Since I started in the real estate game back in 1983, I’ve been told “you can’t do that” or “that won’t work” by hundreds of people who just didn’t believe they could make honest profits through foreclosure investing. Many of these folks had seen late night infomercials (remember Tom Vu?) and were sure that the only person who made money in real estate was the “Guru” himself.
Well, they are partly right on that point. There are many more “bad Gurus” then there are “real investor/trainers” out there. In fact after many years of reading about our clients “Guru Rip-Off Experiences” we compiled a 100% opt-in list of both “Gurus to Avoid” and “Sites to Avoid”. Do check these unsolicited complaints out, as they are updated daily.
But what about all the new client success stories? Are those real? And why do some clients succeed and others fail? I hope the Excuses and Reality listed below will help redirect your focus and get you going down the right road to success.
Excuse #1: I Don’t have Enough Cash
Reality: When you know where to find motivated sellers in your backyard — and you learn how to buy houses below market value – all the money you will ever need will FIND YOU! Ask any professional property buyer and they will tell you that the lack of funds is never a problem. The bigger obstacle is finding great deals! Once you negotiate a great price on an entry-level (starter) house, you will find more money partners than you’ll know what to do with! (Read more here)
Excuse #2: I Don’t have Enough Time
Reality: We all only have 24 hours a day, 7 days a week. Where is your time spent? (Working for someone else in a dead end job?) What about your “free time”? (Watching TV?) My suggestion is that you’ll spend your time more wisely if first, you throw out your TV! Then get to work on READING during all your newfound free time at home. Start with some great free articles HERE. Another great time resource is in your car. Invest in some good audio home-study real estate education and take advantage of your commute “down time”. Then make a few detours on your way home to talk with some neighbors and property owners. You’ll be surprised at how easy it really is to make new friends and “get the gossip” on potential deals.
Excuse #3: There Are No Deals In My Market
Reality: In my 20+ years of real estate investing, I have YET to find a “market” that does not have motivated sellers. Too many new investors focus on their local real estate “news” and decide that sellers don’t need them (Read more here). These same “investors” think that if they were to sell a house, they would simply put it on the market and sell it for top value. But, what if they lost their job and can’t afford their house payments? What if their lender has started a foreclosure action? What if they have spent the last few months hunting for a loan to keep their house, and have just now realized they cannot qualify for a new loan? What if their house isn’t in the best condition? What if they can’t find a qualified buyer quickly enough? What if their buyer can’t get financing quickly enough? What if they are about to lose all their equity and credit in a foreclosure auction? Could that happen to someone in your neighborhood, even if their market is HOT? ABSOLUTELY! Are there motivated sellers out there right now? ABSOLUTELY! But it’s up to YOU to find them and create a win-win deal, and then close quickly. But you must know what to do and what NOT to do FIRST… or those deals will slip through your fingers!
Excuse #4: There is Too Much Competition
Reality: There are so many new notices of default (pre-foreclosure) opportunities filed every day – that it will blow your mind! (Click here to find those hot leads in your area). There are MORE than enough leads for everyone! Think about Krispy Kreme donuts. They entered a totally saturated market and knocked over all their competition. Ask yourself- how did THEY do it? The answer is obvious — they had a better plan and implemented it perfectly. Make sure you read “Too Much Competition?” to learn more about your competitors and how to beat them at their game. Stop worrying about competition – and start working on making yourself a better, smarter investor.
Excuse #5: My Friends and Family Think I’m Crazy
Reality: You can talk yourself into or out of anything. That is why each month in our “Great Thinkers” column we discuss what in reality are THE MOST IMPORTANT issues every real estate investor faces – having a POSITIVE ATTITUDE, CONFIDENCE and COURAGE. If you listen to the critics and pessimists, you’ll convince yourself you can’t do anything! Most people with low self esteem will not want you to succeed (because it will make THEM look bad!) As Jim Rohn, Business Philosopher, says: You must constantly ask yourself these questions: “Who am I around? What are they doing to me? What have they got me reading? What have they got me saying? Where do they have me going? What do they have me thinking? And most important – “What do they have me becoming?” Then ask yourself the BIG QUESTION – “Is that okay?”
Excuse #6: The Real Estate Bubble Is Going to Bust
Reality: As we have been saying all along in our “Nationwide News” columns — Despite economic indicators pointing to higher interest rates, home prices continue to rise. Signs of a slowdown are out there, but how far prices will rise before a slowdown takes hold, we simply cannot say. What we do predict is more of a “flat peak” than sharply declining prices. Several national and international real estate economists agree with us.
So it is not too late to invest either long term (or short term) in real estate. There has never been a better time to be a foreclosure property investor. Make sure you read this months articles “The Greatest Housing Market in History – and How it was NOT Caused by Job Creation or Falling Mortgage Rates” and “How is Your Market Doing?” Local Housing Market Statistics – to learn more.
Excuse #7: Realtors Blow Me Off
Reality: As an ex-Real Estate Agent, I know first hand how an Agent can and CANNOT help you as a foreclosure investor. To begin, when times are great (as they have been for quite some time now) for agents, they need to manage their time well. Right now is NOT the time to ask an Agent to hunt for “unlisted, below market deals” or “write a low ball offer” for you. They simply don’t need your business! (Read more here) If you want to be a successful real estate investor you must do your own motivated seller prospecting and deal negotiating (and do it all within the laws of your State). Yes there is a lot to learn, but real estate is not rocket science, and very easily learned!
Excuse #8: I Have Bad (or No) Credit
The Reality: Good credit helps if you are going to buy, fix and hold property and need to find a good long term conventional loan for your property. But if you are going to buy, fix and sell for profit, you don’t need credit and you don’t need permanent financing! You need to know how to do “Subject to” financing deals (where you buy the house but take over the sellers existing loans). Learn more about “Subject to” here. And for those of you worried about “the due on sale clause” read THIS! Plus there are so many “creative financing” tools out there that money and credit will NOT be a problem! You will need to focus on FINDING the deals, as money will FLY AT YOU once you have landed a GREAT DEAL (30% off market value or better).
Excuse #9: I Don’t Want to Lose Money
The Reality: Somewhere you must have read a “gloom and doom” book on the risks and pitfalls in real estate investing. Yes, I know they are out there. But really, don’t waste your time reading that junk! Again, in my 20+ years of investing, I’ve made more money in real estate than any other investment out there. How about you? How does your home investment compare to your stocks? Wish you bought more houses don’t you? Rather than look back and regret not buying more property, take the leap of faith TODAY and educate yourself about how to invest in foreclosure houses for profit. The more you learn, the better you’ll feel, and the safer you investments will be.
Excuse #10: I Don’t Know Where to Start
The Reality: Once you’ve caught up on your free foreclosure investor reading it’s time to take action and make your dream of investing become a reality. Yes there will be more to learn, but you do not have to know everything to get started. Your success will come by continuing to educate yourself with legitimate real estate training. Even today, after 12 years as a real estate investor trainer — I still read many real estate books and take many sales classes.
As I believe “Education is a Journey, Not a Race”. I hope we can continue to help you in YOUR journey to success.
Happy investing,
Alexis 
