One thing I often hear newbies say is that there is no way they can compete with the more experienced investors. These newbies are of the mindset that we more experienced folks will simply find, beat them to, or outbid them for every deal out there.
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This attitude, while somewhat natural, is completely wrong. Plus, it leads to fear and newbies with this attitude will ultimately do nothing if they are not quickly set straight.
So why is this attitude wrong?
Well think about it.
Sure, those of us who have been in the business for a while have a lot more experience, and yes we are way ahead of you. But how do you think we got to where we are today? We had to start at some point. And you know, we were thinking then the same thing you are today, that there is no way I can compete or break into this.
But we did!
Here is Why
- There are just too many properties out there. Just in Memphis, TN alone there are over 300,000.
- There are just too many deals out there. With so many properties, there is no way any one person, group of persons, hedge fund or whatever can get them all.
- Investors can get busy with certain projects. I may have just bought a 12 unit apartment building that needs a major rehab for example. That will likely take me out of the market for a time while I get that property fixed and rented. That creates an opportunity for someone else.
- Investors come into or get out of the market all the time. This creates opportunity for other investors. Some people retire, get fed up, or otherwise ready to move on because of a divorce, death or a host of other reasons. Again this creates an opportunity.
- Other investors mess up. They fail to learn about positive cash flow. They get in over their heads. They file bankruptcy. While these can be sad and depressing stories, the world marches on creating new opportunities.
This is the beauty of the real estate market, or any market for that matter. It is always changing as people make their everyday decisions and take action. These constant changes create a myriad of opportunities that no one person or group can ever hope to model or capture.
Your job as a new investor is to first get your mind right and then get creative. Find ways to capture these opportunities. Make connections with other investors. Get to know your market. Take action!
Before you know it, newbies will be looking at you and wondering, “How can I ever compete with them?”
Photo Credit: HckySo