There you are late at night sifting through your email inbox or flipping through the TV channels and you see the latest commercial for a seminar rolling through town that promises quick riches, no money down real estate investing, and most important it’s easy to do too!
Please note if you ever see the words easy, no money and quick riches in the same sentence, my advice is to run far away. It seems everyone who has a product to push nowadays has a secret magic pill that will turn you into the next Super Man of real estate investing. Well here is a secret of my own…
How to Purchase Real Estate With No (or Low) Money!
One of the biggest struggles that many new investors have is in coming up with the money to purchase their first real estate properties. Well, BiggerPockets can help with that too. The Book on Investing in Real Estate with No (and Low) Money Down can give you the tools you need to get started in real estate, even if you don’t have tons of cash lying around.
There is no Magic Pill!
There are no magic pills in real estate, there I said it.
There may be no magic pill that you can swallow for instant success, but there are a few old tried and true methods that still work pretty well. Ready for it? Being persistent and consistent. Sounds pretty old fashioned, not that fun or sexy, but hey it works!
Consistency and Persistency
What do these two words mean exactly?
It means you have to formulate a plan for your business, execute it and stick to it on a regular basis month to month being consistent and persistent with it, deals or no deals.
This point is even more critical if you are new to this business. Many times I meet new investors at meetups that are discouraged.I talk with them a bit more and quickly find out their gravest error was simply were not being persistent and consistent when executing their business plan.
For example I commonly hear stories of people spending $1,000+ a month on direct mail, doing it for a month or two, and not getting any houses or contracts.
What usually happens from here is they either decide direct mail marketing doesn’t work or their list must have been bad, so they change it (note changing lists all the time is not how one stays consistent and persistent).
Usually the list itself isn’t the problem, but If you need tips on how to generate a quality list make sure to check out this post I wrote here. The problem is they mailed for only a few months, didn’t get the results they were hoping for, or the type of results these seminars advertise, and gave up.
If you are going to mail short term like this then don’t bother mailing at all it’s a waste of money unless you get lucky on your rounds. The reason is you are operating on the sellers timeline not your own.
If you are targeting the right people, they will need to sell their house sometime, the question is will you have mailed them enough times so that when they have a trigger event you are the first one on their mind?
You must change your mindset from short term and think long term, be consistent and persistent with your business and marketing. Yup there are those two words again. Some people get worked up once I mention that they need a plan to be successful.
Set a Plan
Relax, it doesn’t have to be that difficult though, it’s pretty simple actually.
Take a step back and examine the big picture. What is it that your trying to accomplish exactly? Break it down step by step into small manageable peices. The first step is to figure out what market you want to invest in, for most of us it will be local.
From there is your plan to find more listings, flip houses or acquire low income rentals? Who are you going to market to preforeclosures, probates?
Whatever it is, break it down and write down the steps you are going to do to work towards that goal both long-term and short term so you can start taking steps to achieve your goals.
-If you are doing direct mail, and you should be, establish your criteria for buying. Do you want 3/2/2 brick homes 1200-1500 sq ft in certain zipcodes. Write it down.
Are you looking for specific neighborhood demographics? Write it down. Do you want houses of a certain year built? Write it down. You get the idea get a clear idea of what it is you are going after first, THEN worry about generating the list.
-Once you have a list figure out how often do you want to mail these prospects. Every month, once every 3 months, whatever it is figure it out and stick to it. Again being consistent and persistent with it. If you need help constructing a direct mail campaign check out this indepth post I wrote about it here.
-If driving for dollars is part of your strategy select certain neighborhoods that fit your criteria and drive them on regular intervals. Take a camera with you and a notepad, document any properties that seem to be vacant or abandoned. And once you find them start mailing them consistently.
There is no secret magic pill to real estate investing. However, if you figure out what your trying to accomplish, set a plan, execute it and once you do so consistent and persistent with it, you will see results.
What is your game plan for real estate?
Be sure to leave your comments below!