Last night, I was on the expert panel at the Charleston Real Estate Investing Association meeting. There were seven of us on the panel and each time a question was asked, we would go down the line and answer it. I thought I would share a few of the questions that were asked and my answers . . .
What was your biggest challenge?
I took this to mean, “What was my biggest challenge when getting started?”
Two things here:
1) Self Limiting Beliefs
One of the self limiting beliefs that I had to conquer was in reference to my age. I got started investing when I was still in college at the age of 22 . . . and I look young for my age. Soooooo, I could have passed for 16 probably.
Getting past this mental roadblock was one of the first challenges that I had to face. I eventually realized that it was all in my head. If I thought it to be a limiting factor, it was.
Which reminds me of the classic quote from Henry Ford, “If you think you can do a thing or think you can’t do a thing, you’re right.”
No matter what your age, background, race, gender, or financial situation . . . you can become a real estate investor! Period!
2) Taking the First Action
For me, making that first phone call was difficult and I procrastinated for months. But, it didn’t have to be because I’m the one that made it that way.
No matter how “educated” you are . . . your true education as a real estate investor starts when you make that first call, kick off your marketing plan, go on your first appointment, make your first offer, and close your first deal.
You’ll learn far more through the action you take than studying concepts, techniques, and theories.
What are you doing in today’s market? How are you addressing the financing challenges?
I combined these two questions because my answer covers them both . . .
There are three powerful creative deal structuring/financing strategies that we as creative real estate investors can use to thrive in today’s market.
1) Buying Property Subject To
2) Creating Seller Financing
3) Using Private Money When You Need Cash
These three strategies when combined create the ultimate leveraging and wealth creation strategy
When you buy property subject to, you are leveraging your way into a seller’s loan. In other words, you don’t have to go out and acquire a new loan.
Creating seller financing turns the seller into your bank. This is the easiest “lender” to negotiate that exists. If you know how to hold your mouth right, you can structure terms that not only allow you to get into a deal with little to nothing down but also put you on the fast track to wealth.
If you would like to learn the ins and outs of buying property subject to and creating seller financing, check out the Creative Real Estate Solutions in Today’s Market Video Series.
And lastly, using private money for your cash needs. There is virtually an unlimited supply of private money for your real estate deals.
To learn more, download the free How to Recruit Private Money Millions eBook and PowerPoint presentation and check out the Private Money Blueprint Video Series.
What would be the one “secret” that you could give someone that could dramatically affect their real estate business?
I think the best answer is that there isn’t one “secret.” So here’s what came to mind when asked . . .
1) Equity Does Not Equal Profit
I hate when books or gurus say, “You buy a property for $80,000 and it’s worth $100,000. You just made $20,000 profit!”
Yeah right! It’s not profit until it is cash in your hand. There are many costs to sell a property that must be considered when evaluating every deal. Buy property based on a percentage of value basis not an equity basis.
Bottom line, know the difference between equity and profit.
2) Combine Action with Education
As you are educating yourself, immediately take action. That’s how you’re going to become successful at this.
You read about a marketing strategy to get seller leads calling you . . . then you implement it!
You come across a script to use when qualifying seller leads . . . print it out, practice it, and use it on your next call.
Here’s a key to success: Whether you think you’re ready or not, you’re ready! Get out there and take action.
3) Do Not Become Emotionally Involved with a Property, the Seller, or Their Situation
Your decision to buy a piece of real estate must be based strictly on business. Either the numbers work or they don’t. You will come across many sob stories and terribly difficult situations. Detach yourself from every deal and look on from an outside perspective. Ask yourself, “Do the numbers work?”
Although you will probably want to help everyone, your job is not to inherit other people’s problems. Help those that you can and give your best wishes and blessings to the rest.