Where Was The Interest Three Years Ago?

I have been immersed in real estate investing since the end of 2005. I bought my first investment property in the first quarter of 2006, so I’ve been into this for a solid three years now. My business coach always taught us not to be a “secret agent” -- sure, James Bond (007) is really cool, but if no one knows who you are, then no one will do business with you or show an interest in what you are doing.

So, I have headed his instruction and I have been telling everyone what I do. I pass out business cards. Hardly a conversation goes by that I don’t mention that I buy investment real estate. So, where are the excited disciples? Where are the people who have been dying to learn this business? Why are then not asking me question, after question?

Well, actually, until recently, very few people have shown an interest in what I’m doing. But since the extreme decline in the economy, most notably starting in mid-September, 2008, I have had people approaching me and asking for my thoughts on the economy. They are visibly concerned about what is happening all around us. When I tell them that I have been working on a safety net plan since 2005, they ask me what I have been doing. I tell them I buy real estate and that’s when I get the blank stare! “You think now is a good time to be buying real estate?!” they ask doubtfully. And I reply, “Of course! Real estate is dirt cheap - literally! In fact, in some parts of Detroit that I would not invest, you can buy property for LESS than the dirt it sits on -- $1.00. The land itself is worth more than that and that is evident by the tax bill you still have to pay for that piece of dirt.

So, investing in real estate is no different than any other time. You still have to know how to evaluate any prospective property and the area the house is in. But it can still be done profitably in this economy -- in fact, this is the BEST time to buy because you can buy the property at bargain prices (40% - 60% below fair market value) and at historically low interest rates.

I’m concerned that some people interested in what I’m doing now start asking me if I have seen this or that show on late night TV with a special book offer on real estate investing. I have to say honestly that I have NOT seen any of these infomercials because I don’t watch enough TV to catch them. But I tell them they don’t need those programs. They just need ME! They can ask me any question at any time and I’ll tell them what I have learned and what books I have read -- no charge! I am not selling seminars or books. I just want to share what I know with others and watch them duplicate what I have done. So …. ask questions!

Here are some good questions to ask a real estate investor:

1) How did you get interested in real estate investing?
2) How did you get started in real estate investing?
3) How did you buy your first property?
4) How do you set up an LLC?
5) How do you establish business credit?
6) What do you use for a lease agreement?
7) How do you screen applicants?
8) How do you find and hire qualified contractors?
9) How do you manage contractors?
10) When do you ask for a signed W9?
11) When do you issue a 1099?
12) What do you look for when hiring an accountant or CPA to do your taxes?

I will commit to answering these 12 questions in the coming weeks/months if you will commit to reading them and offering up suggestions for improvement or asking questions I haven’t included in this list.

Times are tough right now for many, many people. But times can be unbearable for those who are unprepared when the worst happens. Don’t keep all your eggs in one basket. That includes putting all your trust into one employer. Prepare yourself for what may be next in your life if you find yourself without your current employer. What will you do for yourself and your family if you find yourself out of work due to this difficult economy?

We all need to find what it is that we are interested in doing that could somehow be turned into a money making opportunity. After all, when we learn to earn, we can then help others learn, too.