One of the main reasons that many people hold back from ever investing in long term buy and hold real estate is the old tenants and toilets issue. I’m quite positive...
While having those two things wouldn’t hurt, money and credit are not necessary. The two things that are actually needed are hard work and persistence.
I first decided to become an “active” real estate investor by finding off market properties for fix and flip investors (wholesaling). Perfect! I thought. Talk to a few sellers and money will start to fall from the sky and land in my pocket…
It would be six months before I closed my first deal.
Now things have changed. I am able to more quickly identify good deals, I know what to look for when evaluating a property and I have buyers waiting for me to bring them houses.
Everyone wants the turnkey answer on how to get there so, here it is…
Work harder than you have ever worked in your life and DO THINGS THAT OTHER PEOPLE ARE UNWILLING TO DO!
If you’ve been struggling to get started in real estate, especially if you’re interested in wholesaling houses, then you’re probably just not working hard enough.
I’ll bet you’ve never sprang from bed at 4am on a Saturday morning bright eyed, bushy tailed and all jazzed up for driving around the city posting 100 bandit signs saying “Sell your house fast for cash” (oh yeah, you were also up till 11pm the night before to finish writing them up).
But this is precisely the types of actions that need to be taken day in and day out to get started in this business.
To Be Successful in Real Estate, Be Prepared to Spend Immeasurable Hours Doing the Following
- Marketing for sellers. There are many way to to find deals; signs, yellow letters, craigslist and Kijiji, online marketing all of of which take you time and effort to get yourself noticed.
- Marketing for buyers. You need a list of solid cash buyers ready to make decisions quickly when deals are presented to them. Make sure you know exactly what they are looking for and develop good relationships with them.
- Scouring the MLS. There are still good deals on the Multiple Listing Service atrealtor.ca. Learn how to spot them.
- Talking with home owners. If you’re marketing correctly, you will be inundated with phone calls, messages and emails from sellers. Find out why they want to sell and try to help them succeed. It takes practice to figure out who you can help and who needs a realtor. Refering to a realtor helps you keep good relations and can be a nice trade off when you need comparable sales information.
- Evaluating properties. Buyers are looking for junkers to fix, but everyone has limits. Most want foundation, roof, windows and heating and A/C systems in good shape with just cosmetic repairs to deal with. Not everyone has the same criteria though. Make sure you investigate fully and inform buyers of all issues upfront.
- Driving neighbourhoods. Get out and see your city. Where do people love to live? What areas are up and coming or turning around? Is there a new development that is stimulating an area? What locations should you stay away from?
- Writing contracts. Being prepared with a purchase and sale contract when checking out a property is crucial. If you can agree on all terms then get them to sign then and there. This will mean learning how to fill out your contracts properly and practising this many, many times over. You will have to research upfront to find all the relevant information.
- Addressing numerous other issues. There are way too many minor tasks for me to mention them all here.
I was doing all of this around my full time job. If it all sounds like a lot of hard work that is because it is. Real estate has made more millionaires than any other investment or career in history. That does not mean it’s easy or guaranteed, it just means that it’s more likely if you are willing to put in the effort. That means you must be willing to do a lot less of this…
Its very easy to get discouraged after visiting countless properties, speaking and negotiating with home owners time and time again only to end up with nothing.
Even worse still, is getting the property under contract but having no interest from your buyers because of miscalculations or an oversight on your part.
These things do happen and will happen. It is inevitable. Its how you choose to interpret these experiences that makes all the difference. You can easily just give up, OR you can learn and improve.
If you start to think of these obstacles as gifts instead of hindrances, they become less overwhelming and you will find the drive to overcome anything in your path.
After all, those very obstacles were put into place by you when you decided to become an investor in the first place weren’t they?
What obstacles are currently standing in your way? Leave a comment and I’ll do my best to help you overcome it.