MustKnowInvesting Student Spotlight – Creative Real Estate Investing Tips

If you didn’t know it already, we have a creative real estate investing coaching program where we teach investors how to take their game to the next level. Doesn’t matter whether or not they’re brand new to real estate or been buying houses for years.

A couple of our newer students have really hit the ground running, and I wanted to ask them some questions about getting started, roadblocks along the way, and advice they would give to beginning real estate investors knowing what they knows now.

First, let me tell you a little about them. Randy and Sherlonda Adkins climbed their way up the corporate ladder for years landing very successful positions. But they knew there was more to life. After deciding to become more than employees, they embarked on an entrepreneurial journey. They have now started two businesses since 2005 offering services from technology consulting, real estate services, and seminars/key note speeches. Check out their website TheAdkinsAdvantage.

Now, let’s get to the meat!

Patrick: What was the biggest challenge you faced to get your first deal?

Randy/Sherlonda: The biggest challenge we faced in our first deal was fear of failure. We were afraid that we wouldn’t be able to get financing and had difficulty moving from reading to doing.

We also had plenty of people (that had never invested themselves) tell us things like “Oh, real estate investing, that’s risky”, “This is a bad market”, “You don’t want to be a landlord and have to deal with tenants, do you?”

We decided that we would find some people in the local area that were successful in real estate investing and interview them. We joined our local real estate investment club. A few of the investors recommended that we find our first property based on specific criteria and submit an offer. My question was then, “What if we put in the offer and the seller accepts?” Because it wasn’t like we had the money just sitting around to fund a deal.

One of the comments that helped the most was that if you get a good deal under contract then someone will finance it. With the combination of the relationships with investors, reading books, coaching and online resources, we were able to put our first deal together.

Patrick: How did you find your first couple deals?

Randy/Sherlonda: My first deal was from a past client who needed to sell one of his investment properties. And our next couple deals were REO properties that we found on the MLS.

Patrick: Why do you think that some people read all the books, take the seminars, but never get in the game and buy their first investment property?

Randy/Sherlonda: Most people are just like we were, afraid to fail. I read the other day that there was a survey given to retirees that were 65 and older. The Survey asked “What would you have done differently in life?” The response was overwhelming that they wished they would have taken more risks and enjoyed life more.

Patrick: What one creative real estate investing strategy have you found most useful so far?

Randy/Sherlonda: The most useful creative real estate investing strategy has been analyzing deals based on more than price and structuring beneficial term deals. We have also found that use of land trusts can be very beneficial in this litigious society as well as creating anonymity.

Patrick: Would would you say are three important things that every beginning investor should know?

Randy/Sherlonda: First, I would say building lasting relationships. All beginning investors should know that real estate investing is only going to be as successful as the weakest link in their network. Next, marketing, marketing, marketing! Every investor should continue to generate leads for all parts of their business such as sellers, tenant-buyers, buyers, investors, private money lenders, etc. It’s best to keep the lead pipeline full at all times if possible. And, I would have to say to never stop educating yourself. Read books, go to seminars, webinars, and really whatever you can get your hands on. As Ben Franklin said, “An investment in knowledge always pays the best interest.”

Patrick: What advice would you give someone that hasn’t closed on their first deal?

Randy/Sherlonda: Our advice is to tell everyone you know and meet that you are an investor. Join your local real estate investment club. Find a lawyer, realtor, contractor, appraiser, and other investors for your network. Find a mentor/coach to hold you accountable and most of all, find a property and put in an offer that makes sense for your business model.

What next?

Comments

Allen Taylor on August 27th, 2008 at 5:00 pm

Nice writing. You are on my RSS reader now so I can read more from you down the road.

Allen Taylor
Austin MLS on September 25th, 2008 at 9:59 pm

Great points about the fear of failure. With the current housing issues we should see a lot of REO opportunities over the next few months.