Nobody takes newbies serious. They see you as just a talker. Someone who has great ideas but never puts action behind it. Nobody wants to do business with newbies. Nobody wants to discuss deals with newbies. There are no benefits to being a new investor. There are a few reasons why people stay on the sidelines 1) fear, 2) perfectionism, and 3) pessimism.
Most people remain in newb zone out of fear. They wont tell you that they are scared they will give you other good reasons like “I am saving up for my down payment” or “I don’t think right now is a good time to buy”. Those are all good reasons but all they do is disguise your fear. You will never get rich running away from fear.
The key is to create solutions for every worst case scenario. I hate when someone brings me a problem without a solution. It’t like they are just throwing their hands up at life. Jay Morrison, millionaire real estate investor, says there are no problems just lack of solutions. So take what you fear and then figure out what you would do even if what you fear happened and create a solution for that worst case. Maybe that means you don’t pull out cash or equity for two years. Worst case you invest in accordance with your plan. The best case, you have a ton of cash and what you fear never happened. usually that is how it works. Often times the thing we fear that keeps us on the sidelines never comes to pass yet we let the thought of it paralyze us into inaction. Don’t be that guy.
Another thing that keeps newbies from never getting into the game is the pursuit of perfection. Perfection is the enemy of progress. Perfection is really just a reason for people to procrastinate. People are looking for the perfect deal when what they really need to be doing is making a deal perfect.
What really grinds my gears is that perfection isn’t even possible. I remember Roy Redd mentioning in his book The Success Magnet the idea of a perfect circle and that it is impossible to draw one. Even if you get close and you do everything the way you planned it you could still fall short. Knowing that, why do you expect perfect, aka the impossible, to be the green light for happiness and progress? It is again just another way we paralyze ourselves into inaction and misery. Take imperfect action and perfect it along the way.
One of the benefits of real estate is that it puts you in control of the asset. In stocks you are stuck with the management they choose, the prices they choose the products they choose. Real estate isn’t like that. You can decide to strategically over rehab a deal or strategically under rehab a deal. The key is that it is YOUR choice. That is why real estate is so attractive. You get to apply your creativity to each deal. It is creativity that makes you rich not merely competing with all these other investors.
Too often people come at me with all the reasons why something cant work or why an idea is too ambitious. I have said it multiple times but I think pessimism is people’s drug of choice because it gives you an out. It allows you to just dwell in your situation because actually taking action would fail you anyway. The thing is that these people don’t know what is possible. these people don’t know what can be. Just because it doesn’t exist doesn’t mean that it can’t exist.
That is the reason I avoid people like the Young Blue Chips of the world. The people who have a problem for every solution. 10X actions give you success and 10X actions create problems. If you are avoiding problems you are likely avoiding success. Pessimists are experts at pointing out problems and guess what, they are likely dwelling in a land of comfort but not success.
Get in the game
I want to encourage you to get your first deal no matter how it looks. A lot of the investors on Bigger Pockets talk about how crappy their first deal (their Hell House) was but they always acknowledge that their first deal allowed them to be real estate investors with credibility when it comes to banks and future partners. Some people say that if it wasn’t for their first crappy deal they wouldn’t even have the deals they have now. As Grant Cardone would say, an imperfect action is better than no action at all. You have to run as far as you can see and then when you get there you will see further. Its like paying your dues. Eat your first deal and then you can have some confidence under you going forward. You are an investor not a tire kicker.
Personally, I would rather have a deal that broke even or even took a loss but that opened me up to investors and banks and partners, basically leveling up my network out of the talkers and into the doers. I would rather have that deal than no deal. I would rather have that deal than be the guy who talks about how much money he would have made if he bought that apartment in DUMBO and not that art work.
Now that we are under contract and in the process of closing our short sale we are now getting legit off market deals that give us the cash flow we truly are looking for. We can debate the 50k deal but that is preventing us from becoming the true force that is Todd Acquisitions/ Todd Capital. Don’t let 50k or that duplex or that rehab keep you from the millions that you are likely aiming for.
I have much larger goals than one small deal that might require a little more rehab that we thought. The goal is skyscapers, hotels, apartments, condos, shopping centers and commercial parks. Real estate for Todd Capital ins’t a supplemental form of income. It is the primary source of revenue. Stocks are great and we do that too but real estate creates the wealth and the stock market amplifies it. Its not either or its both and. Get in the game!
Join Todd Acquisitions today by emailing firstname.lastname@example.org