What You Missed January 2016 General Meeting
by Rob Earhart
Local Investor Shares Secrets of Her Success-You Can Profit
Presented by: Carol Kostic
January 5, 2016
“Who is excited about the coming year?” Carol asked excitedly. “Whose 2015 was not what you thought it should have been?”
“In 1997, middle age, I had no retirement plan, had moved around, started different careers, so I asked ‘what am I going to do for retirement?’ I was sitting in my living room when Carleton Sheets came on and I figured I could afford $39 so I bought his course.”
Then the company called me to say I needed a coach. What was my goal for this year? I wanted 12 properties this year, but he said it was a little too much. I almost believed it but at the end of that year I had 13 properties.
I had 210 doors that I controlled and did it before someone told me I could not do it. “Do people live in houses? Do you think they will continue to live in houses?” asked Carol. “Yes, so we have a market.”
“I learned to run this business because I hung around with good people who helped me succeed. In 1999 I went to Dallas and saw Ron Legrand and several others who trained everyone at the time.”
There was a man that talked about yield. Don Baily talked about paper and yields and I was very interested so I went to Park City to learn from the master. “Did anyone have a deal that did not turn out like they wanted it to?” Don asked us. He then suggested that we stop taking courses and quit trying to learn. “Just go out to do it.”
Work on yourself a little bit. Do you ever not pick up a phone? Do you ever treat your tenants like enemies? That stuff gets in the way and you need to re-evaluate. Find out why you are resisting and beating yourself up. There is some part of you that’s saying, “I don’t deserve this, I can’t do this, etc.”
“I’m probably the happiest person in this room,” exclaimed Carol. “I get up 99% of the time excited about the new day.” Negotiation is just talking with someone to solve a problem. One of Ray’s rules is that no one sits down at a closing table without knowing they will be better off after the closing. If you can come up with a solution to a problem, you will be much better off.
We have a chance to make a difference in people’s lives and profit from it. If you are in knots, then maybe you need to be in a different aspect of investing.
“I know that a property I have to sell will sell at its highest good.” I have been in a different place and pretending to be happy; I was active and busy, but stressed out.
In 2008, it started to crumble and part of me was miserable. I took the next four to five years to learn how to get happy. If I’m unhappy, it’s my problem.
Carol started, “I’ll talk about some of the fun times. Make sure you have a system of support. Find half a dozen people whom you can open up to. It may not be your family that applauds you, it may be your minister, etc. Find out what works for you and get to know yourself. If you are having a rotten day, what can you do to realign yourself?”
Keep yourself happy and business will come to you. “I love to go to IRS offices to help people clear up their issues,” Carol advised.
I want to talk about the three legs of investing: Acquisition, Management, and the Exit Strategy. For acquisition you need to get to know your market. “You don’t get a good deal in slow motion.”
I was looking at a house for someone else and the Realtor asked me if I would be interested in a foreclosure. I put it under contract for $11,000 on a credit card. That got me started.
Then I got a property under contract and found out that there were three lots that were not buildable. I got them for a song and put it all together and owned a block. Then I sold it to a developer and made a good profit. You have to be on the lookout for great deals.
I went canoeing and saw a house with a sign on it hanging over the river. I checked it out and ended up buying that property by calling the number and it was a nice lady in North Carolina. We began exchanging recipes. “Just make friends and you can find good deals.”
Property management: I ended up managing 210 doors and had to develop a system. Train your tenants. Let them know what you expect from them and what they should expect from you. “I don’t collect rent at the door. TECO doesn’t, so I don’t,” directed Carol. They have to get it to me. If they come to me with a reason why it will be late, I will listen, and make a heartfelt decision, but it’s a business and you have to run it like a business.
My first eviction was a hardship case and I told him that if he moved out and kept the house broom swept, I would give him his deposit on the spot so he could move.
At one point I had spent some time in a hospital and, when I got out, I was too weak to keep up with the rentals. I had to build a team to help me. Set up relationships so you can enjoy life and not get really stressed out.
“Get clear on your exit strategy and know that there is the ideal buyer for your property.” “Don’t create negative energy around the sale, just know the sale will go well.”
Weird is the new normal. Friends will think you are weird, so just own it.
Don’t just take courses; just do it, then take those courses as a reward. Don’t worry about not knowing enough, just develop a team of supportive people, get some coaching, etc. Just move forward.
“Don’t make the courses your reason for being an investor. Learn just enough to get started and then learn more,” instructed Carol.