Originally Created On:
December 20th, 2010 at 9:07 am
You know the old fairy tale which gave us the phrase “You have to kiss a lot of frogs, before you find your prince.” This applies to real estate investing too. You need to evaluate a lot of properties before you find a good deal. We must weed out the unmotivated sellers to find ones who are willing to sell at our price and have properties that meet our criteria.
A lot of new investors find a house and immediately think it’s their new “prince”. They try to force it into a deal because they don’t have enough prospects in their pipeline. This causes them to ignore their buying criteria. They fool themselves into thinking they can sell it for more by misreading the comps. They under estimate repairs by thinking they can get a contractor to do the renovation cheaper and faster than possible. The biggest mistake is when they pay too much for the house. Not having enough prospects will cause you to get emotionally invested in the house (ask me how I know this). So what happens? They are left with a frog that will not turn a profit.
One of the keys to success in real estate investing is having your marketing machine cranking out plenty of leads. You need to be reviewing as many properties as possible. It is a lot easier to say “next” and move on to a better deal when your phones are ringing off the hook with sellers. So get out there and kiss as many frogs as possible, your next prince of a property is right around the corner.