Focus on the 20 not the 80

The Pareto Principle states that 20% of your efforts will produce 80% of your results. This principle can be applied to almost anything in life.

I meet many new people every day working full time in real estate investing. They range from wily hustlers running a well oiled investing machine to gun ho newbie's fresh out of a seminar! These newly inspired soon to be investors just had their minds blown by the guru at the seminar and cannot wait to hit the ground running with their new found financial intelligence.

Now what? Here lies the problem. I hear the same question over and over in regards to wholesaling from new investors. "Should I build a buyers list first or find a deal to wholesale first?" You can compare this real estate investing question to the age old question of, "Chicken or the egg, which one came first?"

I always do my best to give advice. I have many years experience in sales and now working in real estate investing I have learned that finding a good deal is by far the most important component. Once a deal is under contract, buyers will be chomping at the bit to have a piece of the pie! But for some reason it seems many new investors completely ignore my advice and out of fear of the unknown choose the opposite and go for building the buyers list. This leads to procrastination, analysis paralysis, and eventually giving up!

Here lies the Pareto's Principle of real estate. If you focus on finding deals, the rest will fall into place. If you don't know what to do next, you will figure it out. The unknown will become routine. Building a buyers list first is focusing on the 80% which creates the 20%. It is busy work! If they are a legit cash buyer who buys multiple properties per month, you will not only waste their time but come across as an amateur and possibly be the sheep that cried wolf when you do have a deal. No one will answer your call.

Moral of the story:

Get out there, TAKE ACTION, and find yourself some deals! You will thank me when you leave the Title Company to go deposit your assignment fee check.