Investors Get Off Your Butt!

investors

INVESTORS, GET OFF YOUR BUTT!

Many investors need a swift kick in their rear end to take action and start doing deals. With that said I’m not providing that kick, but I’ll be giving investors all over the world a nice push in the back.

Many investors spend time reading mountains of books, listening to hours of CDs and attending one seminar after another. These investors still find it hard to get started. It seems like that first deal keeps getting closer and closer but never really materializes. What is it that keeps some investors from getting started? What can they do to overcome the hesitancy and start making deals?

I’ve talked to plenty of investors who find themselves in that situation; investors who ask a lot of questions but never seem to find enough answers to satisfy them. In working with those investors, I’ve noticed some trends. There are a few common setbacks that seem to affect those who would otherwise be successful. And likewise, there are common solutions to apply to those setbacks that can make the difference between hesitancy and action.

Focus

investors

One of the most common impediments for investors is their ability to hone in on one method or strategy. Understandably, investors see opportunity and want to pursue it. The problem comes when every strategy seems like the strategy for you.

Maybe you can relate; maybe you’ve been to one of those three-day seminars where the first half of the first day is spent talking about something like lease-options and you decide at that moment that lease-options is how you’ll take your slice of the real estate pie. But, by the afternoon, as the seminar topic shifts to wholesaling, so does your business plan. Through the three days, you’ve decided you’d rather be a landlord, then a hard-money lender, then a property manager and then a property marketer. By the end of the weekend, you’ve been spun so many different directions, you don’t know what you want to be. If you feel like you have the attention span of a gerbil when it comes to deciding how to invest, you need to get some focus.

Don’t try to do it all. Start with one area and make it work. Strive for small success then build from that point. Don’t let yourself get distracted from your plan because you hear that another investor is having phenomenal success doing something else. Stay with your focus and soon it will be you reporting the success.

Persistence

investors

Business is all about momentum. Too often I hear of investors who, much like the gerbil described above, has tried it all. They’ll say “I’ve tried landlording. I’ve tried wholesaling. I’ve tried lease-options. None of it works”. When I ask how long they worked at it, I get similar responses; “We’ve been at it for a couple of months now…”. As I hold back the urge to ask if they’re kidding, I explain that what they’re lacking is persistence.

Imagine a line of huge granite boulders. Each one has been shaped into a perfect sphere but they’re huge. You can see that, because they’re round, they should roll nicely. The problem is getting them started. Now imagine that each boulder is labeled. One says “Wholesaling” another says “Lease-Options” another says “Foreclosures” and so on. Some investors will push on the “Wholesaling” boulder for a short time. They’ll see only a little movement and say, “Whew, that’s too hard. I’ll try something else.” Pretty soon they’ve pushed on all of them with similar results. This is when you usually hear them say “nothing works”. The reality is that if all the effort distributed between the boulders had been simply directed to a single boulder, they would see different results.

Once you’ve made a decision to focus on one specific investing method, stick with it. It might be hard at first but it will get easier as your business gains momentum.

Endurance

investors

There’s a lot to be said for those investors that can weather the storms and stay on course. There will be ups and downs. If you can’t get past the “downs”, you’ll hang up your hat before you ever see the results you’re after. You will find deals. You will find opportunity. But, you have to stay in the game long enough.

As you make your decision and step up to push that boulder, be prepared. Plan for the hardships and setbacks. Know in advance what you’ll do when something goes wrong. Make sure your plan includes contingencies and back-ups for when the market changes or you run into something new.

In the end, it’s all about getting started. Once you’ve done a deal or two, you’ll see that you can go out and do it over and over again. It’s just taking the first few steps that tends to hold up most people. If you can get your focus and be consistent, you will certainly see the results you want.

“no sacrifice, no reward”

Investors, remember to remain focused, persistent and have endurance.

About John G.

I'm a full time real estate investor in NW Ohio, investing since 2007. I specialize in Wholesales, Subject 2's, Rehabs, Mentoring, Private Lenders and web based marketing. I'm your personal Residential Real Estate Engineer

6 Comments

  • A. Raphael-Hopkins
    12 Jun 2011 | Permalink | Reply

    Often, the problem, from my experience is just as you have quoted. There are so many so-called gurus peddling so many different products not only is it confusing but it is aggravating trying to find that level of trust and put a band aid on the bleeding of my bank account. It is obvious that the out dated procedures of simply buy, fix and flip are gone, the game has become much more complicated and it takes a great deal more of sophisticated technical knowledge and understanding of the necessity of having the right equations. I truly believe it is the market and every other day we are seeing prices still falling lower with no end in site. John, I know this does not apply to all regions across the country, but where and when do you jump back into the field when you are not sure for what you paid today will not be 1 to 5 thousands dollars less expensive with the next 6 to 12 months? “Focus”, that would not be the same thing as concentration,(?) would it? Sometimes easier said than done!

    • 13 Jun 2011 | Permalink | Reply

      A. Raphael, you make a very good point. It’s SO important to focus in on the specific investing method so you can avoid the merry go round of investing styles. A good deal of research is in order just to see if the investing niche you want to target will be viable in your neck of the woods. Once you’ve found a niche to go with and discover it will work in your city/town I would suggest finding one of those so called guru’s who specializes in that niche and studying their material. The one thing to consider is the actual numbers may vary because they’re basing their info on their market and not yours.
      As far as jumping back into investing; here is a good bit of knowledge to keep in your head. More times than not you will not lose if you buy well below market value and I do mean well below.
      As for my area, the economy and the reduced number of people being able to obtain traditional financing, it’s favoring the buy and hold investor.
      So do your homework and work on Building Your Team to help ease your investing experience.

  • 17 Jun 2011 | Permalink | Reply

    Let’s face the truth. 97% of the dealflow out there is either phony, dead, combed over, sloppy, ill-prepared or plain just doesn’t meet any investors approval criteria.
    We get literally get 100′s of investors begging us for real deals that are fundable.

    • 17 Jun 2011 | Permalink | Reply

      Well Jeff, I can’t speak for everyone else but the deals we offer allow the seasoned or beginning investor to profit from day 1. The golden rule in investing…… If you buy right to start with then you drastically reduce your chances of taking a loss.

  • 3 Aug 2011 | Permalink | Reply

    Some motivation for those who invest in real estate and feel they’re having a hard time.

  • Kijie Waddell
    7 Apr 2012 | Permalink | Reply

    great post House Hustler lol from the former Hud Queen known a.(affectionately) k.a. Queen of Comps! I am blasting this to the four corners of cyberland today!

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