The Top 5 Things
Successful Real Estate Investors Do
As you know, the key to making money flipping houses is finding people who need to sell their house fast. But there’s a lot of competition and you’ll probably have to talk to a lot of sellers and make a lot of offers before you get one deal. From what we have experienced, as well as what I hear from other top investors across the U.S., it typically takes between 20 and 50 leads to purchase one deal. Once you find a motivated seller, you need to find cash to pay for it or find a cash buyer to help you. The cash buyer can buy the contract from you (a technique called “wholesaling” that is under attack by many state agencies) or provide you the cash. Of course just because something isn’t easy doesn’t mean you shouldn’t pursue it. But knowing the top five things that successful real estate investors do and – then doing them yourself – gives you what could be called an “unfair” advantage!
1. Develop Dedication
How dedicated are you to building a successful business? For many investors, it takes a while before their efforts start paying off. You can’t get discouraged and give up when things aren’t going your way right off the bat. I decided to become an investor in December of 2002, while working a full-time job and caring for my newborn son. I would come home every day, put him to bed at 8 pm and work until midnight hand addressing letters to sellers and banging “We Buy Houses” signs on telephone poles. It took me seven long months to buy my first home. Each day that went by I became more and more persistent about succeeding. In July I bought my first home and in the next 60 days I bought six homes total. That October, I quit my job and became a full-time investor.
Make the investment in learning everything you can about the industry and your market. Stay up to date with the laws, regulations, terminology and trends.
When you’re looking to wholesale properties, find out who the cash buyers are and establish relationships with them. Put in the necessary time and be persistent before expecting to see a good outcome.
2. Increase Consistency & Discipline
If you want to get in shape, you can’t expect to spend one day a month at the gym and look like Hugh Jackman. You can only get results by being consistent. It’s the same in real estate investing. You have to create a system and show up every day to do the work.
Author Robert Collier said, “Success is the sum of small efforts, repeated day in and day out.”
In wholesale real estate investing, consistency looks like sending mailings to motivated sellers every month. It looks like regularly following up and reliably doing what you say you will.
3. Nurture Your Network
Surely you don’t expect deals to just drop into your lap. Build up your list of contacts through marketing and networking. Mentors and colleagues will no doubt contribute significantly to your success – whether it is through advice or lending you money. Also, find the most reputable partners and then, going back to point 2 above, stay in touch with and build strong relationships with them. Include past clients in your network and ask them for referrals.
4. Maintain High Ethical Standards
While real estate agents are required to work in accordance with their state’s real estate commission rules and standards, investors typically have no such standards. Since your reputation is far-reaching and can actually affect the industry as a whole, it behooves you to maintain high ethical standards, be impeccable with your word and conduct business fairly.
5. Find Help When You Need It
No one will argue about the fact that real estate investing is complicated. The business itself and the legal procedures that go along are challenging. Successful real estate investors know it’s important to surround themselves with the necessary resources, whether attorneys, accountants, or cash buyers. It’s not a weakness to ask for help.
Real estate investing is not a fool’s way to wealth. It is a challenging business that requires knowledge, planning and focus. Operate with integrity and respect in order to develop a viable real estate investing business.
If you’re struggling to find money or buyers for your real estate deals, joint venture with Express Homebuyers and get access to money for all kinds of deals in the Washington DC and Baltimore Metro areas. See more and apply for a partnership here.