Search This Blog

Tuesday, May 4, 2010

I'm Not Successful Because.... A Fisherman's Tale

I'm not from here and I don't know the people you know.
- I'm not from here either. I have lived here less than ten years. I had to network and meet the people I needed to know which I didn't even start doing up until about five years ago.

I don't have the same professional contacts you have.
- I didn't have them at one time either. I asked other investors who they used.

You go to a lot more meetings than I do.
- Because meetings are where I meet (hence the name meeting!) the people I need to know and get in touch with or find out about the professional contacts I should be using.

You go to a lot more seminars than I do.
- This business cannot be learned any other way.

I can't afford to go to as many seminars as you.
- You can't afford NOT to go to as many if not more seminars than me. The problem might be the type of seminars you are going to and speakers you are listening to. There are plenty of good quality local club meetings you can start with that cost about the same as a night out to dinner. You will get so much more out of the meeting than eating another restaurant cooked dinner. Leave home early and bring a sandwich.

You have been doing this a lot longer than I have.
- Actually, I haven't been doing this that long at all. Less than 5 years. However, at one time I was just getting started too and there are plenty of investors who have been working less time than me and are way ahead of where I am at.

The lending rules and laws have changed since you started.
- Yes, but I also have to conform to them just like you. As for lending, I find it is best to avoid institutional lending all together. It will only get you in trouble.

I don't have the money to invest.
- I still don't have any money to invest. At least, I try to never us my own money. My money is not for investing in real estate. There are plenty of people out there with money who don't know how to invest in anything. Help them out and put their money to work.

There aren't any good deals in my area.
- Look in a different area or stop looking for deals. I have never found a deal in my area either. I have created a few though by getting out and talking to people. This is a people business so if you don't like talking to people you might want to take a public speaking class at the local community college and/or do some volunteer work to get more comfortable speaking to people you don't know.

Other investors are getting all the deals before I can get to them.
- No, they are creating deals out of the opportunities you are driving by and passing up every day while you are looking for deals. Look for something different than what you are currently looking for.

I don't have the crew to rehab a house even if I did get a great deal.
- I didn't have a crew either on my first rehab. I asked other investors who they were using and if they knew any body that might be free.

I hear all kinds of excuses every week from investors who are facing challenges in their chosen markets. The only people who say this business is easy are the ones on late night TV. The problem with most struggling investors is that they treat the business like a hobby or only work it part time and expect to have the same success as their full time peers. While they might land a nice deal once in a while, more often than not, they continue to wander blindly throughout the day confused and frustrated. One way to quickly solve this is to figure out exactly what type of property you want to buy and only look at those properties. Diluting your vision with "anything that makes sense" is a fool's business model or reserved for the few with enough money that it gives them the freedom to sit around doing nothing waiting for something to excite them enough to get back in the game.

When I head out in the morning, I know exactly what it is that I am fishing for. I use the appropriate gear, the right lure, the right pole, test line, I go to the right type of water at the right time of day, I fish at the correct depths and I only keep the fish I am hunting for. Everything else goes back in the water without a second thought. Sometimes, I catch the right species, but it is not the right size, it is unhealthy, or it is too big so I let it go. Again, without a second thought.

If you are struggling with your business, I challenge you to go out fishing for big mouth bass this weekend and try to catch one. Take a picture and send it to me if you do! Think about all the necessary steps you had to take to catch that particular fish. The next weekend go out and fish for something different. Maybe a trout using a fly pole or deep sea species and again, think about all the different steps involved in catching this different fish. How are the processes similar and how are they different?

Now, compare catching your target fish to your real estate business. Are you taking the necessary steps, in the right order, doing the things you are supposed to do in order to land your next deal or are you just casting any old thing at any old pool of water hoping something will bite? Then, on the rare occasion you do hook something, reeling like hell to see what it is only to end up disappointed again?

No comments:

Post a Comment