|The 3 Fatal Flaws That Guarantee You'll Fail As A Real
Take a moment to answer this question: When I say the term "real estate
investing", what do you think of?
Go ahead - take a second to think about it right now.
For most people, that term conjures thoughts of landlords fighting with bad tenants - or
images of doing fixer-upper projects on old houses. You might even think about buying foreclosure
properties as they're auctioned from the courthouse steps.
And of course, you think of the late-night infomercials that promise to teach you to buy
property with no money down.
All of those topics are a part of real estate investing, and you'll probably choose to
study one or more of them very closely. In fact, I'll teach you about those things in this e-Course.
But the undeniable fact is this:
Truly successful real estate investors focus on people more than they focus on real estate.
The professionals know that nobody makes any money until a problem is solved, so they spend their time
seeking out people with real estate problems and only then do they use their real estate knowledge to
What do real estate "wanna-be's" do? They spend all of their time reading the
latest manual or studying courses, but they spend virtually no time trying to find the people who
would benefit from their skills. Newbies focus on "strategy", not on "people"
The simple fact is this: Newbies think that their knowledge of the "latest
greatest" real estate strategies will translate directly into profit. But the most successful
investors know that profit is created only when Opportunity meets Specialized Knowledge.
So how do the pro's find these opportunities for profit? Let's take a look at that right
Fatal Flaw #1: Newbies Don't Know How Or Where To Find Great Opportunities For Real
For the first 18 months of my experience as a real estate entrepreneur, I was a dismal
failure. I spent a lot of time reading books and listening to tapes about creative real estate
strategies, but I made no money at all.
Not a penny.
Not only did I fail to make money. I actually lost my own house to foreclosure. That
was painful beyond belief, but I brought it on myself because I focused exclusively on being a master
of real estate strategies, rather than a master of finding people whose circumstances matched my
But then, as if by magic, things began to happen for me. Deals started to appear that
I'd never seen before. Finding the fabled "motivated seller" was suddenly much easier than
in the past. And that led to deals where I actually made real, spendable cash. It was truly amazing!
What was the difference?
Instead of focusing on learning every detail of the technical strategies of creative
real estate investing, I began to focus on finding great deals through some simple marketing
strategies. Marketing is the process of reducing down the entire population of the world into a small
subset of people with whom you can do business.
Marketing requires you to answer these questions:
- Who is your "ideal" prospect? If you're trying to find homes to buy, your ideal
prospect would have certain characteristics, such as:
- The prospect is a home owner
- The prospect is "motivated" to sell their property
- The home is in a certain geographic area
- The home is in a certain price range
- The home is in (excellent, good, fair, poor) condition
There are a lot more variables to fully defining your ideal prospect, and you might
even have different ideal prospects depending on which strategies you're using. But the point is
simple: You must know who you want to do business with.
Example - "My ideal prospect is a home owner who is motivated to sell their property
as soon as possible. The home should be in average or better condition and should be located in the
30281 zip code. The home's value should be in the range of $100,000 to $195,000."
- What are you going to offer to your prospect that will motivate him/her to do business with you?
Another way to state this is: What is your "message"? What is the reason
you'll offer for someone to do business with you?
Your message must be simple and should convey a very clear benefit to your prospect.
Some of the most commonly used "messages" among real estate entrepreneurs are:
- I Buy Houses
- Sell Your House in X Days
- Fast Cash For Your Home
- Stop Foreclosure
- Cash For Homes
Important Note: These are all very common marketing messages, but not all of them are
particularly good messages.
Here's a Better Example - "I offer immediate debt relief to home owners by buying
houses in 7 days or less."
- How will you physically communicate your message to your ideal prospect?
Will you use
- Newspaper ads
- Road-side signs
- Cold Calling
- Direct Mail
- The Internet
- T.V. commercials
The list of available communications media is literally endless. Your job is to use a
few (not just one!) of those types of media to communicate your message to your ideal prospect.
To summarize - marketing means that you're communicating a desirable message to a
suitable prospect, at a time when that prospect needs what you're offering.
Why is marketing so important?
Isn't it true that all home-buying strategies are totally worthless unless you've got
a relationship with a home owner who is willing to sell using your strategy?
And isn't it true that unless you have a qualified buyer, it doesn't matter if you
know 70 different ways to sell a house - you still won't sell your house? Of course that's true.
That's why marketing is so important...and why most new real estate investors fail so
miserably. Instead of focusing on the people that they can help, they focus on the technical
strategies that they'll use.
And here's the hard truth of the matter: Nobody cares about how great your strategies
are. All that people care about is what you can do to help them.
So your job is to:
- Identify your ideal prospect
- Create an offer that motivates your prospect to do business with you
- Make your prospect aware of your offer
Important note: That was a very short discussion of marketing and prospecting, both
of which are very big topics. We'll discuss these topics quite a bit more in
future e-Lessons, so
Bryan Ellis is a full-time real estate investor and primary instructor for the
Real Estate Investor Academy
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