Inexperienced investors often assume that they can’t compete against others that have been in the business for a longer period of time. It can certainly be challenging at times to find deals, but your lack of experience should not be used as an excuse. The truth is that investors come and go in this business every day. Every time one leaves, it creates an opportunity for a hungry investor to work for their deals. While more experience may provide you with a successful system, experience alone does not guarantee any deals.
Taking action is what separates successful investors from the rest of the pack. Having a good plan is important, but rather useless unless it is moved forward. New investors have a hard time networking themselves to realtors or picking up the phone and finding out answers to their problems. Often times they are on the right path, but once they meet some resistance, they shut down and don’t know how to react. This has nothing to do with experience, but more to do with your aggressiveness in pursing deals.
Your investing area may be filled with established investors or hedge fund groups pouncing on almost every deal. If this is the case, you can either pick up any scrap properties they don’t want, find out ways to get deals or get frustrated and leave the business. The best solution is to create your own niche and find deals they either don’t want or didn’t think of. Probate deals, tax liens, mobile homes and condos should all be considered until you develop your own niche and reputation. Once you close a deal or two, you will find that people will want to start working with you. Once that happens, you will not have to fight for every deal. You may get some referrals.
Knowing what not to do is the best thing you can gain from experience. If you can learn from your mistakes, you will be ahead of the game. Your real estate experience may give you connections to realtors and knowledge of the area, but you should be able to get these on your own as well. It is never easy trying to break into a new business, but if you set realistic time-frames and goals you can get there.
The most important thing you can do to gain contacts in the business is to network yourself. There are investing groups in every state and usually one in your immediate area. Even if you have nothing to provide, go for the networking opportunities. You can pick up knowledge from every other investor you talk to. The more people that know you are an investor and know your personality, the greater the chance that they may think of you when they have a deal they may not want.
Every time a new property hits the market, you have the same opportunity to buy it as someone who has been in the business for 20 years. It doesn’t matter if you are bidding on your first property or 5th one of the day. Don’t use lack of experience as an excuse for success. Even the most seasoned investors had to get their start somewhere.