These are the Top 10 reasons people use for not succeeding in real estate investing. OK, maybe this list is a bit obnoxious, but I’m trying to make a point—excuses are the roadblocks that prevent you from living the millionaire life you deserve.
Reason #1: I have no cash.
The Myth: “You need money to make money in real estate.”
The 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 including transactional and hard money lenders with nothing out of your pocket.
Reason #2: I have no time.
The Myth: “I’ve got a job, a spouse, kids and very little time.”
The Truth: Throw out your television, and you’ll have all the time you need. People spend an average three 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 minivan 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 you buy means enough money to take them all to Disney World.
Reason #3: Everyone says this stuff doesn’t work.
The Myth: “That late-night TV stuff doesn’t work.”
The Truth: You can convince yourself that anything won’t work. Henry Ford once said, “Whether you think you can or think you can’t, you are right.” So get that out of your head because we are living proof this stuff really works!
Every real estate transaction has risks; some risks are realistic, while others are remote. If you listen to the critics, the naysayers 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 do.
Reason #4: There’s too much competition.
The Myth: “Too many investors are buying houses to find a good deal.”
The Truth: There are more than enough deals to make everyone rich. At any given time there are hundreds 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 something to fall in their lap. Don’t be one of them – go out and make deals happen.
Reason #5: It doesn’t work in my market.
The Myth: “It doesn’t work in my market.”
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 pricing, the trends, the local customs, the real estate agents, other investors the title companies, etc.
Then, learn the techniques and adapt them for your market.
Reason #6: The economy
The Myth: “Certainly, the recession followed by the huge number of layoffs and the decline of the stock market stalled the economy, so anything I buy will go down in value.”
The 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 do things that make your houses sell faster.
If the prices are falling, buy way below market and sell just below market. When everyone else is “dooming and glooming”, creativity only clears out the competition.
Reason #7: Realtors won’t cooperate with me .
The Myth: “Real estate agents don’t want to cooperate with investors.”
The Truth: The right agent can be your best friend and #1 source of business. He/she will know exactly what you want and only calls you 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.
Reason #8: I have bad credit.
The Myth: “I need good credit to buy houses.”
The 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 use transactional funding 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 future.
Reason #9: I might lose money.
The Myth: Real estate is very risky.
The Reality: Real estate is one of the safest investments you can buy. The stock market is beyond your control. Savings, CD’s and money market funds often don’t give you enough return to make money quickly. 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.
Reason #10: I don’t know what to do.
The Myth: I need to learn more before I start.
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 my books, utilize my coaching 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.
Henry Ford said, “Why should I clutter my mind with general information when I have men around me who can supply any knowledge I need?” He was a smart man because he realized that he didn’t need to know it all if he could consult with others that did.
Ronald Reagan’s cabinet was said to be the team of the brightest people in politics. The bottom line is that if you want to succeed faster with less risk, have someone you can call on for knowledge. Start building your mastermind/success team today!
We’re a few weeks in and my “Spiff & Shine” rehab is now complete. Just as I suspected, the total cost of this rehab was less than $15,000. My contractor’s been paid, and now it’s my turn to get paid!!
My secret strategy for quickly selling properties? Flat Fee MLS listing. That way realtors can contact you directly and you don’t need to deal with a middle-man.
Another nifty little trick I use to move my properties quickly is to give realtors an incentive to show my properties as opposed to other properties. Give them a bonus! On top of the standard 3% commission, I offer a $1,500-$2,500 bonus for the 1st realtor who brings me a deal. Talk about motivation!
Now that I’ve listed my property (with incentives), I anticipate having a buyer within the next few weeks. So check back in to see how well these selling strategies really work!
In the meantime, check out these photos of my “Spiffed & Shined” rehab job! Leave me some comments and tell me what you think!
So, we’re 9 days into the rehab and we’re about a week away from being finished. We’re still on budget to spend less than $15,000 total on this rehab. Leave me some comments and let me know what you think about the progress so far!
And remember to check back in to see photos of Dixon all fixed up and to find out my nifty little selling strategy that always works like a charm!
Check out the before photos of this house that I just bought for $39,000. I plan to do my famous “Spiff & Shine” rehab job on it and put it back up on the market within the next 2 weeks.
Now here’s the real question…what do YOU think a rehab job on this 1,700 square foot house would cost??? Leave me your estimates below!
Keep checking back to see how much I paid for this rehab and to see the demolition & after pics of this house.
