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Common Investor Mistakes |
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| The investor hops off a plane unprepared. They don't have an approval letter, they don't know how much they want to spend and they don't know what their strategy is. This is like walking into Walmart and asking a clerk where the specials are without a wallet or purse. After about 2 hours I will drop you back off at your hotel and ask you to come back next time prepared. There are more effective ways to check me out than sitting in the back seat of my luxury car. Here is a checklist of what to bring BEFORE you get here. If you are not prepared, I will not give you more than 2 hours of my time. |
| The investor shows up at the first meeting with a handful of MLS#s. "Jim, I want to see these properties." The first problem you will encounter is that half of them will be short sales and about 10% got sold yesterday. You will have to sit there while I review these dubious properties and explain why we won't see most of them. Give these to me before you arrival so I can have an effective game plan. |
| The investor expects the properties we see today will be available next week. 30% of my property picks get snapped up every week by other investors(people I don't know). I have to review about 50 properties a week just to keep a decent inventory of investment picks on my web site. Theseproperties get purchased by investorswho did their own homework and jumped on it. If you don't believe me, bookmark any of my "A" Equity and "A" income properties. That property will be gone within 2 weeks. |
| The investor thinks he can put an offer in and fly back home. They usually try to be be clever and offer less than list price on a bank owned property. 15 offers later, they start to see the light. I offer you a very effective bidding system that allows you to actively participate in getting a deal. You will be making about 20 offers on bank owned properties to close one deal. |
| The investor inspects a property in terms of how they would live there. You are not a renter so it will be difficult for you to think like one. We will be reviewing properties in terms of what repairs and/or cleaning costs will get the property ready for occupancy. Linoleum and formica is good enough. Hardwood floors, grass, and granite countertops is a serious waste of money. Paint it > replace carpet > clean it > rent it. You're done. |
| The investor falls in love with a property. They get giddy with excitement at a killer deal and then make an offer at list price. Three weeks later, the bank faxes back a big fat "REJECTED" statement. "Jim I really wanted that property!" My response is always "Obviously someone else wanted it more than you did." If you are a serious investor, you will shotgun these and hope one falls out of the sky at a favorable price. We will look at about 40 properties, you will bid on 20 and we will get one. By the time we get a deal, you will have forgotten everything about the property. My phone call to you will be, "We got an offer accepted on property X we saw a month ago. Do you still want it?" Don't get emotionally attached to anything we look at . |
| The investor doesn't return my emails or phone calls. I don't call you to chit chat about the weather. I use emails as method to stay in touch and get feedback on the listings I sent you and to coordinate schedules. I get one investor a month that get's pissed off that I don't cancel my other appointments, drop everything and show them a property. My schedule is filled weeks in advance and I never show up to an unconfirmed appointment. |
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Congratulations! Because you read this page, YOU have an excellent chance of getting you a great deal. Reading this page probably saved you 2 flights to Las Vegas. |
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