THE 7 DEADLY SINS... Cont.

3: The Blind Leading the Blind.
This is another critical mistake many investors make. After deciding real estate is the right venture, you and your best friend team up to conquer the world of investing. One has the means (a good credit score) and the other has the moxie (determination). When you add those factors together, you end up with a mess. Why? Because no one knows how to find a deal, analyze a deal, or even close a deal. No one knows how to estimate rehab costs, choose a lender, or market the deal. So, you do what you think every other real estate investor does - you buy a house! Now you are in the wrong place, with the wrong person and the wrong deal. So you do the next logical thing, you hire a professional – a real estate agent, which often leads to costly assumptions:

4: Thinking Real Estate Agents Know Real Estate Investing.
Houston, we have a problem! Real estate agents are great people. So, for all of the real estate agents who are gearing up to send me letters, please hear me out first. My wife is a licensed real estate agent, and a great one at that, however, I have seen her course material and nowhere in that material does it talk about being a real estate I-N-V-E-S-T-O-R. Being an agent and being an investor are two entirely different realms. Real estate agents are sales people – they know how to sell houses, a science in and of its’ self! But agents rarely know the many facets and nuances of real estate investing unless they are true investors and have been trained by a coach, a mentor, or even a client (who is an investor who took the time to explain what was needed to guide them). So again, I say, “Real estate agents are great people, however, they are not synonymous with real estate investors!”

5: Trying to Get Rich Before Taking Care of Immediate Cash Flow Needs.
Ever hear of “Putting the Cart Before the Horse”? That’s typically what happens to new real estate investors because they are looking for that one deal (or deals) that will immediately change their tax bracket or their zip code. The cardinal rule of real estate investing is to find a deal or deals that will cover your monthly bills FIRST!! As my Guru, Ron LeGrand, says, “Take care of your immediate cash flow needs first, then work on getting rich!”

6: Waiting Too Long To Get Started.
One of the most deadly diseases that hinders success is ANALYSIS PARALYSIS. This disease has 2 stages:

Stage 1 is when you analyze your life to a point of paralysis – you don’t do anything. Some examples - “I don’t have time now!” “I will start when: I get my credit straight, I get enough cash saved, I lose weight, etc.” “I’m going to get started when I pay off all my bills!” Any excuse will do if you don’t mind delaying your success.

Stage 2 is when you have the opportunity to move on a deal and you over-analyze until either it’s gone (lost opportunity) or you talk yourself out of it (lost opportunity). The best example of this is the “What if” or “I woulda, shoulda, coulda” syndrome. Did you know that every one of us has three (3) $1 million dollar ideas or opportunities per year that we let slip away because we wait too long to get started? You do the math and then determine whether any excuse is worth the price of procrastination.

7: Become a Real Estate Investing (REI) Seminar Junkie!
I know I said earlier that most people fail due to a lack of real estate investment education. And now, here I am telling you that becoming an REI Seminar Junkie is a sin! Please hear me clearly; I am not contradicting myself. I have attended boot camp after boot camp and seen many of my fellow classmates who have spent tens of thousands of dollars on REI Seminars. (One in particular has spent over $100,000 and HAS NOT DONE ONE DEAL YET!!) And it’s not because the information doesn’t work, but because they haven’t done anything with it; they are just fascinated by it. Well guess what? INFORMATION WITHOUT APPLICATION LEADS TO FASCINATION! This is the most common symptom of a REI Seminar Junkie.

INFORMATION WITH APPLICATION LEADS TO TRANSFORMATION! This is the whole purpose of going to seminars! And as you apply the information, you will gain the ultimate real estate investor’s degree – a MBA, Massive Bank Account! I can tell you from first hand experience, it’s a very elite group, the lifestyle is not bad at all, and there is plenty of room for new members!

If you can conquer these 7 Deadly Sins, then you will embark on an exciting and financially limitless journey. Those of us who have already started welcome you with open arms and great anticipation of your SUCCESS! Know this – There are enough deals for all of us. Until next time, remember, Success Is Not a Secret, It’s A System!! Those of you who have yet to get out of the starting block, please accept my personal invitation to join me in securing your MBA – your Massive Bank Account!!