5 More Reasons
Real Estate Investors Fail
Here are 5 more common reasons that new real estate investors fail.
This post is a continuation of 5 Reasons Why Real Estate Investors Fail
6. Thinking that you need to find an investor with money, before you can buy a property.
New real estate investors always think they need to find an investor with money, BEFORE, they find a deal. This is backwards.
Investors are always approached by people asking; "IF I find a deal, would the investor put up the money." You are just annoying them and wasting their time. They know very few or none of the people who ask them that will ever bring them a deal.
Plus, it is just a way for you to do nothing. Because you tell yourself, that it's no use in finding a deal because I have no money or investor with money.
STOP THE MADNESS !!
The best way to show investors that you are serious is for you to find a deal and then take it to them. Now you will impress the investor, that you are serious and he will have something solid to base a decision on. You will then have his attention.
7. Quit To Soon
As with many things in life, people give up too easily. Sometimes the worthwhile things in life are harder to accomplish.
One thing I know is that becoming a real estate investor, is worth the effort.
Think about it where else can you acquire assets for little or no money. Then these assets are paid for by someone else (the tenants).
These assets (houses) will keep pace with inflation, provide greater cash flow to you every year and give you some tax benefits.
Over the years the houses become paid off, greatly increasing your monthly cash flow.
Which is a great retirement plan? I'm pretty sure that it beats any government plan such as social security.
The problem seems to be, that most new investors won't stick to it long enough with the right focus, to be able to see the payoff. I believe it's mostly because they don't have a plan or goal. Without a plan or goal, you are floundering with no direction.
Do you remember what President Kennedy said about going to the moon?
We choose to go to the moon. We choose to go to the moon... we choose to go to the moon in this decade and do the other things, not because they are easy, but because they are hard, because that goal will serve to organize and measure the best of our energies and skills, because that challenge is one that we are willing to accept, one we are unwilling to postpone, and one which we intend to win, ...
President Kennedy chose that goal because it was hard. When we have a goal that makes us stretch and grow in order to accomplish it, we grow as a person.
If it was easy, everyone would do it and the reward would not be as great to us as individuals.
Just take a moment and think about a time, that you had to really dig deep and it was uncomfortable in order to accomplish something. Think back to when you did accomplish it, remember that terrific feeling of accomplishment?
Just think if Steve Jobs didn't have a goal and wasn't determined. I wouldn't be typing this on
You have that same ability to accomplish great things for yourself and your family. You just need a goal and some determination and to speed the process a coach or mentor for guidance.
8. You Stop Learning, while the market is always changing
Too many people think that once they graduate from school, they have learned all they need to know. In my mind it is only the starting point for learning, it only gives you a foundation to continue learning.
This why a lot of professions have continuing education requirements.
Anyone who is at the top of their profession is always learning. That is how they get to the top. They don't have the attitude that they know everything just because they passed a test or when to school.
There is always more you can learn that can make you better at your profession.
I have been to well over 150 seminars on real estate investing and spent a couple hundred thousand dollars on learning. Granted some are better than others, but there is always something you can learn.
Why because I realize I don't know it all, no one does. If I come away with just one idea or a phrase to use my money was well spent.
A very successful friend of mine has a goal in going to ever seminar. The goal is to get a 20% return on the cost of every seminar he attends.
Imagine that for every $1,000 you invested in education it returned a 20% return. This means that you get back $1,200 for every $1,000 invested.
You have probably heard: "If you think education is expensive, try ignorance" in my personal experience, trial and error is always more expensive.
9. It's Creative Real Estate Investing
It's called Creative Real Estate Investing for a reason. We use creative ways to be able to purchase real estate.
For most new investors getting started they don't have huge bank accounts to buy property with. So creative buying is usually necessary for them.
The upside is you get a much greater return on your investment. Let's say you invested $10,000 in a property and then sold it and got back $20,000. That would be a 100% return on your money.
Now let's say you invested only $1,000 in the same property but got back the same $20,000. Now, what is the return on your money? 1,900%
I wasn't great at math in school, but I think 1,900% return is a little better than 100% return. Although 100% is still outstanding.
If you would have invested only the $1,000 you would have missed out on $9,000 profit. This is why we use creative investing.
Your goal in getting started is to build up some cash and equity quickly. As you can see by using creative techniques you can do that much faster.
10. It's All About What Is Going On in Your Head
Let me tell you a true story about myself where I learned this.
Years ago I went to a Tony Robbins 10 day training on Maui, Hawaii.
They had set up telephone poles, in sets of 3 on the beach that were 50 feet high. They were in a triangle shape, one pole was for climbing the other 2 held a trapeze swing between them.
The idea was to climb the one pole which had those metal spikes stuck in for hand and foot holds. The beginning of the climb was easy and I got used to the spacing of the rungs.
Then about halfway up just when I thought this is easy, things changed.
The spacing was now completely different on the rungs. I stopped, as this change really messed with my mind. So as I was regrouping in my mind I looked around and realized that I was a long way from the ground.
Now some fear set in, but I gathered my thoughts and asked myself "what is the goal here?" I really didn't have a plan or specific goal before I started climbing.
So I decided, my goal was to stand on top of the pole and jump off and catch the trapeze. (which was the object of the exercise) The fear had me shaking a little (maybe a lot).
Then as my plan crystalized I got back on track to the goal. I climbed until my eyes were level with the top of the pole. Just as I got comfortable (relatively speaking) climbing again. The situation changed again, now I had to transition to standing on top of a pole, which was only about 10 inches in diameter and 50 feet in the air.
Now it's really scary, but I focused on my goal which was to catch the trapeze after I jump.
So I stayed totally focused on the bar of the trapeze and got on top of the pole without a problem. As I stood there 50 feet in the air, on an object where I noticed my feet were hanging over the edge.
I quickly took a look around and for a moment and tried to enjoy the beauty surrounding me, but I still hadn't reached my goal.
My focus changed back to the trapeze bar. Now I was laser focused on that bar and visualizing myself catching it after I jump.
Now, was the moment of truth, I had to jump. So here I go, JUMP.
Then all of a sudden I thought I felt the bar in my hand, now some doubt crept in as to, can I hold on. Then I realized I had a firm grasp on the bar and had caught it.
Now the adrenaline and euphoria flooded my mind. It was a tremendous feeling.
What I learned was, no matter what is going on around you, if you have a specific goal and stay focused on it you can achieve it !
Real estate investing and life, are just like the experience I had on the poles. Things will always change in your life and you will have to make adjustments. How you react is up to you and what you choose to focus on will determine where you go in life.
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