Just getting started in a real estate investing business is hard. Don’t let anyone tell you any different. It’s going to take work, dedication and you will have to stick to it to get your business up and running. But it’s not that no one else has done it. Others have gone before and you can succeed faster by learning from other people’s mistakes rather than making them all on your own.
As a leader at MAREI I see a lot of new investors come and go and they all tend to make the same 3 mistakes.
1. I need to know everything before I can do anything!
I have one person in mind when I say this as he was the model of this mistake. He had been to every single real estate investing training, bought every course, paid $1,000s out in mentoring, and still had not bought a single house and in fact, I don’t think he ever did buy a house in the 4 years he he attended MAREI meetings.
Most new investors are afraid of what’s going to happen. It is very understandable as there is so much to learn, but that fear must be managed so you can overcome it and become successful.
This fear of not knowing everything causes many new investors to read every thing they can get their hands on before they take action. They are always on the ready and aim part, but they never put the book down and fire the gun.
So go pull up some for sale by owner ads on Craigslist or Zillow and give them a call, talk to them, go look at a house.
Post a some ads about buying houses on Craigslist.
Go look at houses and start assessing repairs.
If you are afraid of failure, think about what scares you.
Are you afraid of loosing money? If you are wholesaling, your not risking much and you can write in escape clauses into your contract, use options, or fall back on a real estate license . . . no more monetary risk.”
Afraid of sounding stupid with talking with sellers? Guess what, they don’t know that. Write out a seller screening script and practice. Role play with a partner. And remember to always blame everything on a higher power. Can’t answer a question, simply say, “good question, let me find out and get back to you” or “my partner handles that part, let me check with her and call you back.” No matter what it is, you can always back out, find out the answer, and call them back.
What if you do screw up, so what, next! And with each seller call you will get more confidence.
2. Spending too much time on parts of the business that really don’t matter at the beginning.
I see this time and again, there are so many aspects that you want to master, but let me say: YOU DO NOT NEED TO BE AN EXPERT IN EVERYTHING!
Tax savings is really interesting. So is using a Roth IRA to invest. Subject to and lease option is really helpful and corporate structuring needs to be addressed, maybe note buying, I need to protect my assets, . . and it starts spinning out of control. . . .
But if you can’t find the deals, none of the rest of it matters.
So focusing on marketing when you get started is a must!
It is virtually a waste of your time to learn anything else, because you will never get the chance to use any of that knowledge if sellers are not calling you to bring you deals.
So remember, Marketing is all that matters at the beginning . . . .
and here I am 17 years into my business and I have to say that marketing is all that matters now. If I don’t market, I don’t have any business.
It is almost worthless to learn anything else until you have your marketing machine working, because you will never have a chance to utilize that other knowledge if you don’t get your phone ringing and start bringing in some deals.
3. Not making the effort to get ‘er done!
You have to be a self starter. Sure it might be more attractive to watch the big game with friends, go hang out, sleep, what ever it is that might distract you. But you need to actually be taking action to make this business work.
Many new investors are doing this part time around their regular job, so there are sacrifices that will need to be made at the start. You will be finding time to take your business to the next level on your days off, on your hours off, during lunches and breaks.
Next you can’t fool yourself into thinking you are actually doing things when you really are not. Networking and education is great but . . .
- How many postcards have you sent?
- How many Realtors have you called?
- How many FSBOs have you called?
- How many bandit signs have you placed?
How much of this have you actually done. I don’t mean thought about, but actually physically done it?
To be effective you need to be doing all of the above and we don’t mean 5 bandit signs and 100 postcards in a month and 3 or 4 phone calls. You need to do a lot more.
Going to meetings and reading about real estate is great. But at some point you have to step away from the book, the CD or the video and actually DO SOMETHING to make the phone ring.
4. Trying to do it all by themselves
We get it, you want to master everything. But at some point you are going to realize you can’t do it all. You need help. So sit down and look at your list of things that you need to do. If you have a course that is telling you how to get things done with a list of tasks, look at those tasks. What can you have someone else do.
If you have a partner in crime so to speak, divide up tasks between you. But as you look at the tasks, the really repetitive ones, see if you can’t find someone do do those tasks for you. For those repetitive tasks or for the projects that take a lot of time, but are not overly difficult, you might want to hire a Virtual Assistant.
You can post a job on Upwork and get 100’s of applicants. So first put on your to do list – read a book about how to hire a virtual assistant and then start outsourcing some of the projects.
I have posted jobs on Upwork and found great VAs to do online research to build my motivated seller mailing list. You can find some great sites that will sell leads, like Realeflow, but to get a really targeted list, I build my own. The VA can also take that list and implement my direct mail marketing campaing on upwork, I just have to go in and pay for it or put pre-paid credit into my account. You can hire a VA to add buyer leads to your database after you have collected them. You can hire a calling service to answer the phone. Our initial phone calls go to Pat Live, then we can call back on our own time frame.
Once you own the house, you could hire a VA to deploy marketing for you.
You might want to hire other help on your team: a bookkeper to keep your books up to date, contractors to renovate, Realtors to list and sell your retail properties, property managers to manage your rental properties . . . you get the idea.
To Be Successful you MUST Implement
As a leader here at MAREI I have found that those that join our group and become successful, come to the meetings and trainings, they buy the training book, they read the book or attend the bootcamp and they come home and implment.
They are out DOING IT, not A Fix’n to do it.
Article provided by Kim Tucker, local real estate investor who with her husband Don and son Scott, buy and wholesale houses. If you would are looking for your next rehab or a buy a hold property, be sure to visit www.KCInvest.com and register as a buyer.