Can I Get Rich Quickly Doing Fix and Flips?

Most people think that real estate investing is a quick and easy way to get rich. The popularity of the “fix and flip” shows on television have led a lot of amateur investors into believing that investing in flips is quick and easy. This is so far from the truth. Making a lot of money in this business takes time. Before you get started, identify what “feeling rich” means to you. Have a financial goal set. There are a lot of things to consider when doing fix and flips. Even though these types of deals can produce a large payday, they come with one of the highest risk factors among investment strategies. To give yourself the best opportunity to get the deal done right consider the following items:

1. Run Your Numbers Correctly: Find a good agent to help you get correct, recently sold comparables. Compare similar properties to each other and run your numbers off of your after repair values (ARV).

2. Account for All Costs/Expenses/Fees: When you run your numbers you need to account for all of your costs involved with the purchase, fixup and resale of the property.

Lender Fees: All lenders will have a cost for the loan. You can get this number from the lender.

Purchase Cost: Usually this will include appraisal and inspection fees. These will generally be around $300-$500 for the appraisal and $400 for the inspection.

Closing Cost: The easiest way to get this number is directly from your title company. Closing costs include things like documentation prep fees, taxes, recording fees, etc. You should generally use 3% off ARV to cover these costs. 

Holding Cost: Taxes, insurance, maintenance, HOA (Home Owner Association) dues, mortgage payments or hard money interest payments need to be covered while you are fixing up the property. There are other items that can fit into this category, so cover your bases.  A general rule use 1% of ARV for as many months as you feel it will take to fix up and sell the property.

Realtor Fees: If you plan on using an agent to resale the property then account for 6% of ARV for this cost.

3. Rehab Cost: Get a good contractor and please, please do some research on them before you hire them. Make sure the contractor you go with is licensed and bonded! You can always ask for a copy of their license and bond. Make sure they are in good standing. Also get them to give you some referrals that you can talk to and ask for reviews. Then get rehab bids from at least three contractors. I usually go with the highest bid as the number I will use for my rehab cost, during my analysis of the numbers.

How to Find Responsible General Contractors or Sub-Contractors

The business of rehabbing homes generally involves hiring a general contractor to manage the project or lining up several sub-contractors yourself as an owner/builder.  If you are not a general contractor and don’t had any experience rehabbing or building homes, I suggest you hire a general contractor to organize and manage the construction of your project.  If you have some experience or feel you are a pretty good manager of people and resources, then hiring sub-contractors individually can save you a general contractor’s fee.

For those in the first category, you will want to find a general contractor with a good reputation for quality work, dependability and being reasonably priced.  You will want to get referrals from people you trust who have used these general contractors and have had a great experience with them.  If you don’t know people who have built in the past, then drive around and find homes that are being built or remodeled in the neighborhood and call the owners to inquired about their experience with their general contractor.  After finding 3 to 4 highly recommended general contractors, have them individually bid your project and consider the one that gives you the best price.  Be sure to compare the allowance items that each includes in their bid for items such as plumbing fixtures, appliances, tiles, countertops, light fixture, etc and make sure they are using the same amount.  The best way to approach the bidding process is to give each contractor a list of specifications with a unit amount for each category in which you have not yet made an exact decision. 

Be sure to get a fixed price from your contractor so you know upfront that they will do the work within the budget you have allotted.  Then go over the specifications up front and pin down exactly what will be included in the bid and make sure everything you want done is included so you don’t have additional charges after you start.  Then see to it that your contractor does everything they promised.  Keep track of their progress and keep the line of communication open so that the job moves along smoothly and on time. 

If you are going to sub out all the work, then follow the same procedure with your sub- contractors. Get referrals from other people you trust who have used tile men, granite counter top companies, electricians, plumbers, etc, and are satisfied with the results.  Then get bids from at least 3 sub-contractors in each field and consider the one that gives you the best price.  Be sure they are all recommended and that the feedback from those who have used them is that they do high quality work, they are dependable and they finish on time.  After signing a contract with the sub-contractor, be sure to stay in touch with them and keep encouraging them to follow through with the agreements they have made.  Remember, the squeaky wheel gets the grease.  If you use quality sub-contractors, you should get the job done properly, as well as to code, without needing to know how to do the work yourself.  If you have time, watch the sub-contractors and learn from them so you can supervise other sub-contractors in the future.  Use your managerial skills to organize each sub-contractor to get their job finished on time so the next sub-contractor can begin their work and finish on time.  If you are supplying the material, be sure to have them on the job site on time so there are no delays.  Better yet, have the sub-contractor bid material and labor so they are responsible for supplying the materials and you don’t have to worry about it. 

In all of this, be sure you stay within your budget.  Getting several bids on each item that needs to be rehabbed will insure you get the job done for the best price.  You will be amazed at how far apart the sub-contractors bids can be.  When a sub-contractor is very busy and doesn’t need work, his or her price can escalate rapidly.  When a sub-contractor is out of work and needs to keep his men working, his price can become very reasonable.  If all of the bids you receive are over your budget, negotiate with each sub-contractor and see if one of them will come down to your budget price.  Many times they will if they want the work.  Remember, if you run over your budget, every dollar comes out of your profit, so stay on budget.

Pre-Foreclosure: The Secret Sauce to Success

Pre-foreclosures are the secret sauce to success because they can be extremely profitable, are easy to find, and are low risk.  Pre-foreclosure begins when someone receives a NOD (notice of default) letter or in some states this is referred to as a “Lis Pendens” (legal action started) letter. There is a distinct advantage to reaching people going through foreclosure quickly before they are inundated with letters, emails and phone calls from collectors or competitors. At the time most recipients get an NOD letter, they will not yet have their property on the market.

Approximately, 60% of the people who receive a NOD letter are able to save their home by working things out with the mortgage company or supportive government entity such as HUD.gov, Fannie Mae or Freddie Mac.

The other 40% is where the deals are. However, most of these people are in denial and many remain so until a day or two before the actual auction is to take place. Like any other kind of deal, look for owners who don’t want the property. One of the best signs of a winner is finding the home to be vacant but still in pre-foreclosure.

In most cases if they vacate the property, they are planning to let it go back to the bank. Unlike “rehab flips” it will be easier to sell the property or get a lease option if it is in good condition because you are not wholesaling but selling directly to someone who will live in the property.

Odds are good that the people who are going through pre-foreclosure are being continuously harassed by all manner of bill collectors. Hence, the type of people who have the most success knocking on the doors of people going through pre-foreclosure are women under 5’3″, slight of build, with a baby or two in tow. Men, who are tall of stature and have larger build can be intimidating and have an uphill fight to get their message across.

If the property is vacant, one or more of the neighbors may know how to reach the owners. Once, the owners are reached, the message is simple. “Thank you for your courtesy in seeing me. I’ll be brief because it is very possible I can help you immensely. Your name came up as having received an NOD or Lis Pendens letter. There are many things you should know about what that means. Are you familiar with the loopholes in the foreclosure process?”

This will give you a good chance of being able to continue the conversation. “Loopholes” has a nice ring to it. Obviously, it is important to know what those loopholes are. But, it is even more important to know how to find out if you are dealing with someone who wants or doesn’t want the home that is being foreclosed on.

The next move is, “I would be happy to share what I know about how to avoid pre-foreclosure or at least be able to buy the time necessary to resolve the situation. There is no charge now or in the future for this, I ask only one thing.” Ideally, wait for a “What’s that?” “I only ask that should you decide that you don’t want this home, you would allow me a chance to buy it from you with your approval at a very fair price. Some people call me a ‘full price offer guy.’ Would it be ok to discuss some ideas on strategy that might be helpful to you?”

“During the depression banks often foreclosed on homes where the owner was both current on payments and also had substantial equity. Obviously, this was an abusive process and fortunately the federal government has mandated some new regulations to protect homeowners like you. As a general rule, in most states including this one, the NOD/Lis Pendens letter gives the homeowner 90 days to clear up unmade payments owed to the bank with a minimum of extra legal expenses.”

“Once the 90 days is up, they must publish their intention to foreclose three weeks in a row. This can take as little as 15 days. After that, the earliest they can hold an auction is 10 days after the third printing of notice. Hence, in the worst possible case, homeowners going through pre-foreclosure will get at least 115 days from the date of the original letter.” … “At this point, it would be good to find out where you stand so I can help you develop your strategy. Could you give some kind of idea about how far behind you are money-wise to catch things up?” WHATEVER THE AMOUNT “Well the obvious question is, what is the likelihood that you can raise that money before the bank lowers the boom? Further, is it wise or more simply, do you want to keep the house?”

If they indicate that it doesn’t make sense to try to save the house, then say, “I would be happy to try to help you avoid foreclosure by making an offer on a short sale if you owe more than the house is worth, or better yet, catching up the mortgage by paying what you are behind and then putting the home in a trust where you might be able to at least get something if there is value in excess of the mortgage. This would, if possible not show up as a foreclosure against you but would show you caught up the mortgage and every payment that I make in the future would help improve your credit.”

“While I would need a copy of your mortgage, I promise to show you comps so you can get a feel for what it is worth. Further, I will make the best offer I can and you can judge for yourself the best direction for you to go. Is that fair enough?”

The market has changed a great deal since the melt down of 2007-2008. Banks are exempt from any “equity theft” laws. If the bank makes money on a foreclosed house, they keep it. Mortgage contracts contain a “due on sale” clause. This doesn’t mean the mortgage isn’t assumable, it just means the bank can call in the note upon sale. A home in pre-foreclosure is on their books as a non-performing asset. Hence, if you catch up the mortgage, it goes on their books as a performing asset.

It isn’t generally wise for the bank to call in the note unless current mortgage rates are much higher than the existing mortgage. Banks aren’t stupid! They just want the money. When purchasing a home that is behind on the mortgage, banks are usually quite willing to accept the money to catch up the mortgage. However, problems can come up later in dealing with the bank because the mortgage is in the previous owner’s name.  Previously people who bought homes subject to the existing mortgage were able to present an “authorization to release information form” and the bank would cooperate giving all the current mortgage details. Banks tend to look at this form with a purpose of paying off the mortgage and getting a new one. Hence it is seldom honored after three months to a year at the most.

Because the banks no longer honor this form after a few months, it is critical to get a “Durable Power of Attorney” authorizing you to discuss the details about the mortgage with that bank and or their assigns. This form should be for the entire term of the mortgage. Including “and or assigns” is critical if the bank turns the mortgage over to another institution.

It is also critical to get the previous owners to properly sign a Quit Claim Deed. This deed should be recorded with the county or parish once the bank has accepted the catch-up payment. Further, there may be liens or encumbrances against the property. Due diligence would be wise.

There is clear logic to putting the ownership of the home in a Land Trust. First, a trust with multiple beneficiaries has dignity in a court of law because it is clearly not one person hiding behind the entity. Beneficiaries could include the previous owner, you for services, the person who lease options the home and, of course, the agent who lists and sells the home.

Further, properly configured trusts can be exempt from the “due on sale” clause. This is another reason to make the previous owner a beneficiary. As an executor of a trust, it is easier to communicate with the bank or financial institution once you have a Durable Power of Attorney.

If you can find someone willing to pay what the mortgage is behind, for an option to purchase the property, you have a deal regardless of the amount. In the event you don’t have someone ready to buy or option a purchase, a good rule of thumb is if the arrearage of the mortgage is no more than 10% of the value of the property. Of course, the mortgage payment should be reasonable for that kind of home in that area. The logic here is that most people who want to buy a similar home in the area and go to the bank for a mortgage will have to put 10% down. There are plenty of people who can come up with 10% down but still can’t qualify for a mortgage from the bank. They will welcome this kind of opportunity.

A marketing headline that has been successful in finding option buyers is “Your Down Payment is Your Credit Approval.”

Should the homeowner indicate that they want to keep the property but acknowledge they have no way of catching up in the prescribed arrearage, you can ask them, “If you weren’t behind right now, would you be able to make your payments like you used to?” If they say yes, ask, “Have you spoken with the bank?”

Either way, if they have spoken with the bank or not, they need to be reminded that the federal government has instructed banks to try to work things out with these people if they can make the original payment. The banks can put the arrearage on the back of the loan if they want to. Helping someone in this way is a karma worthy service.

If the home is vacant or you can’t get them to open the door, you will want to try different techniques to reach them. Emails, text messages and phone calls can work great, especially in combination!

Current contact information of people who are going through pre-foreclosures and have moved can often be found at: <http://www.intellius.com> or <http://www.Spokeo.com>.  Both of these sites will often provide both landline phones and cell phones. They may even provide email addresses. Intellius costs about $19.00 per month and Spokeo starts at about $60.00 for 6 months.

Below are some critical criteria for becoming successful in doing pre-foreclosure deals.

1. Find “Don’t-Wanters.” Look for people who no longer want to own the property.

2. The money needed to catch up their mortgage is less than 10% of what the home is worth.

3. The home is move-in ready. Homeowners who buy will want this home to be move-in ready. So will tenants willing to rent.

4. The pre-foreclosure property has a marketing advantage because it comes with a built-in mortgage through the mortgage assumption.

5. Get the previous owner to deed over the property. This is critical and Quit Claim Deeds or Mortgage Assumption Deeds are often used.

6. Put ownership into an LLC or a land trust. Document that the owner going through pre-foreclosure was paid something or, if you are using a land trust, make the previous owner a beneficiary for a small amount of money. This offers protection from equity theft suits.

7. Only record the deed once all the details are worked out such as covering the arrearage on the mortgage and having a POA (Power of Attorney) enabling communication directly with the current or future assigned mortgage company.

8. Get the current owner to write, witness and notarize a Durable Power of Attorney allowing communication with the mortgage holder. This needs to be written to enable full communication with the mortgage holder and their assigns for the entire term of the mortgage.

9. Put the property in a trust so you can control receiving your profit over time. This will require help from an attorney. Do this yourself without an attorney at your own GREAT risk.

Assuming mortgages on pre-foreclosure properties can be rewarding to all concerned. The banks get to turn a non-performing asset into a performing asset. The previous owner avoids getting a foreclosure on their records. The lease option buyer can buy his or her own home when turned down by the bank.

Always remember that few people have a problem with paying out profits later, so make sure you become a beneficiary and the executor as well. A good attorney will show you how to do this. One word of warning, collecting rent from an option to purchase and not paying the mortgage could land a person in jail. Hence, it will be wise to use an escrow company to handle the finances.

Pros of Working with Tenants in Common

Tenants in Common refers to an arrangement whereby two or more individuals co-own real estate without having a right of survivorship. This kind of ownership allows each owner to choose who inherits his or her interest once he or she dies. This is unlike the joint tenancy ownership where the interests of each of the co-owners pass to other co-owners upon dying (Clifford 29).

Tenants in Common have become very popular today. This popularity has been motivated by the continued rise in of real estate prices while communities are adopting an ever-stricter growth restriction. This situation has caused people to turning to tenancies in common as a way of maximizing their selling and buying power. These arrangements usually lower real estate prices while increasing buyers’ choice through allowing them to pool resources. This arrangement further increases marketing options and sale prices for sellers by allowing them to sell their share of real estate at a price higher than the one they would have received from single buyers. The popularity of Tenants in Common has further been enhanced by the introduction of fractional loans that allow co-owners to have their own mortgages. This arrangement substantially decreases the risk of co-ownership.

The other advantage of working with Tenants in Common is that each tenant has the ability to sell his or her tenancy in common interest anytime he or she wants. This is contrary to the belief among most people who are unfamiliar with Tenants in Common.  The sale of these interests involving group loans are subject to rights of first refusal in addition to buyer approval to insure that the other co-owners can first verify the prospective buyers and make sure they are fully qualified. At the same time, marketability is enhanced if the group has a complete track record of paying its bills and solving its problems, something that greatly reduces the risks of the buyers.

The other pro of working with Tenants in Common is the ease in which decisions are made. In tenant groups that are small, decisions are usually determined by the owner vote. Here, there is distinction between decisions made on a day-to-day basis and those made by a majority, which involves purchasing very expensive non-emergency improvements, repair or alterations in the allocation of expenses, which are made by unanimous vote. The manners in which decisions are made in these groups are often transparent, thereby allowing all members to take part.

The other benefit of Tenants in Common is that it enables investors in real estate to maximize their investments’ value. They are able to achieve this fete through marketing their property as SACCO Tenancy in Common, a strategy that results in not only the quickest sales but also the highest price as a result of the presence of more single-unit buyers than investors in today’s marketplace and a rapid increase in sale prices in most communities. At the same time, Tenants in Common also offer the flexibility of selling compared to selling the entire property. This flexibility allows owners to replace tenants with Tenants in Common owners in a gradual process while diversifying his or her real estate portfolio (Karp and Klayman 53).

Works Cited

Clifford, Denis. Make Your Own Living Trust. Berkeley, Calif: Nolo, 2009. Print.

Karp, James and  Klayman, Elliot. Real estate law. Chicago: Dearborn Real Estate Education. 2003. Print

Real Estate and a Magnifying Glass

In real estate investing there is a tendency to jump from one subject of training to another or from one geographical area to another with the expectation that “the grass is greener” on the other side.

It is often very tempting to think that where you are investing is not the best or where you are putting your efforts is not the best.  Often, this feeling is because, if you are like me, you compare yourself to other investors that have been in real estate for years and have carved their niche with hours and hours of specific work.

Comparing yourself to others, working in multiple areas, jumping areas and working multiple training directions can really slow your business.

I suggest, heavily suggest, you pick one, yes one, geographical area and work one training direction in that area to get the fastest results for your business.

To help explain that idea I want to talk about a magnifying glass:

  • Magnifying glasses can be used to … well … magnify items, or, what little boys use them for: burn things.
  • When a magnifying glass is used to burn things, the energy from the sun is focused to a fine point and, in fact, the finer the point or focus, the faster things burn when under the magnifying glass. 
  • However, if the focus point is spread or unfocussed, the speed of the fire decreases because the energy of the sun has been spread.
  • Once a fire has been started, you can move the energy without fear of the item you are burning going out.

The real estate investing business is no different than a magnifying glass.  If you work two geographical areas, then you have spread the energy or focus of your business and slowed your ability to “burn” quickly.  Though there are hundreds of methods for purchasing real estate, you can imagine that the more methods or trainings you implement, the less focus you have and the slower your business runs.

After you have successfully created a business in one area and with a specific method or training, you can move your energy.  It is a lot easier to move areas or work on other methods once the “fire” of success is burning.

Focusing energy in your real estate business can help you succeed or “burn” quickly. 

3 WAYS TO SELL YOUR FIX AND FLIP QUICKLY

The worst thing an investor can encounter when trying to sell their investment property is to have it sit stagnate on the market. I would always suggest trying to have the property sold before you even finish with the renovations and start marketing your property before you even start renovations. The following are my top three ways to sell your fixer-upper quickly:

  1. Market the Property from Day 1: This means the minute you get the keys, advertise the property. Before the renovations even start, post the property everywhere. Online ads have become a new way for buyers to search out properties. Advertise it as a “build to suit” or “custom design your new home,” as these are attention-getting headlines. Let the buyers chose their style, color, layout, etc. I would advise that if you attract buyers using this method, have the contract written up and extend for the time period it will take to complete the upgrades. Also have them put down at least 3% of the purchase price as non-refundable earnest money, this way they will be committed to the deal.
  2. Market the Property to the Neighborhood: This is a simple technique I’ve found that helps sell a property quickly. Make some flyers about the property, and then on a weekend, walk the neighborhood (for your safety, don’t walk alone, take a friend with you). Knock on every door and let the neighbors know you are an investor and you are fixing up the ugly house and you want their help to sell it. Tell them that if they refer a buyer to your deal, then you will give them a $250.00 finder’s fee (the fee can be whatever you want). The majority of homes sold are by neighbors telling their family and friends about a house in their neighborhood.
  3. Run the Numbers Correctly: One of the biggest reasons homes don’t sell is because they are overpriced. Make sure you run accurate after repair values, and set a tight rehab budget. Get good comparables from your real estate agents. Be sure to not over improve a home, as this will not always get you more value and it will be difficult to sell at a higher price.

The methods I mentioned in this article have helped many investors sell their properties quickly. These tips can be applied to any area. Don’t be afraid to think outside the box when it comes to marketing your property for sale. Get creative and have some fun with it.

3 Ways to Market Properties to Cash Buyers

We all probably know that cash transactions have been a rising trend in today’s real estate market. In fact, 30% of real estate sales are cash payments made by local and international buyers. It won’t be a surprise if paying cash for real estate properties becomes a more common practice than the traditional way.

Investors tend to favour cash buyers due to various benefits entailed with cash buying, such as people who have enough savings to purchase their dream home or are on the hunt for hot locations and are offering to buy with cash. There are a lot of reasons sellers are holding out for cash buyers and one of them is getting their hands on the money fast. A cash sale can be done in a matter of a few days with less paperwork and no waiting for loan approvals that could get denied in the end. Buyers can also save a lot of money on closing costs and other fees associated with a mortgage loan by paying with cash. Think about the money you would save on interest alone!

It is for these very reasons that plenty of investors are after cash buyers. So, where do you find cash buyers and how can you make your property stand out against other competitors? There are a lot of creative ways to make your property attractive to cash buyers but we will just narrow it to three.

“Old-school” or Conventional Method

Although the Internet offers a convenience that makes most people underestimate the use of selling their property the “old-school” way, there’s no denying the fact that prospect buyers still rely on their trusted realtor when purchasing a property. Hiring an agent to enlist your property could still be one of the best methods to sell your property quickly. Remember that real estate agents with years of experience have met and know a lot of cash buyers in the business.

Even by just putting a simple FOR SALE sign in the yard could be a good opportunity to attract a prospective cash buyer. You never know when one will pass by your area and notice your sign.

Attending real estate auctions, where there just might be a flock of real estate investors armed with cash looking for great deals, is another opportunity to market your property.

Internet Marketing Method

Post your property for sale on various real estate websites for all the world to see. There are websites where you will have to pay to advertise your property but there are also websites that will let you post your advertisement for free. Take advantage of using websites like Craigslist, Zillow, eBay classified and ForSaleByOwner.com as plenty of investors are on the lookout for deals.

Network with Other Investors

Make connections by contacting people in the industry to see if they know people who are actively looking for investment properties. Get in touch with people like building inspectors, appraisers and other people that often deal with buyers in the real estate market. Offer them referral fees for buyers they send your way.

To make your property attractive to buyers, you must be ready to sell it slightly lower than its market value. Although you might be getting a price that is lower than what it is expected to sell at, just think about the benefits mentioned earlier, like not having to go through the hassles of selling a property traditionally.

Finding Off-Market Deals

To be a successful investor you need to have a pipeline of potentials deals. It is no secret that the Multiple Listing Service (MLS) is the common source for finding properties to make offers on. However, the investor that can find deals outside of the MLS will find that there is less competition and more possibilities. In order to capitalize on these deals, an investor must utilize some less common tactics. In this article I will outline three techniques for finding off-market deals. Disclaimer: There are many techniques for finding off-market deals but for the purposes of this article I will outline three.

First, is direct mail marketing. A direct mail campaign can be extremely valuable if it is implemented correctly. Begin by identifying your target list in which to mail. One such list is absentee owners. This list contains people that own the property but don’t live at the property. A more common name for these owners are landlords. Some landlords want to be in that position while some landlords want to unload the burden of being a landlord. It is the job of the direct mail piece to find the landlords that are motivated to sell. A key component to implementing a direct mail campaign is to be consistent. This technique rarely works if you only mail a one-time piece. Therefore, you should mail a marketing piece to the same list multiple times in a year.

Another technique for finding deals is “Driving for Dollars.” You can implement this technique in two different ways. One, you can intentionally drive neighborhoods in which you want to invest looking for houses that are vacant, with overgrown yards, or deferred maintenance. On the other hand, most of us travel to the same places every day. We go to the office/work then back home utilizing the same streets, turns and maneuvers so often we could travel the route with our eyes closed. Therefore, the second way to implement this strategy is to take a different route home every time you make the trip. By doing this, you will effectively kill two birds with one stone. This strategy is as old as the hills but still very effective.

The third technique is networking. The saying goes, “Your net worth is directly related to your network!” This is true in many industries but especially real estate. There are many deals that are completed between investors. Co-wholesaling, partnering, and joint venturing are all common tactics in real estate investing. Therefore, if you are looking for off-market deals, networking with other investors and real estate professionals will yield hearty results. One of the best places to find other investors is at a real estate investing club. When attending a meeting, make it a goal to meet 10 new people every time. This tactic will substantially grow your network over time. All of these people can be valuable sources for off-market properties.

In this article I have outlined three common techniques you can use to find off-market properties. If faithfully implemented, these techniques will be valuable resources for finding deals with less competition.

3 Ways to Keep Going When Things Get Tough

When you are an investor it can become really hard to press forward when things get tough. Some problems you may encounter might include: nobody answers their phone, nobody will reply to your messages, your offers are not being accepted, you can’t find any good comps and so on. But, when things get tough, that’s when it becomes worth it to press past your tough point and move forward. It’s similar to when exercising muscles; you will see progress for a period of time and then things will plateau and no progress will be seen.  This is the time that makes a difference between those who are going to succeed and those who are going to give up and amount to nothing. So how do we press forward?

  1. Set goals that are smart.

    Specific – We need to know not just that we want to make a lot of money but how we are going to make that money.

    Measurable – Is your goal something that you can measure? Can you keep tract of your progress?

    Action Oriented – Have you set a goal that will motivate you to get going?

    Realistic- Are your goals something you are actually able to reach?

    Time Oriented – We need to give ourselves deadlines to push us to get things done.

    Setting goals is important in all aspects of life, and when we don’t set goals, we won’t see success.

  2. Find a solution to the problem.

    We may come to a time when we feel things are just not going well and it’s not going to work out, but in these times we can stop, take a breath and find out how to solve the problem. If our agent is not sending us comps to look at after we ask them over and over to do so, we need to get a new agent. If our cash buyers are not interested in our properties, we can interview them again to better understand what they are looking for. If we don’t work at getting rid of our problems, we are just going to be digging ourselves into a deeper hole.

  3. Reward yourself.

    When you set a goal and reach it, its time to reward yourself. From going out to ice cream with the family to eating out with that special someone, reward yourself with something you enjoy. You may not have become a millionaire, but you are going to find satisfaction in reaching your small goals that are going to lead you to accomplishing your big ones.

All investors hit hard times and feel that there may not be a way to press forward. But the difference between the successful, wealthy investors and the poor, angry ones is that one complains about their problems and the other takes the bull by the horns and blasts threw them.