Real estate investing is an exciting and profitable field that has changed millions of people’s lives. There is now freer and paid information available than has ever existed before on how to start your real estate investing business. So why have so many people that want to get involved not bought their first deal yet? Here are 5 common reasons. See if any apply to you.
#1: LACK OF CLEARLY DEFINED GOALS
Any new venture that’s worth sacrificing time and money needs to have a goal attached to it. Well thought-out goals give us milestones and finish lines to work towards so we don’t end up bouncing around aimlessly. A well-written goal helps you know where the finish line is and when you’ve crossed it. Most new investors don’t have clearly defined goals and this hampers their ability to stay focused on the day-to-day tasks of growing their business.
The goal of “buy my first investment property” isn’t good enough. What type of investment are you looking to get into? When do you want to do this? What’s your target purchase price? What’s your exit? You get the idea. Goals need to be specific, measurable, achievable, relevant, and time-bound.
There are numerous investment avenues in the real estate world and thousands of people that have been wildly successful in each niche. Are you looking to flip houses? What about wholesaling? Interested in being a landlord? Did you know you can buy and sell real estate notes? Excited about the idea of owning an apartment complex? What about a self-storage property
The point of all these questions is that you need to be specific about what you’re looking to invest in and what kind of returns, risk tolerance, and time investment you’re open to. This is an important thing to hone in on because there are more deals to analyze than there are hours in each day. Contrary to popular belief, there is opportunity everywhere. You just have to decide where you’re going to spend your valuable time. Hone in on your investment criteria and then ignore everything that doesn’t fit. Don’t worry, you’ll be able to explore those other opportunities later, but now you just need your first deal!
#3: INCONSISTENT EFFORT
Most new investors are able to nail down the last two points, but this is an area that trips a lot of people up. Like anything in life, success comes from small incremental actions made every day that eventually culminate into the desired outcome. Obviously, there needs to be tweaking along the way, but most people aren’t consistent with what they know they need to be doing to succeed.
I’ve heard so many investors get frustrated when they send out one batch of postcards to a new list and don’t get any response. The same rings true for making offers. “I made 2 offers this week and neither got accepted! This business doesn’t work!” Sales is a numbers game and the more intentional and consistent effort you put in, the more results you will see. Do your marketing. Make offers. Course correct along the way. Stay consistent.
#4: OVER-EDUCATING AND UNDERPERFORMING
This point has been belabored in so many other articles, but it is a real problem that cripples new investors. The amount of free information available is truly astounding, but eventually, action and calculated risks have to be taken. Remember this: Offers that don’t get made don’t get accepted.
There comes a point where the only way to learn is hands-on experience with your first deal. If you’ve done the work in the previous four points, you’ve already set yourself up for success. Keep this quote by General George Patton in mind whenever you’re hesitating to get out there and make offers: “A good plan violently executed now is better than a perfect plan executed next week.”
#5: GIVING UP
This might seem like a simple point to make, but giving up is what keeps many aspiring investors from achieving the success they dream of. Millions of people from all different backgrounds have achieved major success in investing in real estate. Why can’t you? If you think you have good excuses, remember that there’s someone out there with better excuses that have already achieved what you want. In my opinion, the issues that keep most new investors from getting started are more mental than they are physical. You have everything available to you that you need to get started in this business. Don’t let your excuses and mental barriers get in the way of your success.
Corridor Funding is happy to work with investors of levels of experience. One of the first steps you can take to start investing is getting pre-qualified. You can do so by clicking here. If you’re thinking about investing, about to make an offer, or need to ask a lender a few questions, please feel free to give us a call! You can call 210-941-3916 or enter your email address below.