What's Your Excuse?

I will always remember the classic line from The Godfather; “Keep your friends close, but your enemies even closer”? In similitude I would say; analyze your victories but really analyze your failures. Most every failure bears within it the seed of future prosperity. This seed while cloaked in an excuse, may be revealed by reason.



Having read (and re-read) almost every major book on success, I have noticed one common theme – Successful people plan to succeed. You may call it your dreams, goals, visualizations or rewards. I simply call it my “Business Plan”. If your destination, paths and methodology are not clearly defined, you will never reach your goals.



If you lack a concise, workable business plan – you certainly have a “reason” for failure. But Hey! What’s your excuse!



Let’s see if we can diffuse a few of our favorite excuses…



1. “I don’t know enough about the real estate business to develop a business plan”. Absolute baloney! How about starting with a simple plan – “learn everything I can about real estate”? Maybe a few sub items: attend quick start, read books, ask questions etc

2. “I don’t have the education or self-confidence to deal with sellers and buyers”. Great! Just send me your money, I will invest it in real estate for you and return it later with more attached! In other words - you do not need education or self- confidence to be a passive investor.

3. “I am scared to put the little money that I have been able to save at risk”. Nolo problemo! Just keep your money safe in the bank earning two percent, so that your heirs can inherit it (along with your fears and lack of motivation). Earning money may not be your main motivation, but do you want your children to inherit your paltry fears and excuses – or an abundance of positive reinforcement and self esteem gleaned from watching you actively pursue your goals! One of the great joys of my life is watching my twenty-year-old son build his credit rating, save his money and prepare to invest in his first property. Fear is your enemy and will rob you of the joy of living.

4. “ The wholesalers tell me the path to success is lined with rehabbed rental houses, the mortgage brokers tell me to buy only pretty houses with new mortgage loans and the book and tape Gurus tout the advantages of short-sales and lease options. Somebody must be wrong (or dishonest), so I am not getting involved with any of them”. The truth is…tempered with the right amount of knowledge and integrity, any of the above mentioned methods are viable, but only they fit into your defined business plan and if you possess the assets and abilities to profit from them without defrauding others.

5. “ Retail lenders won’t lend on houses needing repairs and hard money is too costly and dangerous”. Hard money is not expensive. Ignorance is expensive. I have borrowed (either directly or in partnerships) in excess of one million dollars in hard money over my career. I have never gotten in trouble and I have always made a profit. If you have a proper financing plan and stick to the plan, hard money can be a safe and valuable tool. If you get in trouble with hard money – your business plan is flawed!

6. “I am all thumbs and could never rehab a distressed property”. I remember a few of the first rehabs accomplished by an old friend. When I viewed the work (being somewhat of a perfectionist), I thought…this guy’s never going to make it! Well, my old friend really knew that he was not good at construction – so he quit doing it himself and began hiring turnkey contractors. Ron Legrand learned early in the game to do what he was best at and to hire-out everything else.



Are you beginning to get the picture? There are innumerable excuses for every one of our failures, but none of them are valid! So why do we invent, analyze and regurgitate all the same lame excuses? Could it be that we fear gazing in the mirror and perhaps admitting to some of our own personal shortcomings. The greatest victories that you will ever achieve will be victories over your own personal fear and pride. A great prophet once wrote - “All of the greatest kingdoms have been kingdoms of the mind”.



Victories are wonderful, but if you can develop the courage to shred the excuses and discover the real reason for your failures, you will most assuredly plant your feet more firmly on the path to real success!



Why not take some time this year to develop a concise business plan. Make sure your plan has obtainable goals and sound methodology. If you need help, give me a call – I am always available to help a friend. Best wishes for a safe and joyous holiday season.



Your friend and fellow entrepreneur,



Joe Locklear