The two main problems that prevent investors from closing commercial real estate deals are lack of time and money. In my experience, I started with virtually none of these resources available to me, but when I overcame these barriers, my investment career began to flourish and in less than four years I became a millionaire. You can bet I’m glad I started and once you start seeing results I know you will too.
There are many real estate gurus who will tell you that you need to dedicate many hours a week to running your real estate business. A lot of time without payoff is a fast track to failure. why? It’s hard to stay committed enough, and when you start to feel like you’re spinning your wheels and getting nowhere, it becomes easier to say that investing isn’t working, especially if you have other commitments and priorities that you’d rather be doing.
While you do need to invest some time moving forward, it’s not as much as you might think. Start with something you can do regularly and keep doing it until you see results. Now you really need to do something that generates a deal, like calling prospects or doing direct mail, and when you start seeing results, it will be much easier to spend more time looking for other deals.
The second most common reason investors don’t invest in commercial real estate is that they don’t think they have the money for it. I started in real estate with less than $800, but one thing I learned was that the better the deal, the less people focused on me and the more they focused on the deal.
Several funding sources are available. You just need to learn how to access them. Your lender will give what they can and the cash partners will cover the rest. You may think you don’t have great credit or that you don’t know anyone who would want to invest with you, but the key is to be open to other options. Remember, if the deal is good enough, people will want to participate.
With all that said, there are a few other qualities that can make or break a successful real estate investor.
1) Willingness to learn – Successful investors take the time to learn about real estate and its market conditions. They take the time to find better ways to structure deals to increase their profitability. They make mistakes. They learn and move on so they don’t make the same mistake twice.
2) Ability to Overcome Psychological Barriers – Successful investors have a “can do” attitude. They are solution oriented and don’t stop in their tracks because they don’t have an answer to the problem they are facing.
3) Are People-Oriented – Real Estate is a relationship business. A successful business is one that has a network of contacts and experts that are regularly leveraged to generate ever-increasing profits. It means we act with integrity and make it easy for people to want to do business with us.
Commercial investing in real estate is for anyone who is willing to do something to achieve their financial goals. Anything you don’t have, you can get with the right attitude and the right system.