How To Get Rich In Real Estate
Unlike late night informercials, or the latest guru trying to sell you a course, I am going to share with you the absolute “truth behind the scenes” when it comes to making money in real estate.
In my 19 years of personally investing in, buying, selling, and representing hundreds of clients over the years; I’ve discovered 3 very specific ways to make money in real estate quickly.
However, before I share them with you, I think that it would be important to ask you a few questions first!
A seed planted on unprepared ground… rarely bears fruit.
Questions For Your Mind
What is “Fast?”
What does that mean to you? 2 weeks? 30 days? 90 days? Fast is generally a question of perspective. In real estate, we operate from 90 day cycles.
In other words, the things you do today, will pay off in 90 days from today. This rule is not a “hard and fast” rule, but a good “rule of thumb.”
What is your Skill Level?
Have you ever sold a home before? Have you ever bought a home? Do you know the skills it takes to get a property under control? Do you know how to positively control the conversations with the Sellers and the Buyers? If not, in order to sell real estate fast, you ought to consider strengthening those skills!
What is your Time Commitment?
We all have 168 hours in a week. If you have a full time job (40 hours) and you sleep (56 hours) that leaves you 72 hours in a week to build your dreams!
Hell, push came to shove, you could fit a McDonalds job in there for $7 a hour.
To put it another way.. if you can flip burgers in those 72 hours, heaven knows what you could do if you applied yourself!
How Bad Do You Want It?
This is the ultimate question. My mentor Mike Ferry used to say “You can have anything in life you want, but what are you willing to give up to get it?” There are no free lunches. If you want to be rich in real estate, it comes with a cost. This is perhaps the most difficult question of all to answer…
What Are You Willing To Give Up To Get It?
1st Way To Real Estate Riches… Buyer Representation!
Without a doubt, if you are a real estate agent, Buyer Representation is the fastest way to get a check in Real Estate (again… if you are an agent). The most difficult part of this equation is finding a motivated buyer.
If you are a Realtor®, you have massive amounts of resources at your disposal to find buyers. From MLS, to affiliates, through marketing to your Center of Influence to Company Open Houses, if you are an agent, you should never be short of buyers who are ready to buy now!
However, how do you attract that group of hungry, ready to buy buyers? By developing a “Hot Properties List!” This list is a list that YOU create with all the hottest deals you can find on, as well as off market.
There are many ways to build this list, however the benefits will give you a quantum leap in your business! One of the benefits is you will begin to cultivate buyers who will pay more than After Repaired Value!
The additional benefit from finding these ready, willing and able buyers is that occasionally you will find move up buyers who have homes to sell! Thus increasing your efficiency with a free listing!
The main disadvantage to this form of real estate wealth is that you are always subject to the contingencies of others. Additionally, if you aren’t an agent, this strategy is meaningless to you!
However, there is more than one way!
2nd Way to Making Bank in Real Estate… Wholesaling!
If you are a Real Estate agent, or a unlicensed Investor; Wholesaling (aka “Assignment of Contract) is a fantastic method to obtain wealth in real estate.
If you aren’t an agent, the fastest, most predictable method of getting paid in real estate is by controlling the inventory of highly motivated sellers with purchase contracts.
Here are some basic ideas to keep in mind about Assignment of Contract (AKA Wholesaling)
- If there is a motivated Seller in your world, you want to know about it!
- Be a “Bloodhound for deals!”
- Within 5 miles of you, there is someone who is deciding to sell their home…
- Your job… should you choose to accept it, is to find them!
It takes a lot of skill, and a lot of effort. I won’t lie to you. The main disadvantage is that there are far fewer people in your marketplace who absolutely, positively have to sell…but they are there!
Let me ask you a question with regards to this point… If I had a gun to your head, and I gave you one week… could you find a motivated seller somewhere?
I know you could!
3rd Fastest Way To Get That Dolla Dolla Bill Ya’ll! A Well Priced Listing!
Sorry to be a killjoy, but if you want predictability, you must control as much of the market as possible.
Listings represent long term cash flow for your business. You’ve always heard the phrase…
Those who list… last.
Why do you suppose you have always heard that? It’s simple! Listings provide many benefits including, but not limited to:
- Stability and Predictability in long term cash flow.
- Leads from sign calls, just listed, and just sold calls.
- Authority. The more signs you have in the streets, the more known and respected you are.
As a wholesaler, listings mean nothing to you. For agents who invest however, this is a natural byproduct of your marketing.
If you can’t find a deal from someone who will wholesale their home? It is easier to combine your offer into some form of Guaranteed Sale Program.
As an Realtor® who Invests, you can use your “buyer status” to attract interested homeowners who want to sell their home without the hassles of traditional selling.
From there, anything could happen. You could buy the property outright in some fashion, assign it for profit, list it, refer it out to another practitioner for a referral fee (I even know agents who make an entire career out of this), or even buyer sales as Investor representation.
What It All Means
In conclusion, there are no shortcuts to riches in real estate. Only hard work. However, the “hard work” required isn’t like digging a ditch! It simply requires that you think differently.
In order for you to make real estate wealth that is lasting and worthwhile, you must understand, and fully accept this simple truth.
The “Hard Work” required is being able to change your mindset… That’s the hard part.
It requires hard work, you must think differently, act differently, talk differently, and react differently. There are no shortcuts. It’s simple, but not easy.
Now it is true, you can be a great investor without having a license! There are tons of powerful, incredibly wealthy investors who do not have licenses! However, if you are newer, or a agent who invests, a license provides you with a unique benefit.
A Real Estate license is like having a winning lottery ticket. You simply have to cash it in! It’s the ability to “print money.” Now, when I say the ability to “print money”; I mean to say that you can create deals out of thin air.
You see deals on MLS that others do not see. You have access to properties that others do not. You have no meaningful competition in the field, you have no fear about price because you can see values through MLS, you have power through your contacts, you have authority through the State, and best of all… the means to help a ton of people!
Have a Powerful Sales Day!