The two major issues that stop investors from pursuing commercial real estate deals are no time and no money. In my experience, I’ve started off with practically none of these resources available to me, but as I broke these barriers my investing career started to flourish and I became a millionaire in under four years. You can sure bet that I’m glad I got started and once you start seeing results, I know you’ll feel the same way too.
There are many real estate gurus who will tell you that you need to commit many hours per week in order to get your real estate business off the ground. Lots of time commitment with no pay off is a quick path to failure. Why? It’s hard to stay committed enough as it is and if you start to feel like you’re spinning your wheels and not getting anywhere, it becomes easier to say that investing is not working out especially when you’ve got other commitments and priorities you’d rather be doing.
While you do need to invest some time in moving forward, it’s not as much as you think it is. Start with doing something you can do regularly and stick with it until you see results. Now you do need to be doing something that generates a deal like calling property leads or doing direct mail and as you start to see results, it’ll be much easier to commit more time to finding other deals.
The second most common reason investors don’t pursue commercial real estate investing is that they believe they don’t have the money to do so. I started in real estate having less than $800 but the one thing I learned was that the better the deal was, the less people focused on me and the more they focused on the deal.
There are multiple financing sources available. You just have to learn how to access them. Your lender will give what it can and the rest will be made up with money partners. You may be thinking that you don’t have great credit or that you don’t know anyone who would want to invest with you but the key is to be open to finding other options. Remember if the deal is good enough, people will want in on it.
With all that being said, there are a few other qualities that can make or break a successful real estate investor.
- Willingness to learn – successful investors take the time to learn about properties and their market conditions. They take the time to find out better ways of structuring deals to increase their profitability. They make mistakes. They learn and they move on making sure to not make the same mistake twice.
- Able to move past psychological barriers – successful investors have a "can do" attitude. They are solution oriented and don’t stop dead in their tracks because they don’t have an answer to a problem they face.
- Are people oriented – real estate is a relationship business. A successful business is one that has a network of contacts and experts who are used regularly to create more and more profits. That means we act with integrity and we make it easy for people to want to do business with us.
Commercial real estate investing is for anyone who is willing to do something in order to reach their financial goals. Whatever you don’t have, you can obtain with the right attitude and the right system in place.
Dave Lindahl is one of America’s most successful, hands-on, real estate investors. He has written 3 best selling books: "Commercial Real Estate Investing 101" co-authored with Donald Trump, "Emerging Real Estate Markets" and "Multi-Family Millions." Dave Lindahl is a regular guest speaker at CT REIA. Go here for the current list of upcoming real estate investing seminars in Connecticut.