Newbie Real Estate Investing Tips That Work
Having success in Real Estate is not based on luck, a powerful family name, or a unique set of super skills. There is no special inherited gene that one must possess for success in this industry. One learns and profits in this business the same way that one would have success in any other industry.
Think about something that you have been good at or had success with in the past, be it a sport or hobby. What separated you from the others? Chances are, you understood the ins and outs of what you were good at, you were focused, had a good plan and executed it, surrounded yourself with others who shared a similar passion, and was coached by a successful, experienced person. Having a thriving career in Real Estate is no different.
Wealthy Realtors and Investors are such because they took the time to educate themselves on different options and opportunities, have laser sharp focus, execute a well thought out marketing plan, surround themselves with a strong, experienced team, and have a coach or mentor.
Real Estate Investing Tip| Know Your Options
What is going on with the market now? What will happen with the market a year from now? In order to have a long, profitable career, you will need to be familiar with multiple ways to purchase properties and multiple ways to sell. The strategy you utilize in a sellers’ market, such was the case 2+ years ago, will most likely be different than the strategy you utilize in this current buyer’ market. If you are not flexible and able to adapt with the changing markets, then you will be left behind. When the market changed from boom to bust, many Realtors stubbornly kept the same marketing plan. After all, it had worked well in the past, so why change? Now, many of those folks are no longer Realtors. Fix and Flippers from years past who failed to adapt to the new market have since lost their business. Understanding when to focus on short sales, subject to, selling with owner financing, or buy and hold strategies and understanding the different strategies required to adapt to a changing market will allow to maximize your profits
Real Estate Investing Tip| Laser Sharp Focus
When are you at your professional best? It’s when you know exactly what you want and exactly what you are required to do in order to achieve your goal. When do most mistakes occur? When ambiguity exists. Ambiguity is the arch enemy to focus. When you are focused, you accomplish tasks. When you are not focused, you procrastinate and / or make mistakes. Knowledge, or lack thereof, plays a key role in focus, as does having a detailed plan.
Real Estate Investing Tip| Marketing Plan
You can have all the knowledge necessary to close any real estate transaction, but if you’re not connecting with people, you will not have any opportunities for transactions. So how do you attract motivate sellers? A good marketing plan will have 5-7 different strategies. And when planning out the strategies you wish to implement, also remember to budget both finances and time. It does you no good to have a goal of putting out 1000 door hangers a week if you don’t budget time for this activity as well. So what works best for attracting motivated sellers? When done properly, Direct Mail is the most successful form of advertising. When done incorrectly, it is a gigantic waste of funds. It is important that you work with an experienced company that has a solid track record of providing a double digit response rate on their letters. That’s correct! Direct mail campaigns in Real Estate should yield at a minimum a 10% response rate. If you are not receiving a double digit response rate, then you are required to rethink your direct mail campaign.
Real Estate Investing Tip| Build Your Mastermind Team
You cannot do this alone! Even if you are tremendous handy person that doesn’t require assistance from anyone else on a home flip, you will still require the services of another contractor. Why? What happens if you’re working on a home and another opportunity comes up? Leveraging others will allow you build your wealth quicker. The following are just some of the team members necessary for a successful career: Attorney, Realtor, Mortgage Broker, Title Agent, Contractor, Credit Repair Service, and Lenders. The assistance of others will lead to more profitable transactions. Where do you find team members? At networking events, such as Real Estate Investing Clubs and luncheons.
Real Estate Investing Tip| Coach or Mentor
Name one well known person at the top of their craft. Regardless of if they are an athlete, actor, or famous personality, they have one thing in common: a coach. Coaches have experience in areas that you do not, can guide you, prevent catastrophes, and push you to do more than you ever thought possible. It doesn’t matter how many books you’ve reads, cds you’ve listened to, or stories you’ve heard; your first couple of deals will throw something at you that you’ve not seen before. And when this unique and frightening situation occurs, it’s good to have someone who’s been through these situations before guiding you through the transaction.
In summary, while anyone can have success in the Real Estate Industry, not everyone will have success. If you wish to be wealthy, than do what other wealthy Real Estate professionals do. They never stop learning or challenging themselves, they are extremely focused, they execute a well thought out plan, they surround themselves with other successful professionals, and are still coached and forever teachable.