So You Want To Become A:
Creative Real Estate Investor

So, you want to be a creative real estate investor. More than likely you were sitting home one night, watching TV and saw one of the many shows on flipping houses. Or maybe it was an infomercial on flipping houses.

creative real estate investor

You know the infomercial on making millions flipping houses. The guy is coming to your city with the big dog & pony show. He says he will teach you, how to also make millions flipping houses just like him.

​You are probably tired of your regular 9-5 job and feeling you don't make enough money to put up with your job. The only good thing about your job is payday, you make just enough to pay the bills and buy some beer.

You more than likely, feel like most people. You feel like a hamster, who is running on the wheel in the cage but getting nowhere.

You may have even shared with your spouse or significant other your unhappiness with your job and pay.

You are feeling stuck and wondering how you ​can make more money, without going to your regular job. The infomercial on TV makes it look so easy, so you think maybe this is the ticket out of my job.

In my experience of selling franchises for 3 years. It showed me that a lot of men (and women) are unhappy and looking for a better way to provide for their family.

One of the big problems I observed was that one spouse wants to try something new, but the other spouse does not. Usually, the wife is concerned about a job and financial security. So they oppose striking out on any new venture. Thus, so crushing the other's dreams.

I saw a study about job satisfaction done by Gallup, which is a large and respected polling company. Here is an excerpt from the study.

Of the approximately 100 million people in America who hold full-time jobs, 30 million (30%) are engaged and inspired at work, so we can assume they have a great boss. At the other end of the spectrum are roughly 20 million (20%) employees who are actively disengaged. These employees, who have bosses from hell that make them miserable, roam the halls spreading discontent. The other 50 million (50%) American workers are not engaged. They’re just kind of present, but not inspired by their work or their managers.

Gallup Study: The State of the American Workplace

The study shows that 70% of people are dissatisfied or worse with their jobs.

It's NO wonder why so many people are going to  seminars on becoming a creative real estate investor. They, as you are looking for a better life for themselves and their family. 

So you decide to go to the introductory seminar. After all, they are giving away a free camera and  book. Or some other thing to entice you to come.

I went to one to get the free digital camera. It turned out to be a $2.00 cheap plastic camera that didn't work. No book, even though that touted to be one of the gifts. they promised.

You go thinking that the guy on TV that enticed you to attend would be there. If nothing else you'll get to meet a real estate millionaire / TV personality. ​

Then you get there and find out you don't get the gifts until the end and the guy on TV is not there. You now sit through a presentation from 90 minutes to several hours long.

The presenter spends a lot of time telling you how much money you can make,​ But almost no time, on how to actually do it.

Maybe. he gives some vague references on how to actually do it.

That always starts me wondering. Does the presenter, really know anything about creative real estate investing. Which he probably doesn't. Most times he is just the presenter of the material.

Everything at the presentation is geared to getting you excited and feeling like you too can do this. Then they hit you with the sales pitch. Which could be for a weekend seminar or a box of manuals and CD's or combination of both.

Now comes the moment of truth. They tell ​you this training will provide you with all the information you need. So you can become a successful real estate investor.

Usually, this training would cost $10,000. But since we are in town, we are holding and training this weekend. Because you attended today, we are discounting it to only $2,000. Plus we will give you some bonuses, maybe a free coaching call.

You see people start to run to the back to sign up. You start to feel some pressure. Thinking if I take the training, I too will become a millionaire real estate investor. After all this is such a great price I may not ever get this chance again, and it's only $2,000.

In your head, you are telling yourself it's only $2,000. To become a millionaire real estate investor. This is a terrific deal, so you too run to the back of the room to sign up.

You go to the back of the room all excited and pull out your credit card. You buy the box of stuff and get your certificate to attend the class. Now you think. Finally, I have found the way off this hamster wheel.

If your spouse didn't attend, you can't wait to get home and share this ​with her.

When you get home you run into the house all excited, carrying with you the box of stuff. You start telling your spouse what you learned, and how much money you'll be making after you take the class.

Your spouse isn't quite so excited about all this. Then she hits you with the question.

How much did it cost?​

This is the question you didn't want to answer. But you tell her, and NOW she is EXCITED! With a reaction like "are you crazy , you spent $2,000 on some books and CD's?"

You reassure her that this will be great and you just need to attend the class before starting. You also tell her, she can attend the class with you for free.

After attending the class, you are more excited than ever.

As soon as you get home you begin to study the material. The next day you decide to get started, so you call a real estate agent. This seems logical, after all they are the ones selling houses.

Fun Fact (which you can ignore)

All people selling real estate are either sales agents or brokers. But they are not all Realtors. To call yourself a Realtor, you must pay a fee and join the National Association of Realtors.

More than likely, when you call a real estate sales agent, they will ask you several questions. When you identify yourself as a real estate investor. Then say that you are looking for a property that you can buy at a big discount, and have the owner carry the paper.

It may get very quiet for a moment, or you may hear laughter.

Then the real estate agent says, "there are no deals like that around here".

Then asks you if you just attended one of "those" seminars. You say yes. The agent then proceeds to tell you that type of stuff doesn't work around here. You'll need to have 20% down and qualify for a new loan to buy property in this area. You say thank you and hang up.

What just happened? You went from total excitement to felling crushed and that you wasted $2,000. Maybe your spouse said " I told you so". So you put your box of stuff on the shelf​ in the closet never to be seen again.

Unfortunately this happens all to often. Maybe it already happened to you.

Once the seminar is over there is usually no one there to help and support you. You are on your own, and there is no one to ask questions when you need help.​

Let's look at the process of how we learn.

Can you imagine a person who wants to become a doctor, lawyer or any skilled profession. Who thinks they can go to a weekend seminar to learn their profession? Would you go to them if you were sick or needed legal advice? Absolutely NOT!

How do we learn almost everything in life? We watch others and have parents, teachers and coaches who can help us and guide us.

They just don't give us a book or weekend class and think we will ​learn everything we need to know. That would be crazy!

Why then do we think that learning to become a creative real estate investor will only take a weekend class? It just doesn't make any sense.

Imagine going to school and getting all the books at the beginning of the year. Then you only get one week of actual classroom instruction.

What happens when we have questions or are not grasping a concept? Without anybody to help us learn. How do you think our education would turn out?

Probably not so great. The majority of us would start reading the books. Then come to things we didn't understand, get frustrated put the books away and go out and play. Much like we did with the real estate seminar information.

Our whole lives we are trained by our parents, teachers, coaches etc. Even the highest paid people in any profession usually have coaches and or staff. That help them become better at whatever we are doing.

When we get a new job someone usually shows us how to do it. It's the way we have always learned. Why, because it works. We can learn faster and with less stress by using the knowledge and experience of others.

Getting started in real estate investing is the same. It is a profession and you can't expect to learn it in a weekend or in one class. You can drastically cut your learning curve by having a mentor or coach to help guide and support you.

You need to have someone who can answer questions and to help guide you in a productive way. To achieve your end outcome, whatever that is for you.​

​There is an old saying: "If You Think Education is Expensive Try Ignorance"

Can you learn to be a real estate investor? Of course, I believe most anyone can with the correct education.

Here are some things that most big TV seminar people don't ever talk about. Which I believe they items that play a vital part to your success.​

  • What is your specific end outcome?
  • What is your current background or skill in real estate?
  • What resources do you currently have?  (time, money, experience, construction, etc)
  • Why is real estate the vehicle you are choosing?
  • What type of  property are you specifically looking for?

Getting started in real estate investing is the same. It is a profession and you can't expect to learn it in a weekend or in one class. You can drastically cut your learning curve by having a mentor or coach to help guide and support you.

There are so many areas of real estate investing you can get into. If you start in the wrong direction it will take you longer or cost you more to get to your goal.

You may even get into a deal that might take you down financially.​

Saying you want more money is NOT a goal​. Why?
If your goal is "more money" then if I give you $10.00 theoretically you have reached your goal. I doubt that's what you really want.

You need to be specific on how much money you want and why. I do an exercise ​to help you get very specific on the lifestyle you want and the cost of having that lifestyle. This is what we build your goals on.

Sometimes I ask a new investor, what they are looking for. The usual answer I get is: "I'm just looking for a deal". Which is meaningless. Unless you know what you are specifically looking for you will have trouble finding it.

Here are some avenues You could pursue as a  creative real estate investor :

  • Flipping
  • Lease Options
  • Subject To
  • Foreclosures
  • Buy and Hold
  • Notes
  • Wholesaling
  • Options
  • Single Family Houses, Multi-family, Land
  • Bird Dog (finding property)
  • Master Lease

This is by no means a complete list and there also are subsets of these categories.

An example for a new creative real estate investor, of an area that may not fit you is foreclosures. To buy foreclosures at the courthouse steps takes cash and lots of it. You need to have the cash at the sale in order to buy. You also better know what you are doing because there are many ways to make a mistake.

My friend is a cash buyer at the foreclosure sales. One day while at an auction. He observed a new buyer, who bid full price on a house that looked great from the street. The problem was the entire back of the house was burnt out.

It would appear the new buyer didn't drive by or if he did, didn't stop and look around the house.​

creative real estate investor

That was a very expensive and painful lesson the new buyer learned.​

Can you imagine what went through his mind when he got to the house after the sale and discovered what he really bought?  OUCH!

Imagine if he had a mentor or coach who could have saved him from that very expensive mistake. I guess it probably cost that buyer $50-75,000 to rebuild. Now even to get his investment back the house would have to sell for probably $100,000 over retail. Which is not very likely.

Becoming a creative real estate investor can be a rewarding career. It can benefit you both financially and emotionally. I know of no other investment that you can own, where someone else will pay for the investment.

In creative real estate investing we only buy property that will be supported by the rents.​

Think about it, if you hold property long term and rent it, the tenant is paying off the property for you. ​So you have an asset that keeps pace with inflation and gives tax benefits. You get increasing rents and one day the mortgage is paid off, which greatly increases you cash flow.

If you have any questions about creative real estate investing you can contact me here.

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