have some skin in the game at some point.  If you're like me, the bigger the risk you take; the more motivated you'll be to make sure your investment is successful.  Don't be a fool, but get educated, and then take big, bold steps toward your success!
  • 11 Dec 2009 8:03 AM
    Reply # 255673 on 254728
    Deleted user
    Robin, I truly agree with you. Most people fail because they are afraid of failure! One of the best ways to succeed is to find people who are successful doing what you want to do, then find a way to help them. There are many books on real estate investing at your library that will tell you what to do and how to do it, and it is up to you to do it. If I look at the people I know in real estate investing, most of the successful people who are investing don't talk a lot about it and you may never know if you don't ask............. They aren't in the business of selling how to do it.

    This year we did our 1st true rehab. Someone ask me what do you think you'll make on it? I said, I can loose $20k and consider it training, or I can pay $20k to learn how to rehab and still not do it! We will make money on the home. My point to this person, is use the money to buy a house or loan it to an experienced person needing a re-hab loan with their agreement to help you follow the process.  Learning from more experienced people is not always sitting in a class.

    I believe that people pay big money to go to training because the marketing of the training hooks them in (it is designed to do that) - also it is something most anyone can do (even a 1st grader goes to school) --- it is easy!  What everyone can't do is put that training to practice --- it is not so easy! To be successful you actually have to work and take risk, interact with other people, not sit in a class room, read books, or read instructions on the computer.

    I do value training, don't get me wrong you must learn new information and methods to grow and develop, both personally and professionally.  My point like yours is to be selective and don't rush to the back of the room! That training will still be available tomorrow if you are really needing it. My best experience with training has been training recommend by other local real estate investors. If possible talk to someone who has taken any training you are considering and ask if the training "paid" for itself. It should!
     
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