One of our main goals here at SOTEREI is to help real estate investors who are stuck. We meet lots of these folks–many of whom have been studying and taking classes in REI for months or even years and still haven’t done their first deal. Other times, we meet frustrated landlords or house flippers who got burned on a bad deal because they didn’t know how to do “due diligence” on a property.
Here at SOTEREI, we have a passion for real estate investing. (Obviously!) But we also have a passion for helping people realize their growth potential–both personally and in business! So we build our programs and tools with the stuck investor in mind! Let’s talk about some of the most common stuck-nesses that we see.
Jack of All Trades, Master of None
This person starts out with great intentions and ambitions — to LEARN! And they do, often diligently! They learn a little about tax certificates over here, a bit about residential rehabs over there. They attend workshops, classes, and networking. At the end of the day, they have some really excellent knowledge, but still haven’t conquered that first deal! Because instead of sticking with one investment strategy to really laser-focus in on, and get all the details and guidance they need, they end up with a vague knowledge of lots of different strategies, and not enough momentum to successfully close any deals.
We’re certainly not advising you to stop gaining all the knowledge you can! Rather, don’t hop around from strategy to strategy as an avoidance tactic because of the fear of pulling the trigger on your first REI transaction.
OK–so you’ve got the knowledge, and you’ve set up your processes and structures (funding, marketing, contracts, and so on!). You’re ready to close your first deal. But then the monologue of fear in your head starts up.
What if I missed something? What if my rehab budget is off? What if I don’t make a profit–or worse, what if I take a loss?
These questions are important. You shouldn’t ignore them, and you absolutely should do your due diligence. You should consider all the outcomes. But you shouldn’t let these questions paralyze you, either! Eventually, you will reach a point at which you can only go over and over the details and numbers of a deal so many times, and then you have to make the call. Analysis is critical. But so is action!
How Do I Get Un-Stuck?!
If any of these scenarios sound like you, take a few moments to reflect and ask yourself: Why am I stuck?
Maybe you’re scared. Maybe you’re overwhelmed. Maybe you’re confused. Maybe you feel like you’re doing this completely alone.
If you have found yourself “stuck,” don’t stress! We have been there too, and we want to help you get un-stuck. Here are a few simple steps toward getting you moving in real estate investing. Let’s be totally transparent, here: They are not easy! But you can do them!
We want to encourage you to start by taking a step back and doing a self-assessment. What are your goals? What is most important to you right now? What resources do you have available to you right now? What skills do you have that can translate to the world of real estate investing (Maybe negotiation or sales? Design? Marketing?) How much time can you devote to investing, and how committed will you be? Be honest with yourself!
We here at SOTEREI are working hard to build you a self-assessment tool that will guide you through this process! Keep following us to get updates on our progress and be among the first to get access to this super-helpful tool!
2. Make a decision.
Once you have taken some time to assess your goals, priorities, and strengths, decide which investment strategy you’re going to start with. We recommend that you start with one specific area as you’re learning, as you can always add more later. Every strategy has its own difficulties and frustrations, so don’t be afraid to be decisive! There is no “wrong” answer; rather, it’s about which one is right for you right now!
If you have a hard time with this step, talk to someone who can offer some insight. Meet with different investors and listen to their stories. Ask them why they chose the strategies they did. Find a coach or a mentor who can help you make a decision and keep you accountable to it.
3. Make a plan.
Now that you’ve chosen your strategy, you’ve got to put together a plan that will propel you toward your focused goal! What exact steps do you need to take to close your first deal? What materials and support systems will you need to make those steps happen? This is where your laser-focused education will serve you.
PRO-TIP: Break this down into manageable tasks so that you can actually track your progress. For example, “manage contract on X property” is a multi-faceted and vague task. However, you could break that down into a list like “Have buyer and seller execute purchase agreement on X property, Send agreement to lender, Schedule survey, Schedule appraisal, Apply for property insurance,” and so on.
Do you see the difference?
4. Take action!
Now you’ve got to follow through! Complete the action steps you laid out in your plan and don’t be afraid to face hangups and hiccups head on. Stay in contact with a mentor, coach, or experienced colleague who can help you navigate your actions steps and any unforeseen issues. Take time to celebrate each action step you complete, no matter how small. These small steps make up the foundation of positive life changes and legacies.
Don’t wait until next year. Don’t wait another six months. Create the life you want and live the life you want now.
Let’s do it, together! And keep us posted on your progress. 🙂
Post what actions you are taking as a result of reading this article at https://www.facebook.com/StepOfftheEdgeREI/?fref=ts# using #SOTEinAction!