You Are Not Prepared If.....

You Are Not Prepared If.....

Hello To All:
I have been here off and on alot lately. I read all the posts and all the replies. I confess, I am not an expert on every aspect.

However, what I am writing about today is something painfully evident, atleast that I see and I am sure all the veterans see it as well.

Some of you are in no way prepared to do this as a business, let alone a hobby. You are fooling yourself if you think you are.

Some people read bits and pieces of Dean's books, understand barely half of what is said here and that's after you ask for advice.

Your running out and putting offers in on properties than wondering where your going to get the money. You come here and ask where you find funding, where do you find buyers, how do you write offers properly.

You need to understand that you are headed down a one way street in the direction of hurting yourself financially, hurting your reputatation before you even get going.

Here is what you need to do and I would read this thoroughly...

1. Build a buyers list, and a buyers list filled with people who have cash money for your deals.

2. Understand what dictates a great deal. A good deal is not good enough.

3. Understand that your not paying retail for properties. If a seller is asking $100,000.00 for a $100,000.00 home, that is retail pricing. If they ask $110,000.00 to $125,000.00 for a $100,000.00 property, that is not a great deal and not even a good deal and certainly not one worth spending your time, especially if you are working a full time job and doing this at night.

4. Establish relationships with lenders and funders after you understand what each type of funding is and what it involves. Example, hard money. Don't say to yourself, oh I am going to get hard money for my deal because Dean says so or someone I met suggested it.

5. Have a realistic plan. Write down your goals and make them real goals. I am sorry but writing down on a piece of paper that you will become a millionaire by the middle of 2010 or the beginning of 2011, is not real and in fact it is defeating.

6. Understand that you don't use real estate as a reason for quitting that job you haven't liked since 1985, when you have not made one cent from this.

What does it take to make $250,000.00 a year in real estate? five fifty thousand dollar deals or ten twenty five thousand dollar deals and that is in your pocket, in cash.

If you are just starting, stop with the mindset that you have to succeed and succeed now and adopt the mindset that you can succeed with the right plan of action and a huge effort. Stop fixating on the big dollars and focus on just getting the first deal done, learn from it.

Learn how to write offers that get deals done, how to complete a loan application or structure a private money deal that actually works, learn how to establish relationships that lead to success and begin building a reputation that people will help you capitalize on.

How successful am I to be saying these things? I have purchased four deals in the last 32 days and will have quick turned two of those in the next 30 days.

I locate distressed apartment buildings and commercial properties for a successful group of investors and have two deals closing.

I am a successful hard money broker and dealmaker for transactional funder opportunities.

I have made alot of mistakes, such as running out and putting offers in on deals I had no business being in, because I was not prepared.

I had one deal actually refused by a lender because the contract was not completed right. The seller and I agreed to zero earnest money and we were told I needed to put money up. This was a long time ago but a lesson well learned.

I hope this helps atleast one person.


Bravo !!!

Now that's telling it like it is ... after doing 60 RE transactions, making
over $ 500,000 cash profit in 23 deals alone, we must agree that running around with no plan of action or thinking that every house that has a over-grown lawn is a RE deal waiting to happen to unrealistic. Just like any business, trade, or profession, you must pay your dues & get the experience to make it happen.

Great Advice

Thanks Jim, Gary and Jill and continued success

Excellent Post

We agree. Have a plan. Know what avenue you are traveling on. Decide what strategy you want to use etc. We finished Dean's books in May. We are working on building our TEAM. We are taking small steps towards bigger goals. You have to put your time in. NO ONE starts on the TOP. You have to start CLIMBING to get there. We have been looking at numerous properties both single and multi families. NOT any of them thus far are GREAT deals. We will know it when we find it, crunch the numbers and they WORK. We just looked at an REO last evening with our RE agent. I am working on financing right now and we will put in a low BID, it's a bank owned property owned by the infamous FANNIE MAE. If they take it we will have a deal and if not, we will move on to the next property. As soon as we make our first deal we will post the details. Happy investing to all!


Chesloe Properties, LLC
Middlesex County, CT

You hit the nail on the head Jimmy.

We have made a lot of money in the past when homes were going up 10k a month back in 02-05 you did not need to know as much. Times have changed and you have to know a lot more. Loans are harder to get now than in the past. That is why we are going to use the set for life system.

Thanks for the post Jimmy.

Excellent Post

Its all so true - I always tell those that reach out to me the same MUST become educated and have a plan before you start taking action! I know everyone wants success overnight - but thats not reality. This is NOT a get rich quick scheme - I like to call it " a get as rich and successful as you want equal to the amount of time and effort you put into it PLAN". Thanks for the post.

Just Plain-E

I agree, it was a negative start to a thread and I knew it would come across like that. Sometimes you need to be negative to be brutally honest.

I turn away half of the loans I get requests to undertake. I say no to more deals I am asked to think about buying.

I get so many requests from people to find properties for them to put their money into, and I know that may not always be a good thing, however, the reason I do this is because I have to be brutally honest and look at it for what it is and that being that they have no clue as to how to invest in real estate and I am not much for jumping into bed with someone who has no clue, than tries to tell me that I am the one who is clueless.

All this comes from experience, and that is the best tool for learning. Like I said, I am far from a expert and will never claim to know everything.

I thank everyone for their positive feedback. I hope someone received some help from my post.

You said it right..I have

You said it right..I have not closed any deals yet..but I was thinking about getting started like this (in no particular order):

1. Build a buyer's list AND seller's list.
2. Search for deals that my list of buyers may be interested in.
3. Lock up good deals I find with earnest money.
4. Send out a blast email to all my potential buyers by using a system like Constant Contact.
5. Match buyers with sellers, right?
6. Build relationships.
7. Build your team.

Correct me if I'm wrong, please! Smiling Any suggestions?

Thanks-- Laughing out loud

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