Have you ever wondered whether or not real estate investing is right for you? This is actually a level 2 inquiry, which means that you’ve already very likely overcome the basic question about whether building passive income streams with real estate is possible in the first place. Maybe you have heard the Lifestyles Unlimited® radio programs for awhile or you’ve noticed that wherever you are you are surrounded by rental real estate; but however you got here you’ve arrived at this state of mind and you now believe that it works.
No, you are more likely in a different place, believing that real estate works but not sure if you have “what it takes” or if your “situation” might be holding you back… perhaps contemplating, “Is it possible for me?” It is my objective to persuade you that it most certainly is possible for you to succeed with real estate investing, and in fact urge you to summon from your gut some courage and take a step (or if you are really special, a leap) toward your first deal. In this respect your particular circumstances do not matter because there is a next step for everyone regardless of their situation. Even the people with stellar credit reports and fat bank accounts have to take a next step that is just as nerve-racking, if not more-so with presumably more to lose, than those of us who begin with little to our names. So please go through this article and ask yourself if the intangibles are already in place, because I for one am quite certain that they are.
The primary indicator that you aren’t ready is this: You don’t care about other people. This isn’t some hokey, touchy-feely sentiment about social justice either. This is the basic premise behind capitalism and has been mentioned on this website before. All honest business is about effectively helping and serving other people. Your real estate business MUST focus on this idea not just to thrive, but even to survive. Ken Blanchard in his book “Big Bucks” wrote that the first test that you must pass in order to earn substantially is the test of joy. It is joy that will sustain your ambition and I think the best place to find joy is to find how you can make a difference. Isn’t providing clean and functional homes that hard working families can afford a joyful mission?
Another warning sign that you aren’t ready to be a real estate investor is that you are indecisive. Now we certainly aren’t suggesting that you go sign off on a property without discretion or proper evaluation. However, let’s consider the usual scenario. You have negotiated an offer to purchase an investment property at a price that is $25,000 below what other similar properties in the subject property’s exact subdivision sold for even after rehab and projects around a 20% return on just cash flow. Additionally, your real estate agent has secured a 10 day period for zero consideration during which you will complete your due diligence by obtaining inspections, confirming contractor estimates, and additional contingencies for bank appraisals, surveys, and title reports. If this typical investor transaction falls in your lap and you can’t make a GO decision, … then you may as well pack your bags and move out wimp.
On the other hand, if getting control of this deal with no risk sounds like a no-brainer to you, then start looking to build your build your team. Yes, even though real estate investing isn’t rocket science, you will need help. Even my rocket scientist clients seek guidance for their real estate purchases, which leads to the third warning sign that you aren’t ready … you don’t think you need any help. Lifestyles mentor Robert Hammond recently stated on a radio program that this is the most important ingredient of a professional real estate investor’s paradigm, and he continually pursues mentors. This is especially notable because owns scores of houses, and could very easily yield to his ego and start believing that he has nothing else to learn. Keeping an open mind may sound obvious, but when you honestly apply that standard to yourself instead of just reading about a third party, the task becomes substantially more difficult. It can be tough to balance confidence with humility, but as is written in Proverbs, the best business book every written, “Fools are headstrong and do what they like; wise people take advice.”
I urge you to review this article once more and ponder these three warning signs for a just a moment. And I say just a moment because I don’t think you’ll need more than that to conclude that you do care, and that you can be both bold and humble at the same time. Once that is done the only question left is: Will you find the courage take the next step? In other words, will you execute? That might mean calling your real estate agent or mortgage professional. It definitely means calling your mentor. So will you?
