Forced to give up

[mamasanta25 0]

I really don't think of myself as a quitter, but I seriously do not have the funds to pay for any more marketing of this condo. I don't even have the funds to pay bills at the time being. I guess I was naiive to spend money on ads and signs, and a fax machine, and actually think that I would close a deal sooner than later. Life is a learning experience. I learned the hard way. I don't know how I am supposed to face the seller and tell him that I have to back out of the deal. I mean, I MIGHT be able to put ONE more ad in the paper, but that will be it. Last weeks ad only brought me one showing, and she seemed interested, but I haven't heard back from her. (That was yesterday) I can't throw any more money out the door here. I am not even looking for more deals, because I wouldn't be able to market them anyway. Reality kicks you in the ass, doesn't it?

[-Tony- 0]

mamasanta25,

 

You did the hardest part. Maybe if you make one last effort, and let this add run for more than a few days. Evan if you returned the fax machine and used that money to put an add in the paper for say two weeks.

 

I think if you had let it run for a longer period to begin with you wouldn't be in this spot. But, believe me I am not putting you down in any way you have made it further then I have. Best of luck and even if it goes back to the owner don't let it get you down.

 

That old saying doesn’t' go "if at first you don't succeed give up" NO it is "try try again"

 

So, you might have to get a JOB for a while, worse thing could happen. You’ll find that golden egg.....

[KingRichard 0]

Give up on the condo, not on your personal goals.

 

Out of the dozens of sites on REI around, as a beginner, I sticked with you guys because by sharing how sometimes business is hard, you made me believe that maybe that L/P biz is legit. It's hard work, but it's rewarding. it's not the get-rich-quick biz. You made me believe in it, I'm ready to work hard, fail, and get back up again.

 

Go back to the drawing table, check whatever happened wrong so you avoid that situation. Even if that situation puts you one year behind your original plans, don't quit completely because one condo didn't work out. quit only if you think this business is not for you. I don't know you at all, but the way you contribute to this forum, the way you're already out there getting signs stolen :-) , you belong in this business.

[mamasanta25 0]

Thanks a lot for the encouragement. I appreciate it. Thanks King Richard. Thanks Tony. I won't give up on my dreams, but I have to put them on hold.

[Andrew Ikeda 0]

Samantha:

 

No way woman!! You? Quit? That is not the Samantha I know.

I think Tony and KingRichard have it right....forget the condo for now and just move on.

Lately I too have come close to some deals but my inexperience and my absolute stubborness to use any of my own funds and being super picky about properties and ultra cautiousness have left me a little bummed too.

But let's not give up...only reevaluate what we are doing wrong and just continue trying. This is not a get rich overnight scheme. At the rate I'm going, I'll be happy to get the first deal done soon and hopefully it will pick up after that. I'm becoming more relaxed now about talking to people and it gets better by the day.

Like you Samantha, I'm struggling too. Still looking for a decent job after 12 weeks of job searching but my wife and baby keep me going...my priorities are maybe misaligned at the moment as I'm concentrating on getting a job and putting creative r.e. in the number two slot but I'm not ready to give up and I know you are not either.

Hang in there and keep plugging away. Deals are out there and there everyday...perhaps we need to get hungrier??

Best of luck and take care..

 

Andrew

[MichaelC 160]

Hello, Samantha. You've already received some strong support and advice from others, and I just want to add some of my own.

I think from the start the weakness in this deal was your marketing of it. You needed to be much more aggressive and thorough about getting the word out. That is an approach you should take every time you do a deal. Market like your payday depends on it, because it does. The other hindrance in this deal was the property is a condo. They are generally tougher to move than SFR's. This isn't to say we should avoid 'em totally. They do have a market. But, it's smaller and generally requires additional marketing time.

For what's it worth, many years ago when I started in this business, my first two deals lost me money. Money I was in no position to lose at the time. Two lease purchase deals and I lost money on both because of mistakes I made. I knew just enough to be dangerous to myself, went out and did deals, and paid the price for my ignorance. It would have been easy to quit. And believe me, my inclination was to do just that. But I didn't, I learned from my mistakes and, instead, used those experiences and that information to better prepare myself for the next deal. That third deal was finally a winner, and I have since gone on from there to where I am today. Had I followed my emotions my situation today would be quite different, I'm sure.

You, Samantha, know a heck of a lot more as a novice than I did. I had no support group like this one here. The internet was an embryo. I was out there on my own. Yet I, and many others, have persisted and succeeded when things got tough and when things went wrong. The choice for persisting and succeeding, or quitting and failing is yours. When I look at your situation as you have described it, I see no reason why you need to quit on this deal or on your fledgling real estate career. Give much thought to any decision you make, don't make it in an emotional state, and you'll probably do the right thing.

I'm pulling for you. We're all pulling for you. Best wishes.

[mamasanta25 0]

Thanks for the additional encouragement Andrew and Michael. As for additional marketing time, do you mean like possibly running the ad for 7 consecutive days, perhaps? The way the paper works here is that they suggest you run it in Sunday's paper for a fee of 53 dollars. If I run it for a week, the price may be double, but the most exposure comes from Sunday's paper. I am planning to market the condo for another month, and I am looking for a job. The only problem is that real estate may have to take a third or fourth position until we aren't broke. I have summer school and kids, and soon I will have a job. Although I had hoped for immediate success on this deal, I will try not to let it get me down, and realize that it doesn't have to be the downfall of my real estate career. Thanks guys for all the love.

[mamasanta25 0]

Market like your payday depends on it, because it does

 

Okay Michael, what do you suggest I do, say, this week while the condo is just sitting there not in the paper or anything? I can get it in the Sunday paper again, but that's my only plan for now, what else do I do??????

[MichaelC 160]

Samantha, there have been a number of discussions on this topic. For starters, you can look here.

In addition, you probably know these tried and tested marketing ideas, but I'll repeat them here anyway:

1) sign on the lawn;

2) directional signs with arrows around the neighborhood. Something simple like Rent to Own with an arrow pointing towards the property;

3) flyers, emphasizing this great property and unbelievable terms. Place them everywhere you can think of and a few places you can't imagine : laundromats, bulletin boards, grocery stores, nearby apartment buildings, neighbors all around the property, (they just might have a friend or relative looking for a place to live);

4) contact some local mortgage brokers. Ask them if they have any leads that they can't qualify today. If so, explain the advantages of your property, and tell them you will pass along their name and number to all your tenant/buyers. A mutually beneficial relationship......

5) contact the employment office of any big employers in the area. They may have some type of relocation office for their employees;

6) and anything else you can think of!!

[NickC 0]

Samantha,

 

Some wise words in the previous posts! Don't look at this situation in a pesamistic view at all! If REI has to be thrown in the trunk for now, so be it. It's not permanent though!

 

I haven't been able to even start my business yet because of my cash restraints. Take care of your family first, get a job & finish your schooling, and save up some reserves; that's my thinking anyways.

 

Then, when your financially ready, go get them deals signed up!

 

Once you do get another signed up, as MC stated, market and get the word out! If someone was to drive by the block your house is on, they should see signs and flyers everywhere! You have to get the word out!

 

Follow MC's 6 step plan in his post, along with putting an ad in Sunday's paper, and your phone should be ringing off the hook!

 

Good luck

Nick

[mamasanta25 0]

Thanks Nick, great advice from all of you. I can't give up. Today after school I drove around for a half hour and got six more numbers. One guy says he would be open to the idea if worse comes to worse. I approached him with a CA. I am mailing him my info sheets tomorrow. And hey, maybe he will call me in two months, and by then, I will have money to market his place, so it's always good to call on homeowners no matter what. Michael, I KNOW you know that I am so right for this business, and I don't want to to think I don't appreciate all of your support and encouragement. I never will, and it continues to drive me to success. My husband and family get in the way SOMETIMES when they discourage me, and obviously now, with finances being rough, it is hard, but I picture myself being successful with this business. I think what I need to do is to go to Pewaukee, (that's where the condo it) on Friday, (that's my first day off this week) and spend two hours posting fliers. I can't buy another sign right now, but I can go anywhere and everywhere for free, (except gas) and post fliers.

 

One final thought, what do I tell the seller for now?

[NickC 0]

One final thought, what do I tell the seller for now?

 

Well, you could be honest with the seller. Tell him you've marketed the property but just haven't received a satisfactory response. It is a condo, which do not have as much of a market than single family detatched homes. You could cancel the agreement, or continue to market the condo to find a qualified t/b who will cash out in the near future.

 

My husband and family get in the way SOMETIMES when they discourage me, and obviously now, with finances being rough, it is hard, but I picture myself being successful with this business.

 

And you will be successful. It's really up to you. Persistance is key!

 

Sure, your family may put you down here and there, but see what they say once your paydays come!

 

Nick

[MichaelC 160]

One final thought, what do I tell the seller for now?

The truth. That, despite your marketing efforts, you have not yet found a qualified or interested tenant/buyer. Further explain that on occassion this does happen and additional time is required. Also mention that you are meeting resistance because of the terms, that most who look think the monthly payments are high, or the price is high. You might get him to soften the terms which, in turn, makes your job easier. On the other hand, if the terms aren't wrong and it's just been a matter of not enough people knowing the unit is available, then ignore what I just said and kick up the marketing to notches previously unknown to man .

[Andrew Ikeda 0]

Samantha,

 

How are you? Hope things are going better for you with the condo situation.

I need to clarify something I wrote above:

 

forget the condo for now and just move on

 

Well...what I meant is not just drop the condo..you're already into it so you might as well continue working it...at least it's something!! Just forget the problems with marketing it and TADBAR..then continue on with creative real estate investing. Your getting a valuable learning lesson so keep your eyes and brain open....you'll be better at it next time.

Hope I've cleared up the mistake I wrote in the previous post.

Take care and keep us posted on how that is progressing.

 

Sincerely,

 

Andrew

[mamasanta25 0]

Hope I've cleared up the mistake I wrote in the previous post

 

Andrew, it really isn't a mistake, it was your thoughts at the time. My husband tells me the same thing every day, back out of the deal, and get another one. I understand, I mean, how much more money will I throw out and then not get a tenant buyer in the condo? And then I will have NO way of being reimbursed. The further I go, the further I dig myself into a hole.