If I was Broke: Thoughts on Starting Over!
When talking to people about certain businesses I have, I often get asked questions about how I got started. In fact I was just asked this question
again the other day. I was having dinner with a close friend and we were talking about real estate.
I was giving her the basics of how to tie up deals and wholesale them. The point was to give her a low risk avenue to getting into real estate with little money in play. Going over the business model was pretty straight forward, but then she asked the question. How did you get started. How did I get the money etc. For a quick second I thought what do you mean, isn't it obvious. "I have been doing this stuff so long (well long enough to understand it) that I forgot that it wasn't always easy for me either".
Sometimes I forget where I came from
Its funny because the conversation was about using very little money so it seemed kind of ironic that she asked how I got the money to start out. Well,I thought about it, and the truth is I didn't start with nothing.
Actually back then I had a good job, my credit wasn't great but I had a little money and some knowledge. I started with bank financing. Loans were fairly easy then. Get a loan wait sell the property and make some money. I told her about how everything crashed and I had to start over, ---at least for the most part---. My credit was ruined, I had less money but I went back to my old job, which paid well. Because my credit was bad I was forced to learn a bunch of no money and no credit techniques. I did however, still have a good job and this made things easier.
Our conversation was limited to real estate but, the same went for all the other ventures I have and am involved in. I usually had money or credit or connections. So I thought about that for a while. What if didn't have anything. Maybe a low paying job, maybe no job, on top of that,what if my credit was horrible and I had no connections and didn't know anything business related.
So what if I had nothing - Its the knowledge that matters
What would I do to get to where I am at now. Knowing what I know now makes things fairly easy. I clearly couldn't do anything without knowledge so If I had nothing I would have a lot of learning to do if I had no experience. So here is the thing. "I do know now what I didn't know then". Actually that conversation made me remember a situation I couldn't take advantage of because I didn't have the knowledge to make it work. My best real estate deal ever (per square ft anyways) never happened, not because of lack of money or even credit then. It was because of lack of knowledge. I was only 20 then but the deal was rediculous, involving 3 properties and I didn't get any of them. After that, I didn't do a real estate deal for four years. That deal would have gave me a huge start at 20 years old. If it came to me today, I could have made money on those properties if I was broke jobless and creditless.
This post isn't about real estate, its about starting with nothing. What would I do? I thought about it for a while and came up with a couple of ideas. They were based on the low cost to get involved, the speed of implementation and the money that can be generated. With only knowledge (not counting my personal connections to other people with money).
I would narrow my focus on a couple businesses. They are a niche in the real estate market called wholesaling and the other is niche websites.
Ill explain why I chose these two soon in another post so come back if you want :)