We see so many ‘Gurus’ touting that they have an amazing automatic, push button system for real estate investing. Is it true that you can just have their incredible system that somehow does everything for you?
My feeling is definitely NOT. You may have many systems already set up such as a system to collect leads or an autoresponder series to help keep in contact with prospective sellers. There are lots of systems you can set up to help you run your business.
Since this is a people business, it will never be a ‘set it and forget it’ business. You must still actively run your real estate investing business.
Is there really a magic real estate investing system out there?
I think that leading people to believe that there is some magic system that will find sellers for you, and then magically spit out cash at the other end is misleading and harmful. Harmful in that it bypasses the most important factor in real estate investing which is negotiating . One of the biggest and most important basics is learning how to negotiate with the sellers. Not to mention potentially very rewarding.
If you can’t negotiate with the sellers there is NO system that will do it for you. Learning to work with the sellers is, in my opinion, the most basic and fundamental thing any new investor must learn. You must learn how to build rapport with the seller or most likely you will never buy their house. People sell or buy from people they like. Think about it – how many times have you bought something from someone you didn’t like? If you’re like me, probably not many.
The real estate investing Gurus push their secret forms and all kind of things that are secondary to you being able to negotiate a deal in the first place. If you can’t come to an agreement on the terms of the sale, then there is no form that will help you to close the deal. That being said there is one form I use occasionally, to help the sellers see the reality of where the money goes. Keep in mind though, this is only after they have agreed to sell and we are now negotiating on the price.
Just about all of my purchases are from the seller directly. In my experience, I have found having someone in the middle of my real estate investing business doesn’t work well for me due to several reasons. One, they may not be a good negotiator, two they may not understand the offer you want to present or they may think it is not a good offer. I’ve even had times where they didn’t want to present an offer mostly because they were embarrassed when they thought it was too low. That’s not for them to decide.
Remember playing the game ‘telephone’ in school. That’s where you told the person next to you a story then they told it to the next person and by the end, it was completely different? Sometimes having someone else present your offer is like that. By the time the deal is done it may look nothing like what you had in mind or wanted.
Next time you hear how easy it will be, ask yourself, has anything worthwhile I’ve done ever been “push button easy”? Probably not.
The business will get easier as you go but first you must build a solid foundation, lets learn the basics first.
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