No one said it was going to be easy. Eighteen months ago my partner and I signed up to be Real Estate Investors after attending a 3-day seminar. We knew we weren’t going to become instant moguls and had to put in the work to make it happen. However, after months and months of putting in offers, evaluating the properties, coaching calls, and following the system, we have yet to close on a deal. Albeit we came close during the holiday season.
While we’ve had some challenges along the way (e.g., our third partner stepped down, working full-time jobs), the biggest challenge as an investor has been the hard money lender cost. Unfortunately, it’s a necessary evil in the game if you don’t have a private money lender or other sources to fund the deal. The deal may look sweet until you put pen to paper. Once you plug those numbers into the deal analyzer, you get a quick wake-up call. Those points and interest rates can make the deal go south. That’s been our biggest challenge.
Another challenge is the low-ball offers. On occasion, our agents have come back to and asked us to reconsider the offer. While we heed to their advice, sometimes we’ve had to renege on our offer because the numbers don’t make sense at a higher price point. See the paragraph above.
The last challenge is the repair estimator. For a while, my partner and I thought the repairs were excessively high. However, once we started to ask others in our network, we were shocked to learn that we were probably underestimating the repairs in some cases. We’re glad we dodged the bullet on those offers.
Of course, this isn’t the case for every real estate investor. I’ve met successful investors who gave us sound advice. In the meantime, don’t stress if you haven’t landed your first deal, enjoy the journey, don’t jump into a bad deal just to make it happen (we’ve been advised numerous times about this one), keep the FAITH, persevere and stay focused. I’m optimistic that 2017 is going be my year as well as yours! Crush it!
Some inspiration to focus on your dreams:
focus (challenge). Creative Commons License. Available at www.flickr.com