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I never cease to be amazed by people who expect to get good at something overnight. I see new investors get into real estate all the time and somehow they get this illusion its some kind of fairy tale business where you can go from beginner to expert in a few short months. Where does this idea come from? Why would anyone expect this business not to take the same toll to success as any other? Real estate, like all other businesses, has five steps to success. If any one is weak the whole income flow is weak. It takes time, patience, constant learning and application of the basics to succeed and there's nothing you can do to short cut the process except learn those basics and apply them until they work and don't quit until you succeed. The five steps are: 1. Locate Prospects 2. Prescreen Prospects 3. Construct and Present Offers 4. Follow Up 5. Sell Quickly Show me a six or seven figure investor and Ill show you someone whose conquered these steps but I doubt you'll find anyone who did it all right in the beginning. There's a lot of room for failure in these five steps and one weak link can snap your chain and sometimes you need outside help to spot a problem. When I talk with students I find the biggest weakness is either number one or two. If you're not locating prospects I can assure you the other four steps are irrelevant. You can't buy houses from someone you don't know exists. You should have at least three things working to attract prospects and if you aren't getting at least five to ten sellers calling you a week, something better change soon. If you have three things working and you're not getting enough calls, here's a hot tip... You Only Have Two Choices 1. Do More Of What Works 2. Do Something Different Geez, whats so hard about that? If you're not getting enough calls, fix it. It won't fix itself. Whining about no leads ain't gonna get you any checks. If you're not getting calls and not getting deals the problem is almost always lack of experience at prescreening. That means you're getting deals but aren't sure how they're dressed. I'll grant you, it takes a lot of unmotivated sellers sometimes to find a good deal but many people work harder at finding reasons to kill deals than make them work. Prescreening means you have the ability to call the dead wood quickly but it also means you can spot the aces when they are dealt you. Here's a little checklist to tell the difference that might help you a little. A suspect is a worthless time waster and should be trashed immediately before it sucks you into the time vampire vortex. A prospect shows promise and should be pursued until you determine it's a suspect or buy it. Suspect (Time Wasters) No Equity Seller asking retail value (ARV) Seller won't answer your questions Seller won't allow you to buy? Subject to? and the debt is more than you'd pay all cash Prospect Instant equity offered by seller Behind on payments, in foreclosure or bankruptcy Vacant and ugly Loaded with liens and judgments It really doesn't take very long to learn the difference but those who won't and think it's not required will soon be in another business where they'll make the same mistake again. All businesses have suspects and prospects. Suspects will suck up 80% of your resource and produce no income. Prospects will make you rich if you focus only on them and quit giving away your profits trying to deal with people who don't want to deal with you. Continued in Part 2
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About the Author : For additional information on real estate investing and the hot foreclosure market, I recommend joining Ron LeGrand's Millionaire Maker Newsletter The newsletter itself is loaded with great tips and resources, and he's usually giving away something free like a CD or something that generally has a lot of great information on it.
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