In my first few years as an investor, there were a few things that chewed up a TON of my time each day. Those things included (but weren’t limited to):
- Talking to prospects on the phone.
- Researching properties so I could make offers.
- Deciding on an offer price, writing up the contract and sending it to the seller.
Altogether, these things probably consumed about 80% of time.
The problem was, 95% of these prospects were just going to say “No” to me in the end anyway – which would leave me drained of time and mental energy (while sitting at a dead end).
After working my business this way for a couple of years, I started feeling burnt out. I had to figure out a better way to determine which of these sellers were just going to say “No” to me in the end, and I had to get to this conclusion WITHOUT wasting endless hours of my time in the process. [click to continue…]
I’m just reaching the finish line on a deal that has taken me well over a year to negotiate on.
About 15 months, to be exact.
But don’t let the timeline fool you – these “negotiations” haven’t been long, difficult or time-consuming for me. All said, these discussions (all of which occurred via email) have probably consumed about 45 – 60 minutes of my time, total. It’s just one of many reminders that the best deals don’t always materialize in the first, second, or even third conversation with the seller.
Sometimes it takes months, even years for the person on the other side to “see the light” and agree to do business with you.
Why does it take so long?? Well – it’s not that you’re doing anything wrong… the problem is simply that you are the buyer and by default, you have very little credibility in the mind of a seller. You’re obviously trying to get the lowest price you can on their property (why would they expect you to do anything less?), so they have every reason to perceive you through a skewed light.
Often times, getting a seller to go along with your offer isn’t something you can “convince” them of – they need to figure it out for themselves apart from your commentary (and often times, your off-the-cuff comments can do more harm than good). This process can take time (sometimes, a long time) but even so, the wait may be worth it. [click to continue…]
When I first started investing in land – I found that one of the most surprisingly common obstacles to get over was the fact that it was really hard to locate some of these properties.
To most conventional investors – it may sound like a weird problem (after all, isn’t that what we have Google Maps for?) – but if you’re a land investor, you probably know what I’m talking about. When I first started looking for vacant land properties, it was VERY common for people to call me, trying to sell their land, but their property didn’t even have a physical mailing address. [click to continue…]
As with many other aspects of life – the real estate business can be a real jungle to maneuver. For many of us, it’s exceedingly easy to lose focus, make bad decisions and get sidetracked along the way (often times, without even knowing it).
This past week, I’ve been asking some of my friends in the industry for their input on this issue. My goal was to compile a list of the most important recommendations these experts had to offer from their years of experience in the real estate business. What I got was a healthy collection of insights that I think you’ll find quite enlightening.
Specifically, my question was this:
If you could only give 3 recommendations to a new real estate investor (based on your own experience in the business), what would be your Top 3 most important pieces of advice?
Not surprisingly – there were a few common themes that seemed to come up again and again throughout this list… can you spot what they are? [click to continue…]
I’d like to introduce you to Conor Flaherty – a guy with a wealth of experience in flipping apartment buildings, single family houses. He’s an expert in an area that I’ve always wanted to learn more about – so I’ve asked him to give us a the low down on how this all works.
What’s so great about dealing with large apartment buildings? I think it’s the fact that in many ways, it’s similar to dealing with a small property (like a single family house), but the numbers and profit potential is compounded, like a regular rental property on steroids.
I’ve asked Conor to give us a detailed overview of how these opportunities are found, financed, bought and sold. Take it away Conor!
Flipping an apartment building is a different animal than flipping a single-family home. The main difference stems from the way these buildings are valued.
Most single-family homes are valued with the comparable (or “comp”) method. This method takes similar homes that have recently sold and uses them to establish a value based on their similarity to the subject property. In other words, if the house next door sold for $100 and is exactly the same as yours, then your house should also theoretically sell for $100. [click to continue…]