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3 Reasons Why Being Last Is Better Than Being First In Real Estate

by John Fedro on May 30, 2014 · 10 comments

  
Real Estate Motivation

Welcome back,

The world is full of people who quit. A study I remember hearing years ago that frightened me terribly was that over 90% of people interested in real estate investments never close their first real estate investment deal.

Why does this failure happen when people have such good intention and ambition when starting out??

Albert Einstein famously said, “You never fail until you stop trying”.

Everyone likes to be first….but often it’s better to be last. Here’s why:

When your last,  your the last one to give up, the last to leave, the last to keep trying, the last to hold on to principles and values.

Below are some examples when it pays off to be the last in real estate.

1. Be The Last To Quit: 

I was the 5th investor to see a seller’s beautiful 2-story newly built 2,300 square foot home for sale. The seller had been trying to sell her vacant property unsuccessfully for 4 months without the help of any Realtor or agents. The house was very clean and move in ready.

The seller’s two biggest hurdles to overcome were properly marketing the house and advertising for the right type of buyers. This home was located off the beaten-path so drive by traffic was almost non-existent.

In addition this home was being sold post real estate collapse and while there was a void of bank qualified buyers available, there were plenty of seller financing buyers with down payments waiting and ready to own. This property needed a correct advertising plan and to be sold via owner financing for a quick profitable resale.

As I was the last investor to see the property and my purchase offers were conservative at best, I believed there was little chance that my offer(s) would be accepted.

On our first meeting together the seller and I talked for more than 2 hours. We discussed friends, family, vacations, hobbies, work, business, the property, and more.

By the time we said “good bye” the seller was clear on how I could help purchase her sell her home and how I could not help her. While I was at the home I made the seller 2 purchase offers, a low cash purchase offer and a purchase subject to the mortgage with some seller carry-back financing included.

Related: BP Podcast 070: From Zero to Hundreds of Deals in Under Two Years with Grant Kemp

She said she was not interested in these offers currently but to check back with her in a few weeks. I did just that.

Over the course of 90 days I followed up with this seller making different offers every time we spoke. As the seller’s situation changed I morphed my offers to better suit her needs.

As time went by the seller realized that my offers were the only ones still on the offer table. All my other investor-competition moved on and gave up on this seller.

We ended up closing 4 months later with a Master Lease Option to take control. With persistence and determination I was able to gain control of the property that others could not. My secret was being the last to give up on this seller.

According to followupsucess.com:

  1. 2% of sales are made on the first contact
  2. 10% of sales are made on the fourth contact
  3. 78% of sales are made on the 5th to twelfth contact

2. Be The Last To Lose Faith:

During the beginning of my investing career I looked 15 years old. I had little idea what I was doing when I was talking to sellers.

I made hundreds of errors that lost me money, time, and deals along the way. I was consistently told I would fail by close friends and even family members. I was my loudest and constant supporter.

Everyone gave up on my dreams and my ability to succeed except me. Thousands of time you could have already given up but you continue forward. Congratulations to you! Continue forward and never give up on yourself or your future.

Be your #1 cheerleader and know that if anyone else has had the success you wish to achieve there is no reason why you can’t follow in their success. Be the last to give up on yourself each day.

3. Be The Last to Leave:

Some of the strongest and most valuable real estate advice, mentors, and connections I have made came from local and national real estate investor seminars and club-meetings.

Related: 3 Reasons Why Attending Conferences Is Essential For Your Success In Real Estate

While I am not typically a night owl, I do make the exception for these meetings. During weekly real estate investor club meetings I make it a point to be one of the last ones to leave the meeting in fear of missing something.

Attach yourself to everyone’s and anyone’s conversation to network and grow your experience. Whether you are simply listening to learn or to add content you are welcome to join in any conversation other investors are having.

Here is a secret sentence you may use the next time you find yourself alone and unable to network at a local investor meeting or seminar. Go up to a group of investors talking and ask (with a smile), “Hello. Is this a private conversation or may I join in?” Repeat every time  you have no one to talk to and learn from.

In conclusion there will always be people who are smarter, more talented, better connected, and better funded than you. However they don’t always win. Be the last to give up on yourself; then, even if you don’t succeed, you still win.

Love what you do daily,

John Fedro

When has being last paid off in your real estate business?

Be sure to leave your comments below!

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{ 10 comments… read them below or add one }

ilhan dahir May 30, 2014 at 8:16 am

wow!! What a great and motivational article. Reading this article this morning was a good day to start my day. I felt like quiting before, but i couldn’t because i learned so much about real estate, seen so many people succeed, spent so much money learning/courses/bootcampls, etc. There was no way for me to quit. I am not currently very successful, but i have had some great outcomes. I know by persisting anything is possible.

Thank you for taking the time to motivate us all.

Reply

John Fedro May 30, 2014 at 11:40 am

Hi Ilhan,

Thank you for the kind words and for commenting today. I loved your comment about the fact that “by persisting anything is possible”. I encourage you to have a clear plan of what you need to do. Find a mentor or work your way backwards from your goal to you current place in life and understand what has to be done to achieve this goal. Next, start taking massive action every day.

Keep up the great work and never quit your future!

Talk soon,
John Fedro

Reply

Roy Schauer May 30, 2014 at 10:27 am

Good article John! My current deal, which just went on the market, I was in contact with the owner for almost 9 months. When you build that relationship with people, they want to do business with you. Not to mention she sent a family member my way who was also having problems. I’ve experienced the fear, cold sweats, and sleepless nights as well and thought to myself “why am I doing this?” That’s why it’s so important to have your “why” before you start. When the road gets tough, and it typically will at some point, your “why” is what will help keep you on track and focused. And hopefully you have a few cheerleaders in your corner but so many people don’t believe it can be done.

Reply

John Fedro May 30, 2014 at 11:44 am

Hi Roy,

Great comment. You hit the nail on the head when you discuss having your “why” clear in your mind. I too find that the bigger the “why I am doing this?” the more determination and persistence an investor will have. Congratulations on the current deal being resold! Well done again.

All the best and talk soon,
John Fedro

Reply

Rolanda Eldridge June 1, 2014 at 11:25 am

Great article!!! Everyday I strive to make the most of the day!

Reply

John Fedro June 1, 2014 at 11:47 am

Hi Rolanda,

Thank you for reading and for your kind words. Keep up the great work and passionate investing.

All the best,
John Fedro

Reply

Timothy Trewin June 2, 2014 at 8:03 am

John,

Great article. I do appreciate you taking the time to write it. There are many out there like me who are just getting started and articles like this help to keep the faith and to stay motivated until success comes. Nothing in life is easy and heart and determination to not quit can go a long way in being successful in real estate.

Reply

John Fedro June 2, 2014 at 10:54 am

Hi Timothy,

Thank you for reading along and commenting. It is comments like yours that keep me happy to contribute to great sites like this. Keep up the forward progress and never give up on what you know can be done. If you ever feel like giving up feel free to reach out to me.

All the best and talk soon,
John Fedro

Reply

Shaun June 5, 2014 at 3:07 pm

It’s hard to beat a person who never gives up. -Babe Ruth

Great article and very on point for a lot of people that might be going through a rough patch.
Persistence is really key to accomplishing most things.

BTW anyone reading this that hasn’t already read Brandon’s recent article on things every investor should do daily take a look.
http://www.biggerpockets.com/renewsblog/2014/05/28/14-things-real-estate-investor-every-day/

Brandon’s is like the quick start guide and this article is your first advanced lesson.

Reply

John Fedro June 5, 2014 at 3:46 pm

Hi Shaun,

Thanks for commenting and you kind words. Great Babe Ruth quote too.

All the best,
John Fedro

Reply

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