Finding Your Real Estate Calling

It happens at real estate seminars around the country. One of the first questions by new investors is always:



"What area of investment would be the best for me to get started in?"



It's a lot easier to guess the question from the newbie than the answers that they will receive from that question. Everyone has their own opinion. When I first made the decision to invest, I remember feeling like a chubby 4th grader at Willy Wonka's... soooo many choices. I heard gurus talking about $10,000 in cash flow with apartment buildings, saw note-buying infomercials on late night television, and listened to a new speaker at every REIA event extolling their own personal ways and systems to success and happiness.



So, what's the answer?



Unfortunately, there is no clear-cut path that everyone should follow. The secret is to look at your strengths as a person and at your situation, then decide. When I say look at your strengths and situation, ask yourself the following questions:



1. What are my three best business traits and what do I enjoy?



2. Are my personal finances and credit going to hurt me or help me get started?



3. How much total time am I willing to commit to learning this new area and, since we can't create more time, WHAT AM I WILLING TO GIVE UP?



These simple questions answered thoughtfully and truthfully, can make a world of difference.



This is how I would have answered them if they were presented to me when I was starting:

First, I love the whole sales process. I sold $150,000 worth of Cutco knives in college at the kitchen tables of strangers. I am comfortable negotiating and working deals. A butcher knife just has a few less zeros than a home; the same rules apply.



I can't fix things. I was never taught, I never went out to learn, and I never really cared about it. I always had the thought that if it wasn't for people like me, there wouldn't be a need for people who are handy. Sure, there were certain times when it would have been cool to flex my masculinity and repair a sewer line but those feelings would pass very quickly.



Second, I have very little cash and my credit is about a 620; not great. I've been filing a 1099 as an independent contractor and have been self employed the majority of my adult life. This is great for a story, bad for the financials.



Finally, time is my strongest asset; I'll do whatever it takes to learn this business. I'll drive neighborhoods, pass out flyers… whatever. I will even pick up the phone and talk to 30, 50, 80 sellers or more. All of them can be non-motivated ding dongs but if I find that one deal out of all those calls, I'm game.



That would have described my attitude and situation at the time of my entering real estate. I was committed to going big or going home and decided that I was going to do this full time and either succeed at it, or get to the point of financial ruin where I'd be left with no choice but to hit the pavement with a modified resume in hand or pick up my knife bag again.



My skill sets and the fact that I had no other income led me to the pretty obvious conclusion that I needed just one more thing to get my new real estate career started: cold, hard chunks of cash. Passive cash flow has the beautiful ideal of lying on a beach in Panama and having all your expenses paid without having to do anything, but that wasn't going to cut it; I needed to pay my rent.



I became a wholesaler by default.



In my first deal, I made $3000 with two phone calls and less than 30 minutes invested. It wasn't magic, previous education, or skills that I picked up in previous endeavors. It was luck, pure and simple.



An individual, who became my mentor, picked up a deal for $30,000 with a purchase option and wanted $5,000 out of it for an assignment. I thought, "Hmmm, if someone might pay $35,000 for it, will they pay $38,000?"



My buyers' list consisted of two guys. I called one of them and told them the deal as best as I could explain it. He had no interest and told me he had to go to class to get his real estate license. A couple of hours later, he called me back and said he had met an individual in class who rehabs and was interested in the deal. I spoke to this investor, completely and utterly winging my way through the ENTIRE conversation.



He was asking me questions that, not only did I not know the answer to; but, I didn't even know how to lie about them. I got through it and, although I felt awkward and naive, I was in business. I had never made money like that, I almost felt like it was undeserved. Seeing that first certified check, however, made me lose all inhibitions; for there was now blood in the water.



I had found my initial calling in this business.



To find yours, ask yourself those three questions above; explore the opportunities, and then put on those blinders--let me say it again, put on those blinders--and take ACTION. Commit yourself to becoming the best, to becoming a master in that area you decide is your calling. Spend the money on the courses, get a coach, do whatever you feel like you need to; just make sure it's dedicated to the path of becoming a master. Don't dabble. People who dabble are broke. Find your calling and go strong. To your success!