As humans, we often decide to try new things but rarely set out with the goal of mastery. For example, I took an Instagram follower up on the offer to go surfing this past Saturday. I had (and now REALLY have) no intention of mastering the sport but it was something that had always appealed to me.
My friend and guide Greg told me that he “enjoys taking midwestern boys out surfing to see if they sink”.
To put it mildly, I was not prepared.
This is how 99.9% of us enter direct to seller marketing.
We are pushed to direct to seller marketing because of the need for deal flow. Trust me, If I could time travel back to the era of shortsales I would. The problem is that we can’t. If you want to get rentals that you can Brrrr out of or flips you can make a profit on you’ve got to get good deals.
You can try to work with wholesalers. The problem is, a lot of them don’t know how to estimate repairs or comp out a property. Caveat Emptor definitely applies here.
Those of us that know what we are doing, don’t have to sell deals at 75% of ARV because someone will offer us 80-84%.
Which means you’re either going to buy thinner deals or realize that you need to start going direct to seller.
I have no idea what the washout rate is for people dabbling with surfing but I’d bet it looks similar to amateur investors who swipe a credit card for some yellow letters. To be frank, it’s not the minority.
The problem is that real estate investing is a people to people business. Getting someone to call you, is only 1/10th of the battle. The real work starts when you need to build rapport, justify your offer, ask for the close, and follow up persistently.
Most investors enter the water (like I did on Saturday) expecting to be on their feet gliding their first time out.
Losing My Third Wedding Ring – Epic!
To put it mildly, I got my ass kicked. I rode the first wave in not knowing how to get off only to be ejected when the board hit the beach. Somewhere around the 25th head over heels wave pounding I lost my 3rd wedding ring. This one was, fortunately, one of the Qalo rubber ones but my wife still wasn’t thrilled and I now don’t own a wedding ring. 🙂
You’re going to lose some money when you get started at this. You’re going to buy bum lists, use lame mail, and let your calls go to voicemail.
Even though I will never be a surfing master I’m glad that I gave it a shot. I have tremendous respect for guys/gals who surf now.
Some of you may end up in this same spot with finding your own deals. You may very well realize “This ain’t for me bruh.”
Going For Mastery – Far Out!
For those of us who stick with it, the goal should be mastery. If you really want to make a killing in real estate you’ve got to be a deal finder.
Track your marketing campaigns with something like Callrail.
Answer your calls or hire someone like Call Porter to do it for you.
Have all of your calls go into a CRM like Podio or what I built for Call Porter clients.
For the love of all that is holy RUN A SCORECARD.
You have to know what your cost per lead, closing percentage, ROI, etc look like.
You can and will go broke trying to find deals if you treat it like a slot machine and not a business.
In Malcolm Gladwell’s book Outliers, he brings up the concept of 10,000 hours. He proposes that it takes 10k hours to REALLY master something.
I would argue that you can dramatically lower your learning curve and time to profitability if you hire a mentor.
Watch out for sharks
My rule for hiring mentors is this:
They have to be uniquely successful and qualified in their particular niche’.
There’s a running joke that those who can’t do, teach. I can say that I’ve seen a lot of that in the Rei niche’. It’s often easier to sell the dream than actually achieve it. One of the reasons that I personally don’t mentor newbies is just that.
I’m not here to sell the dream.
I’m here and I’ve built companies to help folks who already have it.
PS: The sign I posted a pic of was literally at the head of the beach I was at on Saturday. Greg casually mentions that the area is known for “whites”… Cool… Cool……
PPS: If you haven’t already you can check out/read my Ebook here for free!