Accelerate Your Real Estate Investing Career By Avoiding The Problems Associated With Poor Planning

Real estate investing is an exciting career, and you’ll have many opportunities to make sales and close deals that make you lots of money. It might be that you rent a property to a young couple, or perhaps you sell an older couple their dream retirement home. Either way, you need to keep in mind some simple steps to make sure you don’t mess up the deal completely. The following tips will help you stay on track and avoid the problems of poor planning in your real estate investing career.

Close The Sale

There comes a point in any sales conversation when it’s really obvious that the person wants to buy. When that happens, don’t keep talking about how great the deal is – get out the necessary paperwork, fill it out and get the deal closed as fast as possible. The more you talk, the bigger the chance that you say something that may actually talk them out of it. If they say they’re ready to take action, then help them do exactly that.

Home Improvements

If you have a property that needs some work, you might find you’re better off waiting until the work has been done before showing prospects through the house. You can spend countless hours telling people exactly what your plans are, but chances are they just won’t be able to visualize the finished product and will walk away. To be fair, they’ve probably been told plenty of empty promises in the past and so just assume you’re telling them a lot of hot air as well. Show them when it’s done and you won’t waste your time.

Don’t Show Off

Okay, so you’ve been in real estate investing for a while and you know quite a bit about it. Good for you! But be wary of spending your time educating your prospects about stuff they’re really just not interested in. Once you start imparting knowledge when the buyer never asked for that information, you’ll probably find they’ve completely tuned out to what you’re saying, and regaining their interest can be tough. Only expand on a point if the prospects ask you to. Otherwise you could either just confuse the prospect or bore them so much they change their minds.

There are plenty more things you can learn about not losing a sale, as these tips are simply a few pointers to get you started. Still, just these few tips can make a big difference to your success rate in real estate investing.

How to Build Real Estate Investing Career

Real Estate Investing can be a great career choice for the person who wants to build that type of business. And it is a business. One must start off looking at it as a business and operate it daily as you would any other business.

Let me offer you a few tips on building a successful real estate investing career;

1) Decide on what you want – there are so many ways you can build your business.
A) Wholesaling – many people start off here. They find a property and then sell it to another investor and make a fee for doing the transaction.
B) Rehabbing- If you are OK with fixing and repairing houses (or overseeing a crew that does that) then this may be the way to go.
C) Landlording – here you purchase and hold real estate receiving rental payments each month
D) Sellig – here all you do is sell the real estate you acquire looking to do little or no work to it. You look for either homeowners or investors.

2) Decide on how you want to get there -If you want you can do either one or all of these methods. The key is to determine how you want to spend your days dealing with real estate. For a wholesaler you will need to create a network of investors to buy your deals. For a rehabber you will need to assemble a crew of professionals, observe local building codes, etc. For the landlord you will need to find good cash flowing rentals and deal with either tenants or property management companies. To sell you will either need a real estate license or connect with local realtors to sell your deals.

3) Set financial goals for your investing career – how much money do you want to make monthly? Annually? Wholesaling provides quick money ($2,000- $10,000 range): Rehabbing provides larger payday but takes months to realize ($15,000-$40,000 or more); Landlording provides steady monthly rental income; Selling can give you commission or owners income.

4) Think long term – whichever strategy you choose, look to develop long term systems that will sustain your business. Cash flow is king so establish ways to keep the cash flowing into your business and before long your business will be taking care of you nicely.

5) Use LLC’s and Corporations- these will help protect your assets and make title transfers easier to convey to buyers.

Ten Commandments for a Successful Real Estate Investing Career

According to the Founding Fathers of our great nation, the laws for basic human behavior and civil conduct were based directly upon the Bible’s Ten Commandments.

As real estate investors, I believe we also have laws for basic success behavior and civil profitability. Here are my

Ten Commandments for a Successful Real Estate Investing Career

1. Make Offers! I must make at least 3 WRITTEN Offers per week. It has been my experience in helping thousands of investors and students over the years with their businesses that Offers are usually the number 1 reason for a business not exploding in profits. If you are not making Offers, you are not making money. I know that sounds simplistic, however it is a real gem of advice. Remember, it MUST be a written offer – verbal offers are just conversation.

2. Secure Funding! I must talk to at least 3 Funding sources per week. These money sources will come from my “5 P’s of OPM” and they are: 1. Personal Money, 2. Partnership Money, 3. Professional Money, 4. Private Money and Private Bank Money. If you’re making at least 3 offers per week you are going to start filling your deal pipeline and you are going to need funding ready to close your deals. Until you know you can pick the phone up and contact enough Money that you could buy 3 houses this week ALL CA$H, you will keep collecting funding sources.

3. Detail Oriented! I must be detail oriented when it comes to the Contracts, Agreements and Paperwork. In real estate, IF IT ISN’T IN THE CONTRACT, IT DOESN’T EXIST! It’s the same as our offers, if it isn’t in writing it’s just conversation. More bad deals have been done because the investor thought one thing and the seller or buyer thought something else. Make sure you put everything in the contract. Overkill in this area is very good. Follow your “DUMB Enough Deal Checklist” to make sure you have covered your Assets.

4. Market, Market, Market! I will continue to MARKET for incoming deals even when I feel I have too many deals. This is the second most common mistake I see investors make, both new and seasoned. We start to get a bunch of deals coming our way and we feel overwhelmed or afraid so we stop marketing. NO, NO, NO! This is when we simply adjust up the amount of profit we are willing to work for and we start using our buyers list to wholesale the deals we can’t handle or are not interested in, BUT YOU NEVER STOP MARKETING!

5. The Human Touch! I will keep the “Human Touch” in my business by having a human being answer my phone. In this day of incredible technology, it is easy for us to give into the ease and convenience of gadgets, BUT IT IS SO COSTLY! No, I’m not talking about the cost of the gadget, I’m talking about the cost of missed deals. If you are using voice mail or even an antique answering machine to take calls, you ARE losing money. Hang-ups in our business are just too expensive to have. A missed phone call early in my business cost me $60,000 of profit! It still hurts to think about that one. Use an answering service so you can have a human being answer your phone when you’re not available. Answering services in today’s economy are cheap, missed deals are not.

6. Know The Numbers! I will know the component numbers of my deal inside out. In the world of real estate investing there are a lot of “OOPS” waiting with our names on them. If you do not know exactly what something is going to cost, please don’t guess, find a professional in that area and get a solid number. A repair that you did not see because you were trying to save a couple of hundred dollars by not having the property professionally inspected, is now going to cost several thousand to repair, OOPS! Of course this applies to every area of your deal, not just the repairs. Know the numbers to eliminate the OOPS!

7. Know The Exits! I will have my “Exit Strategy” in place before I every do a deal. I fly close to 100,000 miles a year and have heard the flight attendant’s say “Please locate the 2 exits nearest you” probably 1,000 times. On one flight it dawned on me what a valuable lesson this is for investors. Before you ever take off (do a deal) know your exit strategy. Many investors jump on a deal without thinking it all the way through to the sale of the property. If you do not clearly know the exit (how you are going to get paid) stay away from the deal.

8. Don’t Spend It All! We have all heard the need to save for a rainy day, well guess what, it’s ALWAYS raining somewhere! And sooner or later its going to be raining on you. Many new investors, seasoned investors and yes, even myself, have been or are guilty of spending all of the profit from a deal. Please follow this simple cash flow formula for wealth; Tithe 10% and Keep 20% in the business. You tithe 10% because you must give back in life. You keep 20% of each dollar of profit in the business because no real estate business can operate totally without some ca$h.

9. Be Sure to Insure to Assure and Ensure! I will assure a good nights sleep and I will ensure my wealth because I will INSURE my business. In our lawsuit happy country, it would be financially unwise to run any business without General Business Liability Insurance. For about $100 per month, many commercial carriers will provide a million dollars worth of general liability insurance. This is the same thought process as automobile or health insurance, you hope you never have to use it and yes, it IS better to have it and not need it than to need it and not have it.

10. INC. It Before You Ink It! I will incorporate (“C” Corp., “S” Corp., LLC or any other appropriate entity structure) my business so that I have some protection from frivolous lawsuits. I will not risk my or my families financial well being by not having an entity structure in place. I will seek competent counsel in regards to this matter and I will NOW get it DONE!

Start Your Real Estate Investing Career Off Right With Smart Marketing

Sure, it would be easy for you to step into your new real estate investing career with a pocket full of cash ready to plug every marketing avenue and make money hand over fist. However, it is not this easy for everybody involved, most of the people entering the real estate investing arena looking for the big bucks are forced to start by being frugal and intelligent. Don’t spend money in the areas where it is not going to come back to you in a big way, but how is this done? Read on and take a few tips back to the bank with you!

Use the charm and hard work approach by walking door-to-door in the neighborhoods that either resemble the houses you are trying to sell or are in the same area as the houses you are trying to sell. You don’t have to talk to someone or even introduce yourself to a single soul, just put flyers on doors with your message to get your name in the right place. Sure, this may take a little bit of work and you may get a little bit of exercise, but worse things have happened! You might just find some properties that make sense for you!

Take out page ads in every paper that is used in the area where you are trying to buy or sell in your real estate investing career. Don’t put something simple like your name and a brief message, but take a bold stand that will make people want to buy from or sell to you. Tell them that you buy houses with cash or you have something to offer that can make this process much easier for you. Continue to tweak your messages in each publication until you find something that works, but when it works … stick with it! Don’t fix the unbroken tool!

These are two inexpensive, but effective ways to get your name out and in the area where you are hoping to begin your real estate investing venture []. Neither will break the bank, but neither will get you the results you want if you don’t put the required work out front in the interim. Work hard with these two strategies and you can achieve everything you hope to in this lucrative real estate investing world!

Top 4 Killers of Real Estate Investing Careers

Mistakes happen, but as a real estate investor mistakes can end your career. With the amount of money that is on the line with each transaction one slip can destroy years of hard work. Do you know what the top 4 mistakes real estate investors make are? You should, because any one of them can end your real estate investing career, especially if you are just starting out! Know these and make sure none of them bite you.

BUYING A PROPERTY JUST FOR THE APPRECIATION – This is the top real estate investor killer of the last few years, and I put it in first because you should NEVER buy a property based solely on its appreciation. This is akin to trying to time the stock market. Yes you can buy and sell on the up swing and make money. People were making 15% a quarter on houses in the Seattle area doing this. But, just like stocks, when the needle swings the other way you get burned. Many real estate investors have gone under because of this!

PAYING TOO MUCH FOR A PROPERTY – We all love a good deal and sometimes we get too excited by what appears to be a ‘hot deal’ and jump in before checking out all the facts. This is where knowledge of the market you are in and having a great real estate agent on your team are essential. Get your offer in and then follow up to make sure that you are accurate on your estimates of what it will sell for and what your repair and holding costs will be. Screw these up and you can be upside down and bleeding money in a heart beat.

NOT HAVING ENOUGH EXIT STRATEGIES – You have probably heard it a hundred times. “The money is made when you buy the property.” Sure, but the truth is that you don’t get to have that money until you actually execute an exit strategy. Which one it is doesn’t really matter. What is important is having one primary and at least one secondary way of exiting from your property when it is time. This is a trap a lot of investors fell into with fix and flips. They bought it, fixed it and now can’t sell it. With no back up exit plans, they are hosed. Do not be that investor!

TRYING TO DO IT ALL YOURSELF – “No man is an island!”Yeah I know I am making with the quotes today, but it is true. You might be able to pull off doing it all yourself but is it smart? Especially if you are doing a hands on project like a fix and flip, there are things tasks you should farm out, delegate and just plain farm out. Even if you know how to do everything on the list of projects, it is a good idea to not take it all on. You will quickly burn out if your face is in real estate projects from before the sun comes up till after the sun goes down every night. Stay fresh, work smart and delegate out what work you can!

There are top 4 mistakes that will kill your real estate investing business. There are of course many other pit falls that you can trip in, but these are three of the most common killers of real estate investor’s careers.