Dave Lindahl says how can we get rich in real estate investingHow can we get rich in real estate investing says. by dave lindahl.
Dave lindhal says that four important differences between an amateur real estate investor and a real professional.And these four can mean the difference between selling a property at a loss to rid yourself of it and making very healthy returns.Amazingly you don't have to be a marketing genius to fill a property with a good tenant but you do need to do these things:
dave lindahl say you advertise your property for a week in the local paper. Towards the very end of the week you line up a tenant for your property and set a date two days later to sign the lease and pick up some cash as a deposit to hold the property.You are excited and to save a couple of hundred dollars you stop advertising in the classifieds for the next week.The meeting day rolls around and of course - it happens.
One of you has a kid that is sick, or a dog that needs surgery, or a car that isn't behaving and you need to reschedule.
dave lindahl says that then for no reason whatsoever when you try to meet up on the agreed upon rescheduled day the possible tenant vanishes. Calls aren't returned, their voice mail box is full and their girlfriend, who you called because you were smart enough to get a back up contact number, has no idea who you are.Frustration settles in.You begin to wonder if you can ever get rich in real estate investing.
You have no more tenant leads because you stopped your advertising. To save a few hundred bucks you pulled your advertising and all the momentum you were building is lost.
The other possible tenants have vanished and you need to start all over again.
You then resort to questioning human nature. A popular question asked at this time by beginners is "Why do these tenants lie? They said they wanted the house, why don't people do what they say they'll do? What's wrong with people these days?"
Nothing is wrong with people. People have behaved this way for hundreds of years and will continue to do so.The problem is you, not them.It's your lack of sales experience and knowledge that is the problem (a huge topic for another time).You focus on the negative and it's a downward spiral from there.
We've seen this happen to amateurs over and over.
And it ends up being so scary at this point some people just break down and decide they can't get rich in real estate investing and leave the game all together. Bad idea, but to each their own.
Now the professional does the opposite.
The professional investor keeps advertising until the lease is signed and there is cash in their pocket. And not just on free websites like Kijiji or craigslist . They'll actually spend the money to keep a well written classified ad in the papers and on that paper's website.
But the pros don't not focus on that. Instead they focus on having 3 or more possible backup tenants in the wings.They continue to show the property to other possible tenants until the lease is signed. They attempt to sign the lease on the very same day that someone shows interest.
If that person doesn't have the full deposit on hand they accept whatever it is they have in their pocket.They know that when someone coughs up even a partial deposit they are emotionally tied to the property.They leverage their other possible tenants to create a competitive situation.The professional understands momentum is key and works hard to create and maintain it.
To get rich in real estate investing you must never stop advertising until everything is signed, sealed and delivered.Never.A Good Yard Sign right on the, surprise, front lawn.Now one may seem obvious but we've seen amateurs screw this up.It's amazing to me that someone will buy a property for a few hundred thousand dollars and then invest zero or next to zero on a good yard sign.
Or buy one but let it sit in the trunk of their car (I can only assume there is a pool of possible tenants in their trunk and that's why it's there).If you are going to get rich in real estate investing you must put in a yard sign.We have found that a HUGE percentage of tenants for student rentals, regular single family home rentals and lease option rentals come from the immediate surrounding area.
It's either by a friend walking by the house that sees the sign and passes on the information, or a family member who lives in the area and is looking for a place for their extended family or someone out on a drive just scouting the area for a good home.And those little 8" by 9" black and red "For Rent" signs don't count.
Without it people have to be mind readers to figure out your house is available for rent or for sale. Possible I think, but not common.I'll leave this point with a story.We were working with one investor who really wanted to get rich in real estate investing.He spent thousands of dollars on training courses before they began working with us, he then took time to find a property, he ran all the numbers, lined up financing, set up a partnership with a family member and bought the house.
They ran some ads in the paper but didn't put up a yard sign...didn't think it was necessary.Well, after a few weeks of not placing anyone in their rental proeprty they got nervous.After chatting with them and learning they hadn't done the obvious thing and let people in the area know their house was availabe we yelled at them. Again and again.
real estate investing you have to take this business seriously.And advertising your property with a basic yard sign may sound simple, but it's a key ingredient that beginners often ignore.
Massive Action :
this is a biggie.So many people of been handed things to them their entire lives that when something doesn't go according to plan they break down.They freeze.Deer in the head lights syndrome.Here's what I mean.If an amateur investor doesn't get their property rented out quickly they will start blaming the people that came through the house.These are the following steps saye by dave lindahl.