Don’t forget that one important ingredient you need to be a successful wholesaler.
You may be thinking, I’ve invested money into myself, so when is the success coming? I created my vision board, wrote down my goals, went to a few Meetups, spoke with some successful people, joined BiggerPockets and joined my local REIA. However, I still have not done my first wholesale deal. Is wholesaling real estate a scam? Are these motivational speakers a scam? Are the self help books all bogus? They must be because I did everything — even joined some program that said I could use my thoughts to become rich. So what is the hold up?
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.
How I Started Out
If you did everything the gurus said to do, why isn’t it working? Are the gurus the problem? I recall before doing my first deal that it was my dream to become a real estate investor. I used to read all the self help books and business books, and I would listen to audiobooks as well as podcasts. I mean, I would sleep with a book next to the bed. I would listen to podcasts to and from work.
I cut off cable because I had to get tunnel vision on my life, like a young Joe Montana when he was practicing touchdown passes and pretending to win the Superbowl in his backyard.
I recall back in 2012, when I first got fired from my job, I was closing deals — but not consistently. I had a little money saved up before I got fired. At the time there was a real estate event in Dallas, TX that I wanted to attend. At first I was going to wait until the next year because I just got fired, and things were about to get real skinny. Then I told myself, “Nope. I can no longer say ‘next year.’ I have to attend this event — now or never.” A friend of mine was going as well, so we split hotel cost.
At the event, my whole life changed. I came back a new man. Two month later I made 5 times my take home salary wholesaling real estate. I was ready to take over my city. My friend and I attended that event, and we are both now doing very well. A lot of the people I met at that event have became lifelong friends. We all keep up with each other via social media, and a lot of us are doing big things with our real estate businesses.
The Problem of Inaction
It was not your typical event. However, during the event, I met some typical event-type people. One guy I met has been traveling around the country for 10 years attending seminars. He went to one of the speakers at the event and told him that he has been attending real estate events for 10 years, traveling around the country, but this time his wife said he no longer can go to any more events if he does not make any money after this one. The speaker looked at him and said, “I agree with your wife. I don’t want you to come back if you don’t do a deal.”
The following year a lot of us came back to attend the Atlanta event. The particular person I mentioned did do his first deal. And told his story at that event. I was super proud of him. He is now a personal friend of mine, and I had to ask him one day, “Man, you had been a entrepreneur for years. You’d been owning a barbershop and hair salon. So why on earth would you wait so long to get your deal?” He responded that he was a engineer before being laid off at his job and starting his current business. And even though he learned everything about wholesaling, in the mist of all the learning, he forgot to do one major thing, which was to DO THE WORK.
All the vision boards, writing goals down, and thinking positive thoughts are great. But most people forget to do the work. It is well-known self-help knowledge that’s sold millions of book copies because people actually believe that if they only think positive thoughts, they will become financially free.
I am here to tell you to snap out of it. You have to do the work. The work is not fun, either. I want to quit real estate sometimes, even though it was my dream to become a investor. It’s an emotional roller coaster going deal to deal. However, I remember what it felt like to walk in a 9-5 job, so that keeps me going.
In a nutshell, nobody remembers a deal I did in 2014 where I ended up losing $6k, or that first flip I ended up losing $7k on. Everyone thinks Nasar is this great guy who makes good money. The point I am trying to make is that no one respects the process, but everyone loves the result. So don’t forget to do the work.
Please read this short comic that inspired this article.
How long did you study, dream and speculate before executing your very first real estate deal? Do you agree with my advice?
Leave a comment below, and let’s talk!