To say Gary Boomershine, founder of RealEstateInvestor.com, is passionate about real estate is an understatement. We were fortunate enough to talk with him today about his predictions for the future of the real estate market and the seven-year cycle.
Is now the time to buy?
It’s a question Gary has heard hundreds of times. Before responding with a simple yes or no, Gary noted fundamentals to consider when making a purchase decision. The old “keep it simple” adage is not new to real estate and is a concept Gary recommends when it comes to investing in real estate.
It’s as simple as this: You want to buy low, sell high, and not lose your investor’s money. – Gary Boomershine shares.
When considering a real estate purchase from an investment or wholesale standpoint, Gary warns not to fall in love with the property. Instead, fall in love with the cash flow.
He suggests keeping in mind the three buckets of cash:
- Cash Now
- Cash Flow
- Cash Later
The “Cash Now” Bucket
Many investors think there is only one bucket, Cash Now, which is the immediate or short-term return on your investment.
Common examples of Cash Now deals include wholesaling and house flipping which is buying, fixing, and selling a home for a profit. “Cash Now” refers to the transactional profit that’s made during a quick turnaround investment deal.
Cash Now deals are great. They can be lucrative, but as a one-time transaction payout, this is really just a JOB investors do. There’s no long term revenue associated with this bucket. – Gary shares.
Cash Now deals are one of the most common strategies that real estate investors employ in today’s market. But Gary strongly recommends that real estate investors not focus on this cash bucket alone. Instead, they should ALWAYS be looking at the other cash buckets to diversify the revenue they bring in.
“A lot of real estate investors think there’s just one bucket, the Cash Now bucket. They’re always thinking, ‘How can I make a quick transaction and a quick buck?’ That mindset drastically limits the deals they could be getting if they simply kept their eyes open to all three buckets of cash.”
The “Cash Flow” Bucket
Cash Flow applies to rentals and the income the investor will receive on a regular basis. But Cash Flow can also be private lending which is an area he recommends when growing your business in this kind of market.
The “Cash Later” Bucket
Cash Later is the appreciation and tax advantages investors get on the property, not to mention the renter paying down the mortgage.
Of course, everyone must live somewhere. If you are looking to purchase a home you will live in, or one you will rent out, which Gary refers to as a “buy and hold” investment, he recommends that you always look for a quality property. Not just any property that comes along in the right price range.
He also recommends that Investors plan to upgrade their “buy and hold” portfolio as well. This adds value to their investment long term.
Investors should also be prepared to keep “cash later” investment deals for some time, if they wish to get a return. Gary explains why:
“Real estate is a finance and leverage game and it’s a long term play. It’s easy to be shortsighted just thinking about making a quick buck today, sacrificing the real advantages of real estate for long term wealth and its tax benefits.”
Overdue For A Downward Turn…
Gary suggests the market is due—actually, well overdue—for a downward turn. In fact, he predicted this long before COVID-19 came around… He’s been talking about this on nearly every podcast and interview he’s been on for the past two years!
Historically, we’ve seen similar patterns, or cycles, that impact our economy and the real estate market every seven years or so, bringing with it a euphoric stage where massive transfers of wealth occur.
This includes the mortgage crisis in 2008 and the 9/11 attacks in 2001, which both had significant impacts on the stock market. In 1994, there was the bond market crisis, and in 1987, we had Black Monday. All of which occurred seven years apart and date back almost 100 years.
With these past economic examples, Gary has been predicting what he calls a “Boogeyman Event” and the next downturn, for several years. This cycle is far different from the natural order of supply and demand. It’s preceded by what many people call the “euphoric stage,” which is the final stage of the real estate market before the downturn.
Gary explains his prediction and the euphoric stage well in his quote below.
It’s happened every seven years… Each downturn seems to have similar beginning catalytic events and similar end cycles. This creates what many people call the ‘euphoric stage.’ The euphoric stage is actually the final stage of the real estate market before the downturn occurs. It’s when everyone starts talking about real estate— The barber, the hairdresser… You can’t lose. It’s when the late night tv guys selling: “How To Get Rich In Real Estate,” start popping up everywhere. During this stage it’s a sellers market with over bidding on houses going on everywhere, which is when people start talking about real estate left and right. And it’s during the actual downturn or shortly after that massive transformations of wealth occur. This has happened consistently in an uncanny rhythm. So I had no doubt that we were overdue for what I call a “Boogeyman Event,” to start the cycle all over again. I’ve been telling real estate investors to be preparing for something like this for a while now. 2020 might have been a few years late, but here we are. – Gary Boomershine, RealEstateInvestor.com
The Boogeyman Is Here… So, What Should Real Estate Investors Expect?
At an almost twelve-year high, real estate investors should be prepared for a change, according to Gary who believes the next 6-9 months will be fairly the same as today. But investors should expect a drop in the next 24 months, with hefty decreases in some areas of the country of 20%. Here’s what he shared:
“We’re still seeing money out there… However, I foresee a drop in real estate in the next 24 months. Some markets, what I call the “linear markets,” will probably see more of a 5-8% drop similar to 2008. These are usually rural or middle parts of the country like Alabama, Oklahoma, Ohio, etc. Other areas might get hit much harder. Hot areas like Las Vegas, Phoenix, Hawaii, etc. might end up seeing drops upwards into the 25-30%+ range.”
Today, we are seeing record high rates of unemployment. With people out of work, the inability for them to pay their mortgage will continue to rise as well. According to Gary, 25% of mortgage holders have less than one month’s savings.
Inevitably, this will lead to a foreclosure boom. With more properties flooding the market and sellers desperate to unload properties they can’t afford, prices will drop. Investors with cash or creative buying power will be able to get great deals, while also helping sellers avoid financial disasters such as foreclosures.
Mortgage holders aren’t the only group affected. Investors will also feel the impact according to Gary, who tells us that 53% of people living in rental properties have less than $500 in their savings account.
Landlords will need to sell because people won’t pay their rent. – Gary shares.
When renters cannot pay their rent, landlords suffer unless they have reserves to fall back on, and many do not… This leads to the snowball effect that we’ve seen repeat in the same cycle over the past 100 years.
History is a great predictor of the future. –Gary answers when asked how he came about his predictions earlier than most.
Many landlords bought late when real estate was peaking. In recent years, 50% of the single-family properties purchased were done by investors using them for rental purposes, not to live in themselves.
These landlords who once weren’t interested in selling their properties are now having a change of heart, according to Gary, who noted their willingness to sell at a lower price than they would have entertained in the past.
“There are burnt out landlords who were not interested in selling before. Now they are… Investors are going back to their old leads who said no to selling earlier and are finding sellers interested again. All the more reason why follow-up is gold during times like this.”
This will present opportunities in the market, as Gary predicts these drops will be followed by massive appreciation. History agrees with him…
The biggest transformation of wealth will happen during these downturns. It happened every time before, and it will no doubt happen again. – Gary shares.
Gary suggests holding onto the properties you have now, citing incredible gains are coming. He gave an example of a property in the San Francisco Bay area that is worth $3 million today. In ten years, he predicts, it will be worth $10 million. A deal that’s definitely not too shabby!
How is Gary so confident about this?
It’s simple economics… Hyper-inflation. With the amount of money that has been added to the economy recently, massive inflation is inevitable. And with that comes higher prices for everything from basic essentials like milk and cheese, to hard assets like real estate.
In a hyper-inflation scenario, people will want to have hard assets. The middle class will disappear. Those who own real estate will be part of the wealthy. It has happened in other countries, and Gary expects it to happen here adding:
“Real estate is a long term game.”
What Should Real Estate Investors Be Doing Today?
Gary, who said they are already seeing a shift to buying remotely and creatively, compared today’s market to a tsunami.
“People shouldn’t get caught watching the water recede rapidly at the shoreline thinking ‘Wow, look at the fish left on the beach!’ Instead, they need to get moving fast.”
Instead, he recommends that investors stay one step ahead, thinking ahead and asking themselves, “Where do I want to be right now? On the shore or on higher ground?”
When it comes to what real estate investors need to be doing right now, Gary’s answer is in his “Three P’s.”
Gary Boomershine’s 3 P’s:
- Protect what you have.
- Pivot to take advantage of the new market.
He expands on this a little further:
“Whatever you do, don’t sit idle. Take advantage of the situation and prepare for the future. Now is not a time to be sitting on the sidelines… Right now is a good time to step in and figure out what you’re doing and where you’re going.”
Right now real estate investors are doubling up on their marketing and going back to their old leads. This is the perfect time to learn how to buy and sell property remotely.
This Virtual Wholesaling concept has seen an increase in recent months as investors began working from home. The market expands greatly when you work virtually. Investors like Gary can live in San Francisco and purchase properties in Dallas or Atlanta.
Gary also mentions that he’s seeing a massive shift to buying creatively. And by creatively, he means people are turning to private lending. Owners are willing to help finance some or all of the property because they want the income stream.
“Buying creatively is going to keep growing in popularity since there’s a lot of opportunity there right now. Especially as owners look for additional revenue opportunities, and as they become increasingly concerned about the amount of taxes they will have to pay, capital gains, and so on. Some people are even worried about their money being safe in banks long term, making creative financing more appealing.”
Real Estate, Monopoly, And An Uncertain Future…
While Gary considers himself a conservative investor, he cautions buyers not to wait too long before jumping back into the market. But, no one knows what the future holds. There could be a second wave, or even a third, fourth, or fifth wave, which is why he recommends having a safety net. Here’s what he shares…
“If you’re planning to buy today, ask yourself, can you afford it? If the answer is yes, can you still afford it if your job changes? For investors looking to purchase a rental unit, ask yourself if you can afford the property if your vacancy rate soars to 60%. If you can break even at that rate, buy the property. Be wise, use your best judgement, and think ahead.”
Gary also referred to an old salesmen quote that says:
“Good salespeople know what to go after. Great salespeople know what to walk away from.”
If you want to play the real estate game, then remember that it’s just like playing Monopoly. You can have all the real estate, but if you can’t pay the mortgage, you’ll have to turn your cards over, leverage them, and sell them for pennies on the dollar. Nobody wants to have to do that. – Gary Boomershine, RealEstateInvestor.com
At the end of the day, the future is no doubt uncertain. But one thing is for sure…
There are incredible opportunities available in this market and more to come. And thanks to Gary sharing his wisdom with us, we know what to look out for, how to be prepared, and how to make the most of it.
This is an absolutely fantastic time to be in real estate investing. For real estate investors who are already in the game, right now is all about making the right moves that will help you survive and thrive in this new market. – Gary Boomershine
Ready To Learn More?
If you’re interested in learning more about how you can survive and thrive as a real estate investor in a Post-Coronavirus world, we recommend that you check out this other article that dives deeper into this topic here:
We’ve been talking about it from the early days of COVID-19…
It was the driving catalyst for our building Real Estate Investor Beacon, a 100% Free Facebook Community for real estate entrepreneurs looking for guidance through this time.
It’s why we started hosting our free monthly in-depth coaching events, as well as our free weekly strategy sessions where the REI Beacon community can ask all of their questions in a live open format.
And it’s why we’re committed to being beacons of light in our industry and our communities. With a common goal of spreading a message of hope and positivity, redirecting our focus towards what is ahead of us…
Why is NOW the time to invest in real estate?
We’ve discussed strategic business moves you can make while at home, how to find motivated sellers, as well as why this is the time to invest in vacation rental properties, short sales, and probate real estate.
In this article, we’ll discuss four reasons you should consider investing in real estate right away.
#1 – Record Low-Interest Rates
Even before the coronavirus outbreak, the US was experiencing low-interest rates, but since the pandemic, rates have dropped to record levels—the lowest recording since Freddie Mac began tracking this data almost fifty years ago!
Because of this, now’s the time to refinance or consider investing in a new property.
By taking advantage of refinancing at a lower rate, you’ll not only save in interest paid long-term, but you can improve your cash flow too. Which will free up some funds to invest in real estate.
Have you ever thought about house flipping?
Not only can you get better rates on your home purchase, your house will also be more affordable to buyers when you sell. There will no doubt be new home buyers on the market looking to take advantage of these historically low rates. Meaning there will be a nice win-win for both of you.
#2- A Surge in Treasury Bonds
If you haven’t been following the stock market, you may not know that there’s been an increase in treasury bonds. It’s a domino effect, really…
When safety investments increase, like the surge in treasury bond purchases, investors look for other safe investment options such as real estate.
Why is this a positive for real estate investors?
It opens up the door to more wholesale deals.
Now is a good time to work wholesale deals since investors are looking for properties to buy.
Wholesale investment deals can significantly help real estate investors grow and scale their business. In fact, we have a case study on one of our Managed Service Members who grew their business from 2 flips a month to 23 deals in just 7 months after our sales team helped them boost their wholesale deal flow.
It means a boost in private money funding.
But that’s not all. Equity investors are looking for other options for investing their money. Have you considered funding your next real estate investment with private money? It may be a better deal for you than a hard money loan.
We’ve got a podcast with one of our founders, Gary Boomershine, and an expert in private money— Jay Conner, that you can listen to about this subject here.
#3 Building Material Shortages
Because of Covid-19, many industries have seen disruptions in their supply chain, especially if their goods or materials come from China. For the home construction industry, imported building materials can take much longer to get today compared to pre-coronavirus days. This has an impact on their building schedule, lengthening the construction process, and reducing the amount of brand new properties available.
This works in favor of real estate investors who flip houses.
With less inventory of new properties on the market, investors that flip can experience more buyer’s demand in renovated homes. In addition, when there are more buyers than sellers, the opportunity for multiple offers can exist, making it an even better market for investors who are into flipping houses.
And it helps long-term rental investors see fewer vacancies.
Besides that, lower inventory means long-term rental investors will see fewer vacancies in their properties. People need a place to live and if there aren’t many choices, those that are available will fill much faster than when options are plentiful.
How to get the most out of a low inventory housing market?
Before you invest in rental homes, it’s important for you to understand what the standard rental rates are for renters in your area. High priced properties are not in short supply. To the contrary, there’s an abundance of those properties for sale and rent in almost any market.
To take advantage of low inventory in your market, you must concentrate on affordable options you can either flip or rent. No matter what type of market you’re planning to invest in, it always pays to do your homework first.
#4 Vacationing Has Stalled…
It’s not a secret… People are nervous about taking vacations over the summer break. From Covid-19 restrictions, worry about international traveling, and even some states going as far as releasing tourism campaigns encouraging out of state residents not to travel to their more remote resort towns until later, traveling is a bit of an iffy subject these days.
Cancellations and empty rentals have already impacted existing property owners, and likely will continue to be an issue. Even if things clear up soon, it’s unlikely that tourism will bounce back to where it was pre-corona days… At least for a few years, that is.
This can leave investors feeling panicky if they don’t have sufficient reserves to weather this type of storm. Or if they work on tight margins and require maximum occupancy to survive.
Vacation rental owners might need to sell fast at bargain prices.
Desperate investors could opt to sell fast. And a fast sale could mean a bargain price for you. We have an article that discusses this more in-depth that you can read here.
If you’re looking to invest in vacation real estate for the future when things hopefully bounce back, now may be the time to pick up a property for a great deal. After all, we know the sun will shine again tomorrow and vacationers will eventually return to traveling.
A post-coronavirus world will be different, but opportunity is often found amidst change.
In a post-coronavirus world, there could be plenty of opportunities for you to invest. When our news feeds return to normal, investment opportunities might not be quite as vast as what they are right now amidst uncertainty.
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.
We’re continuing to provide free webinars and training for real estate investors to make the most of this unprecedented market over on our REI Beacon Facebook Group. (Make sure you join this free resource group.)
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?
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 2nd 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!
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.
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.
At first blush, you may think “no, absolutely not.” After all, we are amid a global crisis with some states and countries still under lockdown.
This uncertainty can stall you from looking toward the future when travel restrictions are lifted, and life and business return to some normalcy.
During a crisis, it is not uncommon for people to make decisions out of panic. When bookings drop, some existing property owners may feel desperate and opt to sell at a lower price than they should. Lenders may offer lower interest rates during these economic downturns or have properties available as a short sale.
All of which could make this the perfect time to invest in vacation rental property.
But like other investing opportunities, it’s best to make your decision based on facts and data.
Booking sites such as Airbnb, VRBO, and others have made finding properties for today’s traveler much easier. With the increase in travelers preferring vacation homes over hotels, an investment in rental property is a wise decision with the potential for a great return on your investment.
Before diving in headfirst, consider realistic drawbacks.
Count the costs before buying a vacation rental property. Here are some of the questions you should ask yourself first.
Can you afford it?
Verify your finances to make sure this investment fits within your budget. Strapping yourself for cash is not a wise decision during any economic climate.
What if no one rents your property?
It’s a worst-case scenario that no one wants to think about. Perhaps the location is undesirable, or the price is too high, or the property is too small, or the area is facing another economic crisis. Whatever the reason, would you be able to weather the storm if you went without rental income for several weeks or perhaps even months?
Remember that this is also your investment.
Choose a location and property you and your family will enjoy. Perhaps if it’s not rented for a few weeks out of a year, you all could travel there and build great memories. Either way, the property would still be useful if it’s somewhere you could benefit from traveling to.
If owning a vacation rental property sounds appealing, where do you begin?
If you’ve counted the costs and decided that you’re ready to make this investment happen, here are some ideas of where to start.
For starters, do your research.
Location is key to a successful vacation rental investment. Choose a destination that attracts travelers. Properties in warm climates or with access to beaches and amenities may be popular. But properties near parks, lakes, or other attractions may have a similar draw. Apartments or lofts in metropolitan cities or cottages in mountainside towns may be equally appealing.
Once you’ve narrowed down your location, research properties for sale. Analyze market rates to ensure a good return on your investment.
When searching for rental property, keep these things in mind:
- Does the property need repairs like a new roof or windows?
- In what condition are the appliances and heating/cooling systems?
- What will repair or renovations cost, and how long will they take?
- Why is the current owner selling?
- What types of renters did they have in the past?
- What enhancements can you make to attract more renters?
Consider all actual costs.
Besides the initial investment, furnishings, repairs, or desired renovations, there are other costs in owning a vacation rental property. This would include insurance, utilities, maintenance, and property taxes.
Properties located within communities may have Homeowners’ Association (HOA) fees to cover maintenance of common areas like landscaping, or shared facilities such as a clubhouse, fitness center, or swimming pool.
In addition to this, there can be other fees that must be considered like leasehold or fee simple, which are essentially a “rental fee” or a charge imposed for the land upon which the property sits.
Unless you plan to handle the daily running of your rental, you might want to consider hiring a Property Management Company to assist with bookings, scheduling, and cleaning. Some states even require this as a part of ownership.
And don’t forget advertising. To get an edge above your competition, you may consider hiring a marketing firm to attract renters.
Understand short-term rental laws in your area.
Restrictions vary from one community to another. Check if your area limits the number of rental properties allowed, or if the owner must live on site or not. Some cities have length-of-stay laws, limiting guests to a maximum stay of 30 days. Other communities regulate the type of structure allowed as a rental or require owners to obtain a rental license.
If you plan on managing your vacation rental on your own, you’ll want to read up on your state and local government’s tax laws since some states require you to collect sales taxes or hotel taxes from your guests. Collecting and processing these taxes would be another step to consider when owning a vacation rental and managing it yourself.
These are just a few of the important factors you should pay attention to when determining if buying that vacation property is worth the investment or not.
Should you buy a vacation rental in 2020?
At the end of the day, this decision should be made after you do your homework on whether it’s right for you or not. There are some distinct opportunities in today’s market for some great deals on this type of investment property. But, it’s important to do your research quickly because eventually this crisis will end and when it does, the deals on vacation rentals might not be as advantageous as they are right now.
Do you have the right tools you need to find the best vacation property deals?
When it comes to real estate investing, having the right tools and systems can make all the difference in finding that beachfront property or mountain view property before your competition does.
If you’re looking to become a serious real estate investor who owns multiple properties including vacation rentals, you’ll need a plan for how you’ll find and locate your motivated sellers, and how you’ll manage leads.
Like with any business, it’s important to look at what industry experts and professionals are using to grow their businesses. It doesn’t make sense to spend time trying to do things manually and less efficiently when there are innovative systems and tools that can help you do things better and faster.
Here are some of the tools and systems we recommend:
Obtaining property lists is an important step in finding the right properties to fit your vacation rental needs, as well as to locate highly motivated sellers. Back in the day investors would use spreadsheets to manage these lead lists, but manual tracking and filtering just doesn’t make sense in 2020.
Now, you can save time and money by using a cloud-based property list stack filtering and fulfillment service like Property List Manager. This service helps you save both time and money by using the power of data and algorithms to import your lists, stack them, and then sort and filter the addresses to target your most highly motivated leads. With a built-in mapping system, PLM is an incredibly efficient way to streamline your property lists.
A Real Estate Investing CRM is another “must have” for managing your prospects, tracking leads and managing them, running personalized follow up and touchpoint campaigns, and handling every aspect of the sales life cycle. Our Grow CRM was built by real estate investors for real estate investors and allows you to manage every aspect of the sales life-cycle in one system with automated efficiency.
Finding motivated sellers and closing deals is a marathon, not a sprint. Investing in the right systems and software that help you optimize relationships and minimize time-consuming processes can make the difference between having a mediocre business and an amazing business.
For a limited time only, we’re running an unprecedented deal on both our Grow CRM and our Property List Manager together, making these systems more affordable than ever before. Check out this deal and more information here.
Are you looking at a way to spend your coronavirus stimulus check?
If you’re still working right now and if you see your stimulus check as something that makes sense to invest, vacation rental properties might be the choice for you. Either way, this article has some ideas on what you can do to make your stimulus check go a little further.
If you’re a novice or intermediate real estate investor, you might have heard the term short sale thrown around by more experienced investors. This article explains what a short sale is, and how you can determine if this type of investment property is right for you.
What’s a Short Sale?
If you haven’t heard the term before, a short sale occurs when a property owner owes more money on the outstanding mortgage than the property is worth. When the lender agrees to let the property sell “short” of the money owed, they take a loss as a “short sale.”
This is typically considered a better option for the seller than a foreclosure where the lender takes ownership of the property because of an unpaid mortgage.
Short sales can be appealing if you’re looking to acquire an income property at a discount. Now’s the time to consider them given how many people have been impacted by the coronavirus pandemic and the consequentially high unemployment rates.
Why Buy a Short Sale Property?
Lenders look to sell short sale properties fast. They want to avoid incurring additional costs. As such, they are likely able to offer better financing terms—like lower interest rates—to make the real estate more attractive to purchase.
Buyers usually get lower pricing that’s below market value when it comes to short sale properties. This is due in part because lenders have already agreed to a short sale that covered part of the mortgage balance.
Most short sale properties tend to need fixing up, which makes them great flip and sell properties or low-cost rentals. By making a few repairs or renovations, the buyer can add equity quickly.
Are Short Sales Good for Every Investor?
That depends. Short sales have a few drawbacks.
If you’re hoping to negotiate a leaking roof or outdated kitchen, a short sale is not for you. Almost all short sale properties sell “as is” with no negotiated inspection and repair terms. Buyers would assume all repairs or required updates upon purchase and any such costs would be factored into the discounted purchase price. And in some cases, the property’s condition is not always disclosed.
If you’re looking for a quick purchase, think again. The buying process on short sale properties is typically longer than traditional real estate transactions between the buyer and seller. With a short sale, the lender and any other lienholders are involved, which can lengthen the processing time.
Longer processing times could also have an impact on other investment opportunities. Buyers could miss out on other properties while they are focused on the pending short sale.
Where Do I Begin?
Assuming the above drawbacks didn’t scare you away yet, perhaps a short sale is perfect for you. The following tips will help you find your starting point. Before you decide to purchase a short sale property, know what you’re getting yourself into. The following can help.
Get your financing in order.
Unless you are paying cash, you’ll need to get preapproved for a mortgage. Having this prearranged will help expedite the closing once an agreement has been made.
Find a property.
Don’t spin your wheels searching through all listings. Look for those that are in pre-foreclosure. One of the best ways to get a heads up about homes that are about to go into foreclosure is by working with a real estate agent. Developing a symbiotic relationship with a real estate agent in your market is essential for professional real estate investors. Real estate is a small world, so networking and referrals can make all the difference when it comes to growing your business.
Another quick way to find short sales is through local list providers.
While these lists do cost money, they save you time since you don’t have to dig information out manually.
Do you have too many lists to manage?
Many times you’ll need to purchase multiple lists to find short sales and pre-foreclosures, among other types of investment properties. When you’re working with multiple lists, using a list stacking and filtering service is essential to help you narrow down your targeted properties. Property List Manager is one of the best systems for that on the market today. You can learn more about this affordable tool here.
If you’re just starting out and have plenty of time on your hands, check out public records and title companies where you might be able to discover homes that are available for short sales. And if you’re looking to find property owner information and the name of the lenders, you can visit the county clerk’s office who might be able to get you these details.
Do your research.
Before you make an offer, take the time to research the property. You will want to research competitive properties to find out if the short sale is one that will turn a good ROI for you. You might be able to build a relationship with a real estate agent who can do a market analysis for you on some of these properties.
Equip yourself with the right tools.
If you plan to do multiple short sale purchases, you’ll want to have the right tools and systems in place that will help you make deals faster and easier. Our REIgnyte Grow platform was built for novice and intermediate real estate investors who are wanting to grow their business. It comes with our dynamic CRM for managing every step of the customer journey, automatic instant comp reporting from three different resources, and it makes managing the inspection process easier than ever before with built in customized inspection reporting.
Right now, we’re offering an amazing Real Estate Investor Stimulus Package that comes with the entire REIgyte Grow platform AND Property List Manager at an unbelievable rate!
Inspecting the home is an important part of the short sale process as well.
You might want to call a professional home inspector who can conduct a thorough inspection of the property pointing out areas in need of repair, or at minimum do your own inspection. Our REIgnyte Grow suite has inspection report tracking included where you or your professional inspector can upload pictures, document necessary repairs, and track what’s been fixed or not.
If you come across a property that needs extensive work, you should also ask any necessary contractors to provide estimates for renovations or repairs so you can see if the costs for repairs makes sense according to the discounted short sale pricing being offered.
Lastly, conduct a title search to check for any liens or encumbrances.
These can muddy up the short sale process and eat into your revenue as well.
Doing your homework is important. Before you decide to purchase a short sale property, know what you’re getting yourself into first by following all of the research and informational tips in this article.
Want more real estate investing advice and coaching?
Check out more of our podcasts and articles here at RealEstateInvestor.com. We also invite you to join our free Facebook group Real Estate Investor Beacon that’s dedicated to providing free training and coaching for real estate investors as we move into uncharted waters due to the impacts of COVID-19.
Are you ready to build your business?
At RealEstateInvestor.com we believe in helping provide solutions and tools for real estate entrepreneurs who are interested in growing their business. We’ve got an impressive suite of tools and services to help make your life easier, and that scale with you as your business grows.
We solve everyday problems so you can focus on making your business great.
Don’t forget to check out our unprecedented deals!
For a limited time only, we’re offering unprecedented savings on our packages, making them more affordable than ever before. Whether you’re a novice, intermediate, or expert real estate entrepreneur we’ve got you covered. Check out our top of the line deals we’re offering right now here.
According to BiggerPockets.com there are 28.1 million Americans who consider themselves to be real estate investors. That equates to 1 out of every 8 American adults. This statistic can be staggering, perhaps even terrifying for those of us real estate investors who are in this business for the long haul. But what does this statistic really mean? Is the market truly oversaturated? And how can new and existing real estate investors make it to the top with this much competition?
The sea of real estate investing entrepreneurs.
If you’ve ever been to Times Square during a celebration, New Orleans during Mardi Gras, or Black Friday shopping, you’ve likely experienced the intensity of being in a herd of people jam-packed so tightly together that personal space is nonexistent and all you can do is shuffle your feet forward and pray you don’t fall because nobody’s going to stop.
Now imagine what that scene would look like if you tried to stuff 28.1 million Americans who consider themselves to be real estate investors, into a place like that…
If Times Square can only hold 51,000 people, 28.1 million people would be outright ridiculous! We’d look like a massive sea of real estate investors stacked together tighter than sardines in a tiny tin can. Forget trying to shuffle forward inch by inch to get anywhere. After all, with millions of people surrounding you, it would be nearly impossible to see more than 10 feet ahead at any time…
Is anyone else feeling a bit claustrophobic in here? Or is it just me?
Let’s look at how different types of investors would navigate the sea of real estate entrepreneurs.
The investors who are looking for easy money will see that sea filled with 28.1 million competitors and throw in the towel before even trying to attempt stepping foot in it.
Some other investors will start their way into the sea with excitement and fervor. Then after spending a few months trying to push and scoot their way through that crowd, they’ll exhaust themselves. Burned out, they’ll look for the nearest emergency exit that leads them out of the sea and back to their previous careers.
Now, there are also the investors who will simply dip their toes into the sea. They might have a rental property, perhaps they’ll even try to flip a house. But that’s the extent of it. They’re counted in that 28.1 million people statistic making it relatively disproportioned when looking at the career investors. But these are the people who’re simply looking for a little bit of passive income to help with retirement or residual income.
What about the serious real estate investors like us?
The serious real estate investors know the best way to navigate the sea.
Among the sea of people there will be the few investors who want this bad enough that they’re ready to fight for their dream. They’re wise and they understand that alone the sea will be impossible to break through. But together, they can use their strength and momentum to help pull each other forward.
They communicate with others like them by passing messages back and forth through their pipeline, and eventually they pool together their combined resources to form a chain. And one by one, they heave and pull, moving each other forward a few feet at a time. They repeat this same process again and again saving investor after investor.
Day after day they use all of the resources at their disposal and the power of each other’s strength and momentum to pull additional real estate investors out of that sea of 28.1 million and onto the land of success.
Alone they didn’t stand a chance, but together they not only survived, they thrived.
Successful real estate entrepreneurs invest in each other.
What do the most successful leaders in real estate have in common? They understand and utilize one of the most powerful resources available in life—People. Their ability to cultivate strong relationships is what drives their success. It’s what separates them from the sea of 28.1 million.
They understand that relationships are about give and take. Sometimes they’re learning from others. Other times they’re teaching and mentoring. They understand that there’s more than enough real business out there to go around, so they give their ideas and suggestions freely to their community.
At RealEstateInvestor.com we’re a community.
Being real estate investors ourselves, we understand the value of working together and investing in relationships. So much so that we measure our success by the quality of life your business affords you, and the quality of relationships we’re able to help you cultivate.
If you’re feeling like you’re alone and stuck or drowning in that sea of 28.1 million, we want to extend our hand out to you. We can help save you… Ask us how.
Want to meet our community in person and learn from industry experts?
We’re highly active on social media and post daily content to help you become the BEST, most successful real estate investor you can be! Be sure to like our Real Estate Investor Facebook Page, and join our REI Beacon Facebook Group for daily content!
I don’t know about you, but I had dreams of working remote and traveling the world with my family, while bringing in a nice passive revenue stream that allowed me to do all of that. But little did I know that I’d trade my 40-hour a week career with benefits for an 80-hour week of pounding the pavement and barely seeing my family…
That of course was over a decade ago. Well before I learned the secret of delegating my way to success, utilizing shared resources, and maximizing my daily schedule.
But prior to that, I was flopping all over the place manually analyzing deals, networking, throwing new marketing strategies up and seeing if anything sticks, and so on. I was zig-zagging all over every day. I still remember many times where I’d turn my computer off at midnight and go straight to bed, only to lay awake for several hours thinking about how I felt like I literally got nothing done. I felt defeated and I had little to gain for it.
No free time, no life…
The business I was trying to build was stealing days, weeks, months, and ultimately years from my life. I missed out on so many important family events in those first few years.
I can’t count how many times I considered just calling it quits. I thought, I might as well go back to my old career where I worked a normal schedule and could actually see my family.At least there I would get insurance benefits, weekends off, vacations, and actually have a life.
After all, I pursued this dream in real estate because I wanted a better life for my family and myself. And that was not happening… Yet.
This schedule of misery repeated over and over again until I finally realized that the key was in the problem itself. I was losing time and my schedule sucked. So I needed to fix that by reclaiming my time, and fixing my schedule.
Setting a strict real estate investing schedule is fundamental for success.
My story isn’t unique. In fact, this is one of the top questions I get asked when I coach real estate investors. If you think about it logically, this challenge makes a lot of sense. Most of us worked in careers prior to jumping into investing fulltime. And in those careers we had a consistent daily schedule with project deadlines and scheduled meetings that kept us in line.
But when you first jump into your own business like I did, you have to set your own deadlines and scheduled meetings. And if you don’t, you’re likely to spin your wheels all day long and feel like you’ve accomplished very little.
This is why one of the fundamental rules of success for real estate entrepreneurs is to create a powerhouse schedule and stick to it. Make it a habit and own it. Like any new habit, this won’t be easy at first. But once you start reclaiming hours to spend doing the things you love, this success cycle will keep on spinning.
Here’s an example of a real estate investing schedule that worked for me.
5:00 a.m. Wake up early. If you can wake up an hour early, you can reclaim five extra hours in your work week. This allows you to fit in exercise, a shower, and leaves time for a meditation or for you to read something that energizes and encourages you.
6:00 a.m. – 7:30 a.m. Instead of thinking you can do the things you love to do in the evenings after work, consider doing them at the beginning of your day too. Spend time with family and friends. Engage in your favorite hobby.
7:30 a.m. – 9:00 a.m. Review all of your current deals that are in progress. See where that rehab is at, contact all parties in your deals to make sure all is on track for closing. Get your pulse first on what you have in the works to make sure it all deals goes smoothly.
9:00 a.m. – 10:30 a.m. Work on growing your pipeline. Make some calls, go to a networking meeting, send some emails. If you grow your pipeline daily, your business will stay on track for reaching your goals.
10:30 a.m. – 12:00 p.m. Check your emails and voicemails. Use this time to respond so it’s done in a timely manner. This builds trust and dependability with the people you work with.
12:00 p.m. – 1:00 p.m. Never lunch alone! Okay, this might not be practical every day. But try to make time to have lunch with one to two new contacts a week.
1:00 p.m. – 2:30 p.m. Let’s generate some leads. Spend time marketing and looking for leads. Work on your social media and email newsletters. Call mortgage brokers, real estate agents, and wholesalers to see if you can work with them. This time should be all about networking and lead generating.
2:30 p.m. – 5:00 p.m. This is the perfect time to fit in unplanned events, meetings, closing, doctor’s appointments, etc. If you have a set time in your daily schedule, you’ll have an easier time making appointments without worrying that you’re going to mess up your work day.
5:00 p.m. or 6:00 p.m. STOP WORKING! With the exception of weekly or monthly networking events or meetings that happen late, you need to have a firm cut off time for your work day. Otherwise you could be working until 4:00 a.m. like I did in the beginning.
Your Schedule Will Always Be Flexible.
Yes, you need a strict schedule. But sometimes things just don’t go as planned. You might end up working late, or having to skip some of the tasks. That’s life. So if this happens, just try to get back on schedule tomorrow.
Your Dream Is Possible!
If you keep your schedule going, then before you know it you’ll be at the point where you’ve built a successful business and can afford to hire a sales team to do the daily work for you. That’s when you’ll get to live out your dream of financial freedom, traveling, and time freedom you always wanted.
Our team at RealEstateInvestor.com believes in you! Reach out to us and ask us how we can help you get more of your time back this year. We look forward to hearing from you soon!