Some Thoughts On RE Investing

The Goal: J Paul Getty - "If you can count your money, you don't have a billion dollars."

The Method: Vince Lombardi - "The price of success is hard work, dedication to the job at hand, and the determination that whether we win or lose, we have applied the best of ourselves to the task at hand."

 The Secret to Success is inside yourself.

 Become a Critical thinker

 Do not take Facts on "Faith"

 Develop Discipline and Courage



Real Estate is not a Commodity Trading or

A Get Rich Quick Scheme

It's a business

You are choosing to be in the business of Real Estate Investing



First take stock in what tools you have to offer

1. Cash

2. Credit

3. Time

4. Know how

Find what you do not have, network, network and network some more, here, at a reia meeting, in the gym, everywhere you go



Note-if you drawn to RE Investing due to trying to get your income on par with your spending habits, think again, 2 wise men once said

Charles A. Jaffe - "It's not your salary that makes you rich, it's your spending habits."

Edward Gibbon - "I am indeed rich, since my income is superior to my expense, and my expense is equal to my wishes."



It boils down to

Buy low and sell high~~or cash flow high

And last but not least do not spend all the money





Next Decide who you are and what you will do



The best way to start is to take your own house ( that you own, if you are renting , your own house is the best place to start) draw a circle that is 10 minutes driving distance from that point

Map every

1. FSBO

2. Foreclosure

3. Realtor Listing

4. Find who the top agents are in that market, get to know them

5. SALES!!!

6. Expired MLS listings

7. Other investors working your market, run then thru public records, steal their great idea's ignore the bad ones, they will probably not know they are bad idea's though, if they are successful bird do for them

8. Run down houses

9. Probates

10. Krispy Kreme Donuts~~ you have to compile data somewhere?

Once you are an expert on that market make sure you factored in the below tenets

The three phases of RE DEALS

1. Acquisition

2. Holding

3. Disposition

Account for all pitfalls related to the above

And Based upon the 4 tools decide to wholesale, retail, buy and rent, buy fix and rent

DON'T spend the grocery money! Invest what you can afford to lose

Next and most Important, become a critical thinker

No Matter how careful you are. You can not Eliminate Risk

An Intelligent RE Investor Insists upon a

" Margin Of Safety"

Do Not over pay.

No matter how exciting the Investment is

OR the PERSON selling it to you is.



Investors

Thru sound Analysis Investors acquire undervalued assets. Investors then return the asset to its true value. This is done thru thorough analysis that promises "Safety of Principal" and an adequate return.





Speculators:

Operations not meeting these requirements are speculating, Speculating is gambling

A lot of Speculators in 2004 thru 2006, Bought at market value with the expectations that market value would still rise

Many are still holding the bag



The Two Times You should not Speculate

1. When you can not afford to

2. When you can afford



With that said now on to the right mindset

The empirical method is generally characterized by the collection of a large amount of data before much speculation as to their significance, or without much idea of what to expect, and is to be contrasted with more theoretical methods in which the collection of empirical data is guided largely by preliminary theoretical exploration of what to expect. The empirical method is necessary in entering hitherto completely unexplored fields, and becomes less purely empirical as the acquired mastery of the field increases. Successful use of an exclusively empirical method demands a higher degree of intuitive ability in the practitioner.[1]



Use this idea above to combat

Another wise man said

Will Rogers - "An economist's guess is liable to be as good as anybody else's."



In psychology and cognitive science, confirmation bias is a tendency to search for or interpret new information in a way that confirms one's preconceptions and avoid information and interpretations which contradict prior beliefs. It is a type of cognitive bias and represents an error of inductive inference, or as a form of selection bias toward confirmation of the hypothesis under study or disconfirmation of an alternative hypothesis.

Confirmation bias is an area of interest in the teaching of critical thinking as the skill is misused if rigorous critical scrutiny is applied only to evidence challenging a preconceived idea but not to evidence supporting the same preconception.[1]

We tend to cripple ourselves with" what we think we know" instead of what the market is telling us

Go forth and Get "Rich":

If this helped

I Want Half!

Make the checks payable to a LLC I have "cash":

I leave you with

Henry David Thoreau - "Dreams are the touchstones of our character."

Eleanor Roosevelt - "The future belongs to those who believe in the beauty of their dreams."

H. G. Wells - "Human history becomes more and more a race between education and catastrophe."

Jeff Tumbarello is a Real Estate Investor, Speaker and Loan Originator with Union Savings Bank. In 2003 Jeff and 3 other SWFL RE Investors Founded the South West Florida Real Estate Investment Assoc. This now has over 400 members. He has materially participated in rental properties, waterfront spec homes and buy & flip transactions. Jeff has originated over 1,000 mortgage loans. Jeff is also veteran of the USMC and served in Dessert Shield and Dessert Storm as an Infantryman with First Battalion Third Marines. Jeff is from Stuart Florida. Jeff is married to Cristina and has 3 children ages 10, 8 and 6. Jeff is currently working with Union Savings Bank and buying cash flow properties in Central Ohio. Jeff is available for speaking engagements about Union Savings Bank Products, Real Estate Investing and Marketing for Real Estate Pro's and investors

for more info Email jtumbarello@usavingsbank.com