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Category: Inspirational Current Grade: B Total Views: 1139 Member Comments: 6 |
Posted on: 04/16/2008 Posted by: DenverCapitalInvestments Blog Points: 214 View all blogs >> |
Time @ REI - Well, I keep moving it because several times I thought I was going to go for it, then got distracted by either taking in more information, or life sucked more time out of me. I said in Jan 2008 I was at it 2 months, but at the time, I had been sidetracked by setting up deals with payment agreements. Then I thought I got back on track and instead worked on even more payment agreements being a bird-dog.
As of date, I STILL have most of the bird-dog deals (total of 4 out of 5) in the balance. Waiting for either buyer, seller or developer to sign the deal. I have spoken with all involved, and all say the deal is still gonna go down. The total payout is about $200,000 for all.
As for looking to actually invest in a house? I JUST got serious about it 2 weeks ago. That is the date I am starting to count from.
What I have done - I found needs online and through people emailing me, and found possible solutions.
Bird dogging - I joined a joint-venture agreement with a partner in Virginia. She claims she has 3 years experience in REI and had a few wealthy contacts, and she seems to know contracts very well.
So I found people needing money for projects and sent them to her. She made "Marketing payment agreements' Between the developer/investor and the funder/investor, and I split the profits 50/50 with her. So far as I stated, 4 of them are supposed to close someday.
As of now, in the 5 months I have worked to find these kind of deals, I have made ZERO.
I have also put properties on my website for sale for a fee if my website is responsible for finding the buyer.
I figured while I am learning to get my own deals, I would get to see others happen, and even make a little money while doing it.
The money I made advertising? ZERO.
All contracts ran out on the investors I advertised for except one. And it is supposed to close soon if the guy can get financing. My payout for that one deal will be $3000 for me, and $3000 for my joint venture partner.
What I learned from this approach - The mistake I made to prolong me getting my own actual deals done has been sitting and waiting for a check when everything looks like it is going to close.
Referrals and bird-dogging still looks like one way to make money, but it is hardly REI. I will still do this on the side, but from now on, watch it doesn't keep me from doing my own deals.
I will make an agreement, and work on my own deals like I don't have anything going at all. I will set it up and forget it, hoping for a surprise payout.
Networking - I have made many new contacts and believe it is the key to accelerating this business.
The past 2 weeks - I put my foot down and told myself not to rely on ANYONE. I have to make my own deals happen!
So I have got at least one lender option to get me going, continually have learned how to find and make deals, and have searched out and looked at over a dozen properties so far. I am very close to contracting one. I am making as sure as I can it is the right one.
I am checking with the networking contacts I have made, and even ran a deal through the forums here. It got shot down by those more experienced, and even more importantly, I learned why.
The most frustrating part so far - Magician investors. These are investors that are supposed to close on a deal, send you information, or return your calls. They do their magical disappearing act at random, and even at the most critical time in a deal.
They always resurface, but many times repeat the performance. I don't get it. I really don't get it.
So to summarize:
It has been about 8 months since I got interested in REI (Real Estate Investing).
I have about 3 months in listening to podcasts and reading books off and on before I decided it was for me. I was sure at this point!
Spent about 2 of those months be scared to do anything about it and wondering if I have what it takes.
About 3 more months bird-dogging (introducing buyers and sellers to each other and repackaging others deals). This at least made me FEEL like a player and helped me meet new people. It reaffirmed this IS my new career.
And about 2 weeks getting soooo fed up with my pay to pay life confirming this is my new career. I also now am sure I WILL succeed.
My enthusiasm has prompted two people to tell me they know I will be successful at this, and gotten several other interested in it themselves. The fire is lit. I can't stop thinking about making deals! I hate my job more and more because it keeps me from REI. I spend every minute after work reading about REI and looking for deals online. I have take UNPAID days from work to look at properties!
So there you are. I am more convince than ever, even without making a dime yet, I will succeed.
I am at the end of the diving board and springing up higher and higher. Stay tuned and watch my dive, and see my scores.
-Denver
BTW - I ask that this post be graded on the honest information and inspiration of this post. It can be just as valuable showing people what NOT to do.
I already know I am getting a slow start and have wasted a lot of time, I don't need an "F" to tell me that.
But I have vowed make brutally honest posts, even if it exposes some of my character flaws, because I want the newbies to see, they are not alone in their doubts, and they CAN overcome their doubts and succeed by seeing squares like me do it.
Peace!
As of date, I STILL have most of the bird-dog deals (total of 4 out of 5) in the balance. Waiting for either buyer, seller or developer to sign the deal. I have spoken with all involved, and all say the deal is still gonna go down. The total payout is about $200,000 for all.
As for looking to actually invest in a house? I JUST got serious about it 2 weeks ago. That is the date I am starting to count from.
What I have done - I found needs online and through people emailing me, and found possible solutions.
Bird dogging - I joined a joint-venture agreement with a partner in Virginia. She claims she has 3 years experience in REI and had a few wealthy contacts, and she seems to know contracts very well.
So I found people needing money for projects and sent them to her. She made "Marketing payment agreements' Between the developer/investor and the funder/investor, and I split the profits 50/50 with her. So far as I stated, 4 of them are supposed to close someday.
As of now, in the 5 months I have worked to find these kind of deals, I have made ZERO.
I have also put properties on my website for sale for a fee if my website is responsible for finding the buyer.
I figured while I am learning to get my own deals, I would get to see others happen, and even make a little money while doing it.
The money I made advertising? ZERO.
All contracts ran out on the investors I advertised for except one. And it is supposed to close soon if the guy can get financing. My payout for that one deal will be $3000 for me, and $3000 for my joint venture partner.
What I learned from this approach - The mistake I made to prolong me getting my own actual deals done has been sitting and waiting for a check when everything looks like it is going to close.
Referrals and bird-dogging still looks like one way to make money, but it is hardly REI. I will still do this on the side, but from now on, watch it doesn't keep me from doing my own deals.
I will make an agreement, and work on my own deals like I don't have anything going at all. I will set it up and forget it, hoping for a surprise payout.
Networking - I have made many new contacts and believe it is the key to accelerating this business.
The past 2 weeks - I put my foot down and told myself not to rely on ANYONE. I have to make my own deals happen!
So I have got at least one lender option to get me going, continually have learned how to find and make deals, and have searched out and looked at over a dozen properties so far. I am very close to contracting one. I am making as sure as I can it is the right one.
I am checking with the networking contacts I have made, and even ran a deal through the forums here. It got shot down by those more experienced, and even more importantly, I learned why.
The most frustrating part so far - Magician investors. These are investors that are supposed to close on a deal, send you information, or return your calls. They do their magical disappearing act at random, and even at the most critical time in a deal.
They always resurface, but many times repeat the performance. I don't get it. I really don't get it.
So to summarize:
It has been about 8 months since I got interested in REI (Real Estate Investing).
I have about 3 months in listening to podcasts and reading books off and on before I decided it was for me. I was sure at this point!
Spent about 2 of those months be scared to do anything about it and wondering if I have what it takes.
About 3 more months bird-dogging (introducing buyers and sellers to each other and repackaging others deals). This at least made me FEEL like a player and helped me meet new people. It reaffirmed this IS my new career.
And about 2 weeks getting soooo fed up with my pay to pay life confirming this is my new career. I also now am sure I WILL succeed.
My enthusiasm has prompted two people to tell me they know I will be successful at this, and gotten several other interested in it themselves. The fire is lit. I can't stop thinking about making deals! I hate my job more and more because it keeps me from REI. I spend every minute after work reading about REI and looking for deals online. I have take UNPAID days from work to look at properties!
So there you are. I am more convince than ever, even without making a dime yet, I will succeed.
I am at the end of the diving board and springing up higher and higher. Stay tuned and watch my dive, and see my scores.
-Denver
BTW - I ask that this post be graded on the honest information and inspiration of this post. It can be just as valuable showing people what NOT to do.
I already know I am getting a slow start and have wasted a lot of time, I don't need an "F" to tell me that.
But I have vowed make brutally honest posts, even if it exposes some of my character flaws, because I want the newbies to see, they are not alone in their doubts, and they CAN overcome their doubts and succeed by seeing squares like me do it.
Peace!
It is good to hear the you now recognize the BS that you have been sucked into. All the conversations about flipping deals as a bird dog when all the parties in the transaction are just flakes.
There is a big difference between posting crap on a website, having other 'talkers' tell you that they will share, that they will sign your NCND so you can get paid (which would be an illegal payment) vs. actually being a RE investor. You sound like you have turned the corner from hype to actually focusing on a repeatable business model.
Keep learning. RE investing can be like the turtle vs. the hare. The one that looks to be sprinting ahead is not always the one who is really making progress.
Good luck.
BTW - Some of the past 'F's and other low markets were from the fact that people's BS detector registered a large ping. You were standing knee deep in it but did not seem to notice. They were telling you that the deals being promoted or the advice was junk. Given what you have now reported above the lack of dollars the low scores and BS detection was correct.
That is the past so move forward.
John Corey
Denver,
Man you are on the right track. That was a well written blog, even heart felt. Let us know how things go with Todd. I can not believe he honestly took you up on the offer. I have never met any "mentor" who REALLY cared about a "student". Best of Luck! Stay in touch.
Best regards,
Dewain
And now, I have a milionaire RE coach (Todd Bockman "Millionairecoaching" to give me the fuel (knowledge) to accelerate at this.
It is a good day!
Don't give up! You have made the jump/switch most will never do. And, now that you have, you look back and think, "It wasn't that hard after all".
Systemize! Network! Include some in your profits and they will stick it though (hard to leave money on the table). Pay those who do the work well and they will continue business with you.