Making the decision to be a full time real estate investor is very much like starting a new business. The choices you make in the infancy of your business can have a major impact on where you end up. Aligning yourself with the right people and being open to numerous ideas can often times make all the difference. With any startup there are always people telling you what you should do or suggesting a better way of doing things. While the advice is well intentioned it may not be the best fit for you and what you are trying to do. As you navigate the early stages of your business there are a few things you can do to accelerate your growth. Here are four ways to turn your new business into a powerhouse.
- Develop Contacts. Investing in real estate is a contact sport. The more contacts you make the easier it is to find new deals. Many investors focus more on deals over relationships when they are just starting out. What they fail to realize is that it is the relationships that lead to deals. You should spend time every day getting out there and meeting new people in your community. Talk to as many real estate agents, mortgage brokers, attorneys, accountants and property managers in your area as possible. Don’t worry about not seeing any properties or working on new deals. If you keep making yourself present eventually the people you meet will want to work with you. When they do it is up to you to put your best foot forward and execute whatever role you have in the deal. If you do this you can bet they will want to work with you again in the future. Set a goal of developing a handful of new contacts every week. After a few months you will lay the foundation for a healthy business.
- Keep An Open Mind. How you want your business to go may not always be the best course of action. While having a clear vision is a great start you should always keep an open mind. There are times in every new business when they are presented with opportunities that can change everything. The most successful ones may not always jump at them but they are at least willing to hear them out with an open mind. When the time is right they are ready and willing to quickly shift gears. By being set in your ways and closed minded you narrow the options in your business. You essentially put all of your eggs in one basket and hope for the best. The type of investing you may have your mind set on doing may not work best in your market. Foreclosures and short sales may be great for someone you know a few towns over but are in short supply where you live. Admitting that your strategy is flawed or unrealistic is one of the hardest things you can do but one of the most important. You don’t have to jump at every new opportunity that comes your way but you need to be willing to hear it out.
- Break Through Rookie Wall. There is a common expression in sports when first year players stop having the success they initially did. They are said to hit the “rookie wall.” The same may be the case for your investing business. Getting a new deal in your first week or two may be fool’s gold. You think that things will be easy and deals will just fall on your lap. When this happens you can get frustrated, annoyed and start to lose motivation. It is at these times when you need to fight through the wall and forge ahead. Investing in real estate is hard. It is one of the greatest businesses you can have but it is not easy all the time. When things aren’t going your way you need to work harder and smarter than ever. You may go several weeks without a new lead but if you stick with it you will eventually see the results.
- Multiple Income Streams. It seems that every new investor wants to be a rehabber. With the increase in popularity comes increased competition. While there are still many deals in almost every market you need to act quickly and have established contacts in place. As you wait for your home run rehab deal you should have ways to supplement your income. There is nothing wrong with having a few wholesale deals in your pipeline to get your through the lean times. Not only will this help generate income but you may find that you actually like it. There are many investors who focus solely on wholesaling and make a great living at it. You can also think about getting your real estate license as you are just starting out. This is a great way to learn the business and your market while you are generating extra income. Whatever you decide and whatever income sources you consider it is important that you have something coming in. The more income streams you have the easier it is to make decisions and the better off your business will be.
One of the great things about investing in real estate is that there is no blueprint you need to follow. You set the course for how you want your business to go. As you are just starting out keep these four important items in mind.
