Having performed entire speaking presentations about being “Over Prepared”, I often examine the process for newly licensed real estate agents when getting started. Recently, I had a newly licensed agent tell me that her next step “should be” formulating her network of existing contacts as a starting base. To me, the ‘latest’ she should have been doing that would have been while studying to take the test to get her real estate license. She should already have known who that she knows she could be contacting, and then some. “I expect to get my real estate license in March, and will be targeting the West Side” should have been her message during January and February. At the same time, she should have been researching properties, finding opportunities, and compiling her knowledge base and database.
Waiting until she got her license cost her valuable time to get started, especially since she was already on the clock for paying association dues and related costs.
I see similar patterns with new real estate investors of not doing things in the most efficient order. Several coaching students have told me they “want to get funding so I can look for property deals”. What I need to hear instead is, “I found a distressed property I can acquire for my price in Wilshire, and I need funding for it”. There is a huge difference when you have a price range and can easily identify the loan type and amount you will be initially looking for.
Many, if not most, sellers, lenders, contractors, and investing sources are not willing to help you structure a deal when they have other potential deals ready for them to work on. It’s up to you as the broker, developer, or investor to be as prepared as possible to make it easy for others to participate and benefit your cause. You should also do your best to put yourself in a situation where you have multiple sources to vet and consider. By doing so, you take elements of control back to yourself instead of needing to rely on others who may not have your best interests as a priority.
My team and I are available to assist, including writing or improving business plans and operations manuals. We can make you “first in” on starting off with a solid opportunity!
