Why Do Most Investors Fail To Buy A single Property?
I was shocked, when I read a statistics about the level of success in the real estate investment industry.
According to the information I read, only 5% of would be investors actually buy something.
Does that mean, 95% of the people out there are still struggling? Are you struggling to buy your first investment property? But don’t worry, you are in good company. Most successful investors also struggled when they first started.
When I first started as an investor, I failed miserably too. I bought courses, and read them. Sometimes halfway. I attempted to make offers, only to allow fear to set in.
I bought Carlton Sheets program twice within a span of five years, thinking the second time will be a charm.
It took me almost 10 years to get my footing. This should not happen to anyone ever again. So I am not surprised when I see others struggling to make it in this business. Real Estate is the easiest hard work there is, once you know what you are doing.
Since I started counting, I have bought and sold over 400 properties. I have been involved in hundreds of other deals where I actually provided the money.
REASONS WHY IT’S HARD TO BUY YOUR FIRST INVESTMENT HOUSE
I will try to address one of the reasons today and do a follow up with another reason in a future post.
1.Information Overload.You bought the 200 page manual, you went to the three day seminar, you attended the coaching program, yet there is something still missing. What is it? There is too much information to digest and you simply do not know where to start. After the three day seminar, you are likely to get confused. I know, because it happened to me. When you have no one holding your hand or staying on your butt, it's easy to fall off the wagon and get discouraged. After buying over 300 houses, I decided I wanted to conquer the commercial real estate business. My first seminar cost $5,000 plus flying, plus hotels. I got so much material, a 500 page manual, CDs, Videos and a workbook. I became so confused and did nothing for three years.
Carlton Sheets program was pretty straight forward, you can't really say the same for most gurus. When I first bought my Carlton Sheets manual and workbook, I went out and made my first offer. I presented the offer to the property owner, he asked me a simple question relating to the contract. I was unable to answer the question. I promised to get back to the owner. I quickly went back to the manual to find the answer. I read the manual from front to back, but I could not find the answer to his question. The contract became my nemesis. My deal died a miserable death. So I put the whole manual under my bed for five years. Has this ever happened to you?
My problem then was, Carlton Sheets was not available for me to call. So if you have a question regarding buying your first property, you should already have a mentor, friend, or coach who can guide you through those questions. If not, you are likely to be paralyzed when the sellers asks you a simple question like... How much earnest money are you putting down? Today, I simply say... Zero, $1, or $10. 15 years ago, I would have been too embarrassed or scared to say something like that.
My question to everyone is, is the statics correct? Are most first time investors having problems doing their first deals?
What is the number one reason why you have not pulled the trigger on a single purchase since you nursed the idea of becoming a real estate investor?
Go ahead, say it loud and let the audience help you with your questions. Let’s find out if your fears are real or imagined.