There are no shortcuts to worthwhile results in real estate or in any business.
The formula that you can’t shortcut is this: VALUE in = RESULTS out
So, if you want more results (i.e. deals, profits, income, long-term wealth), you need to shift your focus from the results to the only variable you can control: the amount and quality of value you’re providing.
When buying real estate deals, our primary value added is to bring solutions to a homeowner’s real estate problems.
As I said in Reason #3, if you don’t first acknowledge the human part of the equation, you’ll never get an opportunity to solve the real estate problem. But once you have earned another person’s trust, then you could offer real solutions.
I think of my own suite of solutions as a “Real Estate Toolbox.” Here are just a few of the tools I have available in my tool box:
- Quick cash purchase (as fast as 3 days)
- Cash purchase, lease back to seller (short or long-term)
- Delayed closing (while seller shops for a house with your cash)
- Down payment + installment payments (aka seller financing)
- Lease with option to buy from seller
- Option to buy
- Purchase of remainder estate
There are many variations on these tools. As important as the tool itself, I have to explain how the tool addresses the needs or sources of pain of the seller.
If you’re not buying enough deals, I recommend that you inventory your own toolbox and evaluate how well you know how to use each tool.
For example, if you like to offer seller financing as a solution, how competent are you with the paperwork? Can you execute a closing (with the help of a closing agent, of course)? Can you explain the benefits and address the objections with a seller and possibly with his family or his attorney and CPA?
If you don’t have this level of confidence and competence with your tools, fix this by studying and practicing how to use them.
Especially if you’re new or overwhelmed, just choose one tool, get good at it, and then go look for sellers who have a need that your tool is suited to solve.
Chad Carson is a member of Metrolina REIA (metrolinareia.org), which provides education, networking, and networking for real estate investing in the Charlotte region. Chad also writes about real estate, money, and life at coachcarson.com.