Mortgages & Creative Financing

Clarity: The Key For Real Estate Success

Expertise: Personal Development, Real Estate Investing Basics, Business Management, Mobile Homes, Real Estate News & Commentary, Landlording & Rental Properties, Mortgages & Creative Financing, Real Estate Marketing
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It is said that as human beings the easiest person to fool is ourselves. All too often we lie, cheat, manipulate, bully, and de-motivate ourselves on a regular basis. If this describes you or someone you know please send this article their way.

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The topic of this post is about the how and why to help bring clarity to your real estate investing business. Below are some of the main bullets I help identify and go through with every new investor I personally help. Take the time to read each one and reflect inward to ask these same questions of yourself.

What is my business mission statement?

Does your business simply want profits? Does your business wish to help society? Will you work with only the wealthiest people in your market or do you target blue collar workers? In what geographic locations will you do business? A mission statement is an understanding of what your company does, who it helps, and what people can expect from your company. This is a very simple question yet many investor’s I talk to do not have clarity in their own company’s mission statement.

Related: One Secret for Improving Your Real Estate Success

What are my talents and weaknesses?

Perhaps the biggest question every new and seasoned investor should ask themselves is about their own strengths, talents, joys, fears and weaknesses. Are you organized? Are you a self starter? Are you good at being your own boss? Really? Do you need someone to hold you accountable? Do you like talking to people? Do you have credit? Do you have money? Will banks lend to you? Really? How much time per day do you have to invest? Are you lazy? Are you determined to break down any barrier to make your dreams a reality? Really? Do you want to buy and hold real estate or flip it? Are you sure? Are you in an area of the country that has opportunity for the types of real estate you wish to pursue? How do you know?

The list above is only a short outline to help identify how prepared you are for moving forward. The more clarity you have over your shortcomings the more you can do to learn and grow in these areas. In the areas that you have ample strength and confidence be happy and proud of yourself. Some of these attributes, such as “will a bank lend you money” can only be confirmed by calling local brokers or money lenders. Take the initiative to push yourself daily or have someone that will push you daily to get over your own hurdles and move forward.

What are my goals?

Your goals should be written down, have a due date next to them, and be located in plain view on a daily basis. Before you start ironing out your 5 year plan make sure you have a healthy investing foundation and clarity for moving forward. Make absolute certain you have a grasp on your weaknesses and how you are improving them as needed in our real estate investing field.

Related: Tips for Achieving Your Goals in 2014

Do I understand my purchasing and selling process well enough to explain it to a 10 year old?

Once I began understanding what my average buying/selling transaction looked like I was able to clearly paint a picture with words for my seller and buyer with what to expect moving forward. Sellers and buyers love clarity – we all do. Aim to be able to clearly explain to your next buyers and sellers what their next few steps will be at the end of each of your conversations. No one likes to twiddle their thumbs or be confused. Help bring clarity to all those you help and interact with on a daily basis.

In the questions above there are no wrong answers or realizations you may have. Please be honest with yourself and look deep into your heart to determine where you lack talents and where you can look for help and experience to grow. No matter what your answers above are, every skill and talent needed to be a successful real estate investor can be learned, partnered with, or outsourced. The secret is to first have true clarity and then to make a clear action plan moving forward.

If you agree or disagree please comment so below so that we may all learn and grow together.

Love what you do daily,

John Fedro

Investing since 2002, John started in real estate accidentally with a four-bedroom mobile home inside of a pre-existing mobile home park. Over the next 11 months, John added 10 more mobile homes to...
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    Sonia & Paul Spangenberg
    Replied over 6 years ago
    John, thanks for this clarifying set of thoughts. I have a Mentor scheduled in about a month and a half and putting the above on paper will make that visit more efficient. As I was reading this I was thinking thru all I have worked on and accomplished over the past 3 – 4 months, Irealized that I had addressed or answered all to myself, but haven’t written it down formally. I am also reading the book “Goals” by Brian Tracy. Profoundly inspiring BTW. Confirms the importance of writing goals down. You add writing personal evaluations. This addresses personal accountability. Your blog is a great confirmation of the importance to yourself and even others, that things need to be written down to validate them. The timing of your blog is excellent as far as I’m concerned.
    John Fedro
    Replied over 6 years ago
    Hi Sonia and Paul, Thank you so much for the kind words and for commenting with these great thoughts. I agree with your that “Goals” is a very good book that everyone should read. I am so glad that you received so much value from this posting and my blog. All the best and keep pushing forward, John Fedro
    Sara Cunningham
    Replied over 6 years ago
    John thanks for this article. You are so right especially when you are new to the business. When we started out about 7 years ago we knew we had to gave goals and that we needed to set out the steps we would need to reach them including time lines for each. I think what is significant is that even when you do that you find the goals you started out with change constantly. When we started investing we intended to buy and hold. However as we went in pursuit of different properties we started to see the potential in buying really cheap properties and renovating them to flip. We then ended up doing a couple of Lease to Owns with a flip property that we couldn’t sell for what we wanted, and with a buy and hold we had. We have now gone back to buy and hold only. A lot of the decision to go back to our original plan has been due to the fact that we are temporarily living in Italy. That list of goals you start with along with strengths and weaknesses is a constantly changing playing field that needs to reassessed and updated as necessary. It’s really important to stay on top and regularly review and update.
    John Fedro
    Replied over 6 years ago
    Hi Sara, Thanks for commenting. I love that you spend some of the year in Italy. How beautiful that must be. I love your last sentence, “It’s really important to stay on top and regularly review and update.” I complete agree – clarity is key. Goals and desires do change. In fact we change just as much too. If you are active and making things happen in your real estate business you will not be the same person you were 7 years ago, or even 1 year ago for that matter. Your goals, needs, wants, and desires all change. All the best and enjoy your time overseas, John Fedro
    Ken Corsini
    Replied over 6 years ago
    John – great article. As an entrepreneur, it’s very easy to get distracted with the next shiny object. Having focus and defined goals is critical to our success.
    John Fedro
    Replied over 6 years ago
    Hi Ken, Thank you for commenting and your kind words. Have a great week and talk soon, John Fedro
    John Fedro
    Replied over 6 years ago
    Hi Ken, Thank you for commenting and your kind words. Have a great week and talk soon, John Fedro Reply Report comment
    Replied over 6 years ago
    Understanding you business and having a clear focus is critical to being successful. If you don’t understand what you are doing you will get in trouble fast! Not being clear on your goals will cause you to waste a lot of time.
    John Fedro
    Replied over 6 years ago
    Hi Shaun, Excellently said. I agree all around. Thanks for commenting. Talk soon, John Fedro