Real Estate HIGH ROLLERS - Your Wisdom On My Theories Please ?.?
Simply- What do you think it was, that made you successful, when so many people fail? I know everyone says that anyone can do this...I don't agree.
Considering a lot of you didn't have this type of information when you started, I'd have to say it shows a lot of initiative. This is exactly what most newbs don't have.
We try to remember the easy laid out steps, but often it doesn't quite apply as the messiness of the real world creeps in. At that point a lot of people get discouraged and give up. I think a lot of people just want an excuse or proof that it doesn't work for themselves. It gives them time to follow the next get-rich scheme.
Or perhaps they were serious, but got in over their heads or got screwed over by their own greed. Perhaps their real estate focus was not applicable to their location, or any number of reasons to fail.
The more I learn and experience in this game, the clearer it gets. You have to learn to adapt, and know the rules of the game. Get rid of what doesn't work, and keep what does. Not to follow cookie cutter plans blindly, and try to figure out new ways around a problem.
I've heard a lot of the same excuses, and at first I was quick to believe them.
For instance, I see a lot of posts where people say investing here won't work. Real estate is too hot, you can't do deals here, etc. Yet, there will always be those posts from people in that location that ARE doing deals. Typically it seems like these people had to be creative and think outside the box. Yes, it was tougher to do because certain techniques didn't work. So what happens is some can adapt, and others get left behind.
I want to know, what is the the driving difference in your own personal opinions?
I think persistence and a passion for what you are doing is key whether it is real estate investing or anything else...that will set you apart. This has helped me in my career as a commercial photographer in a very competitive market and now as a Real Estate investor. You need to be willing to learn, do, change tactics, learn more and keep at it. I have been actively trying to break into Re investing since last summer. I have made several attempts without success but learned from these efforts and adapted my technique. It looks like I may have my first deal closing in a month. This first deal has definitely given me the confidence that this can work. I now feel that if I can do it (self taught- no gurus) then anyone can. You just need the passion and the persistence. Nice article!
The extent to which any of us is "successful" is certainly debatable, but for me the single biggest motivator is fear.
I've spent the majority of my working life in various Human Resources roles leading up to my current position as an HR Director for one of the world's largest investment banks. Over these years I've had to implement more than my share of redundancies and firings. I've also seen some great companies, departments, teams, and individuals ruined by incompetent managers playing political games or simply being unable to effectively lead.
While my years in the corporate world have given me a large number of various skills, I've also realized that I'm afraid. I'm afraid of letting someone else be able to make judgments on my performance. I'm afraid to allow someone else to set my goals. And I'm afraid of coming to work every morning and not knowing if perhaps today may be my final day at this company.
I know these feelings very well, because I've often had to look someone in the eyes one day, while knowing that tomorrow morning I would be having a very difficult discussion with them. I've seen people cry, beg, plead, and be driven to the brink of a nervous breakdown upon hearing that their career with this employer was now over. As horrendous as I have ever felt being the bearer of such news, I never want to be at the other end of this discussion, because I know that hearing it directed towards you is so much worse.
So I looked at what industry could be as exiting and interesting, as multi-faceted and challenging as the corporate world, and yet provide me with the freedom to control my own destiny, and I found real estate.
Those people, who give it a half-hearted attempt and then move on to something else, just aren’t afraid enough. It’s not "wanting" to be rich that motivates most successful people. It’s being deathly afraid of being poor. I could tell lots of these stories from my own past, but I’ll save those for another day.
Good luck. All the best.
Alex
Pushcart has it down pat.
This is a weird business, because if you arent turned down by your first offer, you bid too high. That being said, you will hear a lot of discouragement.
The main (not the only) reason that the newbies fail is that they duplicate that 6 year old that just saw a hang glider for the first time and jump off a cliff with a towel wrapped around there neck. They read a little, get motivated, and go off half cocked. But I also blame the teachers as they dont explain that the no money down dream, takes a lot of hard work. It is possible, I have done it, but not without 4 times as much work, as putting down a deposit. I agree with them that it does take a positive go get them attitude, but at the end of there learning process. Not at the beginning, to get them to buy more courses. Not all of the teachers are this way, but I have seen my fair share of them.
But to your question what is the main difference. When they (people that fail) talk to the client, they tend to use jargon unfamiliar to the client, With a I can own the world attitude. While that may motivate them, they look and sound like a salesman on drugs and are immediately met with resistance. The ones that fail, need to talk slow and follow the KISS rule when talking to there clients. (Keep It Simple Stupid). It may be exciting to learn this field and cool to make all this money. But the client doesnt want to get into it, so just fix there particular problem and explain that you are there to do just that. Also LISTEN, most of them are so busy spewing off what they can do, that they havent heard what the client wants. In a 1/2 hour conversation the client has told me 20 minutes of personal information and 10 minutes of information that I actually need. Make each deal important to the client, and be honest. You are there to help them, and make money doing so. I have yet to do a deal that I havent spoken to the client at least two sessions of 1/2 hour each time. And yes, thinking outside of the box is extremely important. each deal will be different, and will require a multitude of cookie cutter ideas, with embelishment, that you have read or heard about.
Kyle
Kyle
"Salesman on drugs"
LOL
Alex
hi i'll give you my two cents.....
1. pasion for what you are doing is critical.....kind of a starbving for information leading to lots of reading, seminars etc
2. ignoring all the literally hundreds of people who tell you it can't be done, you'll have to fix toilets at 2:00 in the morning etc. each time someone tells me that i take it as a challenge to show them they are wrong. by the way i have been doing this for 10 years and NEVER had a call at 2:00 in the morning for anything...nor will i, i manage my tenants expectations and simply screen all calls at all times...alot of times they figure out how to handle what ever problem they had by the time i return there call...also have a great lease that makes them responsible for many common problems, which took me 8 years to devise...trial and error
3. never enter a deal unless it is 15-20% below market..here in MI 2 X SEV is a good rule of thumb.
4. always make your money when you buy...the rest is a bonus
5.cover all your expenses and have a cash on cash return of at least 20% and always buy and hold for cash flow today, now with money in your hands every single month
6. like all the books say once you get up and running the money/financial investors will always come. i questioned that at first but i have more access to $ than i can keep up with....nice position to be in thankfully : ) what actually happens is people see how successful you are at this and want in on the action...they simply can't beat the returns in any other way with the same security.
7. learn from your mistakes...the more you make the more you will learn if you look at them positvely. i have learned more from mistakes than i ever have from smooth deals. once i was sued for slip and fall, put my wife and me through a couple sleepless nights, we came out ahead and really learned how to better protect ourselves...now when it happens a gain we will expect it. deal with it and move on...just a bump in the road.
8. enjoy what you are doing, the people you work with and be empathetic yet realistic with your tenants. live the golden rule and life is easier and funner to live
thanks for letting me run through these things...helps with my focus and strategies
paul
So many years ago I was part of a club of guys who were developers .There were 50 or so of us. We frequently had breakfast meetings at 7:30 or 8:00 am. In fact it was always a big debate because most ot he guys had construction crews that they liked to meet before the meeting and they were always trying to get the meeting pushed back to 8 but a certain group wanted to meet at 7:30 so that they could be out of the meeting and at there desk before 9:00. So we had scheduled a breakfast meeting for a particular place and on the day before the meeting the venue called to say that they had double booked the room (or something) and that our meeting space was not available. We made arrangements for an alternative space but the problem was how to get the word to everybody that the site had changed.
At the time I was running a senior apartment building that had a 24 hour a day desk. So I said, "No problem, I'll have the evening shift desk person call everybody personally, remind them of the meeting and explain about the change of venue". So by the time all these arrangements get made it was almost 5:00 pm of the day before the meeting. No problem, our membership list has both office and home numbers for all the members.
So I explain this to the desk person who came on at 5:00 and, after getting set up and one thing and another she starts making the calls around 6:00 pm..
About 7:00 she comes into my office. "Mark, I think I've figured out why these builders are so successful, having their own businesses and managing apartment buildings and all that."
"Really", I said, "why is that."
"Well", she says "its 7 o'clock at night and i've called about half the list. So far I haven't had to call anybody at home, they are all still working at their office."
In answer to your success question, nothing beats hard work.
Ph162002,
Your two cents are extremely valuable! The only two additions I would add are:
1. Learn how to mirror the person in front of you. This will put them at ease and make them more amicable to communicate with.
2. Be fair to all involved in the Investment transaction. I have been a full-time RE Investor since 1988. I know Investors who made substantial profits on investment transactions by taking advantage of the seller or buyer. It is a very stress-full environment to be in. Today, they are not RE Investors anymore. It finally got to them. They did not enjoy what they were doing.
"find something that you love to do and you will never work another day" you have to enjoy every minute and every challenge. it can't be "something that you do" its got to be a part of your sole.....ggod luck.....kenmax
I have been a landlord since 1976 and a builder/developer since 1979. I have never wanted to do anything else. You must have a desire and drive to succeed in whatever you do. Being a leader when necessary as well as learner(follower) when necessary. Use your teams expertise to become successful. Learn all you can,education is expensive,ignorance is costly.
two years ago someone told me that i'd have to fix toilets in the middle of the night.
i got around that by only buying properties with atleast 2 full bathrooms!!!!
the only problem i've had was infact this morning. the guy who came to replace the A/C couldn't get in because the tenants were asleep. so he called me at 7 am. i said "i dont wake up at 7, why should my tenants??? call back in 30 mins"
What they mean by the statement "Anyone can do this" is that it is not rocket science. There are many many ways to buy and either sell or hold or control RE. Even "no money down". The number one reason folks don't succeed is fear. Fear of realizing the nightmarish stories, fear of doing the wrong thing, fear of not having enough information. A lot of people like the security of having someone else to blame. I have worked on my own for 15 years, 10 on straight commission and 5 on my own. Who do I blame if I am not making money? Probably the number 2 reason for failure is biting off more than you can chew. Falling in love with the big score, or trying to be a wheel when you're just a lug nut, isn't smart. Ther is always a way to make money in any market. You just have to find the way. You also need to realize that you shouldn't buy things with tomorrows profit. You need to create a cashflow or complete the flip before you spend the money. You need passion for what you do. The reason so many people fail at RE, Auto Sales, Insurance sales, MLM, etc... is because the ones that are really good, have honed their craft to a point that it seems effortless, making the newbie think that it's easy. They say that good things come to those that wait. I say that the only things that come to those that wait are those things left by those of us that hustle. OK.... I didn't make that up, but I believe it. As all the motivational tapes in the world tell you, you need to map a plan, follow the map, and be sure you are doing something to help you reach your destination. I started with nothing. 12 years ago i wondered where $175.00 was going to come from for rent. Now I own 4 businesses, have a nice house, a Harley, a country club membership, a boat or two, etc...You can do it if only you perservere and believe. Never let the fire die. Remember, if you are the boss, you can't get fired, plus you can have as much vacation as you want. Heck, you can even get yourself as much overtime as you want. I like being the boss.... I made myself work 75 hours this week. I'll like it even more at the end of the month.
Good Luck,
Shawn(OH)
i'm not a high roller but!!!!!!!!
i have learned elbow grease goes a long way, being at the right place at the right time helps, and "If you always live within you means, you will always have the means to live".
another way to put it is "you reap what you sow"
as much real estate as there is in the states, there's still no room for lookers. if you're not a 'do'er, then you'll always be wondering who, what, where, when, why, how.
i worked for a startup web technology incubator company six or seven years back. all Carnegie Mellon MBAs, PhDs and MITs and the such. extremely smart folx (on paper) but it took a couple months for me to realize my value there (extremely undereducated in comparison). they were great with problem solving but couldn't deploy. they were never happy enough to launch the technologies LIVE. how do you know how good your work is without a real world test? we spawned 4 spinoff (sites) e-companies, of which 1 actually launched a site - guess who was in charge of that one? right on, yours truly.
so after all was said and done and all the high six-fig salaries were paid to the people with letters after there names, who was the only one besides venture capitalists bringing in actual revenue? LITTLE OL' ME. hahaha.
i've always known when to get my azz in gear and "do something"! if you get this down, you'll immediately stand out from the crowd.[ Edited by jackman on Date 04/09/2004 ]