Author Topic: Sigh, I had forgotten how much effort went into finding deals  (Read 4000 times)

Bearded Man

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In the last 3 years, I've bought a foreclosure and a short sale...this is after probably looking at 40+ houses and a dozen or more contracts (luckily both properties have either doubled in value or nearly doubled in value so they were worth it).

Recently I decided to buy another house and I have been reminded that it is not so easy. This is after a couple years of enjoying the cashflow and appreciation of my other homes, yes, that's right, I had forgotten that I didn't just wire money and get the keys...it took a lot of effort (relative to sitting on the couch) to get those two deals of a lifetime and now I just have to be persistent and keep going to do it again.


I guess this post was not only a reminder to myself not to get discouraged but also a reminder to others who are going through similar pains.
« Last Edit: May 27, 2014, 07:20:07 PM by Bearded Man »

arebelspy

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Re: Sigh, I had forgotten how much effort went into finding deals
« Reply #1 on: May 28, 2014, 09:14:51 AM »
It sure does, but luckily the effort is front-loaded, and then you can reap the reward for years.  :)

Enjoy the hunt!
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with two kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
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Bearded Man

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Re: Sigh, I had forgotten how much effort went into finding deals
« Reply #2 on: May 28, 2014, 07:46:09 PM »
It sure does, but luckily the effort is front-loaded, and then you can reap the reward for years.  :)

Enjoy the hunt!


haha! I am glad you replied. Thanks for the encouragement. It's amazing that you can look at a post like this when you are down even when you wrote it and let logic override the emotional desire to quit looking.

GrayGhost

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Re: Sigh, I had forgotten how much effort went into finding deals
« Reply #3 on: May 28, 2014, 11:14:19 PM »
Keep your standards high and only go for the good deals. Your goals are not time-critical, so let the suckas get the okay deals and the flops, keep your interests on the steals!

zinethstache

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Re: Sigh, I had forgotten how much effort went into finding deals
« Reply #4 on: May 29, 2014, 12:37:48 PM »
Ditto for us. Our first two were so difficult, just to get under contract, in fact in both cases we were not the chosen contract, but after the first one fell through we fought the fight a second round and finally got them. Our lender is really very good making the financial part pleasant and fast so closing is the easy part.

We've struggled on finding #3 for the lat 9 months. Some of the struggle was health related delays on our hunt. However finally we landed one that looks to be an excellent project and should cash flow very nicely after we do our planned work on it.

GrayGhost, you are so right, absolutely do not lower your standards just to get a deal! And of course never, ever give up!

KBecks2

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Re: Sigh, I had forgotten how much effort went into finding deals
« Reply #5 on: May 30, 2014, 09:11:11 AM »
This is where the "real estate is hard" argument comes from, ARebelSpy.   Not management so much as finding and making a good first investment.

Good luck to the OP!

arebelspy

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Re: Sigh, I had forgotten how much effort went into finding deals
« Reply #6 on: May 30, 2014, 10:08:08 AM »
This is where the "real estate is hard" argument comes from, ARebelSpy.

I agree, that part is difficult, especially for someone new to it.  That's why I recommend other avenues of real estate investing for people completely new.

Also I'm not sure why I'm singled out here, I routinely acknowledge that real estate takes work; my first post in the thread said "It sure does [take effort]."  :)

In actuality, IMO, it takes knowledge and networking.  After that the work is easy.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with two kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

Thedudeabides

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Re: Sigh, I had forgotten how much effort went into finding deals
« Reply #7 on: June 19, 2014, 10:10:21 PM »


I agree, that part is difficult, especially for someone new to it.  That's why I recommend other avenues of real estate investing for people completely new.

You may have mentioned this elsewhere, but what avenues would you suggest for the newbie investors?

arebelspy

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Re: Sigh, I had forgotten how much effort went into finding deals
« Reply #8 on: June 19, 2014, 11:48:10 PM »

I agree, that part is difficult, especially for someone new to it.  That's why I recommend other avenues of real estate investing for people completely new.

You may have mentioned this elsewhere, but what avenues would you suggest for the newbie investors?

Well, there's a number of options, and I'd hesitate to recommend one in particular without knowing a person's individual situation.

That being said, a good general one for a Mustachian looking to learn is to partner up with an experienced investor and work with them (there are a number of ways this can be achieved, with or without money, though obviously investing with money is a lot easier, and more like investing than a job).  Education through experience is valuable (WAY more so than those "courses" that the "gurus" try to sell you - avoid those).  Learn what they do, why, how they run the numbers, why, etc. etc.

Keep reading real estate books, forums, and blogs (especially books), and as you learn you can branch out from the experienced investor and start doing your own deals while asking for their input/advice.

It's good to have someone who knows what they're doing to help guide you at first, IMO.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with two kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

Thedudeabides

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Re: Sigh, I had forgotten how much effort went into finding deals
« Reply #9 on: June 20, 2014, 08:19:21 AM »


I agree, that part is difficult, especially for someone new to it.  That's why I recommend other avenues of real estate investing for people completely new.

You may have mentioned this elsewhere, but what avenues would you suggest for the newbie investors?

Well, there's a number of options, and I'd hesitate to recommend one in particular without knowing a person's individual situation.

That being said, a good general one for a Mustachian looking to learn is to partner up with an experienced investor and work with them (there are a number of ways this can be achieved, with or without money, though obviously investing with money is a lot easier, and more like investing than a job).  Education through experience is valuable (WAY more so than those "courses" that the "gurus" try to sell you - avoid those).  Learn what they do, why, how they run the numbers, why, etc. etc.

Keep reading real estate books, forums, and blogs (especially books), and as you learn you can branch out from the experienced investor and start doing your own deals while asking for their input/advice.

It's good to have someone who knows what they're doing to help guide you at first, IMO.

arebelspy thank you! This is great advice. I've been thinking about getting started in real estate investing but have been reluctant because I live in a high COL area and cap rates are 4% and sometimes less. Reading your posts has inspired me and has shown me that I don't need to buy locally.

I'm going to begin by reading some of the books you mentioned in the pinned thread as then begin looking for a mentor.

Thanks again!

arebelspy

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Re: Sigh, I had forgotten how much effort went into finding deals
« Reply #10 on: June 20, 2014, 08:25:09 AM »
arebelspy thank you! This is great advice. I've been thinking about getting started in real estate investing but have been reluctant because I live in a high COL area and cap rates are 4% and sometimes less. Reading your posts has inspired me and has shown me that I don't need to buy locally.

I'm going to begin by reading some of the books you mentioned in the pinned thread as then begin looking for a mentor.

Thanks again!

Awesome.  I do recommend lots and lots of reading and education.  Learning from books and then learning from people who have done it is a great way to not make the mistakes that most of us do when first starting out (or at least hopefully avoid most of them).
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with two kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.