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
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:
“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.
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!