You’re armed with the knowledge you need to get started in real estate investing. From watching the podcasts and TV shows to reading the blogs to researching your market.
You’re excited to finally take action and do your first deal.
Except, you aren’t taking that next step.
Some would say… the first step is the scariest step to take.
Not only are you not sure what to do first, you most likely have fear and doubt lingering in your mind that isn’t helping.
It’s important to take a step back, break down what you know and and are confident in, and then also break down your weaknesses and doubts.
Addressing those “success blockers” will help you drive forward and take action.
Remember that you’re going to get out as much as you put in.
Especially in the beginning, you’ll be working multiple roles in your business but as your business grows, you’ll be able to hire a team to relieve you of any roles that aren’t your strength.
Ask yourself the questions below.
- Do you have fear of failure?
- Do your doubt your capabilities?
- Do you work about your lack of knowledge and experience?
- Do you have enough time to dedicate to the business?
- Do you worry about money?
When talking to a motivated seller or a lead in general, you’re going to be told “no” a whole lot more than you’re told “yes”.
It’s just the nature of this business.
What’s amazing though is that with the small percentage of leads that say “yes”, you can make an incredible profit.
So it’s important to stay positive and to have a support system that believes in you.
If you’re worried about your capabilities or lack of experience, start off with simpler deals such as assignments. They don’t require you to close on the property and if done right, don’t involve much risk on your side.
You’re basically the middleman between a seller and wholesale buyer and you’re making the spread in between the seller’s agreed price and the buyer’s agreed price.
It’s always important to check with local laws on assignment deals before you choose this exit strategy. We aren’t real estate attorneys so please do your due diligence before you start.
This allows you to get your foot in the door. You’ll get comfortable with talking to sellers, analyzing comps, working with other wholesale buyers, and in general, learn the overall process of getting a deal done.
Once you gain more confidence, it’ll be easier for you to expand to other exit strategies, such as wholesaling, rehabbing, and rentals.
When it comes to money, hard money lenders and private lenders can be helpful when you’re ready to do a deal. Most of the time you’ll only be paying the interest so as long as you aren’t keeping the property too long, it won’t cost you too much.
You will need money for marketing but this doesn’t mean that you can’t start off with a small marketing budget and increase the spend as your company grows. Spread out your marketing budget to last you at least 6 months.
Let Go of Fears and Take Action
Write down every small task that will get you one step closer to meeting with a seller and making an offer.
- How you’ll market to motivated sellers (direct mail, online marketing, door hangers, etc.)
- How much money you’ll be able to spend on marketing over the next 6 months
- Your business name, business entity, logo, and business cards
- Where your funds will come from (start talking with lenders who are investor friendly)
- How you’ll have lead calls answered (will you answer them or will someone else?)
Celebrate small successes and keep working towards getting your first deal done. After you’ve done a few deals, your confidence will be higher and it will become more routine.
You have to take action.
The biggest regret for most investors is that they didn’t start sooner.
Don’t let that be you.