Flaws that Guarantee You Will Fail

When someone says I'm a real estate investor what is the first thing that come to mind.Fixer-uppers, foreclosures, short sales, buying at the courthouse steps, tenants.

We listen to and watch infomercials that promise to teach you how to buy property with out working hard,
but successful real estate investors focus on people more than they focus on real estate.

A professional knows that no one makes money until a problem is solved, so they spend their time seeking out people with real estate problems and only then do they use their creative abilities and real estate knowledge to create profits.

Those new to the real estate field spend their time reading or taking courses, go to meetings and say they are there to learn. 
They spend virtually no time trying to find motivated buyers, sellers and solve the circumstances that created the problems of these people.

The successful investor knows that when Opportunity meets Specialized Knowledge profits will follow.

    Flaw #1

New investors have no idea How Or Where To Find Great Opportunities For Real Estate Deals

A friend of mine spent a lot of time reading books and listening to tapes, but she made no money and in fact she almost lost her home to foreclosure. 

She spent most of her time being a master of real estate strategies.

I finally convinced her that we are in the people business, not the property business. 
She needed to find people whose circumstances matched her knowledge. 

When she stated looking for motivated buyers and sellers, deals started to appear that she had never seen before.  When she moved her focus from learning the details and strategies to finding great deals with simple marketing strategies, she truly became an investor.

Marketing is the process of reducing down the entire population of the world into a small subset of people with whom you can do business.

Marketing requires you to answer these questions:

    1. Who is your Prospect

Someone who is very motivated to sell their property.
The property is in the right geographic area.
The property is in the right price range
The property is in (excellent, good, fair, poor) condition

There are a many variables to fully defining your ideal prospect, and you might even have different ideal prospects depending on which strategies you're using.

But the point is simple: You must know who you want to do business with.

    Example -

"An ideal prospect may be a home owner who is motivated to sell their property as soon as possible.
The home should be in average or better condition and should be located in a certain zip code.
The home's value should be in the range of $100,000 to $195,000."

    2. What are you going to offer your prospect that will motivate them to do business with you

Your message must be simple and should convey a very clear benefit to your prospect.
Some of the most commonly used "messages" among real estate entrepreneurs are:

  • I Buy Houses
  • Sell Your House in X Days
  • Fast Cash For Your Home
  • Stop Foreclosure
  • Cash For Homes

Here's another Example -  We offer immediate debt relief to home owners by buying houses in 7 days or less."

These are all very common marketing messages, but not all of them are particularly good messages.

    3. How will you physically communicate your message to your ideal prospect

  • Newspaper ads
  • Road-side signs
  • Cold Calling
  • Direct Mail
  • The Internet
  • Marketing is extremely Important

All buying strategies are totally worthless unless you've got a relationship with a home owner who is willing to sell using your strategy, and unless you have a qualified buyer, it doesn't matter if you know 100 different ways to sell a property - you still won't sell the property.

That's why marketing is so important, and why most new real estate investors fail. 
Instead of focusing on people that they can help, they focus on the strategies that they'll use. 

It doesn't matter how great your strategies are. All people care about is what you can do to help them.

    Learn To:

  • Identify your ideal prospect
  • Create an offer that motivates your prospect to do business with you
  • Make your prospect aware of your offer
  • Flaw #2

Obsessions with "Avoiding Failure" rather than "Being Successful"

Success depends on what you want out of life, it's called the Law of Attraction. 

The Law of Attraction states that we will always attract what we focus on, and if we have a burning desire the Universe will bring it into our lives.

Most new investors are focused on Avoiding Failure rather than focusing on being successful. 

Of course we should avoid failure, but first we have to define what the term failure means. 

It could mean losing some money, losing your home, going bankrupt, etc. 

As human beings we don't do a good job of processing negative thoughts, and when we focus on those negative images it will almost always leave us in a semi-paralyzed state, where we are unable to take action, and when we don't take action we don't succeed.

You can focus on avoiding failure or choose to focus of being successful

When we begin to think of ourselves as Being Successful
what will that mean, will we own several properties that cash flow $10,000, $30,000 per month, will it mean freedom from your job, freedom to do what ever you desire. 

The attraction of being successful is certainly more motivating to your mind than the avoidance of failure. 

The Law of Attraction says when we focus on success our minds will attract success.

We should always use good business sense in our pursuit for success

  • You should absolutely run your real estate business through a legal entity (corporation, partnership, LLC, etc) of some sort to shield you from any personal legal liability

    You should use the very best legal forms & documents available whenever agreeing to buy or sell property
     
  • And you should certainly seek out excellent advice from people who are already successful as investors, rather than learning everything "the hard way"
  • Flaw #3

Failure To Establish Clear Goals And Defining "Success" As Anything Other Than Making Big Profits

                                               See chapter on Goal Setting

There's only one reason for you to be a real estate investor: TO MAKE MONEY.

That seems obvious, but most new investors don't have a clear profit motive for being in the business.

            Example:

A new investor may have started because of seeing an infomercial about making millions as a Landlord, they pour over the material
They are all excited and start looking for good investment property. 
While at a party they hear some one tell stories about how great the rehab business is, great profits in a very short period of time. 
The new investor thinks this landlord business will take a long time to make these great profits and maybe the rehab business is what he should be doing.

You can already see the problem; the new investor didn't take the time to define what his goal was.

Failing to establish clear goals and defining what success really means to you will lead you to believe that you are a failure if you believe success is making large amounts of money on each deal. 

Most new investors don't take the time to define their goals and what they want to invest in. 
They may feel being a land lord would be great for retirement, the rehab business would bring them the short-term cash their looking for, flipping sounds great as long as there are people to flip to. 
If you don't define your goals you will most likely just be spinning your wheels, and waste a lot of money on seminars and courses that will never get you the success your looking for.

I'm a big believer in going to seminars and taking courses, but they should be to expand your knowledge not to be the most knowledgeable investor around. 

Don't fool yourself into believing that success is merely knowing all the strategies, you have to use them to be a success.

Think about This

You can read all the books you can about swimming,
But if you don't get in the water you will Never learn to swim.
 

*

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