Start small or start big?

I am getting so frustrated with my financial life. I spend ridiculous amounts of time trying to absorb knowledge and apply what I learn. My frustration is that I feel that I am not getting anywhere! Frustration make Hulk angry!! Arg! I have been expanding my financial horizons, and looking at deals to where the numbers are so big I want to vomit. I am also looking at smaller deals that make me more comfortable and the CF seems too small for the headache. Like I posted before, maybe my frustration is due to the fact that I am still focused on completing a transaction when I should be focused on finding a deal. Sigh. I suppose I don't even know where to really find a deal. Do you guys find deals or do you turn transactions into deals? Thanks for listening.

The problem seems to be that you have not yet focused on a direction. Try making a plan for where you want to be in a few years. Then look at some options for achieving this goal.

It will take a lot of work to figure this out. Planning is important though and at some point you will need to narrow down a direction.

Spreadsheets with comparisons or simply penciling it out on paper may help.

Perhaps you could be looking ahead a bit as well. The economy may be heading into a bit of a slump. How could you benefit from this? Will people be taking more vacations or less as a result?

A weak economy has tended to favor storage units. The change in housing and demographics should favor apartment buildings.

Put as much thought into your planning as possible.

This is part of the learning process. I am sure that you have seen this a hundred times. INCREASE THE CASHFLOW TO INCREASE THE VALUE.

The goal is to be able to recognize a deal. This comes with homework and experience. My opinion is that it is much harder to find a deal if you are not focused on a specific field. Once you find the deal, the next stage is implementing your management plan. This is harder than finding the deal and is aided by having a strong team to help.

a few comments-

1. all deals take time to cultivate
2. do not let your frustration haste you into a decision that you will regret later.
3. keep emotions out of the transaction/deal
4. what would the difference be between a transaction and a deal?
5. I know some people whose success came to them late in life. They presumably overcame some discouragement, patience and possibly other obstacles only to surface to the top in of their fields.
6. you have to start somewhere. Doing a deal however small or large is an important learning step.

Lastly I can say that at least you are on the right track by taking the initiative to learn. While you have to continually search for opportunities, you still need patience, grasshopper... and never let emotions dictate business moves.

I want to echo Steve's thoughts. Yves, I've noticed you post alot and you do seem to be moving 100 mph and taking action (which is a GREAT thing), but you appear to be moving in all sorts of directions at the same time (not necessarily a good thing - at least not at the beginning).

Figure out what you want to do and then put a plan together to do it. Once you've become an expert in one field, done some deals and hopefully made some money to boot, then and only then should you start to looking into other business. Essentially, get one going really well, get it on autopilot, then start another one.

I have had real trouble with focus myself. I can honestly say it wasn't until I started really participating on this forum that I realized how spread out I was and how that was taking me away from what I really want to do.

I've spent MANY (probably close to 100) hours this summer trying to figure out what I want. I think I'm about 95% of the way there and am now working on my plan to get there.

GOOD LUCK. YOU CAN DO IT.

My $0.02.

DEAL:
TRANSACTION:

Andviv... like the definitions with one little change...



Deal.... advantageous to all parties involved.

If you don't become an expert in a topic, how would you know it is a deal?
What makes you believe that what you have found so far is NOT a bargain? Do you have something to compare against? How do you know if it is good? how do you if it is bad?

Please go back and re-re-re-re-read this post about Value, Opportunity, and Deals

And, more important than anything, calm down. Remember how much time it took for you to learn what you know for cabins? You need time to absorb all that information. You didn't learn all that you know by only reading a book or reading a forum, correct? Breathe.

Do not let the abundance and wealth of information overwhelm you. And more importantly, remember this trip will take a few years, not a few minutes. Remember when I told you I thought you were doing great? Remember what I PM'ed you about?

I agree with all that has been said. Don't just do a transaction because you feel desperate.

My experience. I was flipping cars years ago. Making good money part time. Ran into a dry spell with no deals coming my way. Went out shopping for deal on a Sat. Found a 1977 Thunderbird(land barge). Bought it, fixed it up, took a hit just to sell it. All this was because I wanted a deal NOW. My wife always reminds me that we don't want another Thunderbird when we look at RE.

Be patient and work on getting yourself ready when opportunity knocks. Good luck.

Greg

woop! woop!

I wrote out a "plan" today. Here it is:

1. To make $10k passive income within the next 5 years.
2. To acquire this passive income through a mix of both business and real estate.

I suppose that my plan is rather vague. I need to think about his some more. I suppose I am hesitant to commit myself to any one course as I have little to no experience in these fields- what if I don't like them? Should I just commit to one course for a set period of time and then move on to another facet of RE? I will go back and read the recommend posts. ...and Andviv, I haven't forgotten what you said- actually this post was spawned by what you said- I realized that I need to decide a path, I just know know which path to go down and that frustrates me.

Thank you everyone.

yveskleinsky-

This is not a plan per se. More like two long range goals.

Have you had a chance to look at the "How to develop your PLAN" thread I started?

http://thefastlanetomillions.com/showthread.php?t=544

It's a pretty intense process, but it's kinda fun, and can really take you places.

It also helps you focus-- not just on *things*-- but on things that are in line with who you are as a person. Which means you won't accomplish some great big hairy goal and then say, "Why did I want this again?!?" (that's happened to all of us ).

I'll be posting the next bits soon- but the first part should take a few days, as it improves with thinking about this in the back of your mind (you come up with things that you don't always think about first).

Hoping this helps.

-Russ H.

These are good goals, but remember, the goals are just one part of the plan. You also need to figure out the specifics around how you will achieve those goals.

For example, you mention that you will do both business and real estate. Let's take the real estate piece...here are some questions you should answer:

- Where will you purchase real estate (and why there)?

- What types of properties will you buy? SFH, Multi-Family Residential, Apartments, Commercial, etc...

- What criteria will you use to determine whether something should or should not be purchased? Cap rates, Cash ROI, Total ROI, etc...

- How will you finance your purchases? Conventional loans, hard money, equity investors, etc

- What will your investment exit strategy be? Sale, 1031 Trade, Refinance, Long-Term Hold, etc...

- Who is your team? Accountant, Lawyer, Broker/Agent, PM Company, etc...

Those are the "how" types of questions you should answer before you move forward...

Forgot to add . . . if you can start playing a face-to-face Cashflow 101 game with others, this will also take you places you've never dreamed of.

If there aren't any regular games in your area, buy the game and start one.

Btw, if you'd like to see an example of the real estate business plan I'm using, feel free to PM me with your email address...can't promise it will help, but happy to send you a copy...

And I think I've already posted a business-related business plan elsewhere on the forums that gives a good example of the types of questions you might want to answer before starting a business...

yveskleinsky, just wondering what's your reason for moving on?

and if you don't move on, what's the worst consequence? in 5 years, 10 years, 20 years, 30 years from now? How will it effect your family life, social life, your finances, your joy and happiness, your relationships?

Is getting into Real estate a should or a MUST?

I would love to see your plan. I will PM you.

...I have played CF 101 before- I believe that my thinking is on the right track- meaning, I focus less on doodads and more on RE and building businesses.

CF101 is not about doodads vs. investments. It's not about always doing the same and leaving the rat race in an hour.
Use it now as a tool to test different strategies.

For example, next time you play it, only buy SFHs with a ROI of more than 40%. Do not buy anything else. Play it that way and see what happens.
Next time, only buy apartments with more than 8 units. See how the numbers change.
Next time buy only after you have paid ALL your debt.
Next time buy only four-plex. or 8-plex.
Next time you play buy only stocks.

Try it that way, use it as a way to validate strategies. I assume that's what Russ meant by that. That's how I used it to help me determine part of my plan.

I would like to focus on investment property that is already in the rental pool- ideally already being managed by a PM. I like the idea of multi-units, I would consider a SFR if it was a great price, fully furnished, great area and if I could make it into a nightly rental. I would purchase properties through conventional loans as my first option. I suppose my criteria for determining if I am going forward or not is my Cash ROI...I want to make money every month. ...I have a good agent and I am just now looking around at accountants and book keepers.

I would like to own several businesses- whatever the businesses are I would want a good team in place and set up to where I wouldn't need to be there that often, and I would need to be interested in the business!

I also agree that the "plan" I had mentioned earlier is more along the lines of a goal. I misspoke.

I didn't quite understand the post about me moving on. ...My husband is Military, and we do move often if that's what you meant. ...This is the reason that I would need something (RE or business) to function without me- or with little involvement from me.

yveskleinsky-



When you truly learn how to play Cashflow, grasshopper, you will feel like the lumberjack and his chainsaw.

I mean it.

-Russ H.

PS We have GOT to play a game of cashflow at the Beer and Pancakes Get Together.

Russ.... you love your lumberjack stories !