I’ve been investing in real estate for more than a decade. It’s in my blood. It’s what I do. I can hear the market as if it had a heartbeat.
I see all sorts of courses, articles, and how-to’s, many are regurgitated by writers and folks who haven’t ever touched a real estate transaction, save maybe buying their own house. Me? I closed a real estate investment this week, today made an offer to buy 15 houses from a cute little old lady, and I’m scoping out a six building apartment complex.
I’m not a cynic. I’m an optimist. And I’m very positive about real estate, very positive about winning and making money. In this article I’ll share my take on winning with real estate, one I apply daily. It’s a formula that you can scale. In other words, once you understand the basic formula you will see real estate in ways that quickly crystallize in your mind, whether you want to buy one house, or one hundred houses.
Real estate is easy. The real job is stress management.
I wish I had the formula for stress management. But I found over time that some can deal, others go crazy. They cannot grasp signing their life away on a house. With that in mind, if you still want to know how to win – keep reading.
Real Estate Investment is a business about problems. Not houses, buildings, bricks, or sinks. It’s not about pipes or electrical. It’s about people and their problems. Is there a dollar value on problems? Your job is understanding what the problem is to the seller. What the problem is to the deal, and how you can solve it and get paid.
The difference in the size of the actually problem and the problems size in the mind of the seller is what determines whether or not you can make a deal.
If the seller doesn’t see the problem, that’s a problem. Solve problems get paid.
So what exactly is the problem? Here are the problems you will find when you invest in real estate: the seller thinks their house is a monument (aka emotionally attached), the seller owes more than the house is worth, the seller cant sell because of some mortgage clause or family trust etc., the property has problems, bricks, pipes, or sinks. And/or the neighborhood has problems.
The best problem for you in my opinion – after a decade of doing this – is the lipstick job. It’s a house loaded with garbage, in need of carpet and paint, maybe mild cosmetic items mixed with a seller who has tried to sell and is frustrated. Not realizing the simplicity of the problem. This to them is a BIG problem. Months and months of mortgage payments and a house that sits empty. Oh, and the more garbage the better. Garbage scares everyone. It will even scare YOU. It stinks. Its messy. It hides the house and it true potential.
But we are getting ahead of ourselves. You have a few other problems to solve before you start buying lipstick jobs. Are you up for it? Do you think you have what it takes? If you want to be a high-paid problem solver THIS is your game.