The Secrets to Real Estate Investing Success
|Two investors inspired me to write this real estate investing article. Recently a team of two brothers were working together to really achieve real estate success. They quickly realized that they could not do it alone and choose to shadow and network with me and two other investors who were doing that same type of investing projects under my tutelage. They became successful with a plan rather quickly. I've come to believe that there is really only 4 Secrets to Real Estate Investing Success:|
The Tale Of Two Brothers...
- First winners make up their minds to pursue their dream and then they take action by learning from someone who knows how to do what they want to do.
- Next winners let nothing stop them from reaching their goal. They go over, under or around every obstacle that life puts in the way. In the case of the two brothers their obstacles were lack of money, spousal resistance, inertia (they each moved from another state to do this project), and fear. Like true winners the brothers did not get "stuck" at any obstacle. They treated each obstacle as a thing to be gotten around, under or over, not a dead end.
For example they ran out of money after the first 22 houses were bought for cash and rehabbed. They called their "expert" (me) and following my advice they are now in line for a bank line of credit in the amount of $500,000 as a "starter" loan. In a market where many think it is "impossible" to get bank financing. It is impossible if you do not know where to go or who to talk to or what to say…but that is what mentors are for and the two brothers have me.
- Next, winners' act. They did not try to "know everything before they do anything" because that simply does not work. You will never know how to dance before you step out onto the floor and start dancing. You will make mistakes and step on many a partner's toe but eventually you will look like a Prince or Princess on the dance floor and everyone will want to dance with you and know how you do it. Winners simply deal with issues as they came up. They do not let fear of potential issues stop them from starting out. In the brothers situation they had no idea how they would get their starter money, if they would find enough houses, what the exact renovations would entail and what their exact rents would be. But they learned from people who were "in the know" because they were doing it and then took action…now look where they are!
- Finally, the winners in the game of life set a goal then relentlessly pursue it until it comes to fruition. Winners commit 100% and they do not give up. If winners are missing a resource they find it. If they need help they ask for it. When winners are stymied they do not throw a tantrum nor do they give up. Instead they figure out a solution.
I met them two years ago at one of my conferences. At the time one of them was a residential rehab contractor. He and his brother came to my class to learn how to invest in real estate.
The two brothers came to a follow up event where I showed how to do a bigger project buying multiple properties and renting them for cash flow while waiting for the real estate prices to recover. The two brothers came to that event, asked questions, paid attention, and then put their own plan into place.
In 2010 the two brothers got started. They found a college buddy with some money and formed a partnership. They bought their first 33 properties in 2010. They sold 11 of them and made some money. They kept 22 houses that they renovated and rented out. Now they make at least $500 per month per property after expenses. That is approximately $11,000 per month in profit right now.
Their goal is 300 properties in total, all to be paid off and free and clear in five years after acquisition. Their goal is to buy those houses over the next two years. That would leave them wealthy and set for life.
Taking into account partnership interests of others I calculated at the end of five years their net worth should be $5,265,000 and their monthly profit to be $22,500 for each brother.
Considering most Americans retire with social security of $1,100 per month and net worth of perhaps a couple hundred thousand dollars if they are lucky my students' success is amazing.
A Tale Of The Average Real Estate Investor...
While all this is going on I have a number of students who are floundering. They buy courses, attend trainings yet never seem to get anywhere. Many of those students are "smarter" (in an IQ test sense) than the two brothers and have at least the same opportunities in their market areas. So the natural question is why are the two brothers finding incredible success while others struggle?
Is it their upbringing? Intelligence? A trust fund? An Ivy League degree?
I know these guys pretty well and am convinced it is not their upbringing, intelligence or a trust fund. And neither one went to an ivy league school. The brothers had a very difficult upbringing. It was so bad that as adolescents they ran away from home and lived in the woods rather than deal with their parents. They are of average IQ-type intelligence, they are not independently wealthy nor do they have a trust fund.
They eat too much and weigh too much. Looking at them from the outside they are two very normal "average" guys who enjoy sports, dirty jokes, eat too much, and suffer the normal daily frustrations of life that all of us do. Yet they are very successful already and on their way to income and wealth that is many thousands of times what "average" Americans achieve.
So what is the secret to their success and why are so many others failing?
After coaching and observing many millionaires and many penniless people, there is a pattern to what they do. It is a few simple things that set the successful people apart. It has to do with what successful people DO and how they THINK. It is not magic and anyone can do it. In fact a loser can transform him or herself quickly into a winner by changing his or her thought process and actions.
Magic Formula For Real Estate Investing Success.
If you are looking for success here is what you need to do NOW:
Most important of all - GET STARTED TODAY!!
- Set a goal you are passionate about - whether it is financial success, relationship success, or becoming a great tennis player.
- Find proven experts who are successfully doing what it is you want to do and pay them to help you and to mentor you.
- Pursue your dream with dogged determination. When you run into an obstacle get your mentor (paid expert) to give you advice and help then take action to get around, under or over that obstacle.
- When you are frustrated or tired refer to your dream to inspire you and give you the boost you need to continue forward.
- When you are stuck ask yourself "what is the solution to this problem? Who can help me solve it? Who knows the answer or who has the resources I need? That will set your mind off to find answers. Never berate yourself or think in the negative. If you go to the negative your mind will come back with reasons that you cannot do it rather than answers.
Go forth and prosper.
|Bob Diamond, AKA "Attorney X", is a practicing real estate attorney with experience in loan modifications, short sales and real estate litigation, real estate developer, and published author of three books on foreclosure investing. |
You may be familiar with Bob from his appearances on FOX, NBC, CNBC, NPR, the Flip That House television show on TLC, or on his real estate radio talk show.
Bob graduated from Villanova University with a degree in Finance in 1987 and from Temple University School of Law in 1993. He became a Pennsylvania licensed attorney in 1993. During his career outside of real estate and law Bob worked for Meridian Mortgage in their default and REO department, for Arthur Anderson and Coopers and Lybrand as a business consultant, and for the international law firm Cozen O'Connor as a real estate attorney.
For his own account Bob has been investing in real estate for over twenty years and has participated as the buyer, seller, or attorney in over one hundred million dollars in real estate transactions over the past twenty years. Attorney X has also invented a new way to invest using his bank-insider knowledge to teach investors how to get millions of dollars in properties with built-in bank financing, no money down, and no credit check.
Bob has been teaching real estate investing since 1999 so you have probably heard of Bob in the investor world where he is known as the ‘guru's guru.' Because of his legal expertise and experience as a real estate attorney, Bob is sought after for his advice and counsel.
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