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Posted over 4 years ago

Early Lessons Learned

Early Lessons Learned

It's been about a month since I been an Acquisitions managers full time. It has been super fun. For the first time in my life, I have combined what I do for fun with what I do to build wealth. I feel like I am cheating the system. It has not been all great and it has not been all bad. Regardless of that, every day I am learning and having fun doing it. From being called many curse words to meeting people who just need someone to talk to. Everyday has been its own adventure.

Throughout this process, I have learned many lessons. The first lesson I learned is that "Always be closing" is a lie. The second lesson I have learned is that Real Estate is all about reputation because there is a small group of people actually making deals. Lastly I have learned that those who have an abundance mentality end up with more deals.

Always be closing is a lie if you ask me. I actually believe it's the opposite. You only get to close once. The more you try to close, the less control you have. The less leverage you have and now you have given the seller something to bargain with when talking to other buyers. This is why I take the Andy McFarland approach. He is a legend btw. Andy likes to focus on everything else besides the price. Things like time. When do they want to sell? Do they have a deadline? Do they have a balloon payment due? Things like equity. Do they have a mortgage? Do they have a second or third loan on the property? Do they have a HELOC(home equity line of credit)? Things like motivation. Are they motivated to sell. If they are not, you are wasting your time and they are probably price shopping. This does not mean this is a dead lead. It just means that they are not ready to sell right now but they are exploring their options. Now imagine I would offer a price to them and then I learn they were just price shopping. Now they can go to various people and see what they would offer compared to yours. If you knew they were price shopping, you could have just helped them figure out their options, build rapport so when they were ready, everything would have been set up for you to close.

Reputation is everything. I’m sure you hear this all the time but this is very true. The more I speak to people in the real estate world, the more I realize that its all the same people. There are tons of people that are interested in investing in real estate but a very small percentage actually get into it With that being said, your reputation is all you have. If you ruin your relationship with someone because you didn’t do what you promised or you back out of a contract, that can potentially hurt you in the future. For example, lets say you commit to purchasing a property for X amount of dollars with a wholesaler. A week passes by and you realized you cant come up with the funds but you are too embarrassed to tell the wholesaler so you wait last minute. This then creates a situation where the wholesaler is probably not going to want to work with you in the future and they are probably going to tell their friends who are probably wholesalers as well. This then creates a situation where next time you put in an offer, a wholesaler might want more of a commitment because they no longer trust you or they might not want to work with you at all.

There are an abundance of deals out there. You will not buy every house you see. One thing you can do is try to help every seller you meet. That might mean you buying their property but it also might mean you recommending they list the property. This is a great way to build rapport and trust with a seller. Even if they are not going to sell to you, you still have an opportunity to help someone out. From my experience, even if that deal doesn’t work out somehow the universe figures out a way to repay you for being a good person.



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