Steve Cook
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What is a Fixer Upper?
It always amazes me when I talk to beginning investors about the homes that they are looking at and calling fixer uppers. They frequently tell me stories of homes that they feel need to be torn down, and when I see them I think they are in good shape, at least as far as a rehab is concerned.But then I think back to when I first started in this business. I consider the homes that I had been looking at and the difficulty I had in overcoming my initial impulses and making my first investor purchase.In my early days as…
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Understanding Appreciation
For the last few years, most places in the country have been experiencing tremendous appreciation in the values of real estate. For the longest time I talked about how my house went up in value and, daily, I hear many others talk about how their homes have appreciated in value. Well, I have news for you, houses do not appreciate in value. Yes, you heard me correctly. Houses do not appreciate in value. You probably think I’m crazy, but let me explain. At the moment, I happen to live in one of the hottest real estate markets in the entire…
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The Only Contingency You Will Ever Need
Entering the real estate market as a new investor can be very intimidating. That’s why so many people are tempted to add contingencies to their purchase contracts that allow them to escape from an offer unharmed. Not that there is anything wrong with this line of thinking. Protection is good and necessary. The error is found in the use, or should I say “abuse,” of these contingencies when the buyer uses false contingencies, or “weasel clauses,” to secure his or her protection at the expense of the seller.For those of you unfamiliar with the concept, weasel clauses say things like,…
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The Gut Rehab
When approaching the world of rehabbing there are many different ways to go. Beginners usually like light cosmetic rehabs They’re sometimes referred to as “shave and a hair cut” (interpreted as paint and carpet). Others prefer regular cosmetic rehabs which usually amount to paint, carpet, and updating everything that you can see such as painting, flooring, exterior, cabinets, countertops, fixtures, tile, and more. But the type of rehab that seems to scare most people away is the gut rehab.The gut rehab is not some new abdominal machine or an exercise program to remove that spare tire from around your waste…
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The Art of Conversing With Team Members
Honestly, I’m sad to admit that it has taken me so long to get around to writing an article like this one. For many years, I’ve been teaching people how to do deals. In this process, I’ve also taught them how to establish relationships with team members, and I’ve seen some flourish and others fail before they even get started.When you are getting started in the real estate investing business, talking with potential team members can be very intimidating. My advice has always been to keep trying until you get it. Remember the old adage “Practice makes perfect” and this…
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Success Trap-Why Investors Give Up On What’s Working?
With all of the students that I have taught, I’ve noticed a subtle, yet problematic trend. I hope you pay close attention and watch for it in your own investing. I believe every investor will, at one time or another, face the same temptation….Everyone Starts With “Sweat Equity”Of course, when you get your start in real estate investing, you’re hungry. You put your nose to the grindstone, and you really work the business hard.Your “action” is focused on finding a deal. You’re diligent about making offers and generating leads, whether by mailing homeowners regularly or scouring the MLS, or just…
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Success Strategy – Aim For The Low Hanging Fruit Part 2
Last month in Aim For The Low Hanging Fruit Part 1 you read about my early days as a computer salesman. There, I did not try to be a good salesman, and educate, sell and motivate people to buy a computer system that they weren’t sure they wanted.In part one of my lesson in sales, I simply went after the people who my competitors had already educated on the value of the system – and I made these prospects a competitive offer.Some find it admirable to really work a sale and take someone from not wanting your product to eventually…
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Success Strategy – Aim For The Low Hanging Fruit Part 1
Those who know I invest in real estate may not realize – I got my start in computer sales. Now, before you say to yourself – “computer sales and real estate investing have nothing in common!” I suggest you take a moment to listen to my story.(As you read, look for the early-developed habit that led my closing hundreds of deals in real estate – a habit that you can apply in your real estate investing business.)I remember one fall day, after a few months in computer sales, I was called into the owner’s office. My direct supervisor, the vice…
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Starting your Real Estate Investing Career the Right Way
I am often asked by people “How do you get started in real estate investing?” My answer to this question is becoming clearer to me the more I give an answer. However, before I tell you my answer, let me share some observations that I have made over the course of my investing career. The Lord has truly blessed me in my real estate investing endeavors and, as a result, I have had the opportunity to meet other successful investors throughout the country. First, let me clarify what I consider successful. Success is not measured in the amount of money…
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Should I Quit My Day Job?
This is a question that many new investors ask themselves and I have asked myself this many times also. This of course must be answered individually, however below are some things to consider prior to taking that much desired step as an investor.My first year I used my job earnings to put money back in building my business. Prudent investors do not open a business without a cash flow coming in regularly, or 3-6 months reserves. Disclaimer: Steve Cook did, but most of us may not be the next Steve Cook of investing, shucks anyway! For the rest of us,…
