Warning: 80% of Real Estate Investors Fail Their 1st Year
By: | Posted: 04th October 2006
Find Out How to Be Part of the Successful 20% Which Enjoy Financial Freedom
I was just reflecting on the last few weeks of conversations I've had with investors from around the country.
All of them have one thing in common...
They don't want to rely on luck to determine how much money they make. They want consistent, predictable results.
But most of the them are struggling and spinning their wheels in place. Did you know that about 80% of investors fail in their first year? The problem is a lack of fundamental business building knowledge, and how to apply it.
You don't build a business by hoping & wishing.
You build a business like you build a house. You lay the foundation, and you work up. There's no other way that I know of.
So, what is the foundation of our business?
It's finding profitable deals from motivated sellers.
Simple.
What really irks me, though, are all of these late night TV commercials about real estate investing make it seem as if all you have to do is drive around looking for abandoned houses, or call the For Sale By Owner (FSBO) ads in the Sunday paper, and you'll make $60,000 your first month.
The reason I get so upset by that is because it sets up false expectations with investors - which later leads to frustration.
Have they ever actually tried those ideas? It's ludicrous. I'm not saying you'll never find a deal like that. You could get lucky. But we already established that we don't want to rely on luck to make us rich.
Instead, a compelling marketing campaign is needed to drive those sellers to call. You want motivated sellers calling you! You don't want to be driving all around town hoping to find a deal. You want to sit at your desk and just qualify the sellers.
Look, the truth is that you'll probably need 20-30 leads from motivated sellers to find one great deal. It's a simple game of numbers. Talk to enough sellers, you'll find a great deal. You can't rely on just a few leads a month, and expect to have a steady stream of deals coming to you.
Marketing is your answer. Let it do the work for you.
Save your gasoline. Stay at home and speak with sellers calling you. Only visit those properties that appear to be good deals based on your phone conversations.
What kind of results can you expect? At first not much.
It takes a little time for marketing to take hold. Then you'll start getting dribs and drabbles. Then you'll start getting a lead a day which will grow into 1-2 leads a day.
Doesn't sound like much right? But 1-2 leads a day is 30-60 leads a month. At 20-30 leads per deal, you're talking an average of 2 deals a month. If you made a bare minimum of $10,000 every deal, you'd be earning between $120,000 to $240,000 a year.
That's not luck - that's predictable.
Can you see how much easier and more profitable this approach is? Don't keep waiting for luck to smile at you.
Create your own luck. Implement a marketing campaign and drive those motivated sellers to call you TODAY! Start building your business foundation right now.
Best of Success & Abundance,
Lou Castillo
Lou Castillo has been successfully investing in real estate since the early '90's, and now shares his vast experience with investors around the country. Unlike many of the speakers and mentors in real estate, Lou has both an undergraduate and a Master's Degree in Business and Marketing, and for 12 years he worked managing a 50 million dollar business for American Express.
He was on his way up the corporate ladder until he recognized that real estate offered a greater opportunity for financial freedom, and for the lifestyle he desired. Using his powerful formulas Lou was able to retire from his corporate job at age 37 and follow his passion - his first love - which is investing in real estate.
Lou has developed proven systems that create massive wealth through real estate investing. He has authored more than 7 books and courses on the subject focusing on the implementation of his techniques. His latest development 'The Investor Riches System' has been helping investors world wide achieve financial freedom through real estate. For more information, go to http://www.freerealestatestrategies.com If you wish to talk to Lou you can e-mail him at Lou@InvestorRiches.com
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Tags: truth, marketing campaign, frustration, business building, financial freedom, conversations, investors, spinning their wheels, tv commercials, desk, expe, motivated sellers, simple game, sunday paper, late night tv, profitable deals, fundamental business, predictable results, owner fsbo