Real Estate Investors

Why are some real estate investors who get into this busines so successful, happy, positive and charged?

And yet other's who start in real estate investing just don't seem to get it?
They're stuck in a rut, can't get started, sabotage themselves, etc.

In my view, the difference is in their level of confidence.

Those who have confidence move at a much faster pace, achieve success in their investing faster, build their cash flow, experience not only financial success but a personal growth too.

Those without confidence seem too afraid to do anything bold, move at much slower pace, achieve minor results, if any results at all.

If fact, most of the time these people don't know what to do. They try something, it doesn't work, they can't think of any other options or ideas to get it going again.

Well, the thing about confidence is - it's not God given.

When we venture into a new stretagy of real estate investing - we hardly know - we don't have much confidence - it's natural.

We gain confidence as we learn about the subject and apply what we learned.

There are only 2 fundamental ways to learn:

1) By doing, making mistakes, adjusting, persisting, coming up with solutions for a multitude of problems and continuing to move forward.

2) By doing everything the same way as above, except shortcutting the learning curve by absorbing the experience (ways to avoid mistakes) and smarts (ways to focus on things that produce results in leaps and bounds) of others who've gone before.

Why re-invente the wheel, just perfect it.

Which way of learning do you think successful real estate investors use?

You see, we can't avoid making mistakes altogether. But if you had a choice, would you rather not make basic fundamental investing mistakes? instead of repeating the same old mistakes over and over again?

There are hundreds of different things that have happened to a lot of beginner real estate investors in our industry and they have figured out how to deal with them (or better yet to prevent them). Here again, Why re-invente the wheel, just learn from others mistakes.

That's a no-brainer. Yet it's amazing how many people would rather befriend ignorance, by making and learning from their own mistakes all the way through thier real estate investing life

That's a long and tough road.

Homebuyers are motivated by a dream

It is the dream of every North American to own a home someday.

We are specifically talking about homebuyers who applied for mortgages but were rejected.

They may even have tried to get a mortgage for "people with bad credit" -- and were still declined.

What about those who did not even try to apply, because they don't believe they could get a mortgage.

These homebuyers want to switch from throwing away their hard earned money on rent to building equity in their own home.

There are several important factors that motivate these homebuyers to get them to make the transition from rental to home ownership:

1) Pride of ownership.

2) Knowing that nobody can ask them to leave and sell the house from under them.

3) The opportunity to remodel the house to their liking.

4) The opportunity to tell their friends and relatives 'they bought a house'.

These homebuyers are concerned with both price and payments, but mostly to the extent as to whether or not they can afford the payments and ultimately qualify for a mortgage.

The most important thing for them is the fact they can buy and own the home now.

Therefore, our job as smart real estate investors is to offer these homebuyers the opportunity of home ownership with owner financing

Owner financing is an item in low supply and a relatively high demand.

Profiting From Financing

When you help homebuyers with finance who can't get a mortgage on their own to get into a home you get to make a good profit.

Why?

Because, as I mentioned before, when you are providing a commodity in scarce supply you can ask and receive a premium on the price and payments.

Is this fair deal for all parties? Absolutely.

You are offering the homebuyers the opportunity that doesn't exist for them otherwise.

The only other choice they have is to wait until their credit situation changes and until they save enough money for a down payment.

This alternative is actually much more expensive for them than doing business with you.

Waiting and saving could easily take them 3-4 years.

In an area with growing housing prices it means they could be paying $30-50,000 more for the same house you can sell them cheaper today.

Ultimately they will likely be paying escalating rents during those 3-4 years it takes them to get to the point of being able to qualify for a mortgage.

lease2ownbob

My good friend and Mentor Bob Hudson has a great blog on lease to own.

Bob and his partner Thomas have a good handle on how the lease to own strategy works, please visit his blog.

http://lease2ownbob@blogspot.com