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Joined: May 2002
Posts: 120
CEG\'er
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OP
CEG\'er
Joined: May 2002
Posts: 120 |
I was wondering if anyone on here is into real estate investing? Or just simply the buying and selling of properties. >>>>Rant Time<<<<< My exgirlfriend< still best friend> just opened my mind to the fact that I don't stick to one money making idea and go through with it. I constantly think of doing so many things to make money, however, I never fully go through with it. Right now I am going to college majoring in Business Administration. I don't see myself as going to college to get a degree. I see myself as going to college to learn how to run a business. Recently however, I've been interested in real estate. She told me that I need to just focus on one thing, and stick it through and stop bouncing around. So I decided I may try to go through with the real estate thing. She also said that that is a very thick market that a lot of people are in. I understand that too. But what says that i can't be successful at that? I just finished reading the book, "Rich Dad Poor Dad" which is a good book. But anyway.. Is anyone into real estate? My number one goal in life is to be a millionaire.. Now I know that everyone pretty much has this goal, but I've had this goal my ENTIRE life, and it gets more and more stressful as I get older because it seems like time is running out. I want to be young and rich. So I guess now I'm asking if anyone has any helpful advice, books to read,pretty much anything that can help. I've noticed that a lot of you guys have a lot of knowledge on a lot of different subjects. So just any help whatsoever would be extremely appreciated. Lately too, Donald Trump has become my "idol" as they say. And I would love to eventually get to that status, however, my dreams and my knowledge are on 2 different playing fields, and many times I'm told to be "realistic". As tough as that may be on my self esteem, sometimes it seems as though I should take that advice.. Well, just any thoughts/ comments would be greatly appreciated, even if it is, "BE REALISTIC". Thanks. Sorry for the long post.
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Joined: Jan 2002
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Hard-core CEG\'er
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Hard-core CEG\'er
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I'm sure TexasRealtor will chime in, if not, try to PM him.
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Joined: May 2000
Posts: 3,290
Hard-core CEG\'er
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Hard-core CEG\'er
Joined: May 2000
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I'm not a realtor, but my Mom was for about 10 years, and 2 of my friends are now (one in residential, one in commercial). From what I've seen, it's a very difficult and cutthroat industry, one that requires a lot of patience for the first few years as you develop contacts/clientele and learn the tricks. Plus you can basically forget about having a Saturday and at least every other Sunday off.
There is the potential to make serious cash, particularly if you eventually break in to the high-end residential or commercial sectors, but, like every industry, getting to the higher levels requires a lot of time and ambition.
E0 #36
'95 Ranger
'82 Honda CX500
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Joined: May 2002
Posts: 3,667
Hard-core CEG'er
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Hard-core CEG'er
Joined: May 2002
Posts: 3,667 |
Originally posted by sleepie1084:
Right now I am going to college majoring in Business Administration. I don't see myself as going to college to get a degree. I see myself as going to college to learn how to run a business.
[sigh]. This is completely the wrong attitude. Colleges can teach you how to make a chemical reaction, they can teach you how to write a paper, but no college in the world can truly teach you how to run a business. That only comes from experience. Even with experience, some people just aren't that good at it... it takes equal parts natural talent, luck, and EDUCATION.
Change your outlook... if you think that you're only going to college to learn how to run a business, you wont get much out of it. If you start to think that you're going to college to get an education, you'll be much more successful. You wouldn't believe how many CEOs I've run into that can't write a complete sentence, or come up with these good ideas and don't have the slightest clue on how to implement them. To be truly successful, you have to have the total package, and that comes chiefly through education.
Originally posted by sleepie1084:
Recently however, I've been interested in real estate. She told me that I need to just focus on one thing, and stick it through and stop bouncing around. So I decided I may try to go through with the real estate thing. She also said that that is a very thick market that a lot of people are in. I understand that too. But what says that i can't be successful at that?
Nothing at all wrong with bouncing around, but the more hats you put in the ring, the less focus you can put on any one of them, and if you really want to be a millionaire, you need to be highly focused on success... running your business efficiently and growing it steadily. If you are trying to do 30 things at once, or only doing one thing for 6 months or a year at a time then jumping to something else, you'll never make it. NEVER. Pick something you like and that you feel you can grow in, and concentrate on it. Once you've made your millions, feel free to dabble around in other areas that interest you.
Originally posted by sleepie1084:
But anyway.. Is anyone into real estate? My number one goal in life is to be a millionaire.. Now I know that everyone pretty much has this goal, but I've had this goal my ENTIRE life, and it gets more and more stressful as I get older because it seems like time is running out. I want to be young and rich.
Relax... more than likely, its not gonna happen. Real money takes either a great idea, a big inheritence, or experience. You're probably not going to inherit a ton of money, and it sounds like, based on your noncommittal attitude, that you don't have a breakthrough idea, so your real bet is on experience, and experience=age. Don't think that you're going to become a millionaire at 20, and that's one more dream you won't have to have crushed. Focus on becoming a millionaire by 30... that's much more reasonable.
Originally posted by sleepie1084:
And I would love to eventually get to that status, however, my dreams and my knowledge are on 2 different playing fields, and many times I'm told to be "realistic". As tough as that may be on my self esteem, sometimes it seems as though I should take that advice.. Well, just any thoughts/ comments would be greatly appreciated, even if it is, "BE REALISTIC". Thanks. Sorry for the long post.
That's my advice... be realistic.
Now that i've had my soap box time... I have not done any work in real estate, but my step-sister has... it IS a tough market to crack because there are so few barriers to entry. It varies by state, but in Indiana, you don't even need a college degree, you just have to pass a certification course. With so many people able to get in so easily, its difficult, though certainly not impossible, to get above the crowd.
Keys to success in Residential real estate are your Rolodex and your ability to market yourself, since there's no real negotiations that go on, and making money is dependant directly on how many houses you sell and what types of houses you sell... therefore the more people you know and the better you are at getting your name and face out there, the more people that are going to come to you to sell their house.
If you REALLY want to get into real estate and make it big, go commercial. Get your *education*, then go to work for a commercial realty firm, preferrably in an analyst role. There, you will be able to directly learn how you value commercial properties and leases, and how, exactly, to make money in commercial real estate. Then you can go off and start your own firm and make millions... but NOT BEFORE you get the EXPERIENCE!!!!!
HTH
Diesel owns you
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Joined: Jul 2000
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Hard-core CEG'er
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Hard-core CEG'er
Joined: Jul 2000
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Unless you're wealthy to start off and have access to a pile of money to invest or have an extraordinary combination of talent and luck, it's going to take time.
Learn the ropes of business (that means working in the business world a good 5 years out of college at a minimum) and investing before signing your life away on a loan and throw it into the first attractive thing that comes along as well. I've seen a few people throw themselves and their hard-earned (or loaned) money into projects and investments and end up losing their shirts because of poor planning and trusting more on the "roll of the dice" than actual research and patience on the right deal to crop up. I konw of people buying up older buildings without really checking into what they were purchasing and before they know it, they find out they've got asbestos in the tile and in the ceiling of the place and a subsequent cleanup move the ROI of the project WAY the Hell out and eats up a nice chunk of money in the process...
I've done small-time stuff as a side hobby and am trying to move into larger projects (group investing with people I know and trust and whom I've watched invest into properties as groups and make a consistent killing on); I honestly have no better advice to give other than know the market, buy low, repair, sell high and MOVE ON to the next deal. Some guys like the steady payment stream that rental properties give them; I don't like potential headaches and insist on selling out and turning things over to a management group ASAP.
Sounds like you are interested in sitting on real estate for the appreciation value or potential rent hike scenario if you get into a hot rental area, though. Not my cup of tea as I'm not that sophisticated, savy or dedicated of a real estate investor by any means.
JaTo
e-Tough Guy
Missouri City, TX
99 Contour SVT
#143/2760
00 Corvette Coupe
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Joined: Jun 2000
Posts: 5,725
Hard-core CEG'er
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Hard-core CEG'er
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Originally posted by JaTo:
Unless you're wealthy to start off and have access to a pile of money to invest or have an extraordinary combination of talent and luck, it's going to take time.
Learn the ropes of business (that means working in the business world a good 5 years out of college at a minimum) and investing before signing your life away on a loan and throw it into the first attractive thing that comes along as well. I've seen a few people throw themselves and their hard-earned (or loaned) money into projects and investments and end up losing their shirts because of poor planning and trusting more on the "roll of the dice" than actual research and patience on the right deal to crop up. I konw of people buying up older buildings without really checking into what they were purchasing and before they know it, they find out they've got asbestos in the tile and in the ceiling of the place and a subsequent cleanup move the ROI of the project WAY the Hell out and eats up a nice chunk of money in the process...
I've done small-time stuff as a side hobby and am trying to move into larger projects (group investing with people I know and trust and whom I've watched invest into properties as groups and make a consistent killing on); I honestly have no better advice to give other than know the market, buy low, repair, sell high and MOVE ON to the next deal. Some guys like the steady payment stream that rental properties give them; I don't like potential headaches and insist on selling out and turning things over to a management group ASAP.
Sounds like you are interested in sitting on real estate for the appreciation value or potential rent hike scenario if you get into a hot rental area, though. Not my cup of tea as I'm not that sophisticated, savy or dedicated of a real estate investor by any means.
although i agree with most of what you said, i have to diagree with the first statement. you don't need to have a pile of cash if you surround yourself with the right people. i am working on my MBA at Babson (#1 program for entrepreneurship), and my focus is on real estate development and investment. i am not cold to the industry, but many of the financial tools i am learning in this program will give me the preparation i need to start a successful real estate business.
feel free to PM me if you want to talk about the industry.
For Sale:
- Sony PSP with a Baseball 2k6 and the movie Crash. $100
- 1973 Karmann Ghia Convertible w/ Auto-Stick. Needs Restoration. $1200 OBO
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Joined: May 2002
Posts: 3,667
Hard-core CEG'er
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Hard-core CEG'er
Joined: May 2002
Posts: 3,667 |
Originally posted by JaTo:
Some guys like the steady payment stream that rental properties give them; I don't like potential headaches and insist on selling out and turning things over to a management group ASAP.
There are investment banks that have a relatively nice way of raising money off of lease payments... Its how REITs get liquidity... they basically securitize the lease payments and run a private placement. You lose out on the recurring income, but you get a large chunk of money up front and you retain ownership of the building for a future flip. a nice situation, really, if you have high occupancy and long term leases locked in.
Diesel owns you
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Joined: Jul 2000
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Originally posted by mbSVT:
...if you have high occupancy and long term leases locked in.
VERY key phrase...
I've seen a guy get burned pretty bad when he tried hiking rent during a rennovation. A quarter of the tenents vacated within 3 months, as the contract cancellation fee was a wash in terms of the rent hike when looking 2 months out.
Upside was that he was able to finish the rennovation faster!  
Downside is that he's still waiting to see some profit from his investment and notes are coming due...
JaTo
e-Tough Guy
Missouri City, TX
99 Contour SVT
#143/2760
00 Corvette Coupe
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Joined: May 2000
Posts: 21,197
I have no life
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I have no life
Joined: May 2000
Posts: 21,197 |
-'96 SE MTX 3L
-'98 SVT 1,173 of 6,535
-'05 Mazda 6s, loaded, g/f's ride
-Need a 96-00 manual on CD? PM or email me
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Joined: May 2002
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Hard-core CEG'er
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Originally posted by todras:
What's the worst that can happen? You can't pay for it so you sell it. Real Estate is one of if not the best investment you can make. Especially if the Feds drop the rates again as they have been saying. We'll all have 1% rates.
Except that won't happen... its general consensus that rates are going to rise, and probably fast.
Diesel owns you
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