Posted almost 3 years ago

#1 SECRET Every Rookie MUST Apply to Their Daily Habits

#1 SECRET every rookie MUST apply to their daily habits to ensure long term success

As I browse the Do linsk site forum area looking for questions that I can answer at my skill level, I am amazed at all the new members who get on with a “deal” already in their sights, but have no money, no credit, no long term goals, no team, nothing in place to support long term real estate investment activities. Yea, some have good credit, or a wad of cash in the bank…but what they don’t realize is they are not going to get rich off one purchase. ONE WRONG PURCHASE CAN SINK YOU.

The secret I refer to in my title is PATIENCE. Ambition is always admirable, but going crazy over the foreclosure down the street, without credit, a little cash, knowledge, relationships, and an exit strategy, is just unwise.

THERE WILL ALWAYS BE ANOTHER PROPERTY!!

A lot of us on Do linsk site are not going to be buying 100 properties in a year; it will be a paced, steady climb to financial freedom.

TAKE THE TIME TO BUILD SOME RELATIONSHIPS WITH SOME LOCAL PROPERTY MANAGERS, AND REALTORS.

TAKE THE TIME TO BOOST YOUR CREDIT SCORE- AN INTEREST RATE CAN DETERMINE IF A PROPERTY CASH FLOWS OR NOT- THE HIGHER YOUR CREDIT SCORE THE LOWER THE INTEREST RATE.

READ A FEW BOOKS THAT WILL GIVE YOU BASIC KNOWLEDGE OF REAL ESTATE PURCHASE TRANSACTIONS, LEASES, BUSINESS ENTITIES, AND OTHER RELEVANT INFORMATION.

All these suggestions can be accomplished in as little as 6 months. So why are we all in such a rush to purchase that foreclosure the guy at the bar told us about?

Don’t make decisions on what you think the property is going to be worth in a few years, that value may never come. Base a purchase decision on the NUMBERS RIGHT NOW. Too many get dollar signs in their eyes by thinking about how this 80k short sale COULD be worth 500k in just a few short years. Don’t be that guy or girl.

I made these mistakes as well, but I was lucky that I was not ruined by my first purchase. I hope some new people will read this post, and take the advice of someone who remains excited to purchase to this day, but makes it a point to take emotion out of the equation. I am not looking to get rich quick; I plan on acquiring my property over a number of years, and one emotional purchase could set my credit, reputation, cash flow, and a mountain of other things back a number of years.

Practice patience in your everyday tasks, and it will automatically carry over into your real estate activities. Hope everyone is having a great week.

If you have any stories about purchases you made on an impulse tell me about them in the comments, everyone can learn from a good story.



Comments (70)

  1. Tiny 1450983536 avatar milanb

    Brandon L. Sage advice!

    I think this could be a requirement for every real estate business plan.

    Cheers!


    1. Tiny 1496613091 avatar lvinv

      I totally agree! thanks for taking the time to read and comment. 


  2. Tiny 1448386642 avatar jeannej19

    Awesome!


    1. Tiny 1496613091 avatar lvinv

      Thanks Jeanne :)


  3. No avatar

    Brandon, this advice is what I NEED TO HEAR. And is TIMELESS. Thanks and have a great day. Don


    1. Tiny 1496613091 avatar lvinv

      @Don Alberts I'm glad you found it valuable, have a great day as well :)


  4. Tiny 1430319887 avatar tristanc

    Thank Brandon, 

    It's funny that I found this today because I got really excited on a 8plex in my area even thought I'm 14 and have about $250 to my name. Lol

    Thanks it was very good advice and it really helped!!

    P.s for now on when I'm bummed that I can't jump on a deal I'll just tell myself " THERE WILL ALWAYS BE ANOTHER PROPERTY!!"


    1. Tiny 1496613091 avatar lvinv

      @Tristan C.

       i am really glad you found the post useful. Do you plan on making your first purchase when you are 18?


  5. Tiny 1426805961 avatar viewdynasty

    Thank you for the advice. I am a fellow potential investor but I am lucky to have found my passion to be in real estate at 25. I have been working in property management for the past few years and although I plan to keep my job for a while, I have my real estate license and currently building that business part time. I sometime feel so anxious to achieve my end goals since I first started interning while in college at a local real estate brokerage, this post help me understand that I am on the right path and that patience and due diligence will ultimately get me there.


    1. Tiny 1496613091 avatar lvinv

      Hey Charles, thanks for taking the time to leave a comment. I totally know how you feel, it's hard to watch people buying property like jackrabbits, while you are taking the time to put a strong foundation in place. 

      What I think about, is those are the same people that may be bankrupt because they are not taking the time to set up properly.


  6. Tiny 1404773512 avatar sairk

    Thank for the wise advise. I am newbie since last November try to lean and while webinar, boot camp and podcast. Investor who are like me started to buy properties and I was wondering why I am not finding the deals, thought I am afraid to find first deal or not ready to jump in like others. My investing criteria is local to my area and SFR with 2+bed/bath/garage must. I like to investing with minimum $$ since I have credit but not enough money. Now while reading Brandon's post I think I am in right path not to rush...


    1. Tiny 1496613091 avatar lvinv

      Thanks Darmi for taking the time to leave a comment. If you have good credit, but no cash, I would suggest looking into building business credit. With a 720+ credit score you can establish some serious business credit lines to help with your investing.


  7. Tiny 1418360445 avatar zeinab

    i absolutely agree and i appreciate you sharing your insight patience is a virtue, definitely will need it in my journey with real estate investment

    Thanks 


    1. Tiny 1496613091 avatar lvinv

      @Zeinab Mohamoud thanks for the comment, I just posted a new blog. Let me know what you think.


  8. No avatar

    I agree with you Phillip that the words - "There will always be another property" is key. Don't be too eager to make a deal work just because you want to get that first flip under your belt... unless the numbers really work!  I'm struggling with that right now... but I am confident that I will prevail. Patience is the key.... 


    1. Tiny 1496613091 avatar lvinv

      Thanks for the comment Karen


  9. No avatar

    interesting read. The key words that gives me the comfort I need to allow myself some patience is "THERE WILL ALWAYS BE ANOTHER PROPERTY!!" 

    thanks


    1. Tiny 1496613091 avatar lvinv

      Thanks for the comment @Phillip Trenk 


  10. No avatar

    Thanks @Brandon L for sharing your thoughts. I will keep your advice in mind, as I go thru my journey in real estate.


    1. Tiny 1496613091 avatar lvinv

      Thanks @Satya Thiru for taking the time to read and comment. 


  11. Tiny 1419186914 avatar namtandee

    Yes Brandon you are right.  Nothing worth having comes fast.  I was the homeowner who moved out of the house I bought to live in thinking I could just rent it out.  (couldn't sell it because the market crashed).  MAN did that lesson cost me.  I still own that house, rent it out, and NOW it cash flows.  Bigger Pockets helped me see the error of my ways, and gave me a driving urge to get it right.  I now have 3 properties all performing as they should, and in the process of putting together my first low down payment deal.  it took 5 years to get it right and lots of mistakes.  (some not too cheap ones).  this is definatly good advice!

    RR


    1. Tiny 1496613091 avatar lvinv

      Hello Ralph, that is a very inspiring story. Thanks for taking the time to share.


  12. Tiny 1417959169 avatar lancej1

    great posts and it also gives me great confidence to know that I'm already implicating your ideas into my journey thru real estate investing


    1. Tiny 1496613091 avatar lvinv

      Hello Lance, that is great to hear! Good Luck, and thanks for taking the time to read, and comment.


  13. Tiny 1417970984 avatar robertw1

    Patience is one of the 8 keys to success highlighted in this TED talk.  Enlightening 3 minutes!

    http://ted.com/talks/richard_st_john_s_8_secrets_of_success?language=en


    1. Tiny 1496613091 avatar lvinv

      Hello Robert, Hope you are having a great night, thanks for sharing the info, I will be checking it out soon, and I appreciate you taking the time to read and comment. 


  14. Tiny 1417980968 avatar steffanj

    ....excellent post for newbies.  Reading it gave me a breath of relief knowing that you have think of this as a marathon, and not the 100 yard dash!


  15. Tiny 1448398689 avatar jonjay

    Excellent read. And very very true... 


  16. Tiny 1416783098 avatar aarons1

    Great post and even better timing for me personally to read this.  I wouldn't even classify myself as a newbie but instead in the fetal stage.  I have been wanting to invest in property for awhile now and have finally decided to go for it.  I was getting a little full of myself because I have 12+ yrs residential construction experience and my dad is going in on this with me and he has 30+ yrs const. experience.  So I was pumped and ready to tackle the first "pretty good looking deal" I came across thinking we could make it work regardless.  Now I will practice patience and get a solid team in place first.  Can you lead me to information on exit strategies?  Thanks!    


    1. Tiny 1496613091 avatar lvinv

      Good morning Aaron, I am glad you enjoyed the post. Thanks for the comment. To me exit strategies are highly individualized based on many factors, so I could not generalize without having a project in front of me, but I'm sure there are lots of posts on the bigger pockets forum that discuss specific examples. Hope you have a good day.  


  17. No avatar

    Brandon -  Awesome advice in here:  1)  Get ready, 2) Be patient, and 3) There will ALWAYS be another house.  I would love to share my experience which is very consistent with your post.  I hope some find this useful in any way. and i would also like to add another two ones:  1) Beware of buyer remorse (no matter how good a deal you get, you will always feel you could have gotten cheaper or so forth), and 2) Don't fall in love with any particular house (consistent with your "There will ALWAYS be another house" advice.

    I have purchased only two houses (investment properties) over the last three years, and each one of them has been a solid investment (I rent them out).  To get the 2 deals, I made about 50 offers before I got the two accepted.   I keep a file on why I offered what I offered then, and from time to time, I go and check if they have resold and what their value has been.  Some, I was lucky my offer didn't get accepted since I could have lost money if I had wanted to resell them.  But for most of them, if I had purchased them, I would have been OK in the long run.

    Also, be ready to walk away from a deal (in other words, don't fall in love with your investment, remember there will be ALWAYS another house).  I put an offer on a foreclosure but the inspection found moisture issues in the crawl space and the lack of power in the second floor wasn't just the bulbs or the breakers.  I tried to negotiate but the bank wouldn't, so the $400 I paid for the inspection happened to be the best investment i made.  I got a release since my offer was conditional on a satisfactory inspection.  Probably someone will buy it, and probably that someone will do good.  But there will ALWAYS be another property so if you don't feel comfortable, just don't.

    Anyway, thanks Brandon, good advice for anyone starting.


    1. Tiny 1496613091 avatar lvinv

      Thank you Marco for the additions, I agree with them. Best of luck to you, and thanks for the insightful comment.


  18. No avatar

    im a newbie and I definitely agree. Patience is key


    1. Tiny 1496613091 avatar lvinv

      Thanks for the Comment @Ricky Finley 


  19. Tiny 1473714040 avatar xjpcx0023

    Being a newbie, i appreciate this post. Thanks!


    1. Tiny 1496613091 avatar lvinv
      Thanks for taking the time to read it James, Hope you have a good day.

  20. Tiny 1496613091 avatar lvinv

    @Rachelle Valmeus did you like being a Realtor, I'm actually going to get my license soon so I can improve my sales skills, and I'm glad you enjoyed the post.

    @James Black a little basic education will definitely help avoid a lot of pitfalls, thanks for the comment

    @Keith Ellis  glad you found the post useful, I am always glad to share my experiences.

    @Marwan Marzagao 

     I'm glad you avoided it, I will I could go back to 2007 and say the same lol

    Anyone that enjoyed this post, check out the others I have posted and let me know what you think. I appreciate you taking the time to read my stuff.


  21. Tiny 1432489468 avatar j fr3sh hr

    Amazing post. I feel some people rush the purchase when they feel an opportunity might escape them. But PROPER EDUCATION can negate the emotional side of things, that along with due diligence can be all the difference in the purchase and exit strategy.


  22. Tiny 1417752537 avatar rachellev

    We all enjoyed your post.  I am a former real estate agent but new to investing. So I have rekindled some past relationships with realtors and networking with fellow investors at my local REIA to gain more knowledge. Patience always pays off.


  23. Tiny 1418433047 avatar keithe

    HA. thanks for the great post I am a rookie and this was a great tip.


  24. No avatar

    Great post,  I almost fell victims to "buy buy buy"!  I have the credit, the manager and cash. I had just crushed a steal of a deal, had an offer on a second that will be another Gem in the rough and was about to go after another property.  the numbers looked good on all three. I the took the weekend and holiday to take a step back. Took a deep breath and ran a cap rate analysis, it still looked good. But, it would have leveraged me pretty deep.  I am really glad patience and a cool head perceviered. the thrill of the ride can get the best of you. Take this post to heart and be smart or you could be the next newbies foreclosure!  Thanks for posting.


  25. Tiny 1496613091 avatar lvinv

    hey everyone, thanks for the comments. I have been busy the last couple of days, but I will be on Do linsk site tomorrow answering the questions that have been asked. Thanks for all the kind words. One thing that I started doing to improve my patience is to drive 5mph under the speed limit, not only does it help improve patience, but it also improves time management, and is actually relaxing because it gives me a little more time to listen to my audiobooks. If I can't be patient enough to spend a few extra minutes getting somewhere, how     Can I expect to have patience doing anything else? 


  26. Tiny 1414434379 avatar cmm

    @Brandon L.  Thank you for the good advise.  As a newbie I want to jump in and get going, but I know that patience and education will go a long way.   


    1. Tiny 1496613091 avatar lvinv
      Thanks for the reply Cory, I definitely agree with you.

  27. Tiny 1415897135 avatar bradshep

    I'm new and ambitious, and the idea of being patient is hard!! I want to buy 10 properties yesterday. How do you balance being patient with not wanting to suffer from inaction?


    1. Tiny 1496613091 avatar lvinv
      Hey Brad, I keep in mind that those properties are going to come to me no matter what. So I can either rush, and make mistakes, and maybe get involved with less than desirable people, and risk making mistakes, or I can take my time, build relationships, slow things down, mitigate my risk, while keeping everything I have built in control. Not everyone you meet puts your interests first. If you rush you might miss that, and it will be a costly education.

  28. Tiny 1475168682 avatar stevekiser12

    I am a newbie and I really appreciate the advice!! Thank you!!


    1. Tiny 1496613091 avatar lvinv

      Hey Stephen, thanks for the comment!


  29. Tiny 1417397442 avatar aps05005

    @Brandon L. Thanks for the great post.  I am new to investing and this is very helpful.  I was wondering, without having done any real estate deals how receptive would real-estate agents and property managers be with me asking questions to gain an understanding of the business?


    1. Tiny 1496613091 avatar lvinv
      Hey Tony, thanks for taking the time to read, In my own opinion, I would not want to deal with anyone who would not give me an honest answer to the questions I may have. So my advice would be to run away from anyone who does not give you a straight, knowledgeable answer. I regularly spend time at my accountants place picking his brain, and he loves to talk, but I make sure to bring some black and mild cigars, and some paper for his printer when I visit So he is always happy to see me. Check out my post on team building it might give you some insight in what I look for in the people I work with.

  30. Tiny 1416494602 avatar connorgrahaminc

    I am young and ambitious like you say, but I have been growing savings, credit score, and knowledge. I have a good realtor and mortgage broker, just waiting for the right moment to go in and get my feet wet. I give myself one year to buy a rental. Now is the time for me, as I have cash, and have a low living costs. (renter in my house pays 80% of my mortgage.) 


    1. Tiny 1496613091 avatar lvinv

      Hey Connor, thanks for the reply, seems like you have a good plan in place. I wish you luck.


  31. Tiny 1429900437 avatar rashidahird

    This was an eye opening post.

    I went to a seminar that preached "Take action now; bad credit/no credit, no down pament, using other people's money."  Taking this approach I went on a hunt and was determined. After a few months I got a contract on a property; however, I was unable to get 100% financing or even an investor who would fund a down payment.  Bottom line-I lost the contract.  I decided to join a couple of investor clubs to gain knowledge and relationships and network with other investors. 


    1. Tiny 1496613091 avatar lvinv
      Thanks for the comment Rashida, I definitely know how you feel, I have learned that networking to build relationships before looking for a deal to make will pay off. People want to know who and what you are before they hand over their cash, and this is something the GURU's neglect to mention.

  32. No avatar

    @Brandon L. This was very insightful. A lot of people preach "massive action" down your throat. While I agree action must be taken. It must be taken after you take the proper time to prepare and educate yourself. Although you don't want to get caught up taking too much time, and over-preparing without ever taking any action. I believe there is a fine line between rushing into a "deal" blindfolded, and truly be prepared to take action on a real potentially profitable deal.


    1. Tiny 1496613091 avatar lvinv

      Thanks for the Comments Joel


  33. Tiny 1416352902 avatar cashfloyd

    Thank you for this. As a newbie, I hear over and over "jump right in," and "learn by doing." I was buying into it, even though I felt like I didn't know enough. Thanks for reminding patience is definitely a virtue in this business. 


    1. Tiny 1496613091 avatar lvinv

      Thanks for the comment Joseph, even after getting basic knowledge, there is still plenty of time to learn by doing lol


  34. Tiny 1466139175 avatar tyronevgreen

    Thank you for the thoughtful post. Patience is a skill indeed that takes time to master. These are words that we all should use as our foundation.

    Tyrone


    1. Tiny 1496613091 avatar lvinv
      Thanks for the kind words Tyrone, Im glad you enjoyed it.

  35. Tiny 1496613091 avatar lvinv

    Thanks, @Bakhari Burrell I'm glad you find it useful.


  36. Tiny 1415982726 avatar bkjburrell

    This is excellent and couldn't be more fortuitous for me. Than you for this post!


  37. Tiny 1496613091 avatar lvinv

    @Jonna Weber I like to get the point across as simply as possible :) Thanks for the comment, back in 2006 everyone was screaming BUY BUY BUY pretty much anything that had a roof on it lol...I made my first purchase in 2007. Huge mistake :)...... @Eric Giovannucci thank you for the kind words, I'm just hoping to catch at least one of these fresh members, and hopefully save them from disaster, but on the other side of the coin...sometimes it works out, but I would rather be cautious.


    1. Tiny 1417656643 avatar ebonyp

      @BrandonL Can you explain what your strategy was for purchasing property in 2007 and any suggestions on what you would have done differently. 

      Thanks


      1. Tiny 1496613091 avatar lvinv

        Thanks for the question, my strategy in 2007 was that I had no strategy haha... I am very lucky that I didn't lose my pants, my writing now comes from a very different point of view, my biggest suggestions today are what I am putting into my blogs, Basic knowledge, credit building, and relationship/team building all before searching out those "deals" that seem to be everywhere when we first start out. I feel after you obtain those things there is no limit, if that's what you want.


      2. Tiny 1448323162 avatar henniem

        Hello,

        I'm Henrietta and new to bigger pockets. I'm mainly intetested in wholesaling and am still in the analysis phase. I agree with what was said, mainly with two parts. First, I agree with building investor relationships first as well as your credit. Second, I agree that I most likely won't get RICH quick, but I do think it's possible to make enough money to live off, from wholesaling a few houses, monthly alone. Where's the positivity? I think wealth and wisdom is dependant on perception.

        Personally, I would be ecstatic to wholesale 1 deal a month! Although I do believe you need to be well prepared and have a few back up investors and plans in place. I honestly believe that being well prepared + confidence + people skills, which includes genuinely wanting to help these desparate sellers, is enough to wholesale and make great money.

        Does anyone agree? If not, please help me understand why as well as any advice WOULD BE APPRECIATED. THANK YOU.


  38. Tiny 1448388764 avatar egiovannucci28

    @Brandon L. 

    Great read! I found myself to be on of these new investors that thought I could just start calling craigslist ads and id be a millionaire in a week. Post like this have set me straight, as well as the forums, podcasts, and both the BP Books. 

    Now the only thing to worry about is finding that comfort level of enough knowledge to start pulling some triggers. 


  39. Tiny 1459356812 avatar vandalfan

    Love these basics @Brandon L. .  Thank you for putting it so succinctly.  I bought a rental property on impulse at the height of the market in 2006 without knowing about cash flow. The year alone should tell you that it was not the greatest choice.  


  40. Tiny 1496613091 avatar lvinv

    Thanks @Joshua Dorkin I am humbled that you noticed my post. Thanks for the compliment.


  41. Tiny 1491858518 avatar biggerpo

    You nailed it, @Brandon L. .  This is one that the newbies definitely need to read!