What's holding you back? 10 Steps to Make A Move
Unable to move forward, fear of the unknown or of making a costly mistake, “don’t know where to start”?
Biggest thing holding investors back is unsure how or where to secure financing.
There are so many people afraid to make a move, waiting around for someone to hold their hand and take them step by step. That is one of the reasons why “Gurus” such as Dean Grazioski are doing so well. He charges thousands and promises to “hold you hand”. I personally know a couple who spent $40K of their small savings to attend one of his seminars and are now in dept up to their eyeballs and still paralyzed.
Remember when you were a kid and got your first bike? Did you read tons of books about how to ride a bike or did you just get on it and start peddling. Perhaps Dad was there to put some trainers on but chances are he didn't peddle for you. You had to do that yourself.
Let's look at another example, learning how to drive for instance. Sure you took some drivers ed classes and maybe Mom and Dad shelled out for a driving instructor. But you still had to get behind the wheel, learn the basics, swallow your fear and start driving forward. You did that!
The point is, books and forums, like here on BP, provide tons of info but ultimately, you need to ask yourself if you can muster up the courage to "just do it". Like falling from the bike and scrapping your knee, you have to be willing to make some mistakes along the way. It's life and we all do it! Investors are no exception. It's okay to mess up so long as you actually learn from the experience and gain more confidence along the way.
There are some things you can do to prepare.
1. Identify how much you are willing to invest and how. Write it down!
2. Get your ducks in a row, if you need financing, secure it first before you make an offer.
3. Use facts, not emotion or public opinion, to identify the best market based on your budget. Remember, you're don't have to live there.
4. Have your proof of funds at the ready and your financing set-up so you can act quickly. This is a competitive market and good deals don't linger.
5. When identifying your first deal, put aside emotion and other people's opinions. Run the numbers (cost of repairs and improvements, fixed costs, rent rolls, etc.) and make sure you come out with a decent profit.
6. Fake it if you have to and display confidence. Like you're very first job interview, you may be shaking like a leaf inside, but do you best to get the deal closed.
7. Be willing to make a reasonable offer with only few contingencies such as 30 day inspection period and a close after the inspection with clear title.
8. Operate with integrity and honesty. A bad reputation spreads fast and can seriously hamper your efforts in this market.
9. Don't let naysayers prevent you from reaching outside you're backyard. Research with an open mind. Find out why investors are flocking to a market where others are running scared. What do they know, that many don't?
10. Make an offer! There are plenty of "good deals" out there and only a few great ones. Don't make the mistake of passing up several small good deals for the "holy grail". Experienced investors know that lots of small "good" deals quickly add up.