AgeOfEnlightenmentSCP
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Post by AgeOfEnlightenmentSCP on Apr 1, 2011 15:39:37 GMT -5
I decided to start a thread on making money- it has the potential of being a very long first post, so I'm going to break it up.
If you want to make more money, your philosophy about money, and your mindset must change FIRST. This is key for anyone who wants to make more money because the more your thinking is screwed up, the more your attitude will be screwed up, and even if you do make money by doing all the right things to make money- you will misinterpret setbacks, mishandle the bumps in the road which inevitably come, and worst of all- you may unconsciously sabotage yourself along the way because messed up thinking is like a computer virus. To make money, your operating system has to be at peak performance. If it's not, the virus of bad thinking will cause you to get off track.
So, these are what I call "Mindset Resets" on this thread, and the first one is the only one I'll cover in this initial post:
NO EXCUSES
You must not make excuses for not making all the money you want. You have to take 100% responsibility for the money you make, or don't make. Once you do, you can consciously make all the money you want.
To make money you must seek out opportunity, and you must attract a network of PEOPLE (money ONLY comes from other people, so one way or another you have to be connected to PEOPLE) that you need to help you take advantage of the opportunity.
As an aside- all of these ideas work best if you work for yourself / own a business. You have much more control over your destiny when you do. This is not to say you can't make a lot of money other ways- you can. But it's harder.
Most people would rather not be around a whiny, negative person. Excuse makers are a big turn off. The pity party isn't a party most people want to attend. Who wants to consciously involve themselves with an emotional cripple?
The person in the victim t-shirt wears out the welcome pretty fast.
You want to be a money-magnet. And the thinking, beliefs, and behavior of an excuse maker are money repellant.
Power is derived from taking responsibility, weakness from trying to avoid responsibility. Wealth and opportunity are attracted by those who take responsibility.
There is a lot of noise made about the gap between "worker" and "top executive" pay (even this language is deceptive because it implies there are people at the "bottom" that work, and people at the "top" that don't).
Maybe people at the bottom do work harder- they're certainly more likely to have the sh** work handed to them. What people ignor is the responsibility differential.
As extraordinary as the pay differential is, the responsibility differential is even more extreme. The company makes, ships, sells, and delivers 1,000,000 units that are dangerously defective and have to be recalled could result in death, injury, and recalls that will cost the company - the share owners- millions of dollars, damage its reputation and then there's the ripple effect of the harm it does to dealers and retailers and their ability to earn a living.
When this happens, it ain't the assembly line worker that f***ed up, or even the production manager. Nope. It's going to be the executive(s), starting with the CEO. Odds are pretty good the CEO will be fired, but the person(s) on the floor that made the error, and let the dangerously defective product go to market won't face any disciplinary action at all, or they'll be "retrained".
I've got friends I know personally who shun responsibility. They've been offered promotions, and they've turned them down because they like what they're doing now and they expressly do not want the added responsibility.
I have no problem with this...until the whining starts. They want to make more money without providing more value to the company. They want a raise because some arbitrary period of time has gone by-- another year, another annual raise is the expectation. But they don't do anything more for more money-- so why should they get a raise? They claim to have 20 years experience, but owners know better: they have one year of experience repeated 20 times. Big difference.
But owners aren't immune from making excuses. Here are some actual excuses I've heard owners make for doing poorly in business:
There's a giant competitor in my market. Nobody has any money in may area. It's the market cycle, or the season / time of year. There are too many people selling doohickeys in my town. What I do is unique, nobody understands it. It's my spouse. It's my staff. It's the government. It's the weather.
This kind of thinking has to be eliminated if you want to make more money.
Woody Allen is credited with saying 80% of success is just showing up. Do you make excuses for failing to show up? Are you late to work, do you take "mental health days", do you leave early? Here are some actual excuses from my log book with over 700 excuses I've been given by people who didn't show up- or showed up late. They range from employees, to vendors, to potential clients:
My car didn't start. The bus showed up early. I didn't hear the alarm clock. The dog hid my shoes. I'm just not a morning person. My mom didn't wake me up (that girl was 26 years old), I can't be expected to be here at exactly the same time every day (that guy was fired on the spot, btw).
Of course some of these things may be true in the strictest sense of the word, but they are just excuses. I can guarantee you girly girl 26 year old will make it to the Little Wayne concert on time tonight in Chicago (she has made sure everyone knows she has tickets and is going). In fact, there's a good bet she'd be early. Just as Mr. car didn't start, bus came early, dog hid my shoes guy (those were all from ONE guy) would find a way to the tailgate party if he had tickets.
You can make excuses, or you can make money, but you can't make both.
If you want to make money you have to stop making excuses. Grow up. Accept responsibility for your life, SEEK responsibility going forward.
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midjd
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Post by midjd on Apr 1, 2011 18:50:53 GMT -5
regurgitatus maximus LOL! ;D Paul, honestly, you DO have some good points buried in there, but the delivery is awfully condescending.
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domeasingold
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Post by domeasingold on Apr 1, 2011 20:09:22 GMT -5
This belongs on some cable tv channel late at night.
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Post by sisterinhk on Apr 2, 2011 12:10:53 GMT -5
""You can make excuses, or you can make money, but you can't make both.""
well said! I happen to do both but when I read posts like yours; I tend to do more of the latter. Testimonials like that keep me coming back again again to this board and trying to improve my life.
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8 Bit WWBG
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Post by 8 Bit WWBG on Apr 2, 2011 13:33:54 GMT -5
Boiling it down: People with "can do" attitudes can accomplish what they set their minds to.
If you tell most people you are GOING to make your first million by age 30, many will tell you that you are crazy. If you tell that same thing to someone who actually DID make his/her first million by 30, they'll probably tell you that it is exactly that kind of can do spirit that made it happen.
I have a friend whose attitude is "there is nothing I can't do". He's got a lot of skills under his belt: graphic design, architectural drawing, handyman stuff, mad driving skills, martial arts. I bet he never held himself back mentally with excuses.
I've become much more acutely aware of how some people find themselves in situations where they have to MAKE something work. Most commonly, its "live on less money". Tell these people that they can live on $1k/mo less and they'll look at you cross eyed. But after a job loss or cutback, amazingly they make it work.
So imagine what you could do if your mindset was that you could make it work. Look for solutions, not problems.
PBP is 100% right with a positive mental attitude. Making success a priority usually leads to success.
What PBP and others like him are ALWAYS sketchy on is that little period that comes between "I have decided to change my life" and "look, I've turned my annual salary into my monthly salary".
If of course do not expect a play by play, because it is possible that even if I followed the same steps, I could achieve a different (better OR worse) outcome. But there are most certainly logistics involved, especially if you go the business route.
It takes money and time to start a business. How much, obviously depends on the business. I'd imagine most people have trouble getting past this step. I have had many ideas I believe I could turn into profitable businesses. Recipes I think would be a hit. Rental properties I believe would be cash flow positive, sites I could build... I have unfortunately not prioritized them at this point, so they remain dreams.
I also wouldn't consider "there is a big competitor" or "nobody has money" to be complete BS excuses by themselves. I would not open up a burger stand on a street filled with burger restaurants. I would not try to peddle expensive landscaping/interior design in an area where people could barely keep their homes...
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AgeOfEnlightenmentSCP
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Post by AgeOfEnlightenmentSCP on Apr 2, 2011 14:11:39 GMT -5
This belongs on some cable tv channel late at night. It was on cable tv late at night. I write copy for several of those infomercials.
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2kids10horses
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Post by 2kids10horses on Apr 2, 2011 15:29:18 GMT -5
"I would not open up a burger stand on a street filled with burger restaurants."
Uh oh... there's a flaw in this thinking! There are a lot of burger joints on that street because that's where people go to buy burgers! If you have an idea for a new burger stand, that's EXACTLY where you should go!
Don't believe me? Have you ever noticed how all the car dealers are all congregated along the same road?
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Post by commentator on Apr 2, 2011 15:43:04 GMT -5
You folks need to know that the belief that you can do ANYTHING you set your mind to is approximately 97% horse manure.
You can do anything you set your mind to if you work hard, have the right knowledge and skills, have an unspecified amount of wisdom and intelligence, and have some luck.
Even with ALL those attributes, people fail through no fault of their own (beyond being too optimistic, perhaps).
So, what's my problem? The clear implication that someone who fails didn't do that mindset change mentioned in the OP, or didn't work hard enough or is just making excuses or had some other personal flaw that led to failure is my problem with this Pollyannaish nonsense. Sometimes, folks, failure is just the way things are and what Pollyanna calls "excuses" are reasons.
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chocolat
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Post by chocolat on Apr 2, 2011 16:18:23 GMT -5
I completely agree with the previous comment. If all it took was hard work and hope, then many illegal immigrants would be millionaires by now.
Luck and exceptional skills are a huge part of the process of becoming rich.
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AgeOfEnlightenmentSCP
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Post by AgeOfEnlightenmentSCP on Apr 4, 2011 12:25:04 GMT -5
"I would not open up a burger stand on a street filled with burger restaurants." Uh oh... there's a flaw in this thinking! There are a lot of burger joints on that street because that's where people go to buy burgers! If you have an idea for a new burger stand, that's EXACTLY where you should go! Don't believe me? Have you ever noticed how all the car dealers are all congregated along the same road? You're absolutely spot on! I read that with horror. I would never open a taco stand on a street lined with burger joints. The market has already told you what it wants, now you have to drill down and see how you can differentiate your burger place from the others.
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AgeOfEnlightenmentSCP
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Post by AgeOfEnlightenmentSCP on Apr 4, 2011 12:26:11 GMT -5
You folks need to know that the belief that you can do ANYTHING you set your mind to is approximately 97% horse manure. You can do anything you set your mind to if you work hard, have the right knowledge and skills, have an unspecified amount of wisdom and intelligence, and have some luck. Even with ALL those attributes, people fail through no fault of their own (beyond being too optimistic, perhaps). So, what's my problem? The clear implication that someone who fails didn't do that mindset change mentioned in the OP, or didn't work hard enough or is just making excuses or had some other personal flaw that led to failure is my problem with this Pollyannaish nonsense. Sometimes, folks, failure is just the way things are and what Pollyanna calls "excuses" are reasons. Most people don't fail. Most people simply never try. As Wayne Gretsky says, "You always miss 100% of the shots you don't take".
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Sum Dum Gai
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Post by Sum Dum Gai on Apr 4, 2011 14:08:52 GMT -5
Most people don't fail. Most people simply never try. Uh... you do know that most new business fail right? These aren't pipe dreamers who never gave it a shot. These are people who took the risk, and in most cases, it doesn't pan out. I'm sure there are myriads of reasons why these businesses don't work out, but pretending that all it takes is a can do attitude is completely ridiculous. A can do attitude, energy, time, a little luck, and some seed money can absolutely make somebody rich. It can also cause them to lose the seed money, waste the time, and get metaphorically kicked in the junk by the universe when it doesn't work. It's not even a fifty fifty, it's like ten percent that live the dream, and ninety percent that get kicked in the junk. As Wayne Gretsky says, "You always miss 100% of the shots you don't take". Sure, but you also miss 90% of the shots you do take. It's important to keep that part in mind too. That doesn't mean you shouldn't take shots, but it does mean you should be smart about the ones you do take.
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AgeOfEnlightenmentSCP
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Post by AgeOfEnlightenmentSCP on Apr 5, 2011 1:56:06 GMT -5
It's easy to get off track if you're focused on what the average person, or the average business does.
I hate the term "industry norm". I mean, let's think about it for half a second here- why is something an "industry norm"? Because that's what all the "normal" businesses do. What kind of results does the typical business get? Typical results. I like getting the "results not typical" results.
Most businesses fail for the same reason that just about every person- 97%- fail. They are started haphazardly and run into the ground by people who never had any business starting a business. Ask me how I know...
You'll make more money when you learn to be detail-oriented and thorough. I can't rehab a house haphazardly. It's a house. It has to be safe, it has to meet codes, it has to be habitable. I can't slap it together with glue and paint over it.
Even my little slum properties have to be rehabbed- major, minor- they all need rehab when we get them. I have to scope the work, estimate the costs, hire the contractor(s), and approve the work to be done, and approve the completed contract and pay for the repairs. If I think it's going to be $2,000 but it turns out to be $3,000-- that's 33.33% not in my favor. You can't run a business like that, yet you'd be surprised how many people start a business with borrowed money and they don't know the first thing about the simplest math, they don't know where their numbers are, they don't know the status of insurance policies, local ordinances, they've never met with an accountant, or an attorney...they couldn't manage their paycheck well before they started the business, now they're supposed to be running a business.
Second thing I'd advise is this: light a fire under your arse. It may seem like common sense, and you'd think anyone with a business of their own would already have a certain motivation, but many don't. They have a 9 to 5 mindset. Get and keep momentum- push, and push, and push, and push, and push until you get a break through, and then don't merely ride the wave-- keep pushing. Don't be too patient. Keep your momentum going.
Third, FOCUS. My first companies failed because there were too many top priorities, and too much "multi-tasking" going on. I quickly learned that "multi-tasking" is a myth anyway. It can't be done. Learn your REAL priorities and ask yourself at several points during the day, "What should I be doing right now". If you're not doing it- change course.
Keep PERSPECTIVE. Nothing is ever as good or as bad as we think it is. Don't let success go to your head, and don't let failure sidetrack you. You're very likely not a genius, nor are you a failure. Napoleon Hill calls this "accurate thinking". Yes, we like to be positive, but not at the expense of ignoring reality. Don't let frustration stall you-- let it motivate you.
Have PASSION. If you don't like what you're doing, do something else. You will NEVER be successful, happy, or healthy if you hate what you do. Do something you love now, or get started part time, or go back to school-- take whatever steps you can to get out of things you like, and go do something you LOVE doing.
Have CONFIDENCE. Recognize that you have something unique of value offer, and learn how to use what you've got and learn as you go. Don't be arrogant, or egotistical. But everyone has something useful to offer, and if you apply yourself diligently to that thing you're passionate about, and you hone what it is that others will value of what you do-- then you will be successful.
Be SUCCESSFUL. Just be successful. Choose it. Focus on it. Embrace it. Make sure it matters to you, it's important to you, and then achieve it. It may sound simplistic, but it's true: You get what you focus on. When you say words, you're manifesting physical circumstances. As long as you're going to be thinking anyway, you may as well be thinking success instead of failure, big instead of small, both instead of either-or.
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Post by mtshastawriter on Apr 5, 2011 20:55:12 GMT -5
I ordered Trump's book today on how to make business deals. While I know it's a sidetrack a bit for this thread, it's relevant because I think many of us under-value our skills and time. I want to learn to negotiate with confidence and his book is known for that.
I know a ton of freelance writers happy to see $10-20 an article when much better money is out there to be had - for a lot less work. IMHO some of these folks would be better served by spending some of that time writing content for their own websites or applying for better paying gigs.
Since I freelance to supplement the SS benefits I get for the kids, I look at what pays the most and that is what typically gets the most attention. There are exceptions to that rule, but mostly I look at it like I want to get my work done in the shortest period of time but earn the highest amount possible. This is not to say that I do not do quality work for all of my clients, it simply means that I see my time in terms of cash and the less of it I have to trade the better.
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Firebird
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Post by Firebird on Apr 6, 2011 15:09:40 GMT -5
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Firebird
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Post by Firebird on Apr 6, 2011 15:11:45 GMT -5
Uh... you do know that most new business fail right? These aren't pipe dreamers who never gave it a shot. These are people who took the risk, and in most cases, it doesn't pan out. I'm sure there are myriads of reasons why these businesses don't work out, but pretending that all it takes is a can do attitude is completely ridiculous.
This is true but I have very little respect for people that go out and try to start a business without having a realistic idea of what they're getting into or how much money it's going to take, which applies to a *very* healthy percentage of the 90% of new businesses which fail. You're dead in the water before you even get started if you go in with grandiose fantasies about quitting your job and living the good life after a couple weeks of work. Doesn't happen that way.
Also, you have to be realistic with yourself about whether or not you can handle a business. As Paul says, a lot of small business owners can barely manage their own money, let alone a company's. And what about marketing? Managing a staff? You might have the talent to be a contender in your industry but that doesn't mean you have the business acumen. And without the latter, the former doesn't matter. I think this is where a lot of small business owners start to lose perspective.
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shanendoah
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Post by shanendoah on Apr 6, 2011 15:35:08 GMT -5
...:::Most businesses fail for the same reason that just about every person- 97%- fail.:::...
...:::As Paul says, a lot of small business owners can barely manage their own money, let alone a company's. And what about marketing? Managing a staff? You might have the talent to be a contender in your industry but that doesn't mean you have the business acumen. And without the latter, the former doesn't matter.:::...
I don't disagree with either of these two statements, but wasn't the point of PCP's first post that ANYONE can make money if they have the right attitude? If, as he acknowledges, 97% of PEOPLE fail, then obviously, not anyone can succeed with the right attitude. You also need the right skill set, not just talent in your industry but talent for running a business, or talent for hiring the right people to run your business for you, but then you also need the talent to manage at least some of those people personally.... In addition to all the talent and skills you need, you also need at least a little bit of luck.
I am watching America's Next Great Restaurant, and this last week, when they kicked a guy off, there was a voice over from one of the judges/investors who said "He thinks he has the greatest concept in the world, but obviously he's wrong, because if he was right, someone would have thrown money at him already." This judge/investor is Curtis Stone, a celebrity cookbook writer and food network host. In his mind, investors will throw money at any good idea, and they would for him, or his co-judge Bobby Flay. But they aren't going to do it from some guy from middle America who is not a chef, who doesn't have over 50% of the seed money on his own, and has no name recognition - no matter how good the idea is. He seems to forget that even the richest of his co-judges, the founder of Chipotle (which, given its $3 billion dollar evaluation was the best concept in the world) didn't have investors throwing money at him. He got an $80,000+ loan from his father, not a bank or an investor, but his father.
Reality is out there, and reality says attitude doesn't make you rich. I agree that you can bet that most people who made their first million by 30 had the attitude PCP is talking about. No one is going to argue its not a factor, but its not the only factor. There are even more people, people who will never make a million, who have that same attitude. You have to look at the complete picture of success.
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Firebird
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Post by Firebird on Apr 6, 2011 15:51:53 GMT -5
I don't disagree with either of these two statements, but wasn't the point of PCP's first post that ANYONE can make money if they have the right attitude? If, as he acknowledges, 97% of PEOPLE fail, then obviously, not anyone can succeed with the right attitude.
Yeah, that would be one of the many points on which Paul and I disagree. This is getting into "The Secret" territory which I mostly think is total bunk.
I mean, if anything attitude is one of the least important parts. Attitude, a lot of the time, is a lot of bluffing. Action is what matters.
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8 Bit WWBG
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Post by 8 Bit WWBG on Apr 6, 2011 16:15:58 GMT -5
...:::"You're absolutely spot on! I read that with horror. I would never open a taco stand on a street lined with burger joints. The market has already told you what it wants, now you have to drill down and see how you can differentiate your burger place from the others.":::...
Now you are the ones limiting your thinking. You assumed I'd limit my offerings to food. On such a street, I would open up a place that sold "we love beef" t-shirts". Or I'd open a safe-haven for the vegetarian spouses of all the dudes who are in the other places eating burgers.
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2kids10horses
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Post by 2kids10horses on Apr 7, 2011 10:28:11 GMT -5
Not necessarily. The person who originally posted he would not open another burger joint on a street lined with burger joints was the one limited in his thinking. Adding a place on that street that also caters to burger lovers is perfectly valid
In my example, I used automobile lots. New and used car dealers seem to bunch up along certain streets in nearly every town. But, you'll also see body shops, transmission places, quick oil change places there, too. Also, tire dealers, accessory dealers, stereo installers, etc. Even finance shops, and title pawn places. I'm sure there's more kinds of businesses that are related to the car dealer business.
But, that's not necessarily the place I'd open a bridal gown business! (I just made something up.) I would think a mall or shopping center that is more clothing oriented would draw more customers.
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swamp
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Post by swamp on Apr 7, 2011 10:43:01 GMT -5
I don't disagree with either of these two statements, but wasn't the point of PCP's first post that ANYONE can make money if they have the right attitude? If, as he acknowledges, 97% of PEOPLE fail, then obviously, not anyone can succeed with the right attitude.Yeah, that would be one of the many points on which Paul and I disagree. This is getting into "The Secret" territory which I mostly think is total bunk. I mean, if anything attitude is one of the least important parts. Attitude, a lot of the time, is a lot of bluffing. Action is what matters. Relevant, purposeful, and well planned action is what matters. Running around like a chicken with your head cut off isn't going to make you successful.
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swamp
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Post by swamp on Apr 7, 2011 10:44:00 GMT -5
...:::"You're absolutely spot on! I read that with horror. I would never open a taco stand on a street lined with burger joints. The market has already told you what it wants, now you have to drill down and see how you can differentiate your burger place from the others.":::... Now you are the ones limiting your thinking. You assumed I'd limit my offerings to food. On such a street, I would open up a place that sold "we love beef" t-shirts". Or I'd open a safe-haven for the vegetarian spouses of all the dudes who are in the other places eating burgers. Or ice cream for dessert after your burger, if the other joints didn't do dessert.
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whoisjohngalt
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Post by whoisjohngalt on Apr 7, 2011 11:07:26 GMT -5
I think I would have to disagree. I think if you want something badly enough, that's important. That desire doesn't take the place of proper research, planning, execution, but you do have to have the desire.
Also, I think it's important to know why you are doing something and "I want to" is not a sufficient reason, IMO.
Some people are lucky/brilliant/whatever else enough that they get that one phenomenal idea that sets them apart from everyone else and they are set for life.
But for the rest of us there is a lot more involved.
Lena
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swamp
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Post by swamp on Apr 7, 2011 11:11:11 GMT -5
Sometimes, I think the people with the bad attitudes, or at least pessimistic outlooks, are more likely to succeed because they can see potential problems and prepare for them. The Pollyannas who think nothing can go wrong are often sorely dissapointed.
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Post by Deleted on Apr 7, 2011 11:15:44 GMT -5
regurgitatus maximus LOL! ;D Paul, honestly, you DO have some good points buried in there, but the delivery is awfully condescending. it's like you don't even know him.
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Firebird
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Post by Firebird on Apr 7, 2011 11:37:53 GMT -5
I think I would have to disagree. I think if you want something badly enough, that's important. That desire doesn't take the place of proper research, planning, execution, but you do have to have the desire. Also, I think it's important to know why you are doing something and "I want to" is not a sufficient reason, IMO. Some people are lucky/brilliant/whatever else enough that they get that one phenomenal idea that sets them apart from everyone else and they are set for life. But for the rest of us there is a lot more involved. Lena I didn't say it wasn't important, just that it was one of the least important parts. The actual action you take is so much more important than whatever you're visualizing the outcome to be in your head. For example, I tend to be an optimist/realist whereas DF is a self-professed pessimist. Used to be a huge bone of contention between us (there was a period of time where I mentally referred to him as Eeyore). I'm trying to think of an incident that illustrates this, and the only one that comes to mind is a little silly but I'll offer it anyway. We were trying to make restaurant reservations about a month ago, and I suggested that we try a certain restaurant. DF replied, "No way, they'll never take us this late." But he agreed to try calling regardless. I figured we'd probably get in; he figured we probably wouldn't. The restaurant's actual availability was in no way dependent on our respective attitudes. Unless you subscribe to the Secret, in which case we'd only have gotten the reservation if I called.
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8 Bit WWBG
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Post by 8 Bit WWBG on Apr 7, 2011 13:04:55 GMT -5
...:::"The person who originally posted he would not open another burger joint on a street lined with burger joints was the one limited in his thinking. Adding a place on that street that also caters to burger lovers is perfectly valid":::...
Yes, that was ALSO me. I said both that I wouldn't open a burger joint on burger street, and clarified that I would open something that caters to burger lovers, just not a burger stand.
Make sure you add "reads carefully" and "cross-references" to the list of traits important for business.
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2kids10horses
Senior Member
Joined: Dec 20, 2010 20:15:09 GMT -5
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Post by 2kids10horses on Apr 7, 2011 15:03:03 GMT -5
Lena,
You gave an excellent example. I have to admit of having some degree of negative attitude myself, but I have overcome it to a certain degree.
It was not my idea to get into Landlording. Although I do praise it's rewards on this site! It was actually my wife's idea. When she first proposed the idea of buying rentals, I had never had any, I didn't know anyone who had any, and all I had ever heard about rentals was the "midnight call about a stopped up toilet".
My thoughts were: why would anybody rent? If they could pay enough to cover a landlord's payment, why wouldn't they just buy a house themselves? So, I had this preconceived idea that it wouldn't work.
But, I didn't stop her from investigating it. She took a class on buying pre-foreclosures. (There weren't many foreclosures in those days: 1994.) We ended up buying Carlton Sheets late-night infomercial course. We watched that 8 hour intro tape, a couple of hours a night for a week, then tried doing what he said to do: Call on advertizers in the local classified "homes for sale" section, and see if we can find any motivated sellers.
Well, we did. One seller had two fixers, where we could assume the mortgage. We did, fixed them up, and rented them out for positive cash flow.
I learned that you CAN find bargains, you CAN pay less than retail, you CAN find resources that can help you, if you have the motivation to do the work.
Don't get me wrong, it has been work. But it has been very rewarding. And, by the way, I HATE landlording! But it's very lucrative! I HATE having to fix up places. I HATE having to evict a non-paying tenant. I HATE having to go collect rent. I HATE having to check out references.
But, it allows me to not have to go into an office every day. I can spend whatever time I need to with my kids, wife, horses, whatever. Oh, did I say, I just love being a landlord??? LOL!
Back to the point: Before my wife started in rentals, I had a negative attitude about landlording, but once we got involved, and saw how it worked, I converted.
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8 Bit WWBG
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Your Money admin
Joined: Dec 19, 2010 8:57:29 GMT -5
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Post by 8 Bit WWBG on Apr 7, 2011 15:47:02 GMT -5
...:::"I learned that you CAN find bargains, you CAN pay less than retail, you CAN find resources that can help you, if you have the motivation to do the work.":::...
How did you get the money to buy, fix, and carry them? I can do all of the things you mentioned. But I don't have the money to actually buy the rental yet. Until I do, I won't be a landlord.
This is back to the point in the other thread. I'm not saying I'll never get there, I'm just saying that I hate getting dumped on by people who are already there, who either forgot about, took shortcuts, or were able to skip entirely the journey to get there.
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2kids10horses
Senior Member
Joined: Dec 20, 2010 20:15:09 GMT -5
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Post by 2kids10horses on Apr 7, 2011 16:06:04 GMT -5
Grown:
Go join a REIA. That's a Real Estate Investor's Association. Every major city has one.
At one time, I was a member of GAREIA. That's Georgia REIA. They had formal meetings once a month at a hotel ballroom, and there were at least 1000 people there. Each meeting would have a keynote speaker, usually another warm-up speaker, a session where wholesalers would highlight properties they had for sale, previews of upcomming seminars and workshops.
But, the Real Action was in the hallway outside the ballroom. Thats where the vendors set up booths: real estate agents, mortgage companies, handy men, turnkey artists, wholesalers, property managers, hard money specialists, sign companies, you name it, they were there!
So, for you, if you don't have any money, you can get started with a hard money lender. Yes, they charge high interest. Yes, they charge points. Yes, they charge for a prepayment penanlty if you refi early.
But,
if you can find a good enough deal so that even after you repay the hard money lender you STILL make money, then it's worth the time and expense. Do it two or three times, and you can bank enough capital that you won't need hard money any more.
Here's what this thread is talking about: You think you can't get the money, so you can't do the deal. A true positive thinker would think "This deal is SO GOOD, there's gotta be someone who I can go to to finance this, or partner with so I can do this deal."
You CAN find financial partners. Maybe you will have to give him 1/2 your profits. It's better to do it and keep 1/2 the profits than have no profits at all.
Most choose to have no profits.
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