Realizing Profits Outside Of Your Comfort Zone
By JD Esajian on July 28, 2014
In a perfect world, you would have an unlimited supply of leads and deals in your pipeline. However, this is by no means a perfect world. You have to grind for every deal you get while staying on top of all your leads and contacts. It is nothing like you see on TV. Flipping shows glorify the entire real estate industry – a misconception to say the least. What they don’t show you are the hours of hard work that go into even the most menial tasks. Deals will not just fall into your lap. If you want to increase your business, you will have to step out of your comfort zone to get them.
New investors come from many different backgrounds and careers. Regardless of what business you may be from, you can be a successful investor if you are willing to outwork your competition. This means doing things that you may have thought you were done with years ago. Networking, cold calling, lunch meetings, door knocking, marketing campaigns and driving for dollars are all things that successful investors either have done or do to drive business their way. Some of these things may be uncomfortable, and even a little awkward. However, the more you do them, the better you will be at them. If you wait for business to come your way, you may be waiting a very long time.
Start with investment clubs and local networking meetings. You may feel that because you are new to the business you won’t have much to contribute to the group. This is the best time to meet people and plant your flag in the area. Even though you may think that you can work exclusively with homeowners, you will always need to grow your network. Realtors, contractors, mortgage brokers, attorneys and fellow investors can all help you either get new deals or maximize profitability after you take ownership. Meeting people may not be your thing, but it is a critical part of the business. A few meetings a month can give you the opportunity to close an extra deal or two a year. That equals real money in your pocket. All you have to do is show up, listen to people talk and contribute on cue. This is not too much to ask for to help grow your investing business.
In addition to networking, the next best way to find deals is to go after them yourself. Letters and postcards can be effective, but they are also costly. If not done properly, they could leave you with little or no return for your efforts. You don’t need a letter if you know the address and have access to a phone number. Not everybody is comfortable talking to a homeowner and soliciting them for business. There will be many phone calls that don’t end the way you want them to. For every eight calls that end abruptly, there will be one or two that are interested in what you have to say. If you can get one or two of these calls to turn into deals, it will all be worth it. Most investors will simply mail a letter and wait for them to call. This is a call that may never come. Between Craigslist, Trulia, classified ads and social media, there are plenty of ways to find deals if you are willing to pick up the phone.
If you don’t like using the phone to get leads, you can always get in your car and knock on some doors. Any property that you see that may have overgrown landscaping, older roofing and a dated exterior could be from an owner that has either run out of money to fix the place up or is renting and wants to sell. Either way, it doesn’t hurt to knock on the door and find out what the story is. A subtle approach works best with door knocking. Instead of saying you want to buy their house you can ask for the owner or if you get them tell them you are interested in properties in the immediate area. They may be willing to discuss a sale on the front porch or you can give them a business card and follow up in a few days. The idea of talking to a real, live homeowner is not for everyone, but with this equals big reward. There are many owners who are looking for a way to sell, but aren’t sure just how to go about doing it given the equity situation or property condition. Instead of getting a letter in the mail, they have a real live person and contact information to fall back on. This will give you a leg up on the competition.
Most successful people will do things that they don’t enjoy doing or are not comfortable with. In the real estate world, you will have to step out of your comfort zone at some point in every deal or in your career. Like most things you may fear, they aren’t as difficult or as bad as you may have thought. Doing these things, even just once a month, will give you a huge leg up on your competition. This alone will separate you from most every other investor in your area.