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Top 2 Reasons You Won’t Make It In Real Estate Investing

by Tracy Royce on December 7, 2013 · 19 comments

  
Real Estate

The voice in your head can be quite the jerk, can’t it?

Not to mention your parents might not be supportive, friends might be naysayers, and no one really thinks your idea to do that “real estate thing” is going to work.

Well shoot, I believe in you. But what really matters is what you tell yourself, so keep your head up slugger.

Just in case your self-deprecation kick is working it’s magic, lets add to the doubt and just make sure you’ve covered your bases if you’re really going to convince yourself you can’t hack it in real estate. Here’s the top two reasons you can’t make it in real estate investing.

#1) I don’t know anybody

Um, hi.

Me and about 140,000 of your other friends here at BiggerPockets want to get to know you. What’s your story? What made you interested in real estate? We’re all here with the same intention you are, and use social media, chat rooms, and forums to get to know what other investors are up to. If you’re scared to death of face to face interaction with actual human beings, then going online to stalk and or learn from their avatars is the next best option.

If you’re working the courage up to be in public, know that investors have a herd mentality. Their favorite watering hole tends to be REIA’s, (real estate investor association meetings for you absolute newbies out there.) The easiest way to start a conversation is the exact same questions mentioned above: What’s your story? What made you wanted to get started in real estate? (or something similar). It’s really easy for people to talk about themselves, so it’s a great opener.

Try these out and you’ll be popular in no time!

#2) I don’t have enough money to close my own deals

I can almost hear Kevin Costner whispering…”If you find it, they will come….” (ya ya I changed the quote, and it’s a bit creepy anyway). But the point is, there are plenty of guys and ladies out there with cold hard scrilla they want to give if you bring them a good deal. You might have to give up some equity, but what’s 40-50% of something vs 100% of nada. (You do the math, I’ll wait.)

Don’t make this mistake though. Someone you know that knows someone that heard that you are getting into real estate has this totally stellar deal and they’re giving you the opportunity to help them spread the word. In an excited hurry you email a couple people you know as serious real estate investors with something like:

Headline: Deal
“I’ve got a deal. 3/1 house for $75,000. Needs to sell today, wondering if you’d be interested.”

I’ve had numerous amounts of deals sent to me this way, and within 30 seconds of looking into it, guess what I find? It’s on the MLS (multiple listing service), and lucky me, for at least 10% less than the price I’ve been quoted. Not to say I’m not grateful for every lead I get, but c’mon guys, at least pretend you’ve done ANY homework before you shoot out deals.

But if the numbers crunch and you don’t have enough, or any funds to make it happen yourself, pick up the phone, provide your breakdown, and dial for dollars. Worst case, you wholesale that ham (can we make that a hashtag??). If no one bites, it’s probably not really a deal.

Want a hint as a last ditch effort? Call a rock-star listing agent in your area and see if they’ll pay for the referral. If there’s not enough equity for you and any partner to make it a deal, it may be a great lead for an agent to list and sell at retail.

Buck Up

Did you know a positive thought is 100% stronger than a negative thought? Just believing in yourself is half the battle, and starting and thriving in real estate is no exception. We all have those moments where “You Can’t Do It Because” creeps in, and the thought stream feeds on itself. Next time these top two reasons creep in, simply say (or think), “Stop!” and replace it with an affirmation: People want to get to know you and invest with you!

What affirmations have you made to help you grow and overcome negative thoughts when it comes to real estate investing or wealth building? Please share them below!

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{ 19 comments… read them below or add one }

Karen Rittenhouse December 7, 2013 at 6:49 am

The only thing stopping us, Tracy, is ourselves. There’s always a way!

Love that, “a positive thought is 100 times stronger than a negative one.”

Thanks for the great post. Thinking positive thoughts!

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Mark Ferguson December 7, 2013 at 7:43 am

I second the positive thinking! Great article, but in our state a listing agent can’t pay a non licensed agent for referrals unless that non licensed person is not in the real estate business and has nothing to do with the real estate business.

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Steve Dinges December 7, 2013 at 9:25 am

Positive thinking is the only way to survive and thrive, especially in todays society. I just lost a very profitable deal, one that i really needed to get the ball rolling so to speak. Being that i am getting started and have been struggling to get going, i have to keep reminding myself that i am not the first person that this has happened to, even though it really hurt, when the buyer pulled out the last minute and the seller was outta his mind mad and told me to never call him again for anything pertaining to real estate, by the way he is a very wealthy real estate investor with incredible contacts and buying power, and basically was giving me the opportunity to deal with him on a totally different level with future opportunities to be made available after the deal got done. For the past two weeks i have read every positive blog, email or anything i could get to remedy my mind. I have been in sales a long time but that sale would have been the biggest check i would have ever had! Staying positive and with real focus i will succeed!

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James Pratt December 7, 2013 at 10:16 am

It’s called PMA- Positive Mental Attitude. When I started buying property everyone thought I was a jerk, even my parents. You can’t do this, you’re wasting your money, you’re going to lose everything, etc.. Well, while their still working 9-5 and making ends meet I got people doing that for me, their called renters.

As you know there are many, many ways of getting property. Find a way and do it.

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Ira Caplan December 9, 2013 at 4:35 am

Thanks James, for an encouraging comment to an already edifying article (thanks Tracy :)). Learning a lot, organizing my pre-existing knowledge and getting to know my own instincts (both “on” and “off”). Tracy, your articles are clearly written with your readers’ intelligence and sensibilities in mind (rather than your own, which is quite evident).

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Rusty December 7, 2013 at 11:27 am

Wow, your closing statement “Buck Up” was the slap in the face/wake-up call that I needed! :) I’ve been dealing with doubts of whether or not I should hold on to my property after I move.
Thanks for another great article!

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Roy Schauer December 7, 2013 at 11:42 am

Good positive article! We have really learned the value of putting yourself out there. Realtors are slowly opening up to working with us, we just got a referral from a small lending company, and recently joined a local business referral network that has connections with the chamber of commerce. Probably one of the biggest positive reinforcements for me is people coming up to me because they didn’t even know there were people out there doing this, now they know someone to bump the business to. Not to mention I’ve had a couple businesses tell me they can see that it’s a passion and would love to see this succeed. Now not only are we working to make the it succeed but others are helping as well. What a tremendous boost in confidence that is!

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Tom Sylvester December 7, 2013 at 3:08 pm

Tracy – Great post and I love the approach you took. Those are two of the biggest complaints that I hear when working with new investors. Being positive and knowing your “why” can lead to great things and will get you through the tough times.

I remember the first time I went to a REIA. I knew nothing about real estate and was so afraid to talk to anyone. I did just as you recommended and approach someone and said “So are you investing in real estate?” That leads to a long conversation and made me realize how easy it is to talk to other investors or potential investors. The reasons that people to go REIAs or come to BP is because they want to talk real estate. Take advantage.

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Brian Gibbons December 8, 2013 at 6:04 am

Hey Tracey,

Like any sales “if you do not sell you do not eat” business,

It is this :

If you believe you can, or believe you can’t,
You’re Right!

Buck up, Man Woman Up!

Well done as always

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Carl December 8, 2013 at 12:27 pm

Hello all, great article and great comments. I remember when I first got started in REI , I wrote out a business/game plan; acquire enough cash flow RE so my wife could retire from her JOB in 5 years and stay at home with our daughter(this was in late 2008 when REI prices were tanking). Being new to REI , we sat down with an attorney to discuss setting up an LLC or S Corp for our business. We told the attorney our business plan and he said ” It won’t work, just stick to your regular JOB, my in laws have property and it’s a pain”. What a joke this guy was. We left the meeting and I told my wife, the attorney is an idiot, he’ll work till he’s 65 and hope the stock market doesn’t crash when he’s retired. We never looked back, since early 2009 we now have 27 properties, my wife retired this past summer, we do JV flips, and private lend money, I no longer have to work if I don’t want to, but I enjoy my career / JOB. I truly feel like sending that idiot attorney my tax return this year with a note saying, “Hey dipshit, glad I didn’t listen to you or pay you for your advice”.
For you newbies, I was once there too and remember the stress and doubt that goes with buying your first property and the lack of support from friends, family and acquaintances. I’ve been in law enforcement for 20+ years, seen lots of murders, carnage, fellow officers shot, wounded, maimed and friends killed. Also seen a lot of good in mankind too. One thing my career has taught is to never ever give up, you must always win at the end of the day. I can tell you this though, to overcome the self doubt, stress, and lack of support from friends and family when I bought our first rental house, I repeated to myself over and over; this house won’t shoot me, assault me or kill me, it may be a pain ($$$) sometimes, but I’m still living at the end of the day.
Set yourself a goal with a desired date of completion and take MASSIVE ACTION. Do not listen to the doubters, they will try and sabotage your goals and make you doubt yourself and your abilities. If you stay the course you will be greatly rewarded.
Hope nobody takes my post the wrong way, but I see a lot of posts from newbies and just want to relay to you newbies out there, you can do this and accomplish all you set out to do, just hang in there.
Thank you, and go after what you want, you deserve all you want and desire.

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Hector Trevino December 9, 2013 at 5:07 pm

LIKE!

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Shane Keller December 10, 2013 at 2:29 pm

Fantastic comment, Carl – and cheers to your success! I will save your comment and refer to it often as I continue to invest in real estate.

Also, Tracy – great article! Thank you for helping people get motivated!

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Hector Trevino December 11, 2013 at 4:18 pm

Hey Carl, I could not find how to email you but I was wondering about your business plan. I am in the preliminary stages of writing one myself, for my real estate broker business and for beginning my real estate investment business. What template did you use if one at all? Could you send me a copy for reference? I’m finding it a little difficult to put some kind of structure to this task.

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Arthur December 8, 2013 at 1:11 pm

Hahaha. She said scrilla! Haven’t heard that in a long time.
But seriously, thank you for the post. Was just thinking it’s too cold to go drive for dollars. I don’t feel like looking at this list of properties I received. It’s snowing. Blah blah. Needed to read that on this cold, snowy day here in the Windy City.

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Margarita December 8, 2013 at 5:08 pm

Thanks for the great, inspiring post, Tracy! I remember when I started my consulting company 13 years ago – I was in my mid-20s and everyone in my industry was at least twice my age. I feel like if I could do that and sustain it for over a decade, I can certainly succeed in RE. Having this community for knowledge and support (including stories like Carl’s) make me even more certain that persistence will pay off. Thank you!

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Christian Morency December 9, 2013 at 8:23 am

Great post. I love the positive thinking side of life. I call it spiritual landlording.
All thought is prayer. Watch your thoughts.
The flip side of that is the instant you get any tenants, they ” think ‘ you are rich.
They are praying for you to get rich, but are unaware of it, because they don’t know that thinking is the first step to creating.
Someone once said ” Nothing Happens until Something Moves “.
So, to all newbie’s; Put on your thinking cap and get off your…………………………..Chair .

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Sharon Vornholt December 9, 2013 at 3:57 pm

Tracy -

Great post. Rather than think about all the problems you face in your investing career, why not focus on solutions. As you said, there are hundreds of investors (or more) out there that are willing to jump in and give you a hand. BP is the perfect place for new investors to hang out, ask questions and learn.

One of my favorite books was written by Wayne Dyer, and it is called “Excuses Begone”. I think anyone that really wants to find success needs to adopt that mindset.

Sharon

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JT December 9, 2013 at 4:32 pm

What is the law of attraction?

The law of attraction states that you attract whatever you think of, whatever you focus on, whether its good or bad, the energy that comes out of you matches the energy of that thing and so you get attracted together, from here came the famous phrase “you get what you focus on”. (as ye sow, so shall ye reap )

I am sure that the first thing you thought of now is that you have wanted many things and thought of them much yet the law of attraction did not work. The problem is that you didn’t follow the main rule for the law of attraction which is thinking about what you want to get and not thinking about what you want to avoid. In simple words if you thought about wanting not to be afraid you will become more afraid , simply because you still think of fear, instead you should think of courage.

Another example is thinking about not wanting to be poor instead of thinking of wanting to become rich, that’s the idea of the law of attraction, you should think about what you want to attract instead of thinking of what you want to avoid.

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Mike T December 9, 2013 at 5:32 pm

Great post! For me it took my brother buying a house on 10 acres for $40k and the ARV was 120k! Who cares you might say? Well he knows nothing about real estate, has never picked up a book about real estate, thinks REIA is a bowel condition and he pulled off this deal just by talking casually to his neighbor! I’ve been doing all of the above for over 2 years and hadn’t done a single deal! Was just the motivation I needed!

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