Why do only 20 percent of aspiring real estate investors achieve success?
There is one differentiating factor that divides the wannabes from the success stories. Sadly, it is the confusion around what this is that holds so many more back. So what is it that separates the few winners in real estate from everyone else? How can you cut through the hype and start making real money in real estate?
Success Factors: Lost in Confusion
There are an array of factors which can impact the top 20% group’s level of success. This may include; real estate education, decision making abilities, time management, the strategies and tactics deployed, and quality of work done, as well as marketing. However, they only get the opportunity to succeed, if they take action.
Without action, nothing else matters.
All the knowledge in the world is useless without action. All the qualifications are worthless unless used. All the intelligence and ability is wasted if it isn’t tested.
In some communities there appear to be thousands of Realtors. Everyone knows several people who have their real estate license. Yet, the average agent barely makes minimum wage. Some barely do 1 deal a year. Many more probably never do any.
Most are familiar with the 80/20 rule. The top 20 percent are responsible for 80 percent of the business. That’s true in virtually every field. The odds could be far worse when it comes to active real estate investing. It’s more like 90/10, maybe less. Of all those that go to real estate seminars, grab books on investing, and pick up courses, 10% or less actually act on it.
You can’t make money from real estate, unless you act!
Why don’t the other 90 percent actually do anything?
Most often it is making excuses, and stalling. Call it overthinking or overanalyzing; these are just glorified names for and forms of procrastination. For some others it is about not wanting to do what it takes. The most desirable set up for many simply isn’t the first steps. They dream of being able to buy or build magnificent luxurious properties for all cash, or give hundreds of homes to those in need. It can take some time to get there. Note that in reality most will change that dream by the time they are capable of it. Still, those first steps to get moving toward the goal are not always the individual’s preferred action, but works. Perhaps you have to speak to some buyers and sellers on the phone or in person. Maybe you need to send out some direct mail. This isn’t everyone’s favorite thing to do. But in order to earn the money and privilege of getting to the next level, it may take it. Or at least recruiting the help of someone who excels in that area.
How to Beat Paralysis, and Win
There is only one cure for procrastination – action.
- Make the decision to invest in real estate right now
- Define your first course of action
- Just do it!
If you can’t make the decision to engage in real estate, forget it. Someone else will do it. Your life will go on, on its current trajectory. If you do choose to invest in real estate simply identify your first step. You don’t have to see all the steps, yet. Then just act on it, just make that first step.
If you want to buy properties, flip them, or acquire them to rent; the only way to do that is to make offers. You can’t buy unless you make offers, and you can’t perfect it until you made a few. So start making offers. Walk the block and get some addresses, search online listings, or call a local real estate wholesaler. Make 5 offers, today.
If they don’t get accepted, just make 5 more tomorrow. And the next day, and the next. You’ll make the tweaks along the way to increase the number of your offers that get accepted. Apply the same technique to every other action, step by step.
Build on Your Successes
Build on your action daily until it just becomes a new habit, and who you are. Build a routine of consistent daily action. Whether or not you love the actions you have to take, make them the first thing you do every day. You’ll learn to love some of them as you become confident, the others you can outsource. Force yourself forward, reward yourself for taking action, and repeat.