Dr.Phil Speer

Real estate investing begins when you move to the starting point.
Get ready.
Get set.
GO…
Are you ready to begin a real estate investing career? Or, are you already investing in real estate some, and want to expand your holdings? Or, are you investing in real estate a lot, but want to streamline your operation?
If you prefer real estate investing to a J-O-B, here’s a tip on the real estate investing gamble for hitting the jackpot, striking it rich, and quitting that day job!!!
As one of my professors use to say, ‘Let’s commence, to begin, to start, to get ready, to GO.’
Do you bet on the lottery?
I am amazed at how many people throw their money away buying lottery tickets with such slim chances at winning!
At the start of 2004, Tennessee cranked up its new state lottery. The news media fanfare went on for months. Tennessee hired the lottery director from Louisiana to set up Tennessee’s system, and this media publicity aired every night on the news as the public was whipped into a frenzy. Finally, the kickoff. Within just weeks, the announcement aired that Tennessee had taken in $50 million in lottery sales, and then $100 million in lottery sales. Newscasters quietly mentioned, however, that a whopping $100,000 had been paid out already in winnings. Wow! $50,000 in winnings compared to $100 million in ticket sales. What a windfall. (For the lottery, that is) Then came the subdued mention that some store owners were shutting down their recently-opened outlets out of conscience at seeing so many ticket purchases by regular customers who did not even have enough money to buy groceries! And all this ballyhoo was presented under the guise of lottery money to subsidize college scholarships.
Isn’t it great for kids to get a good education, and isn’t it greater that I can buy a lottery ticket - not in paying for my own kids’ education - but to help other folks’ kids get their education!
And in the meantime, I might strike it rich!!!
Come on. (Where is common sense logic?)
Some fishermen friends several years ago liked to boast about how much money they spent every year on lottery tickets in another state. When I pinned them down to their actual winnings, they admitted they spent over $10,000 a year buying tickets, and they CLAIMED they always made more in winnings than they spent for tickets. Funny thing, however, they couldn’t show me a tally of their win-loss record!
If you are a gambler who wants to make it big in some game of chance, you need to visit Vegas instead of reading this article.
But if you really want to win the big stakes without taking the big risks, real estate investing is a great game of chance!
Oh yeah, I’m a gambler, too, but I like REAL chances at winning. I want the stats on my side.
Twenty-five years ago I made one of the biggest gambles of my life by starting out with nothing and trying to hit the jackpot investing in real estate. It was a gigantic gamble because I had no cash and no credit. I was able to scrape together a $10 bill and a real estate contract, and I started shooting craps.
No, sellers didn’t like my offers. Most threw the contracts back in my face. Success did not come easily. I was often very discouraged and frustrated. I actually did not know at that time of anyone ever who had started investing with a $10 bill, and I have never heard of anyone since. But I never threw in the towel. And within a year, I had somehow bought almost one million dollars in rental properties!
That’s a gamble that paid off.
I like that kind of gamble.
Gamble when the odds are in your favor. http://CashinHouses.com/

Phil Speer, Ph.D., started his real estate investing career 25 years ago. Without the availability of credit and using only a $10 bill, he purchased $1 million in properties in his first year, and had accumulated $10 million in properties by his fourth year. He was featured in a Wall St.Journal editorial as most successful investor in the Nothing Down Real Estate Movement, and was honored with a Caribbean cruise as top investor of the year. In his hometown of Nashville, Tennessee, he has been a businessman and Human Resources Consultant for 30 years. He is an author, speaker and seminar director. To learn how to profit in real estate investing, even without cash or credit, read his report at http://CashinHouses.com/ Subscription is free to his Fix-up Ezine. He and other contributing authors provide free articles and resources on real estate investing at his online ?Academy of Advanced Real Estate Investing Techniques? - http://AAREIT.com/

Article Source: http://EzineArticles.com/?expert=Dr.Phil_Speer

Teresa Kistner

In all my searches for information on real estate investing, I have not found many articles about what it really takes to become a ‘real estate investor.’ There are lots of ads, and lots of people who want you to attend their classes while taking large chunks of your money, and then of course the personal mentoring, which takes even more of your money. Now that we have jumped into the field, I want to share our observations and lessons learned. It’s important to do your homework: research all the different avenues of education, decide how much money you have to invest (yes, you do need to have some cash, despite what all those ‘teachers’ say), decide how much risk you can tolerate, because investing in real estate is not like purchasing $1000 in stock. You are purchasing a high-ticket asset, with value anywhere from tens of thousands to upwards of millions of dollars. And last but not least, you must be prepared to work hard and be persistent. It is not a part-time gig, no matter what those multi-gazillionaires claim. Following are four basic requirements that you will need in order to be successful.

You must have a desire for learning and continuing education, in whatever form it may take.

It is extremely important to take classes, attend seminars and read, read, read! Lots of people have followed teachers like Robert Kiyosaki, Donald Trump and Carleton Sheets. They all have powerful information to offer. But remember: giving us this ‘education’ is their business. They are making money doing those seminars and boot camps, and making tons of it. You need to know that there are several different methods to make money in real estate (wholesaling, retailing, rehabbing, buying/selling contracts, renting, property management, commercial, etc.) Remember, each teacher has a different angle and each made their money in different manner. You need to decide which avenue is the most comfortable for you and go from there.

The Learning Annex provides good exposure to several different methods of making money in real estate and you can pick and choose whose methods you would like to learn more about. It is much easier to get into the business by focusing and learning one method at a time, and then move on to other avenues if you wish. You will only get overwhelmed trying to do everything at once.

It is also important to look at different types of education, including college courses and the internet. The single best tip you can follow is to join your local Real Estate Investment Club. To find your local club, go to www.creonline.com. This is a low cost way to start your education and also build contacts, which is extremely important in this business.

You need to have some cash to start.

Part of the hype from teachers of real estate investing is saying you can get into this business with ‘zero money down’ or no money out of your pocket. The truth is, you really do need to have some cash in order to begin investing. Not only will you need some kind of down payment (anywhere from $500 to $5000), you will also need seed money for starting up your business. Remember, the days of 100 percent financing of properties is gone. You most certainly will need to come up with a down payment for your first investment property. Additionally, you’ll need money for starting your business. You might need to purchase equipment - both for your office and to do rehabbing. You will need professional consultants, an accountant and a lawyer. If you have left your J-O-B to pursue this business full time, you will need to replace your income until you get another income coming in. And don’t forget the cost of the education, classes seminars etc.

You need to have a comfortable tolerance for the ‘risk’ you are taking on in this investment.

Buying and selling real estate is a risk - make no mistake, and it is a very LARGE risk at that. Part of the problem with the real estate market today is because [mostly novice] ‘real estate investors’ rushed to cash in on rapidly escalating prices of real estate. Econ 101 - supply and demand. They bought recklessly, not intelligently, and now find themselves stuck with properties (whose values are resetting just as quickly) that they can’t unload. You must be aware at all times that any purchase you make, you must be prepared to hold if necessary. This is investing 101. Pay attention to the market.

You must work hard and persevere.

When it is all said and done, real estate investing is work. If you are coming from the corporate world where the work day is very structured and organized, working for yourself as an investor may come as a culture shock. Again, real estate investment teachers will tout ‘work for yourself’ and ‘work your own hours.’ They give the impression that you can come and go as you choose and work when you want. While this is partly true, you must also possess the self-discipline to sit down and perform the work you need to do in order to accomplish your investment goals. It is not as easy as it sounds. There is lots of research, the attention to business details such as book-keeping and stocking your office, searching for, then working the deal, completing the details of the deal (contracts, lawyers, titles, etc.) and then of course rehabbing the property, (or hiring and supervising rehabbers) if you intend to keep it.

Just as Murphy’s Law states, you will inevitably encounter road blocks along the way, some minor and some major. It is important not to give up or allow set backs to derail your progress.

The investing mantra is ‘Buy low. Sell high.’ Current market conditions make it one of the best times ever to invest in real estate. Just remember, nothing is as free or easy as some ‘teachers’ would like you to believe, all while they take your money to the bank. Just do your homework, choose intelligently and spend your money wisely. Learning Real Estate Investing can be overwhelming, but it is worth all your efforts.

Tim and Teresa Kistner are owners of JBT Investments, LLC. They entered the real estate investing field because they realized that, after working full time for corporations more than 15 years, they were never going to achieve the comfortable life-style they wanted unless they worked for themselves. Their website is http://www.jbtwholesaledeals.com

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