If you are new to the world of Real Estate Investing, don’t feel bad. Maybe you have yet to do your first deal. We have all been there. I’ve met a lot of experienced investors, and not one of them came out of the womb with any deals under their belts- even though some of them would like you to believe they did!
We all have to start somewhere. Everybody has to do their first deal- their icebreaker. There are only two kinds of investors- those who have, and those who haven’t- done a deal that is. If you’re one of those who haven’t, this article is for you. I’m going to answer your most burning question- “How do I get started?”
How do I know this is your most burning question? Because not too long ago it was mine. I remember looking at investors who had only done one or two deals and thinking, “Those people are good! How’d they do that?” Now I know, and after reading this article, so will you.
There really are only five simple steps to getting started.
The Five Steps
Step One- Relax.
Step Two- Build your knowledge base.
Step Three- Open your eyes.
Step Four- Make offers.
Step five- Finish what you start.
Just kidding. I know all I’ve done is excite your curiosity, and if I leave you now you’ll hunt me down and kill me- I wouldn’t blame you. So I’ll explain the five steps.
Step One- Relax. Believe it or not, for me this was the most important step. Most people working toward their first deal are way too intense. I was. For weeks and months it was all I could think about, morning, noon, and night. I was tense and irritable. My family suffered. I suffered. My job suffered. And still no deal.
So, I consciously decided to relax. I didn’t stop working toward my goal, I just stopped obsessing and worrying about it all the time. I watched the things I was telling myself (my self-talk). I reminded myself that, since I was doing all the right things consistently, my first deal was right around the corner. I told myself the truth- “It’s only a matter of time!” I forced myself to relax, so I could focus on the really important things- my faith, my family, and my fitness (body, mind, spirit).
When those things are in alignment, success can occur naturally and easily- almost without effort. Try it yourself- for the next three days consciously relax and let go of the tension you feel about getting that first deal!
Step Two- Build Your Knowledge Base. Many people get this one out of order. They try to cram all sorts of knowledge into their head before they are relaxed enough to absorb it. Your brain doesn’t work like a machine. Try to stuff it full when you are tense and feeling pressured to ‘get a deal’, and you will recall next to nothing. Relax first, and your brain will work the way God designed it to- smoothly and efficiently. You’ll be amazed at what you will learn, and how fast you’ll learn it!
Read anything and everything. Buy books and courses, listen to tapes, attend conferences and seminars. Visit all the investing websites and bookmark the ones you like. Read the forum posts, the free articles, and the success stories. Especially DealFiles!
Don’t limit yourself to learning just one kind of investing. If you classify yourself as merely a ‘flipper’ or ‘rehabber’ you may miss out on a tremendous opportunity because you’re not looking for it. Visit my Resource Page for advice on the best educational materials out there.
Before I flipped my first house, I read books and courses on foreclosures, subject-to, lease options, and a hundred other investing strategies. Because I taught myself to relax, I never felt overwhelmed with too much material. When the time came for my first deal, I used techniques from many different sources. I didn’t have to think too much about it- the information was there, waiting for me to access it.
A word of caution- stay relaxed! Don’t treat this like a job. You should be enjoying this. If not, you may want to rethink why you’re doing it in the first place.
Step Three- Open your eyes. After you have consciously relaxed, and while you are building your knowledge base, start to look around you. You are looking for opportunity, and you will be amazed at where and when you see it. Opportunity can take several unexpected forms, and show up when you aren’t looking for it. In fact, that’s usually the way opportunity presents itself. People you meet, things that happen around you, any of a hundred things that occur as you move through your days.
For instance, a conversation you overhear may present an opportunity you would never know about otherwise. Context is crucial. Now that you are relaxed and learning, you are free to interpret things you see and hear in a fresh way. You start looking at people, places, and events through the eyes of a Real Estate Investor, because that’s the way you are training your mind to think. This is very good.
It’s also called ‘serendipity’, a fifty-cent word meaning “the phenomenon of finding valuable or agreeable things not sought for.”
I found my best resource- my Realtor- this way. He was introduced to me by a friend. I said, “You’re a Realtor? Do you handle any foreclosures?”
He said, “I work for the largest foreclosure broker in the area.”
“Oh, really?!” My eyes were open.
Finally, don’t expect miracles in a day, a week, a month.
Watch. Listen. Think. Keep your eyes open.
One day soon, the deal will be there.
Step Four- Make offers. I’m not kidding here. Some people expect to get their first deal without ever making any offers. Usually, their fear is holding them back. Click this link to read my article on Four Ways To Eliminate Fear. Making no offers leaves you with nothing but wishing and hoping, bad overall strategies for success in anything.
Follow the three steps above and you WILL make offers. There’s a neat dynamic at work here. Follow the logic. You relax. You gain knowledge. Knowledge builds confidence. You open your eyes. You see an opportunity. You make an offer. Making the offer builds more confidence. You make more offers. One is accepted. You get scared. You go get more knowledge. You gain more confidence. You close your first deal. Confidence soars. Get the picture?
No offers – no deals. Simple, huh? Don’t get caught up in trying to know everything before you make an offer. You never will. Put in the time and effort. Learn well. Make offers. Enough said.
Step Five- Finish what you start. This one is easy for some of us, hard for others. If you are one of those people who get cold feet, prepare for it in advance. Decide ahead of time you will finish what you start and close on every deal you make an offer on. There are a lot of roadblocks in Real Estate Investing, any one of which could bring your deal to a screeching halt if you let it. In many cases, you are the only one who has what it takes to bring your deal to the closing table.
Determine ahead of time that, no matter what, the deal will close. Often it feels like you must put forth superhuman effort. Not true- merely human effort will work. Your human effort. You may not know it yet, but you have what it takes. Push through to the end and finish what you start.
That’s it then. Five simple, little steps that anyone can take. The only difference this time is, you are the one taking them. So much the better. After all- it’s your turn, isn’t it?
Now, go make more offers!
Tom Dunn is a successful real estate investor and author of the popular DealFiles Real Estate Investor Stories free newsletter. You are welcome to share this report, unedited and in it’s entirety, with anyone you like. You may not remove this text.? 2006 by Tom Dunn. Website: http://www.dealfiles.com e-mail: firstname.lastname@example.org