I do a lot of private coaching and hourly consultations with investors. Many of them contact me because they feel that their investing activity is going nowhere. They are looking at lots and lots of properties, but not finding anything that is a deal that they can sell to another investor, or they can't get financing, etc. These people have read success stories, heard fabulous tales of making $10,000 for only "5 hours work" and all that jazz. I remember one where a guy was living in his car until he found a great investing deal, made $10,000 in less than 30 days, and 6 months later was wealthy. Good for him, but he is the rare exception, not the rule.
I can state truthfully that I have participated in dozens of deals, creative deals, seller financed deals, wholesale deals, rentals, retail, subject-to, etc, etc, etc. Certainly millions of dollars worth of houses. I have almost never used my own money, I did not have a "W-2 job", (nor do I now), and for much of that time, my husband was terminally ill, so I had to work from various hospitals or other remote locations.
BUT - before I was able to do those deals and make that money, I spent several years learning the business, got my agents license, and spent lots of money on seminars, clubs and courses. In short, it didn't happen for me like the success stories make it sound, but it DID happen.
Can I let you in on the real secret of success? The ONE thing that insures that sooner or later you will make it?
It's not a pretty secret, it's not sexy or glamorous, but it is the truth....
Perserverance - just don't quit.
It takes time to learn what must be known. And frankly, I know first hand from years of being a property locator and training hundreds of them, that the number one problem that leads to frustration is simply working the wrong strategy in the wrong market.
Not finding any deals in pre-foreclosures? Not a surprise to me. I didn't either. In spite of what everyone told me, few if any were a good deal on paper, then when they were, I couldn't find the #$%^& seller anyway!
Without a doubt, the single most common reason for failure in real estate investing is not understanding the proper way to evaluate and qualify a deal. The result is that the new property locator or investor wouldn't know a good deal if it hit them in the head. People often think they have good deals, but when they bring them to me, I can see immediately that they are not going to work.
But, this market presents some special challenges at present. If you are getting poor results, chances are you are trying to work the wrong strategy in the wrong market. The challenge is to find the deals that will be profitable. Whether that may be houses, duplexes, quads, commercial, whatever. If all you are doing is focusing on one single strategy, that strategy won't work unless your market fundamentals support that strategy. For example, successful wholesaling requires lots equity. If you are searching for wholesale deals in areas where the houses are only 5 years old, you are gonna have a big problem finding enough equity. The fundamental need for equity is not being met in the area being searched, so the net results are poor.
You have to analyze your market and find the properties that will work.
There are two basic ways to do it,
1. pick a strategy, then you must go to where that strategy works. ( for example, wholesaling means finding older neighborhoods)
2. pick a location then analyze the properties at that location to discover what is working in that specific area.
(a location that contains a large number of newer houses is more ideal for retailing to owner occupants)
If you are looking at lots and lots of leads with no deals, you are getting both 1 and 2 backwards. Something works everywhere at any given time, but nothing works everywhere all the time.
Serious investors or those who want to be serious investors need a solid approach to investing that bypasses the single-strategy, one-size-fits-all approach and get the one program that shows you how investing really works. It's all about the numbers and whether this deal has real profit potential and if so, how much profit is there and how will I get it?
There is only one program out there that teaches where the rubber meets the road. My program owners and private coaching clients characterize it as "totally enlightening" "opened my eyes to how investing is supposed to work", "eliminated the frustration that comes from trying to pursue a strategy that is not working at all".