What Are You Doing Different?

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  • Anonymous

    Every time the market changes I have to make changes too. It seems just when I get comfortable doing one thing the market changes and I have to switch gears.

    Well folks, as you all know the market has changed a lot in the last 6 months.

    What are YOU doing different in your real estate business to take advantage of the NEW opportunities?

    What you YOU doing to AVOID getting stuck making monthly payments on a property you can’t sell because it is harder to find a retail buyer?


    This reminded me of an email I sent to my group last year:

    Four or five years ago, when interest rates were higher, I was able
    to buy houses subject to the mortgage (with an owner financed wrap)
    all day long. There were weeks when I would do 2, 3, 4 deals a
    week. Life was good.

    It didn’t take long for me to realize that you can buy too many
    houses too fast. But it was hard to resist all these houses, and
    the equity, that sellers wanted to just “give away”

    I kept some as rentals and would sell some with a lease option and
    sold most with a contract for deed.

    Then Texas changed the laws to make it impossible to do contract
    for deeds. One investor cheated some people and they changed the
    laws to affect all of us. Well, we actually can do contract for
    deeds but the rules are so ridiculous that no one in their right
    mind would do it. I won’t go into all the details here.

    Time for a course correction.

    If I wanted to get top dollar, I had to sell with owner financing
    and take my chances that I would not have to foreclose. With a 21
    day notice of default in Texas, even foreclosure was not too bad.

    Everything was humming along just fine. I was routinely getting 10%
    down and a 10% interest rate when I sold with owner financing.

    Then 9/11 happened and it seemed like everyone in the United States
    was just holding their breath.

    I could not rent, lease option, owner finance or sell anything. If
    people had any money in the bank, they were holding on to it…
    just in case there was another attack. Like money would solve the

    Then, to make matters worse, interest rates started dropping.

    My tenants started buying houses and leaving me with vacant houses
    to fill. Finding new tenants was not so easy. I tried selling
    with a lease option or owner financing but the dynamics all changed
    after 9/11 – buyers were being more conservative and it was hard to
    get more than 3% down.

    Well – here we go again…time for another course correction.

    I went back to rehabbing some houses and selling to retail buyers.
    I’ve never liked rehabbing much but with low interest rates, I
    thought this would be a good way to go.

    I was wrong.

    I think all the good buyers had already bought houses by the time I
    switched back to selling to retail buyers. I did not time the
    market right and missed some great opportunities. All that was
    left was the bottom of the barrel buyers who needed down payment
    assistance and someone to pay all their closing costs and their
    realtor to boot. I just can’t stand dealing with people like that.

    So, time for a quick course correction.

    The first 4 or 5 years I was in real estate I just focused on
    wholesaling properties. I love wholesaling! I made a lot of
    money but I was not building wealth OR CASHFLOW so that’s why I
    switched to building up my rental portfolio.

    Since nothing else was working, I knew it was time to pull the
    wholesale trick out of my bag again. And that’s what I’ve been
    doing for the last couple of years.

    Over the years, I’ve figured out some incredible wholesale
    techniques that NO ONE ELSE IS DOING. This enables me to work in
    my real estate business and do more deals in 6 months than most
    investors do in a whole year… meanwhile I make a ton of money
    quickly so I can take off the rest of the year to work on other

    But… in my market, retail houses are just piling up! The number
    of days on the market is going up, up, up. And that’s happening
    in cities all over the place.

    So… that creates all kinds of new opportunities for CREATING NEW
    real estate PROFIT CENTERS!

    I’m smelling new opportunities! Maybe it’s time to do another
    course correction!

    As you can see, real estate is not a linear business. If you just
    keep doing the same thing over and over again, if you just stay on
    the same course all the time, you will miss out on huge profit
    centers and opportunities!

    You’ve got to change as the market changes! And boy is it

    The opportunities over the next few years WILL BE INCREDIBLE for
    those who know how to take advantage of them!

    Continuing education will be essential to your success! Don’t
    think of it as an expense, think of it as an investment in your
    future. But, it’s got to be the RIGHT kind of education.

    Stay away from the late night infomercial crowd. Stay away from
    the “guru” with the full page ad inviting you to a free one day
    seminar… only so they can upsell you into a more expensive event.
    Stay away from those $2k, $3k, $5k and up seminars.

    I’ve been to those seminars. I wasted the money. And as far as I’m
    concerned the information is SUBSTANDARD compared to other
    educators out there.

    I’ve also been to seminars by Jack Miller and I can tell you that the quantity and
    quality of information he provides far surpasses anything you’d
    ever get from the infomercial guru

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