YouTube Video: https://www.youtube.com/watch?v=s2gPt2aVirk
I have several things to take care of, so I thought I would try to squeeze this in before my eight o’clock interview. This topic is something that really needs more attention because you just never know when that little thing’s going to come across that helps you. And that is five mistakes that I see real estate investors make, is they struggle to go from zero to one. The heart. I mean the more and more I talk to people, it’s obviously the biggest jump for any real estate investor to go from zero to one rental. Going from one to two is not nearly as big, two to three, not nearly as big. Then by the time you get to three, it’s like buying cars, or shoes, or whatever your thing is.
So here are the five mistakes that I see real estate investors make. Number one: no focus. This is a shame because this is all in your control. You know, sometimes you’ve heard me call it the shiny object syndrome. Sometimes you’ve heard me refer to it as going 50 different directions, an inch at a time. You never get anywhere. The whole idea is if you’re going to be a real estate investor, do yourself a favor and pick your thing. Are you going to be a flipper, wholesaler, buy and hold? Are you going to be multifamily, single family homes, you know, do duplexes through quads land, mobile homes, storage, whatever. Pick your thing, focus. Pick your thing. That’s all you do for six months. Learn that market. Learn your area, learn your asset type. Become an expert in that, right?
Know more about that product than 98% of the real estate agents out there. When you do that, you can expand your focus, but stop going 50 different directions in inch at a time. You’re only frustrating yourself and you’re not changing what’s going on. So pick your focus, declare your focus, and then let everything else go. I know all those checks look fancy. I know, I know. When you look at wholesaling a quick, it looks fun and then flip looks good for big money, and then wealth looks good for buying hold- stop it. Focus, focus, focus on that topic. The other thing that I see is the idea that I just need one more piece of information. I need one more metric. I need one more thing to protect myself, right? “Oh- I know I need to find this one more thing.”
No, you don’t, stop it. If you’ve spent hundreds of hours researching your market, you can now find what a good grade, bad, average deal is for your asset in your market. Pull the trigger and have more confidence in yourself. This one more piece of information, the offer, right? You can always back out if you don’t like something about it, whether it be the foundation, the roof, or the area or whatever. Stop this idea that you need one more piece of information. But I want to be very clear, right? I’m not saying, “Hey, I want to go buy a fourplex in San Jose, California, and I looked online and I saw five, I’m going to buy one of those five.” No, that’s not what I’m talking about. I’m talking about, “I’ve researched San Jose, California. I know there’s 1,817 fourplexes. I know 70% of them were built before 1982 and I’m going to buy something that’s younger than 1982. I want to buy something newer.”
When you do the research and you can recite things like that, you’re in the game. You know more than 98% of other real estate agents. It’s not ever about one more piece of information. Have more confidence in yourself, be focused, but also know that I’m not telling you to be lazy either. Do the work. Something I saw on late night TV, way back when, is you believe there’s a secret, right? There’s this one little thing that, a secret out there and I’m going to pay somebody thousands, if not tens of thousands of dollars, to learn. I hate to bust your bubble, but there is no secret that you need. Depending on what part of this market you’re in or if you’re a buy and hold investor like me, it’s how do I learn my market? How do I know what an average deal is? And then I only want to do good or great deals. That’s it.
If you want to be a wholesaler, you need to find out a way to communicate with property owners and see if they’re in the mood to sell. Whether that’s texting or mailers or cold calling or freaking smoke signals, it doesn’t matter. There are no secrets, so just stop it. You got to do the work, right? Real estate is simple to understand, but you’ve got to do the work. Do the work. Number four, for whatever reason, people sometimes want to believe in others more than they believe in themselves. That’s dangerous. This is your money that you’re putting on the line. This is your family’s potential legacy that you’re putting on the line. So to blindly follow someone else because they wear a nice suit or drive a nice car or whatever it is- No, don’t do that, right? Do the work. Trust yourself. Get guidance from others if you’d like, especially if they’re in your market. But don’t let them distract you. If you’re buy and hold, don’t be distracted by the checks from wholesalers. Figure out what you want to do. Trust yourself. Don’t just blindly follow the pied piper right off a cliff. That’s not a good idea.
Now this is another one. I’m good. I’m glad, the last one. Number five is, I really do believe some of you enjoy the idea of being a real estate investor. It feels good. It’s something that excites you and gets you all tingly, but you’re not willing to do the work. You make excuses. You enjoy going 50 different directions, an inch at a time. Okay, to each his own, right? I’m not here to judge if that’s who you are. Maybe you just get excited by learning or seeing others do things. Cool. Just stop calling yourself a real estate investor, you’re a hobbyist. You’re somebody that likes to watch from the stands. Nothing wrong with that, don’t tell yourself you’re in the game when you’re just in the stands.
So that’s it. Those are the five mistakes I see. A lot of new real estate investors have no focus, right? One day you’re a wholesaler, one day you’re a flipper. One day you’re doing mobile home. One day you’re doing vacant land. One day you’re doing code enforcement. One day you’re doing probate. You can’t become an expert doing any of that. So focus, pick it, stop it. Frankly, shut down YouTube until you know what you’re going to do and then go figure it out. Then watch YouTube university. You know, I dunno if there are any studious folks out there, because I wasn’t one of them. I was trying to get a C and get by. But you always think there’s one more piece of information, one more metric. How’s the city growing? What are the U-haul rates? How many two story homes have been built? I mean there’s just crazy things that I’ve heard people say that they’re seeking. I’m like, why do you need that metric? I don’t get it.
Another one is people still believe, and I guess it’s cause all the talking heads like Robert Kiyosaki and all the big real estate folks, they try to make you feel like there’s a secret that they have and, Hey, just give me 10 grand and I’ll welcome you in. And another 50 grand, I’ll teach you the secret handshake and all the fancy vocabulary. There’s no secret. There is none. No secret. You got to do the work, learn your market, figure out what average, good and great are and start executing. Number four is you’ve got to believe in yourself. You have to believe in yourself. You’ve got this, be confident, know what you know and go after it. Slow and steady wins the race. Don’t get distracted by all the flashy cars and the big checks. Most of those people are lying, and the ones that aren’t, they’re going to blow up. I saw many, many, many millionaires lose everything in the crash because they got fancy, to quote Gary V, right? Don’t get fancy or cocky, because the market will take it away from you.
The last one I think is particularly struggling for me. Yes, most of these people are lying 100%. Absolutely. some of you just enjoy the idea of being a real estate investor, right? Your day job is tough. You’ve got all these family responsibilities and you want to do some escapism by thinking about becoming a real estate investor. And if that’s you, that’s totally okay. It’s fun, don’t get it twisted. You’re either on one side or the other. Don’t be on the fence because you’re either in the game ready to make deals, make offers, get something added, or not. So in the end, those are my five mistakes. I hope that makes sense to you. I gotta get ready for two exciting interviews and then of course, I have to get to the gym. All right, everybody take care.