Real estate investment can be both a treasure trove and a booby trap. For beginners just trying to break into the real estate market, experience investors might snag up all the good deals before you even recognize the deal is a good bargain. You might have found the perfect parcel of penang lang for sale, but before you even made your offer, you find that it has already been sold to someone else.
Don’t worry though, for we have to crawl before we are able to walk. So here’s a few tips to get you started on finding that elusive great deal in your real estate investment effort.
1. Develop a focused real estate plan
A good real estate investment strategy requires focus. It’s the secret weapon of many successful real estate investors. First, identify what a good deal means to you. There isn’t a universal stamp on real estate opportunities that say “good deal”. Why? Well, a good deal depends upon a combination of your own preferences: your own goals, your strategy, your available resources, your risk tolerance, your target market, your chosen niche, and the list goes on and on. No two investors are alike, so what a good deal means to one investor may not be a good deal to another.
Evaluate your own strategy from time to time. Do you feel you’re not buying enough good deals? Perhaps you should probably start asking yourself if your efforts and energy are too scattered and not focused on a specific real estate investment strategy. In this case, the first thing you need to work on is a business plan. Focus on these things: a big picture strategy, a target market, a desired niche within that market, and goals for each deal.
The perfect analogy is that of a flashlight versus a laser beam. The difference between the two is focus and intensity. So, throw away that flashlight and arm yourself with the laser beam.
2. Put more fishing lines in the water
Finding great real estate deals is sort of like fishing. If you need to survive catching fish, the logical thing would be to catch as many as possible. You would have to do everything you need to catch more, like starting to fish more often, or putting bait on several lines and putting them into the water concurrently. Real estate is similar. You need to look for them more often, and you will need to generate numerous leads before you can get a good opportunity on the line.
And even if you get dozens and dozens of leads, they could all be non-ideal ones. It could be a while before make an ideal catch. However, many investors make the mistake of not holding out for that ideal one and get frustrated because they end up trying to make the few non-ideal leads they get work.
The solution is simple: create a simple marketing plan in order to know what how many leads you need to analyze before you get the one deal you want. For example, in order to get one deal, you might have to make 20 offers, which requires you to look at 40 properties, which requires at least 100 leads. Imagine it being an inverted funnel. Work backwards from the end to front so that you can come up with a number that is doable for you.
3. Improve your communication and negotiation skills
It is a major misconception that good deals in real estate investing are just “found”. Investors seem to treat real estate investing like a treasure hunt, forgetting the most critical aspect of real estate investment – people. When you’ve found a few properties that might seem like the ideal one, you will need to be able to negotiate with the real estate agents and ultimately the seller to close the deal. More often than not, good deals come about when you can solve each other’s problems.
However, human problems are not as easily solved like technical issues. We are not machines, but living, breathing and feeling beings. Thus, it is pertinent that we address the human behind the problem as much as the problem itself. Therefore, the same principles that govern any good human relationship will also govern the negotiation between two people in a deal.
You have to understand that the negotiation between you and the seller is vital for a good deal to come by. While knowledge of the technical aspects of real estate is equally as important, do not underestimate how far some kindness, honesty and empathy can get you.
4. Don’t give up too easily
Perseverance is what separates the successful investors from the almost-successful ones. Rarely is the path towards your investment goals straight or smooth. Even if you do everything correctly, you still might not find the best deals right away. Instead, the path of real estate investment is more like walking through a maze blindfolded. You grope forward, bump into walls, come to dead ends and turn back, adjust and finally make your way out of the maze towards your destination.
Persistence, faith and determination is what can help you face those inevitable dead-ends, obstacles and frustrations that might otherwise permanently throw you off your course. The only real failure you will face is if you quit before you even get there. The other things – the rejected offers, the good deals that got away, etc. – are just temporary setbacks. Sure, your 20th offer might get rejected again, but that only makes victory even more appreciated when your 21st offer is the one that goes through.
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