Investing in real estate, particularly for those that are just getting their feet wet, can be as complicated as it is intimidating. All things considered, the pressure of landing your first property is either something that will make or break you. And for what it’s worth, far too many new investors succumb to the latter. Before they know it, their lack of experience becomes more of an obstacle than it needs to be.
It’s worth noting, however, that experience, or lack thereof, shouldn’t dictate whether or not you find a real estate deal. While experience is of the utmost importance, it’s never something that should hold you back. In fact, inexperience is no longer a viable excuse for new investors looking to land their first deal. There are a number of steps you can take as a new investor to find a deal that render your lack of experience moot. Let’s take a look at a few of the strategies I recommend for those of you brimming with potential, but don’t yet have the experience. The last thing you want is to lose a perfectly good deal because of the seller’s own ignorance of your talent. Here are a few tricks to show them that you are as good, if not better, than anyone else in the industry.
Whether you have yet to complete a deal or are a seasoned veteran, real estate investors must lay it all out on the table. Few things, if anything at all, are more valuable to a new investor than transparency; it’s what will set the tone for any relationships, partnerships and deals that ensue. It’s of the utmost importance for new investors to wear their experience on their sleeve when trying to capture leads, even if you can only cite upwards of six months of “on the job” experience. Regardless of how long you have tried your hand at real estate investing, let it be known.
Trust me, it’s a lot better to be forthright and honest about your level of experience than to lie and find yourself in over your head. Few things instill credibility faster than benevolence, and credibility can take your career farther than you ever imagined. In it’s truest form, honesty will ultimately lead to more valuable relationships down the road, whereas deception will inevitably lead you down a path from which it will be very difficult to return.
Do yourself a favor and explain to those you intend to work with that you may not have the experience of a seasoned investor, but what you lack in experience, you more than make up for in other areas. Don’t stop at telling potential sellers how long you have been in the business. Instead, divulge anything you may be able to use to your advantage. The idea is to present the tools you do have in a compelling way. Remember, just because you don’t have experience doesn’t mean you don’t have anything to bring to the table. The greatest real estate investors of our time were once in your shoes; how do you think they landed their first deal?
It’s not what you say, but rather the level of confidence you exercise when saying it. Selling a home has become ubiquitous with the largest transactions in a person’s entire life; don’t let your experience, or lack thereof, convince them you are otherwise incapable of facilitating a timely and profitable transaction for every party. Everything you say, should be reassuring, regardless of how long you have been investing.
Far too many new real estate investors are quick to discount their lack of experience, but I want to encourage those with less than lengthy track records to wear their inexperience as a badge of honor. While it’s easy for “experienced” investors to sit in their ivory towers and benefit from the deals their past has had a hand in creating, it’s also a lot easier for said investors to rest on their laurels. That’s not to say experienced investors haven’t earned every deal that comes their way as a result of their own hard work, but rather that success makes investors susceptible to complacency.
Source: How To Prevent Inexperience From Getting In The Way Of Your First Deal via Right Relevance