I just wanted to drop a note about what can happen if you are impatient.
I got tired of reading, I got tired of studying, so I decided what else was there to do, but go buy a house. Last week I found ads from what appeared to be REO buyers who were doing fast flips in my area and started doing drive buys to take cursory looks at about 15 properties and built a short list of 6. Since I was still learning about REOs I decided to look for properties that others had already bought from the banks.
With my short list in hand and no patience for more books, I looked each property up in the county tax records on the internet and found the transfer prices. This told me how much the investors had paid for the properties and also gave me an idea of the profit they were looking for on their deals. I saw that one of the investors was obviously looking for very high volumes of flips with what I felt was a very fair profit margin for his work. I also noticed 4 of his houses were on my short list, which definitely brought a smile to my face. I went ahead and called him and got access to the four houses I wanted to look at (all lock boxes, to which, he gave me the combinations to). Since the investor was out of state, he had actually seen none of the properties himself and was working from reports from local people he had video taping the houses. After looking at all four I found the one !!!
The house had long uncut grass, the screen door was rusty, one step inside and the nose was assaulted by old stale smells, and the eyes burned from the ten colors of paint on the walls BUT once the nose adjusted the smell and I put on my sunglasses, the truth became clear. The house had NOTHING wrong with it. About ten gallons of paint, rip out the carpet to expose the perfect hardwood floors below and some deodorizer and the house is ready to move into.
To keep things in perspective, at this point I had about 5 hours invested in the whole thing, not bad at all.
After looking at the house I decided on I used the tax records to see what he bought it for, I also Googled the address and found that it had been on the market for about 60 days, to me a long time for a wholesale flip.
So i decided to take a gamble and make my offer. The houses on either side sold for 45k and 43k within the last year or so, the FMV on this property is about 38k to 42k after some paint and grass cutting and I knew what the owner had paid the bank for it, the internet will provide.
Well the owner nicely told me he did not think that that would be acceptable and that he had several people looking at it over the weekend and he would call me next week. I was sure I had lost the deal, but I also thought the owner was making a fair profit and stuck to my offer. Four hours later he called back and said we have a deal if I will sign on Monday and give him a 1k deposit. I am not sure what happened, but I am thrilled I did not offer the asking price and took the gamble. I agreed and told him I would be there.
Now the problem was, I had no idea what I was doing and only went shopping out of impatience. Well, I called the academy folks who I had signed up with and told them the same story, also saying that I would love it if they bailed me out of my impatience, which they did wonderfully. A couple hours on the phone, they even looked over the contract for me, pointing out some items to review, I could not ask for more, they were great.
I do also want to say that while I said I got tired of the books, I had also read all of Dean's books twice, but was suffering from paralysis by overanalyzes. Without the books, the web site, and the academy, this would not have happened.
So after this terribly long post, the end result is I bought my first property, hope to make 15k to 20k on it and and extremely happy.
The moral is: Get off your butt and do something, I wasted three months hesitating and hate myself for it!!!!!! I sit and wonder how much I could have made in those three months, well I won't make that mistake again !!