In a previous blog post (the 4 critical elements every real estate investing deal must have), I listed the 4-point checklist I use to make sure any deals I do are smart deals.
Although I listed the 4 critical elements, I hinted that there was something even more crucial that you absolutely must have before you even invest in your very first property. What do you think it is?
When I ask people this question, they answer with things like:
- Cash or good credit
- A system
- A business plan
- A property
Those are good answers (and they can be important elements in a real estate investing business and believe me, I'm going to be talking about each one of them regularly in this blog)
...but they are wrong. Those things are not the MOST IMPORTANT element of real estate investing.
There's something you need to know first – it's an old saying
I'm going to reveal the answer to you and I think it might actually surprise you... but it's 100% true and I am The DM because of this one thing.
Before I tell you the answer, though, I want to tell you why this thing is the most important thing.
There's a saying that says: "Dig your well before you're thirsty" and it means that you shouldn't wait until you need the deal before you start putting the right pieces in place. (Many real estate investors don't know or completely ignore this advice and they run around like crazy to put a deal together. I, on the other hand, find properties and easily snap one deal after another in place because I dug my well a long time ago).
The single most important thing you need to succeed in real estate investing
Okay, I've made you wait long enough. Here's the answer. Here's the most important thing you MUST HAVE in order to become a successful real estate investor. Here's the "well" I dug before I got thirsty…
The essential part of every deal is not the property or the cash you use to buy it or even the paperwork that gets signed. The essential part of any deal is the people.
Not you... other people.
The thing that makes me The DM is my ability to be the linchpin between several motivated parties: Desperate sellers, profit-driven investors, and eager-for-a-home renters. (Plus there are others who are sometimes dialed into this equation, too, like wholesalers or contractors... in a future blog post I'm going to tell you more about the different parties in a deal and talk about what motivates them to participate in your deal).
If you want to be a successful real estate investor, you need to juggle lots of different things but you absolutely MUST have people at the center of your business before you go out and get your first property.
Here's how I became The DM (and the one thing that most investors miss)
Before I became The DM (and way back before I even got my very first deal), I rolled up my sleeves and I "dug my well" by building a list of people. And I discovered an important secret that many real estate investors miss: It's not a list of random people. Rather, the list needs to be made up of eager buyers – people who will buy your deals. I built this list before I needed buyers and building this list continues to be my first priority!
Here's why eager buyers are so important to put on that list: Deals are easy to find (and the more successful you are, the more they just seem to "magically" appear). And, with deals are motivated sellers.
I realized very early in my real estate investing career that if I wanted to be successful, I could find deals easily but I would need to get someone to buy those deals... I would need buyers who I could wholesale those properties to.
I strategically and intentionally built a list of everyone who might possibly be interested in buying real estate properties. I built a relationship with those people through face-to-face contact, voice Telecalls, and autoresponders. And I added value to those buyers so they knew that I had their best interests at heart.
Then, and only then, did I go out and make my very first deal. Compared to some of my peers at the time, my deals fell into place easily because I had the right relationships already in place. (AKA I Dug My Well Before I was Thirsty.)
That's just the beginning and it's the foundation of your success
That's not the only list you'll build. It's my first priority but I also tell my real estate investing clients that they should build lists of sellers and investors, too, but the list you should really focus on and devote as much energy as possible to building is a huge list of eager buyers.
(By the way: I learned so much from building my own lists that I invested thousands of dollars and hours and hours of time to make it easy for other real estate investors to build their own lists. If you check out http://virtualrealestatewebsites.com, you'll learn more about the system I developed to help other investors build better lists faster than even I imagined was possible when I started).
I've only just scratched the surface and I could keep writing for hours on this topic. But stay tuned because over the next couple of blog posts, I'm going to tell you exactly HOW I built my list and who is on it and what I did to build a relationship with them. And before I do all that, I'm going to tell you a surprising truth about this list of people.
Signing out from Palm Beach, Florida
Your Friend and Mentor,
Mark Evans DM,DN