Recently I spoke at a real estate club where I witnessed something I see more and more as I travel around the country. I was there to talk about all of the real estate opportunities that are everywhere in all areas of the country. This club was like most other clubs I speak at where I constantly hear that there is a shortage of deals there which is far from the truth.
The man doing the slideshow was showing different charts and graphs. He explained the history of such things as government T-Bills over the last 50 years, homeownership over the previous 50 years, interest rates and how they have fluctuated over the last 50 years, and how the economy has changed over the last 50 years. He showed what the estimates about what the real estate market is projected in the future based on recent economic cycles and how this will affect the price of homes. I must admit I found the information very interesting, but how does that information put money in your pocket?
Everyone was mesmerized by these facts of old, but my question, how does that information help their members who are starved for new ideas, strategies, and techniques make more profit checks? I was there to talk about what will allow them to buy more houses. I did a follow-up all day Saturday where I taught the very same information me, and many of my students use every day. I was amazed at the lack of their ability to think creatively and be willing to do anything other than what they have always done to buy houses.
I was amazed when I talked about buying houses paying zero-interest, getting seller financing terms, and never borrowing money from banks. It amazed me that almost everyone in the class couldn’t get their mind around what I was talking about. They told me they had never done anything like what I was teaching and what I was teaching was not the usual way people bought property there. Most didn’t think their attorneys would approve of doing business that way.
They had never had anyone explain creative ways to do deals like I was teaching. I guess it was scary for them to be willing to try anything other than what they said was standard practice in their area. The owners of the club are exceptional and caring people who do want the best for their members but thinking outside of the box is something never taught there. I remember wasting time on information as I saw presented that reminded me of myself years ago when I spent a considerable amount of time building spreadsheets to analyze the deals I looked at. The time I spent building spreadsheets was a waste of my time that didn’t make me one dime to feed my family. It was just me in my comfort zone doing non-productive things instead of making offers to buy houses. What I saw being shown I also consider being a waste of time.
To be a more efficient investor, it takes specific information about the local market conditions. Knowing property values. Having the ability to find properties others don’t know are for sale. Knowing how to analyze every property based on the real numbers of each property, not seminar-land math like I see on HGTV where the so-called wholesalers, who aren’t wholesalers buy and fix then sell at a retail price like the investors use on every show. They buy a house for $100,000, spend $30,000 for repairs and sell the property for $165,000 and tell you they made a $35,000 profit. These are not accurate numbers. They always forget to mention all of the other costs they incur from the day the property was purchased until the day it is sold or rented. Today almost no one knows how to negotiate with sellers, and it is rare to find anyone who knows how to make more than one offer to sellers other than paying all cash. May I suggest forgetting all of the get rich quick schemes. The programs that are supposed to be “Done for You” and look only for what will put the most money into your pocket? You must face the facts that it takes time and hard work to be indeed successful, not studying useless information you don’t need as a real estate investor.
Be sure to go to my website www.LarryHarbolt.com where you can find my courses and lessons that can indeed help you be a more successful investor. You will also get more FREE information listening to my weekly podcasts called “The Real Deal Real Estate Podcast with Larry Harbolt” on my website and YouTube.