following are the top 10 reasons people use for not succeeding in real
estate investing. If I offend anyone with this list, it probably means I'm
right on track!
Truth: Find a good real estate deal, and the money will find you. Ask any
seasoned investor and they will tell you that lack of funds is never an
issue; lack of good deals is! If you can negotiate a good price on a
house, you will find plenty of partners willing to put up the money.
The Truth: Throw out your television and you'll have all the time you need. People spend an average 3 to 4 hours per day in front of the tube. They spend even more time on weekends. Want to do something fun this Saturday? Load the kids in the mini van and go driving around looking for ugly houses. Make a game out of it giving a dollar to each of your kids that spots an ugly house. Tell them that each ugly house your buy means enough money to take them all to Disney World.
The Myth: "That late-night TV Stuff Doesn't Work"
The Truth: You can convince yourself that anything won't work. Real Estate Gurus said, "Whether you think you can or think you can't, you are right."
real estate transaction has risks; some risks are realistic, while others
are remote. If you listen to the critics, the nay Sayers and other
pessimists, you'll convince yourself it doesn't work. Most people that
criticize money-making ideas need to do so for their own ego. After all,
if it were true, what's their excuse for not being successful? Make it a
point of not taking financial advice from anyone who makes less than you
Truth: There are more than enough deals to make everyone rich. At any
given time there are thousands of properties for sale in your market for
each investor looking for them. In addition, a majority of people who say
they are investors are just sitting on the sidelines waiting for someone
to fall in their lap. Don't be one of them - go out and make deals happen.
The Truth: It works in EVERY market. True, it may work differently in some markets than in others, but there are investors making money in every city, every day of the week. You have to learn your market - the rents, the trends, the local customs, the bankers, the title companies, etc. Then, learn the techniques and adapt them for your market. If you are in a hot market, you can sell properties faster and ride inflation. If you are in a down market, you can find lots of bargains. And, in any market, there are people with financial problems that translate into bargain properties.
The Myth: "Things are going to decline, so I shouldn't buy now"
Truth: Sell cheaper or with attractive terms. When Dell wants to move
computers, they drop the price. When GM wants to move cars they offer no
interest financing. Be creative and go things they make your houses sell
and rent faster. If the prices are falling, buy way below market and sell
just below market. When everyone else is "dooming and glooming",
it only clears out the competition.
Truth: The right agent can be your best friend and #1 source of business.
I have a one agent that brought me six deals in the past year. He knows
exactly what I want and only calls me when there's a deal. You need to
educate a few agents and let them know exactly what you want. Few agents
have repeat customers - you have to make them understand that you will be
giving them business over and over again.
Reality: Good credit helps, but you don't need it to make money in real
estate. Lease/options, owner-financing, flipping properties and other
creative techniques will allow you to buy real estate without credit. You
can always use a partner who has good credit. You can also borrow
"hard money" without having good credit. In the meantime, you
can work on fixing your bad credit so you can use it as an asset in the
Reality: Real estate is one of the safest investments you can buy. The
stock market is beyond your control. Savings, CDs and money market funds
won't give you enough return to make money. You have to be willing to
take a calculated risk to make money. The more you educate yourself, the
less risky real estate becomes. However, don't think you need to know
EVERYTHING before taking action.
The Reality: You probably know more than enough to get started in real estate. It takes years to learn a lot. You never learn everything. Success is an ongoing learning process. Read some books, take some seminars and go take MASSIVE action. Then, learn some more and take a lot more action. If you are really impatient, enlist the help of others.
Estate Gurus said, "Why should I clutter my mind with general
information when I have men around me who can supply any knowledge I
need?" Real Estate Gurus realized that they didn't need to know it
all if they could consult with others that did.