How do you know if you’re ready to start investing in real estate?

While we think that now’s the perfect time to start your real estate investment business, no matter what your age is today, there’s still a lot of factors to consider before taking that leap. These include being financially responsible, self-motivated, driven, and a good self-learner, among many other things.

To get an inside perspective on what it’s like to build a real estate investment career young, we interviewed our youngest Managed Service Member at RealEstateInvestor.com, Justin James Sherfey, Real Estate Investor and CEO of Pacific Solutions Northwest.

Justin James Sherfey is a 21-year old real estate investor and musician from Spokane, Washington.

Justin made his first real estate deal straight out of high school when he built a spec house with his dad to learn the ropes and sold it for a return on his investment.

Today, Justin’s one of our youngest real estate investors at RealEstateInvestor.com, having become a member at just 20-years old. An age that’s so impressive that our founder Gary Boomershine even interviewed him live about his journey. You can watch the full interview here.

In this article, we’ll be sharing about how he got started building his business by using our Managed Services to launch his company.

How Justin learned about us.

Before coming onboard with us, Justin did his homework. He was new to investing in real estate, but he had been soaking up knowledge about the industry for years by listening to podcasts—including our RealEstateInvestor.com Huddle Podcast—reading books, and seeking out mentors in the industry who were further along than him.

Because of his research, Justin knew he wanted to focus on wholesaling since it had a low barrier to entry. He also wanted to utilize direct mail to reach out to sellers since most of the competitors in his market were only utilizing cold calling. Both of which made our Managed Services a great fit for Justin.

Here are a few of the things that drew Justin to Our RealEstateInvestor.com Managed Service:

• We’re a one-stop solution provider with all of the systems, services, and resources that real estate investors like Justin need to fast track their business.
• We handle the marketing for him. All Justin has to do is provide a budget and zip codes and we handle the rest, including direct mailing at industry low pricing.
• Our sales ninjas work his lists for him, handling all inbound and outbound sales calls. They screen all of the calls and only send Justin the highly motivated sellers who are ready to make an appointment.
• We help him build a sustainable pipeline of qualified sellers who plan to sell in the next 12 months.
• By leveraging our team who handles all of the $10 per hour tasks for him, Justin can focus on CEO level tasks like closing more deals, learning and growing his business faster than if he tried to do it all alone.
• Justin also really liked that he would be able to reach out to our team of successful real estate investors to ask for advice whenever he needed it.

“I liked that RealEstateInvestor.com is run by real estate investors who are working in this business and finding great success. I was also drawn to the fact that it would provide me with a foundation to build my business on, instead of having to bootstrap it all. And it comes built-in with a solid support system where if I have questions, I can go to them and ask.” —Justin James Sherfey of Pacific Solutions Northwest

Breaking the mold and defying age norms…

While RealEstateIvestor.com has solutions for real estate investors at any stage of the game from beginner through to expert, our Managed Services Members are most often seasoned real estate entrepreneurs with a few deals under their belt at a minimum.

In fact, on our Managed Services Page we share some guidelines on who’s a good fit for this program and who’s not. According to the direct quote below from our website, Justin breaks the typical mold for sure. In fact, he might even be the catalyst for us adding in the last sentence…

If you are brand new to real estate investing, have never done a deal and don’t actively market for motivated sellers now, we may not be a good fit because the key to getting a good return on investment is the confidence you have to close appointments with motivated sellers. If you lack experience but have confidence you can close deals, feel free to apply and we’ll see if it’s right for you. (From the RealEstateInvestor.com Website.)

While we have our REIgnyte Platform that can grow with you from day one of opening your business through to becoming a 7-figure CEO, our Managed Service Membership does have a simple application and zero-pressure interview process involved to make sure a candidate is the right fit.

You can read more about who’s a good fit for our Managed Service and who might want to focus on our products here.

On paper, Justin wasn’t an instant fit. But, thankfully this isn’t a one-size-fits-all type of business…

During his interview with our Senior Director Of Success, Mrs. Julia Jordan, Justin’s confidence, determination, and grit were evident. Julia was extremely impressed by his thoroughly thought out business goals and the measures he had taken already to start getting himself into that CEO mindset. So much so that she jokingly asked Justin, “You’re not 20 are you?”

To which, Justin neither denied nor confirmed that question and simply responded, “Well, I’m in my 20’s…”

When it really matters…

We asked Justin during our interview if there were any hurdles he had to jump over before joining our Managed Services. He shared with us that the upfront investment was a hurdle for him, but he also shared this insightful piece of wisdom:

“Yes, it’s an investment, but if it wasn’t a significant monetary commitment I wouldn’t have cared as much. This pushed me to care and make things happen. At the end of the day if you want it, having the right resources and getting with the right people can get you where you want to go. You have to have grit and you have to be fearless if you want to do great things.” —Justin James Sherfey

Let’s look at how Justin’s business has grown since becoming a Managed Service Member:

Justin became a RealEstateInvestor.com Managed Service Member in June 2019. When Justin joined us he had not closed any solo real estate investment deals other than the one he closed with his dad. He also did not have a pipeline of leads he was working on yet.

June and July were all about learning and onboarding.

During his first two months with us, Justin did a lot of learning. He learned how to talk to sellers, how to have sales conversations, how to overcome objections, and how to answer seller’s questions.

He also learned how our system works, how to work his pipeline, and how to make offers. While Justin was learning, our team was busy working on getting his lists up and running, launching his direct mailing campaigns, and building his pipeline from scratch.

In August, Justin got his first and second deals!

Justin got his first real estate investment deal in early August on a Tuesday, AND he got a second deal the following day on a Wednesday!

With these being his first solo deals, Justin didn’t hesitate to ask for a lot of advice to make sure he was doing things right and to find the best ways to make the deals happen. Later that month he closed on both of those wholesale deals and brought in some nice revenue to boot.

Now he’s making 1-2 deals a month on average and has at least 20 solid future sellers in his pipeline.

Since becoming a Managed Service Member with us, Justin has grown from being a completely brand new novice real estate investor with no solo deals in his career, to becoming a young real estate investor who’s closing on average 1-2 deals a month when he’s in full swing! He’s also got at least 20 solid future seller leads in his pipeline.

That’s just the tip of the iceberg! Justin’s headed towards closing at minimum of 3-4 deals per month.

Justin was recently challenged by our RealEstateInvestor.com coaches to make at least one offer a day, and to shoot for a bare minimum goal of closing 3-4 deals per month. This goal is just the tip of the iceberg for Justin. With how determined he is and how far he’s grown in the short time he’s been actively investing in real estate, the sky’s the limit for this young entrepreneur.

What does this look like financially for this 21-year old real estate investor?

Prior to becoming a fulltime real estate investor, Justin was making money through his music part-time. In his best year doing music, he brought in around $50,000 for the year.

In his first 11 months of investing in real estate using our RealEstateInvestor.com Managed Services, he’s already exceeded that revenue! And he plans to triple that income over the next 12 months!

He’s also looking to purchase a multi-family deal in the next year with at least 12 rental doors, and he’s wanting to partner with other investors on more deals this year so he can learn from them.

How does this young entrepreneur push himself to get after it?

When we asked Justin how he pushed himself to actively pursue his dream and to take massive action at such a young age, here’s what he shared:

“I feel like everyone has the urge to just sit around and be an ogre all day, no matter what their age is. But I think it was about creating structure for me. I have to have that structure for my daily, weekly, and monthly goals. I’m looking at how I can build the lifestyle I desire. I want to exit my business and experience life. So I focus on building the business that will afford me the lifestyle I desire 5, 10, 15 years from now.” —Justin James Sherfey

Would Justin James Sherfey refer RealEstateInvestor.com To Other Real Estate Entrepreneurs?

Yes! He’s already been a guest star on our live Q&A on Real Estate Investor Beacon, our free Facebook group for real estate entrepreneurs. Where he openly expresses his appreciation for our services as he shares his growth journey. This video is filled with lots of great wisdom from both Justin and our founders. It’s worth a quick watch.

In closing, we’ll share a final quote from our interview with Justin about why real estate entrepreneurs should consider becoming a RealEstateInvestor.com member.

“If you’re looking to get on realestateinvestor.com you’ll be getting education from the nation’s best, some of the best influencers who are actually working in the business. You have access to them through REIbeacon and the opportunity to build a solid platform for your business is here. They’re reachable, they’re connectable, they’re not “a celebrity.” You can reach out and have a conversation with them. RealEstateInvestor.com has helped me get all of my deals.” —Justin James Sherfey

Thank you Justin for being an amazing Managed Service Member. We’re so grateful to be a part of your journey and can’t wait to help you grow to new heights this year!

You spent hours researching the market, finding the perfect neighborhood, and property with just the right amenities and all within your budget.

You’ve got your property determined and now you’re excited, hopeful, and confident making your offer. Perhaps you even added something extra to make it more enticing like offering a quick close, but heaven-forbid you had competition.

…All to find out a few days later that your offer was declined, leaving you whirling in a fog of “what just happened?” without as much as a counteroffer…

Sound familiar? Well, it’s happened to many of us real estate investors before.

To get a quick sale deal, you need the right tools and a solution mindset.

Of course, we can’t predict the outcome of any offer you make, but we can arm you with tools and services to put you ahead of your competition and perhaps in a more appealing position for the next property’s seller.

But, even with the best tools and services in their toolkit, top sales professionals like Jeff Cohn of kwELITE also credit their success to selling solutions.

In real estate, that means understanding your seller’s motives for listing the property in the first place.

Knowing the types of motivations sellers have may help you formulate the perfect offer and win the quick sale.

Here are a few different motivators for selling a property fast.

When Their Property Condition is in Distress.

Selling the property without having to make repairs may be the homeowner’s dream offer…

In fact, Erik Hatch is one of our RealEstateInvestor.com Managed Service members who shares about giving sellers a First Class selling experience in this article.

Or perhaps they don’t have the financial means to fix up the place and are hopeful someone will take it off their hands quickly “as-is” to prevent a short sale.

A leaking roof, outdated kitchen, or damage from a natural disaster are all conditions that could put a property into distress. Repairs and updates can be expensive and not everyone has an eye for remodeling design or is handy with tools. Hiring a professional may be out of the budget for the homeowner further reducing the property’s condition.

When making an offer on a property in distress, consider the time and expense that will be needed, to ensure it’s a good investment for you. We recommend implementing an inspection reporting system like the online one we offer members as part of our< REIgnyte Grow platform.

Emotional Turmoil is Another Major Reason for a Quick Sale.

When a loved one passes away, heirs that inherit a property are already under an emotional distress. Perhaps the family member was sick or passed away suddenly. Maybe they were in the hospital or in a long-term care facility.

No matter what, those left behind are dealing with the loss of their loved one, the planning and expense of a funeral, and the need to not only sell the property but also pack up the remaining belongings. This in and of itself can add more emotional distress to the already stressful situation, especially if there are multiple heirs to contend with, making a quick sale a good solution for all parties.

Also, if you’re interested in learning how to invest in Probate Real Estate, this Podcast we had with guest Sharon Vornholt is a great start…

Divorce, job relocation, or seniors downsizing to smaller homes also fit into this emotional turmoil category. 

A quick sale may be what the owner is hoping for if they are selling because of a job relocation or have recently divorced. They may want to get out as quickly as possible and move on with their lives.

In whichever case, considering the seller’s needs may help you draw up an offer perfect for both parties. All of these situations put real estate investors in a unique position to be able to help someone in need, while also growing a sustainable real estate business.

Knowing When A Quick Sale Turns Into A Future Seller Lead…

Perhaps a quick sale is out of the question if the home was recently inherited and the new owners need to sort through grandma’s attic. Or perhaps they live out of state and need to hire a professional to help with emptying the property. A longer time may be necessary.

With that said, these types of leads can still turn into deals later down the road if you implement the right type of follow-up plan to capture leads that might not be ready to sell for several more months.

Financial Hardship Often Results In Quick Sales.

Job loss is one of the top reasons for financial hardship resulting in either a quick sale or a short sale. Without sufficient reserves, families may be unable to afford their mortgage, or have tax bills mounting. They may be considering bankruptcy and need to sell the home quickly.

Death and divorce are other reasons for hardship as well. Losing income from the loss of another person may cause the home to be unaffordable too. Not only is the seller dealing with the financial concerns, but they may be motivated emotionally as well.

Whatever the reason, sellers experiencing financial hardship are typically looking for quick dollars to get them out from under this burden. Understanding their situation can help you find the right balance.

What’s the difference between a quick sale and a short sale?

If you’re not sure of the difference between quick sale properties and short sale properties, here’s a simple distinguishing factor: Quick sales are typically home owner sold and short sales are sold once the bank takes a property back due to non-payment or other default reasons.

In this article we’re discussing quick sales, but if you’d like to learn more about short sales, you can check out this article we wrote here.

How do you locate these motivated sellers in the first place?

With the amount of knowledge and tools on the market today, you can do things the easy way through systems that help you identify Motivated Sellers like our very own property List Manager that allows you to stack and sort your lists to laser target your leads.

Or you can go the manual route which might look like this…

Besides working with real estate agents or searching MLS for available properties, you can work with lawyers or property managers. Motivated sellers can also be off market. Obituary listings and court filings may be good resources for recent divorces, bankruptcies and foreclosure.

As more baby boomers downsize, Senior Move Managers who work with older citizens on their relocation needs, may be another great resource in your search for your next property.

How to approach motivated sellers looking to sell quickly.

Whether in flourishing economies or tough economic times like we’ve recently experienced, understanding your seller’s motivation could be the key to winning the sale.

Start with having a conversation with your seller. Find out why they are selling and how they feel about it. You may be surprised at what they are willing to share if you just ask.

If you’re interested in learning more about how to help those in need of selling their homes fast through your real estate investment business, this podcast is a great one: How to Approach Sellers with a Heart of Empathy hosted by our very own Julia Jordan and guest Alan Weeks.

The 3 scaling secrets that a seven-figure real estate investor uses over and over again to generate massive cash flow with very little investment. 

We hope you enjoyed this article about how to approach quick sell homeowners with solutions to win the sale.

Successful people know about the Law of 33%. 

Whether it’s referred to as the Law of 33% or the 33% Rule, the concept is still the same. In order to be successful at whatever you do, you should surround yourself with people who help you build and maintain that success. And since there are three different groups of people who can help you along this journey, you should intentionally spend 33% of your time with each group. Hence, the Law of 33%. 

This rule can be applied across multiple facets of your life, but for this article I’ll be specifically talking about how the Law of 33% can apply to real estate entrepreneurs. But first, let’s look at why you need to invest in people, and if you need to change the way you think before you can even start implementing the Law of 33%.

People are the lifeblood of all real estate businesses.

As a real estate investor, you can’t get around the fact that you need people. You need sellers, you need buyers, and you need everyone in between in order to make deals happen. People are the lifeblood of every good business. People can make or break your success, and investing your time in the right people can mean everything. Especially if you dream of building a real estate empire! 

“It’s not what you know, it’s who you know.”

Before you roll your eyes, think about it. While this isn’t an absolute statement—since it does require knowledge and action to be successful—it’s still a true statement. This is why you see pictures of crazy rich people partying together on each other’s yachts plastered all over social media.

Do they all happen to love the ocean that much?

Nope! In fact, I’d venture to guess that 33% of them had to take a ton of Dramamine in order to simply attend an event at sea. But it’s worth it because they understand the law of 33%. And they know the importance of surrounding themselves with people smarter and more successful than them.

I don’t know anybody with a yacht. Does that mean that I won’t find success?

It’s not about the yacht. I used that as a figurative example to describe successful people who have built great wealth. Or more simply put, America’s 1%.

According to Economic Policy Institute data, only 1% of families in the United States make a combined annual income over $421,926. That means if you’re in a dual income household, each person would need to make just shy of $211,000 per year to step from away from the 99% and into the 1%. While that level of income’s quite nice, it’s actually not as unreachable as some of us thought it would be. Especially not when you’re in real estate…

So, what keeps 99% of our population from closing this gap?

Is it bad luck or circumstance?

Nope.

The gap is wide, because changing the way we think is harder than making excuses.

The way we think is what keeps that gap wide open. Many of us think in “impossibles.” After all, how many of us thought that the 1% made millions or billions of dollars? If you had to make millions or billions of dollars, that would seem a whole lot more impossible than taking a $100,000 bite out of that gap each year for five years to exceed $421,926. Right?

When the 99% hear the phrase, “It’s not what you know, it’s who you know,” they think differently than the 1%. They think about how they’re not fortunate enough to be connected with “the right people.” They might blame it on their upbringing, where they live, their financial status, or a million other factors that keep most of the population stuck in the 99%.

The truth is that every single person has control over what they do with their time. And spending time investing in forging relationships that are positive, that lift you up, and that push you outside your comfort zone is always possible.

No matter who you know today, or who your family knows, forging new relationships is always possible. You just need to tear down that wall in your mind that says it’s not. And then utilize the Law of 33% to make the most out of who you’re spending time with.

The Law of 33% Simplified for Real Estate Investors.

Smart and successful real estate entrepreneurs grow and scale their empires through connecting with people and investing in the right groups of people. Let’s look at how the Law of 33% applies to our industry below. 

• Spend 33% of your time with real estate entrepreneurs who are smarter than you. Invest in mentors and coaches with proven track records. Surround yourself with people who are 10-times further ahead than you are. Join Masterminds and networking groups. This will push you outside of your comfort zone, and encourage you to grow and push your boundaries further. This can also provide you with the resources and connections that can assist you along your climb to the top. And perhaps you’ll even befriend a yacht owner if you look hard enough.
• Spend 33% of your time with your peers and friends who are on or near your same level. Helping each other through the journey and watching each other find success in real estate is incredibly motivating and rewarding. This will keep you pumped up and encouraged.
• Spend 33% of your time helping others who are not as far along as you are. Giving back is rewarding and it’s what keeps the cycle of learning going. Just as others invested in helping you grow your real estate career, you should return the favor by investing in others as well.

Not sure where to start? Join our RealEstateInvestor.com community. 

Our community at RealEstateInvestor.com is filled with real estate investors at all stages in their careers. Our members get exclusive access to high-list Mastermind groups, and training events where they can network with other members and learn from the industry’s best and brightest. In fact, we’re even hosting a mega event called REIgnyte 2020 that starts Saturday, May 2^nd in Tampa, Florida. That’s a great place to meet other real estate professionals!

We believe in investing in our community. And we love providing our community with the tools, systems, and services that real estate entrepreneurs need in order to grow a truly successful business.

Want to hear from our community?

Check out Hannah and Dustin’s story about how they went from 2 deals a year to 23 deals in 7 months! Below is a snippet from their interview with us. It sounds like they learned the Law of 33% early and are well on their way towards becoming a part of the 1%!

We asked: If you could go back to the beginning of your real estate career, what’s one thing you would do differently?

They answered: We would have joined a Mastermind sooner because being around the people who do what you want to do successfully is an amazing thing. It just pushes you.

—Hannah Ritch and Dustin Hoffman from D.L. Hoffman Homes
Successful real estate investors and REIgnyte Managed Members

The real estate market changes every few years. Sometimes motivated sellers are coming out of the woodwork, and other times they’re super hard to find. Experienced Real Estate Investors cite their slowdown of seller leads on many different sources. Let’s look at those common sources to determine what might be causing your seller lead flow to slow down.

“When a market heats up, new real estate investors flood in and sour good leads.”

It’s exciting when a market heats up. But when this happens it’s inevitable that new real estate investors will eventually flood in. This ‘gold rush’ effect happens when people see other entrepreneurs making good money. This usually results in a mixed lot that’s made mostly of people chasing easy money, and only a few new real estate investors who are actually serious about putting in the effort to build their businesses.

It’s not either of our jobs to decipher who’s serious about joining our industry from who’s not. That gets weeded out on its own eventually. After all, building a business in real estate takes effort and it’s far from easy money. So once those who aren’t ready to work hard see this, they’ll move on to the next shiny thing.

But are these newbies to blame for souring the best leads in the market and turning qualified sellers off from dealing with other real estate investors in general? Possibly. But this would likely only happen with a handful of leads, but not enough leads to really impact your business…

“This or that marketing source used to work, but it’s totally dead now.”

No industry is immune to fluctuating marketing trends and changing algorithms on popular PPC advertisement sites. Real Estate Investors can suffer from low lead conversion rates, poor performing ads, direct mail campaigns that bring in less than optimal results, and other marketing sources that seem to dry up.

While this definitely can cause seller leads to slow down, there are a lot of different factors at play with these ads that can impact their overall performance. That ad source might not be working well right now or it might be a poorly worded or targeted ad, among many other potential reasons. But is this really keeping real estate investors from being able to get quality seller leads? No.

So what’s really causing the slowdown in seller leads?

The truth is there’s no shortage of seller leads. Motivated sellers are a little harder to find when the competition heats up, but any investor (or agent) worth their salt knows how to find them.

You can find list brokers and software that pulls public records by the thousands. Or you can invest in high quality direct mail lists or internet advertising that’s proven to work now. Just because what you did last year isn’t working today, it doesn’t mean that nothing is working now.

Actually, when it comes down to it, getting seller leads to come in the door is actually easy if you take the time to find out what’s working now. But that’s not what you really need to get a leg up on your competition…

Real Estate Investors are so focused on generating seller leads when it’s not even the problem!

Sales and marketing is really a game of weeding people out, eliminating sellers who aren’t a good fit for you, and getting to the appointment so you can close the deal.

The most successful investors are not blinded by the numbers game and generating more leads. They’re focused on generating more appointments. Appointments that are with qualified and motivated sellers who already know they need to sell their house and that you might be the solution that can help them.

A solution that gets you straight to the appointment stage.

This is what we do for our members of RealEstateInvestor.com. We offer the tools and resources to help our members to bypass all of that time spent in the weeds looking for leads, and instead head straight to the appointments so that they can close bigger and better deals.

Our REIgnyte Managed members are some of the country’s most successful real estate investors, and we handle everything for them. From marketing, cold calling, qualifying leads, and setting appointments, we take care of the grunt work so they can focus on growing their business.

When our investors can focus on the process that happens from appointment through to closing the deal, they’re able to scale their business faster and they’re much happier because they can relax and know all of the lead work is covered for them. As a result, they can focus on closing more deals, more consistently and with less effort.

If you’d like to learn more…

If this sounds like something you’d like to know more about, let’s set up an appointment to talk. Our new REIgnyte suite has a wide range of options for real estate entrepreneurs. Options that can grow with you as you scale your business.

We’d also love to see you in our REI Beacon Private Facebook Group where we hold regular training’s and Q&A’s with industry experts!

Darren’s love for both real estate and entrepreneurism makes him a great culture fit for our company and an enthusiastic advocate for our members. Here’s what Darren has to say about what he loves most about his job.

“There’s something truly rewarding about getting to see an entrepreneur’s business grow in real time. I talk to all of our managed service members on a quarterly basis. That’s over 300 talented real estate investors who range from novice to expert in experience. Being in regular contact with so many investors gives us great insight on tips and techniques that are working right now across the country. My absolute favorite part of this job is when I get to see the needle move after a member implements a strategic plan we build together. Seeing this happen and being a part of helping an entrepreneur hit their goals is exciting!” —Darren Wassell

His thoughts on the recent merger between REIvault and InvestorPO.

When Gary Boomershine chose to merge his businesses into the powerhouse full-scope platform that’s now called REIgnyte, it drummed up a lot of excitement and change. We asked Darren for the inside scoop and what he thought of the merger. Here’s what he had to say.

“We’re all super excited about it because we at REIvault have always had excellent managed services with an “okay” technology piece. InvestorPO had the incredible technology and CRM piece we needed. Apart we were both good, but together we’re great! As the Director of Client Services, I love that we can now offer our members the best of both worlds and help them produce even better results than we could before.” —Darren Wassell

Here’s a tip for struggling real estate investors from Darren Wassell.

We asked Darren if he could give a tip to a struggling real estate investor, what would it be. This tip was spot on!

“The fortune’s in the follow up. We as investors are all ready to buy houses today and every day. But most sellers aren’t ready to sell their house until sometime in the future. Few are ready now. So the key is to connect with them, build rapport and credibility, and educate them. If they’re ready to sell now, that’s great! If not, follow up, follow up, follow up, until that seller is ready to sell. If you’re in front of them when they’re finally ready to sell in the future, that’s when you’ll get the deal. Most investors don’t have the patience or time to stay with sellers until they’re ready to sell. While the people who do, make the most money.” —Darren Wassell

Getting to know Darren.

Born in San Diego, Darren began moving his way northward along the California coast where he attended Pepperdine University near Malibu. After graduating with a degree in Organizational Communication, his career track took him even further north to the San Francisco Bay area where he still lives today.

When Darren’s not working, he’s spending time with his family. He’s a firm believer that a healthy body equals a healthy mind, and enjoys exercising on a consistent basis alongside his lovely wife of 26+ years. Darren has three kids, two of which are already out of the house and across the country in North Carolina and in Texas, where Darren and his wife frequently travel for a visit. While some of their friends are having babies and starting their families late in life, Darren and his wife are anxiously looking forward to the grandparent phase of life in the future.

If you’re ready to build your financial wealth, consider the following

There are many ways to grow wealthy during a recession as a real estate investor. But before we dive in, you’ll want to make sure that you have the right tools, systems, and resources available to you to build your real estate investment business. At RealEstateInvestor.com we’re an all solution provider that’s proud to equip real estate entrepreneurs with everything they need to succeed and grow their business. You can learn more about our suite of innovative products and services here.

Our founders of RealEstateInvestor.com are real estate investors themselves who have both been through recessions in the past. They created an amazing video that talks about everything you need to do to make your real estate business work for you this year. You can watch their training video on this here on YouTube for free.

Ready to learn some tips for maximizing your business and potentially growing rich during a recession? Keep reading for some ideas… 

Utilize Your Equity

I don’t mean buying that luxury car you’ve had your eye on, or taking that tropical island vacation when travel bans are lifted. Those things are great but hold onto those thoughts for now.

Instead, consider leveraging the equity you have in an existing property and use it toward the investment of another. By taking advantage of low home equity loans, you can grow your portfolio with an additional investment property and income.

Before you sign on the dotted line, make sure you find the right property that fits your needs and your budget.

Take Advantage of Lower Interest Rates

Interest rates drop when the economy is down. We’ve already seen proof of this with the cuts The Fed made in March 2020. Since banks depend on loans to make money, lower rates will make borrowing more enticing to investors, making both parties happy.

These rates won’t last for long, so be sure you don’t let low rates slip by.

Home Defaults

Homeowners that are unable to pay their mortgage because of a job loss eventually lose their house to their bank or lender. While this is unfortunate for them, this opens an opportunity for a real estate investor to swoop in and save the day by helping the seller out by buying their home quickly before the bank has to take it back.

What does this mean for real estate investors this year? 

Properties can often be found at lower prices, sometimes at a fraction of their pre-recession value. Investors taking advantage of these offers are positioned to gain equity quickly, once the market rebounds and values return to their normal levels.

Other Economic Fallouts

Home defaults aren’t the only thing that rises when the economy drops…

Divorces increase during economic hard times. 

Financial instability during a recession often puts strains on family life causing marriages to end.

What does that have to do with real estate investing during recessions?

As couples split, assets need to be divided, giving opportunities for investors to help with this, especially if property owners are eager to sell fast.

Speaking of owners that want to sell fast, have you ever considered buying a property whose owner recently passed away? 

As you can imagine, the loss of a loved one and planning a funeral can be emotionally overwhelming. Deciding what to do with Grandma’s old house can be too… Especially if there are multiple heirs involved in the estate.

Unless the family had a personal connection and just can’t part with Grandma’s house, most look to sell fast and would consider a lower price to make that happen. After all, they will have funeral costs and lawyer fees to tend with as well.

This provides another chance for real estate investors to help out sellers in their time of need, by providing them with an instant offer and a stress-free sales process.

Keep Your Long-Term Plan in Sight

Regardless of where you are today, thinking long-term is always the smartest move. After all, economic cycles of ups and downs will occur again and again. Markets will return and grow, and economies will experience recessions.

All of these things are about as predictable as a sunrise… 

As unemployment rises during a potential coronavirus recession, more people will look for rental units, and demand for those properties will go up. Making this a great time to invest in rental units and buy and hold real estate.

Planning now for your future will put you at an advantage later. 

As many of us are moving into longer stay at home orders, now is the exact time when you should be planning out your strategy for the future. There will be a lot of opportunities that will rise for a short time and disappear before you know it…

Will you be prepared?

Check out our article on 7 strategic business moves that you can start making right now to get prepared.

Also, stay on top of new industry trends, free training, and networking in our REI Beacon Facebook group. It’s 100% free, and the value being dropped there is unlike anything offered by us before.