So many niches within real estate investing revolve around people. While we are in a real estate business, many of us must — or choose to — deal with people and society every day. While technology has absolutely evolved (for better or worse) there are many more technological tools available to the average real estate investor than there was 15 years ago.
- Technology has greatly changed
- Certain lending/borrowing has drastically changed
- Supply and demand has likely changed in your market
- Human nature has relatively stayed the same
In this post, we’re going to discuss five real estate investing lessons from 2003 that are still relevant today.
How to Purchase Real Estate With No (or Low) Money!
One of the biggest struggles that many new investors have is in coming up with the money to purchase their first real estate properties. Well, BiggerPockets can help with that too. The Book on Investing in Real Estate with No (and Low) Money Down can give you the tools you need to get started in real estate, even if you don’t have tons of cash lying around.
1. You Can’t Help Everyone
As an active real estate investor, it may not be wise (or realistic) to wish to help every seller or buyer in your local marketplace. Many sellers and buyers in your local marketplace may easily be able to purchase or sell a property without your help. In reality, only a limited amount of frustrated sellers and buyers will need the help of a reputable and ethical local real estate investor.
Circa 2003, I was spinning my wheels, wasting a lot of time and mental energy trying to help sellers sell their homes at retail prices. My mentality at the time was incorrect. I thought, “If I can make $500 on this deal, I want to make it.” This thinking led to the over analyzing and over negotiating of average properties with non-motivated sellers. While in hindsight this led to no immediate deals, it certainly was good practice to help me understand where my time was best spent.
Pro Tip: It’s wise to specialize in certain aspects of real estate and real estate investing services. Know what type of sellers and buyers you are looking to help — and which sellers and buyers you will refer to other investors or professionals.
As active real estate investors, it’s our job to be a one-stop shop for sellers or buyers who meet our criteria and need our help. If you are unsure how to solve a seller or buyer’s problem, it may be an opportunity to learn more while helping a client who others may have abandoned.
Circa 2003, I did not yet understand the power of persistence. However, knew I was not going to give up a deal without giving it an honest try. Prior to purchasing a group of mobile homes inside a pre-existing mobile-home park, I ended up making more than 20 calls to various state and local titling agencies. I needed to understand the process of moving forward with a complicated and clouded title issue. This particular two-deal package had already been looked at, and passed on, by another local investor who gave up on helping this seller. This particular seller who I was working…