What's Your Excuse For Not Investing?

[ericmedem]

You can either make excuses or make progress, but never both!


Every year I talk to countess "Investors" who:

    * Have been thinking about investing
    * Have been reading about investing
    * Have a friend who failed at investing so that means you'll fail (The elusive friend)
    * Are saving for a down payment
    * Are Waiting for rates to go down
    * Are Waiting to finish their real estate course
    * Are Waiting for their mentor to tell them to buy
    * Are Waiting for summer (insert any season), to get started
    * Are Waiting for the market to straighten out
    * Waiting till they can afford it
    * Waiting till they get a promotion
    * Waiting till their friend or relative can partner with them
    * Trying to read just one more book, then they will get going
    * Waiting till they buy their own house
    * Waiting till they get a raise
    * Waiting to graduate from college
    * Waiting till their friend or family member becomes a realtor
    * Waiting to be married
    * Waiting till they contribute their maximum to a 401k
    * Waiting till they get done working on their own home

Then after giving me their excuse for waiting to start investing they ask:

    * What happens if the toilet gets clogged?
    * What happens if the furnace gos bad?
    * What happens if tenant ruins the house?
    * What happens if the roof leaks?
    * What happens if the tenant doesn't pay?
    * What happens if someone breaks a window?
    * What happens if someone leaves a broken down car at the house?


If they don't have the question, they usually tell me about a friend or relative who had one of the above happen.

The questions that they SHOULD be asking but NEVER do:

    * What happens if I don't start investing now?
    * How many homes do I need to buy in order to retire comfortably?
    * If you could share with me your best idea, what would it be?
    * What kind of money am I leaving on the table by not investing?
    * How does the stock market compare to real estate? (that doesn't even deserve an answer)
    * How can I use real estate to make my dreams come true?
    * What would I do with an extra $500 or even $5,000 a month in cash flow?
    * How will my family react when I retire 10-20 years earlier?
    * What are my broke friends going to think when I show up in my Porsche?


99% of people share this problem: If a family member or friend needed $500, most people would need a ton of convincing to loan it to them, and if it wasn't repaid it would surely be a BIG problem, some people would even lose friend over such a small amount of money. But that same person could care less about the $500-$10,000 a month that they will lose each and every month for the rest of their life by not investing in real estate.

Why doesn't anybody pay attention to their opportunity cost?

I used to be a tight a##, then one day I got to thinking.

What if instead of worrying about ways to save money, I started just focusing on ways to make it?

That simple question changed my whole life.

Hopefully most of you are making progress and not excuses, but......

[Hoosier4life2005]

My age.   

[kdhastedt]

My age.   

At this point, Hoosier, you have a valid excuse.  The good news is that you're making good use of the time until your 18th!

Keith

[Tien]

Age is an excuse.


Get someone older, anybody to sign papers for you.

[Hoosier4life2005]

Age is an excuse.


Get someone older, anybody to sign papers for you.

Believe me, ive tried.

I JUST turned 17, and nobody is willing to put their name on contract that was masterminded by somebody my age.  Its not a big deal, im still young.  When im 17 and 8 months old, im gonna search hardcore for a good deal, the day im 18 that sucker will be mine!



As for right now im just going to sit back and read and learn as much as I can.

(Sits back and goes back to the main forum page).

www.myspace.com/hoosierluv   check me out.


Lets not make this thread about me though.

[tei]

Age is an excuse.


Get someone older, anybody to sign papers for you.

I was just going to say that.
@ericmedem: I was just talking about that last night w/ my wife but you phrased it right "opportunity cost"
My excuse is that I need to look over someone's shoulder for two wholesale deals but I can't seem to find a mentor.

[rookieNYC]

but I can't seem to find a mentor.

This fourm has tons of them..It doesn't matter how many mentors people have,the fear of investing *money* is what stops newbies..When you are playing with scared money everything goes wrong..

[propertymanager]

...on the other hand, the vast majority of people in the United States simply don't have what it takes to be successful real estate investors.  At least a fourth of them are VICTIMS who want a socialist government to provide for their every need.  As we all know, the vast majority of people who do try, fail in a short period of time.  That is why the national gurus are increasingly offering to reimburse the cost of their course or bootcamp if the student actually does a deal.  They know that 95% of the students will NEVER do a deal (nor should they).  This is not only true of real estate investing, but nearly every other type of business.  So, when people come up with a lot of excuses, in many cases they are SAVING themselves tens of thousands of dollars of losses.

Let's get real here.  Unless a person is strongly self-motivated; has the ability AND willingness to learn; the persistence to overcome obstacles; some money and/or credit; and a "do whatever it takes" attitude, their chance of being successful in any business is just about ZERO!  So, while all the hype sounds great, being a real estate investor is SERIOUS BUSINESS and people can AND DO lose money.  

I'm not trying to discourage anyone, but serious thought should be taken into starting any business.  If a decision is made to start a business, a person should do WHATEVER IT TAKES to learn everything about the business and their marketplace BEFORE starting.

Mike

It sounds nice to say that anyone can do it, but that is certainly not true.

[tei]

but I can't seem to find a mentor.

This fourm has tons of them..It doesn't matter how many mentors people have,the fear of investing *money* is what stops newbies..When you are playing with scared money everything goes wrong..

I'm in brooklyn, NY (moved here from MD about a year and half ago)and I believe you are upstate. Do you know anyone in the Bk/Queen/Long Island vicinity that would let me shadow them on one or two  wholesale deals?

[tei]

@ericmedem: What was you biggest excuse and how did you change your thinking to overcome it?
I've been reading Hoosier's post for about 3 mths now and he sincerely believes his age is his problem. It's not. I once worked for a contractor who did his first contract to clean and polish floors for a small apt building before his 18th b'day. He said he did the job but would stall the signing of the contract for about 6 months, until he turned 18. That was his solution. He said that he signed the contract on his birthday. BTW Hoosier just get your Mom, Dad, RE mentor to sign off on the contract. There has to be some adult, who believes in you enough to back you up with a signature.

[propertymanager]

There has to be some adult, who believes in you enough to back you up with a signature.

It's not just a signature!  It is a legal obligation that puts the signer at risk.

Mike

[tatertot]

A year isn't that long, so there is nothing wrong with a 17 year old using that year to study while he waits to be legal to sign a contract. My first purchase was made when I was 18, so I don't think that "young" is a detriment.  But a person does have to be able to sign a contract in order to invest in real estate.

Other than that issue, many folks aren't really cut out to do real estate. Aside from the risk, you must have the type of mind that is capable of balancing 7-8 facts and conditions at the same time.  You can't buy real estate based upon just one fact about it, and some people just can not function with multiple data.

There are also a lot of big mouths who want credit for what they are going to do without ever having to make any effort to actually do it. The world is full of people who are too lazy to pursue their dreams, but enjoy the dreams, none-the-less.

The world is also full of people who get by by trading empty promises for what they want without ever producing.

If someone never gets started with the real estate, it is because they don't really want to actually do it. They just want to talk big or dream big.

Those are the same folks you will see 40 years down the road whining about how other people are so much more fortunate than they are, and who can never understand that the "fortune" wasn't luck. People make their own "fortunate"

[MichaelQuarles]

Mike

It sounds nice to say that anyone can do it, but that is certainly not true.

Mike you are so wrong... Everyone can do it after all that is what the Governments "No child left behind" program is all about...

We can all achieve... Wait, if we all did achieve then there wouldn’t be any reason to achieve.  I think I see food lines forming already.

Mike’s right, unfortunately it is a fact that our society requires failure.  Failure feeds inspiration and with inspiration comes drive and drive creates achievement and achievement creates wealth... not necessarily in the person experiencing failure but in others viewing them. Most only want to dream… Most investors need to open up their frigging eyes and realize who they are… They are dreamers unwilling to make the sacrifice to stick to a program that sets them apart for societies normality. Unfortunately or fortunately failure is dominate and looked at as “where you are supposed to be”.  

I was reminded this last week by my boxing coach that the difference between a great boxer and anyone else is running 5 miles at 5:30am, stadiums at 10:am, 5 rounds at 2:pm and starving yourself after 4:pm. Real estate investing is the same if you are not willing to put the work in you will never succeed…
Wanting to is not enough..

Michael

[tei]

@propertymanger & tatertot: I agree with both of you that most people will talk about it but won't take action. However, everyone doesn't learn the same! I can read a book and then build a computer. I have a friend that won't last 2sec reading the book but show him, and answer his questions while doing it and its locked for life with him. I think that the take these 10 CD and 500 page manual on RE investing will only work for 5% of the population, maybe less. The ability to implement what you read is not taught in our school system. All you really do in memorize for a test. With real estate you need the manual and DVD/CDs but you also need to see/hear/feel how someone approaches a seller, what they say, how they say it, their expression, their intonation and afterwards on the drive home ask why they only went $5k more than MAO but not $10k. What's the reasoning for that? What was the justification for walking away when the seller said no, but leaving an ALL CASH written offer for 40% of FMV that can close in 7-14 days?
I think those are things you have to learn in a real life sort of way.

[propertymanager]

Mike you are so wrong... Everyone can do it after all that is what the Governments "No child left behind" program is all about...

Michael,

I stand corrected and I now see where I made my mistake.  When Billary gets into the oval oriface, then we'll have a "village to raise a child" or shoud I say a "village to raise an investor".  Everyone will have the RIGHT to be successful (or at least to get a government handout from those that are).

With real estate you need the manual and DVD/CDs but you also need to see/hear/feel how someone approaches a seller, what they say, how they say it, their expression, their intonation and afterwards on the drive home ask why they only went $5k more than MAO but not $10k.

Tei,

If a person needs that level of hand-holding, they're just not going to make it in business.  Like Tatertot accurately said, not everyone is cut out to do real estate (or any other business for that matter).  Being in business is about controlling chaos and being able to adapt to constant change.  That is one of the main reasons that the vast majority of people will never succeed in business.  Most people simply can not deal with all the variables. 

Like many investors, I've had many people  who wanted to come to my location to shadow me.  One even wanted to move here!  In every case, I've said no.  The reason isn't that I don't want to help, but rather that there would be nothing for them to do - at least not the types of things they are wanting to learn.  You talk about  wanting to shadow an investor as they approach a seller - that would be impossible for someone shadowing me, because I never know when I will meet such a seller.  For example, I found out about the last apartment building I bought while I was talking to a neighbor.  Unless someone was following me 24/7, there would be almost no chance that they would be present when I had such an encounter with a seller.    Other times, someone will call me with a deal while I am sitting at home watching TV.  Again, no opportunity for someone to shadow!

what they say, how they say it, their expression, their intonation

You're overanalyzing this stuff.  When you're dealing with DESPERATE sellers, expression and intonation don't matter.  When someone calls me with a potential deal, I'm very blunt and to the point.  I want to know the address; how many bedrooms it has; and how much they want for it.  I know my market and therefore will immediately know if it's a deal or not.  My phone conversation with a seller rarely lasts longer than 2 minutes.  There's no script; no bonding; no gimmicks!  All I care about is do they want to sell it at MY PRICE!  If not, I move on!

In addition, this business is not what most people believe.  I typically work 3-4 hours per day.  One day, that might be fixing a toilet or a leaking faucet.  Another day, it's shoveling snow at my apartment buildings.  Very boring and mundane!  The rest of the day is spent riding my motorcycle, hanging out with my wife, watching the news on tv, etc.  Nothing to be learned there!

Good Luck,

Mike