This Stuff is SCARY!

I am part of the Success Academy so I'm getting tons of support there. I'm attending an REI club next week to meet more local investors. BUT none of that makes this less scary! I can only wonder how much more intimidating all of this would be w/out all the help and support I've been receiving

I can feel your anxiety...i'm not connected to SA. however, i have gotten some great support from more seasoned DGers. thank God for them.

I think I may have to find a new RE agent....he's not been very forthcoming with my requests. actually i have to contact him several times before he responds....that's frustrating. back to the drawing board on that one.

I'm re-reading several sections of 2 of Dean's books to get the Steps down, and the docs need, the words to speak, 1 by 1 on wholesaling & options (Carol & Greg respectively). As soon as I find a better RE agent, I believe I will be ready to make my first deal happen! I saying within the next 30 days! I also feel that motivated buyers will be even more motivated as the season's begin to change and we go into winter...they surely don't want to hang on to those properties another year!

Hang in there, plug away, and make it all happen!

Praise the Lord!

Linda

Hey Michelle,

I'd recommend taking it a step at time. When you try to wrap your mind around every possibility and every base that needs to be covered it does get overwhelming.

Identify you immediate obstacles.

If EM is your challenge and your focus is wholesaling. Make it a goal to locate 3 new PML or buyers this week that will either front the EM on a 30-45 day roll. You can present to them ex: you maintain the funds until I draw. Once I notify you I need the funds it has to be 'in-hand' within 24 hours. in doing so, I agree to pay you (whatever amount%) 30% ROI for a 45 day roll on your funds. (forget the % amount you aren't carrying it 30 yrs. but 30 days. it really is pennies on the dollar. But an attract rate of a PML.) they can be ANYONE in RE or not.

In actuality they are providing you a 'line of credit' unsecured. 14 day contingency for inspection, you don't have it turned to a buyer within that time frame pull out (or renegotiate pp) and protect your PML funds. Yes you do still have to pay your indicated % but you never want to put yourself or your capital at risk.
Point being squash that obstacle and move on to the next.

Encourange you to focus on the present. ALWAYS, ALWAYS have 2 to 3 exits for everything you do. (minimizing risk) keep your exposure low to non existant with your contingencies and you'll be covered. NEVER compromise your contingencies. They are there for your protection.

Main thing is ALWAYS having a plan and then back-ups to that plan.

Action and knowledge will cure fear.

If you hesistant or unsure how to structure. CALL the SA. Brainstorm, get ideas, etc.

Keep it simple. Always have a plan. Get in, Get out, Get rich!

God bless,
Jen

It's only scary because you are not used to being thrust so far out of your comfort zone. Keep putting one foot in front of the other and you'll do just fine.
I know it's been a whirlwind of information and action for you but also remember that you're building your foundation. Once that foundation is established you will become more comfortable and confident in your words & actions.
It's like the first week at a new job. Even though you may have X number of months or years studying for that particular position, that first week is always the hardest and most intimidating. After that you become more confident and secure in yourself. RE investing is no different.
Keep going strong, think about your goals and strive for them and it will happen.

Go get 'em!

Michelle why don't you just start off wholesaling until you save up some money first no risk and you don't need any money.just a thought good luck

Thank you for taking the time to read the ridiculously long post; but I figured that I'm updating my progress and cataloging my experiences as I go along, and know that emotions are a very real, very strong, component. Thought that maybe the airing of my feelings could help others who are feeling the same way ease their feelings

Keb: Thank you for offering your personal support! I will definitely take advantage of it!

HDScott: I am starting off wholesaling; when making offers on props via the MLS, they do require some form of EM to solidify the contract.

Mark: You couldn't be more correct about me being out of my comfort zone. I'm very aware that I'll never reach my full potential if I just let myself sit idle simply to allow myself to feel comfortable. Besides, "feeling comfortable" never got me anywhere but broke.

LaCorte: Have you tried posting on Craigslist or Trulia.com for a realestate agent? Basically just list the criteria of what/how you need your REA to be and you should get lots of calls from prospective REAs.

bamagirl: I'll have to look more into that. I REALLY don't want to take a short-term loan out on my paid-off car. Especially since I'm not even sure at this point if my REA will actually submit the offers (I've heard so many ppl on here talk about their seemingly perfect "investor-friendly" REA bail on them when it actually came time to submit the offers).

do the right thing without lying and you should be ok.

Don't expect miracles; this business is for those who have patience.

Good luck to you

Why dont you just get it from Your end BUYER

you are not alone on this journey!
You can be assured that just about everyone here has shared that feeling when we first started.
I myself feel a bit intimidated about wholesaling, so that's what I'm trying to do right now! You have to fight your fears by taking action and overcoming them! One battle a day-don't get overwhelmed with too many things... don't try to think of solutions for problems that aren't problems yet.

Learning and progressing every day,
Valerie

Glassshomes wrote:

Why dont you just get it from Your end BUYER

Well (in dealing w/props on MLS), I plan on doing that after the offer is accepted and the end buyer's in place BUT the EM has to be deposited w/the offer to show that I'm serious about the offer. What end buyer is going to give me earnest money on a property w/out the offer having even been accepted???

michellecaseyks wrote:

Glassshomes wrote:

Why dont you just get it from Your end BUYER

Well (in dealing w/props on MLS), I plan on doing that after the offer is accepted and the end buyer's in place BUT the EM has to be deposited w/the offer to show that I'm serious about the offer. What end buyer is going to give me earnest money on a property w/out the offer having even been accepted???

"BUT the EM has to be deposited w/the offer" - WHY??

You don't have to give a live check WITH the offer. Can be a photo copy and a provision EM due upon acceptance and will become hard (non-refundable) after your inspection contingency is waived or exhausted. You just have to be able to back it.

with MLS properties I've never even had to provide a copy of EM check. POF for purchase yes (exact amount of offer), but not the EM. (which POF would actually just blanket the whole deal) I have EM due upon signed acceptance.(which is usually 24-48 from offer being accepted)

Good grief, I'd be up the creek. lol I'd be writing 100's of checks. not to mention on some of the low ends, I'm making my earnest money the amount of my offer price.

just a question. When someone tells me I 'HAVE' to do something.....Make them justify it.

Jen

To get what you never had you have to do things you've never done...and yes, that is real scary.

With all the help and ideas you get here it's a way to stay focused on the end result. Bamagirl has great ideas (as everyone on the thread) and you have a clear vision of what you want to accomplish. Don't freak out, keep it together and it will all happen in time.

Good luck, it will happen-you're making sure it will. You have been an inspiration to many.

Michelle, I know what you're going through. I have put in offers (mostly foreclosures) and the agent said the bank required that I submit EM (sometimes request cashier's check) with my offers. I have put in 3 different offers so far and they all said the same thing. BTW they wanted 2K EM. Thats crazy. Most of the homes in my areas are foreclosures anyway. When I ask them why I need to put in EM with the offer, they said so they know I am serious about the offer.

Melissa

michellecaseyks wrote:

Glassshomes wrote:

Why dont you just get it from Your end BUYER

Well (in dealing w/props on MLS), I plan on doing that after the offer is accepted and the end buyer's in place BUT the EM has to be deposited w/the offer to show that I'm serious about the offer. What end buyer is going to give me earnest money on a property w/out the offer having even been accepted???

Try and find properties not on the MLS. Look for distressed properties or motivated sellers who haven't got their properties listed; that way you build an immediate relationship with owner and base of power where you can pick and chose who you want to deal with and then and only then you can see which buyers are serious and which are frauds.

Good luck to you

I currently have over $25,000 in earnest money checks out with my offers as we speak. They are just copies of my check and are meaningless until the offer is accepted. Don't let the fear of an earnest money check stop you from making offers. Most will be declined anyway! If they accept your offer you can request that earnest will be due until the end of your inspection period. Worst case earnest is usually not due until 48 hours after both parties sign the accepted contract.
My realtors have a scanned copy of my signed check (it has been voided) that they download and fill in themselves and submit with my offesr along with my POF.
Earnest money is no big deal until your offer is accepted and you SIGN the accepted contract.
Your fear of taking action is 100% normal. I still get nervous every time I sign an accepted contract. But if I did not over come my fear I would be no where! You are OK! PM me if you need any help.

Congratulations on taking ACTION and good luck,
Michael Mangham
MD Home Acquisitions LLC

I am a little confused. I have literally just started reading the materials, but I am basically already familiar with the process. I also understand about needing earnest money, but I thought you could do this without your own cash???? What am I missing?

How did you void the check? This sounds like something I can set up w/my realtor.

Elix--I'm following the 30DQCF in the RBBP which teaches the 25:1 ratio using MLS props first. I am starting to target FSBO, but it's just much slower. I suppose I have to weigh the pros and cons of each side...

LOL...I didn't mean for this forum to turn into a discussion about EM, but it has helped me immensely to get the insight of many seasoned investors w/in the DG community

I also have a problem reading too much into the issues that others are having and becoming fearful that it will happen to me as well--you know, those pesky "what ifs". Yes, I know...think less and just DO. BUT everyone's support and advice is priceless to me, just so you know

I love you all...

What kind of POF do you use? Do you use an actual bank statement or one from a transactional-funding company?

First off, making mistakes is all part of the learning experience. I can guarantee that just one year down the road you will be able to look back and wish you had done some things differently, but making those mistakes is what provides you the education to become a better investor. I look forward to making mistakes because I know that when I do I'll learn from it and likely make much more money in the long term because of it.

Also, dont worry so much about yout reputation and/or burning any bridges. Every investor out there had to start at a beginning and most of those beginnings contain a lot of trial and error. You will lkely move on from any current relationships and partnerships as you become more experienced so dont worry about that. It sounds like you're a good person and you treat people right and as long as you do that then you'll be fine.

Lastly your anxiety means you are passionate and something tells me that you want this more than anything. I remember feeling that way day and night when I first got started. And I had the same feelings as you... if you don't do something with this now then years later that pain of wasted time will be much more painful than what you're experiencing now. I still feel anxious, almost everyday, but it compells me to keep working hard.

I wish you the best.

Thank you so much for saying that! You don't know how much a simple phrase of encouragement can really recharge someone! Deep down inside I know that everything will be okay, but then my head wants to contemplate and analyze every single possibility that could occur. Sometimes it's just a matter of telling that over-analytical part of myself to just "shut up and do it already"! Which has been working.

Dean did warn us about this point in the process, to which he says to "think less and just DO"--I've never forgotten that b/c I knew exactly what he was speaking about even before it happened! I made a decision then that even if I get scared, I was going to do whatever I had to do, even if I had to do it being afraid!

I did read your entire post, and your encouragement and reassurance is soothing! You'd make an awesome mentor and/or success coach...

I just called the bank and had them void that particular check number!

Michael Mangham
MD Home Acquisitions LLC

WOW I opened a can of worms with one simple phrase! What I ment was, and I could be wrong, BUT since your end buyer is more "established" than you and they know you are new and they know what you are doing can you cover the ernest money issue for me? It never hurts to ask. And in the RBBP Matt says he locks them up for 10$ sooooo I dont know mabey IM missing something. But one thing I do know is that "Scared Money dont make NONE!" Hope this helps. I dont mean to miss guide, Im just tryin to think outside the BOX and the Economy and come up with fresh Ideas!!

Michelle,

You are right...this is scary! I have always been interested in real estate and have finally come to the point that I'm moving forward. I've spent close to 22 years working for the same employer and I just really need something different!! It's always scary learning something new but the benefits will be well worth it. We have such a great place to read about the do's and don'ts as we learn and it feels as though everyone here is willing to help and that's reassuring. Keep plugging away - good luck!

Hi Michelle,

I've been in and out of RE investing for several years, and there was an investor in my area a few years back who was looking at Kansas properties. I don't know if he still is, but I'd be more than happy to check with him. If you want to PM me we can see if this would work out for everyone.

Thanks for posting about your fears. I'm scared too - it's always hard to get outside that comfort zone, but as you said the alternative is REALLY scary. When it's harder to stay where you are, that's when the real change happens. Keep going!

Judy

Just take a deep breathe and reality will come back to you. You are on the right path. Especially listen to the advice of Michael M, Jen and Elix. They will not steer you wrong.

After all is said and done, keep your FAITH and build it with more action and more knowledge.

I have had and continue to have my own challenges, trials, difficulties. But the realization of these words have kept me strong and confident despite my fears and moments of weakness...See Romans 8:31b-34