Here’s the third and final fatal flaw of newbie real estate
investors:

Fatal Flaw #3

Failure To Establish Clear Goals And Defining “Success” As Anything Other Than Making Big Profits…

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There’s only one reason for you to be a real estate investor: TO MAKE MONEY. Seems obvious, doesn’t it? But I’ve discovered that some investors don’t have a clear profit motive for being in the business.

Just imagine this (very common) scenario: An aspiring real estate investor named Joe sees an infomercial on late-night T.V. He becomes mesmerized by the amazing claims of massive wealth, and so he decides to order the course called “Make A Gazillion Dollars As A Landlord”.

The material arrives and Joe rips open the box and sticks in the video tape. He consumes every word like a hungry lion chews on his prey. Joe really starts to get excited, and he sees the potential for creating huge long-term wealth. He believes that the ideas will work, and he wants to put them to work for him.

So he goes off and diligently attempts to find good investment property. And while he’s doing this, he tells his friends and family all about what he’s doing. He discovers that his friend at work, George, also is interested in real estate – only George focuses on “rehab” deals. Instead of doing rentals, George finds broken-down houses, completely renovates the property, and sells the property for a large profit – usually around $20,000 or so.

…and Joe begins to get a little jealous, because he can see that using his Landlording strategy, he’ll have to wait a long time – maybe 10 to 20 years – before he’ll really see any significant profit. But George is making big lumps of cash every few months. Joe wants some of that cash.

So, Joe goes to a seminar to learn about rehabbing. He gets excited about that, but then the process repeats. Joe hears about the next “latest-greatest” strategy, and he does to yet another seminar and learns that one, too.

Is it wrong for Joe to go to the seminars and learn the strategies? Absolutely not. It would be stupid for Joe to try to invest without proper training. But……Joe has two problems here: * Problem #1 – is that Joe didn’t take the time to define why he wanted to invest in real estate. If he was investing for retirement, then his original Landlording strategy may have been appropriate. But if he wanted to make significant current income, then Landlording certainly isn’t the way to do it. Joe wasn’t clear about his goals and until he establishes some clear goals, he’ll spin his wheels and waste ever more money on courses and seminars that will never do him any good.

* Problem #2 – Because Joe hasn’t yet experienced any real financial success in real estate despite spending a lot of money on courses; he starts to redefine his internal definition for “success”.

Instead of success being equated with financial results, Joe has slipped progressively into a state of mind in which he defines success as his ability to learn more strategies and be the most knowledgeable “investor” around – despite the fact that he’s never done a deal.

You know what I’m talking about, don’t you? Joe has become the type of person who acts as if he knows everything there is to know about real estate investing, but the fact is that all he has is “book knowledge” but no financial results to show for it.

Because Joe didn’t have a clear picture in mind of what he wanted to accomplish, he has not made any profits. And because he hasn’t made any profits, he’s subconsciously chosen to redefine “success” as “the attainment of vast knowledge about real estate investing” rather than “the attainment of vast wealth from real estate investing”.

Why does this happen? If Joe doesn’t make any money, and his internal definition of success is to make money, then Joe would have to brand himself as a failure. And Joe isn’t comfortable with that. So instead, Joe redefines success to match what he’s doing: Joe now considers himself to be a success merely by knowing all of the strategies, rather than using them successfully.

So Fatal Flaw #3 is:

Failing To Establish Clear Goals And Defining “Success” As Anything

Other Than Making Big Profit.

To Your Success!

Aiden Win

Mr. Foreclosure

Canada Foreclosure List

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To make money as a real estate investor, you really only need 2
things:

1. A motivated seller

2. Know how to do no-money-down deals

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Let’s deal with the first one. A motivated seller can be found in many ways. But some ways can be more effective than others.
Here are some places where you can find them:

1. For sale by owners (FSBO)

These are sellers who choose to sell their properties without the help of a realtor. Most of the time, these people want to save the realtor commissions.

These sellers find themselves overwhelmed by phone calls from
realtors who haggle them to list their properties with them.

So by approaching them as an investor (using some of my proven phone scripts) you can quickly find out whether they are motivated sellers and then proceed accordingly.

Where can you find them? Newspaper classifieds, craigslist, online classifieds, kijiji.com, “House For Sale” signs.

Disadvantages – finding a motivated seller in this category can be done, but it’s usually a hit and miss situation. Out of 100 FSBO’s you can be lucky to find 1 that is motivated enough to make a decent profit with.

2. Expired listings

These are properties that were listed on the MLS, but have not sold. And their listing contract with the realtor has expired which allows the owner to sell property on their own.

Well actually, under most listing agreements, the realtor who
had the listing is still entitled to his/her commissions up to 3
months or more after the listing has expired.

If you are looking for a motivated seller, it is actually quite
difficult to find one here because you have to consider why the property didn’t sell for so long in the first place.

And also, you have to fight with a bunch of realtors who are again haggling the seller to re-list their property.

3. Foreclosures

Foreclosures are found listed on the MLS.

Sometimes you can get a good deal from these. But if you have actually gone through the process of trying to buy one, it can be a complete nightmare.

As I explained on my site, foreclosures are owned by the bank, and must undergo a tedious legal procedure.

The lawyers cost money, not to mention the realtor gets paid commission which both cut into your profits.

Also, after you have done your inspections, appraisals, financing, made your offer and have your offer accepted… only after all that has been completed will you be able to have a CHANCE to buy the property.

Notice that I said only a CHANCE. That’s right, you
still are not guaranteed you will get the property – for 2 reasons:

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Reason #1 – other bidders can outbid you at the last second during the court hearing even if you have your offer accepted.

And #2 even though your offer is accepted by the bank, the judge has to approve of the sale (so if he thinks you’re getting too good of a deal, he won’t let you buy it).

And oh yeah, if you are lucky and take the whole thing to the end (which actually takes months), you will need to pay for the foreclosure in cash.

If you don’t have access to a few hundred thousand dollars to play the foreclosure game, then you can forget about it.

I’m not saying you can’t make money with Foreclosures, some people do and make 10-20% of the market value.

But considering the amount of work and resources needed to make a deal work, in the same amount of time, you could have done 3-5 preforeclosure deals, made MORE money on every single one of them and most importantly, done it without using any money.

4. Pre-Foreclosure listings

If you have read my site, you would already have an idea what pre-foreclosures are and how they work.

As you may expect me to say, this is the best source to find
motivated sellers.

And I’m not saying this just to promote my site, this is from my personal experience, because I have done almost every real estate strategy known to man, and working with pre-foreclosures is by far the easiest, fastest, way to put the most money in your pocket.

Have I found motivated sellers from FSBO’s, Expired Listings and Foreclosures? Yes, which allows me to ask, “Why make 10-20% in profits when you can make 25-50% profits while doing only HALF the work – in a FRACTION of the time?”

If you don’t believe me, then I encourage you to go ahead and try all the other methods out there to see what it is really like.

Then you will see what I mean. But then again, why bang
your head against the wall when I have already shown you door that leads straight to a real estate goldmine?

So decide for yourself.

Here’s what I suggest, go ahead and join as a Foreclosure Insiders Club member (while it is still open to new members).

I am so confident that you get more motivated sellers than you know what to do with that I offer a money-back guarantee.

It just doesn’t get any better than that.

Chances are, now that #1 is basically handed to you on a silver platter, all you need to do is #2 and BAM! You’ll get big fat real estate profit checks just like mine – perhaps even bigger.

My members are already doing just that!

Aiden Win

Mr. Foreclosure

Canada’s Largest Database Goldmine Of Pre-Foreclosure Real Estate For Up To 50% Below Market!

P.S. In Part 2 of this series, I will uncover the ingredient #2 that you can start using instantly to bring in the cash without you needing any to start with!

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Now we’re on to..Newbie’s Fatal Flaw #2

Obsession With “Avoiding Failure” Rather Than “Being Successful” (And some strategies for destroying this problem)

(NOTE: This Fatal Flaw is focused on the “mental” aspects of
success. And in just a second, I’ll show you precisely how this
is intimately related to real estate investing…)

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Here’s an extreme statement: “You will get whatever you want out of life.” You might disagree with that – but it’s true. It’s called the “Law of Attraction”. It states that you will always attract to yourself the things you focus on internally with most intensity and consistency…I don’t know why it’s true. But it is.

And virtually all newbies are more focused on “Avoiding Failure”
rather than “Being Successful”.

This might not seem so bad. After all, it’s a good thing to avoid failure. But the problem is that the human brain doesn’t do a good job of processing negative statements.

For example: Do not think about a 3-headed donkey. What did you do? In order for you “not to think about” a 3-headed donkey, you first have to create a picture in your mind of a 3-headed donkey. Now your memory contains a picture of a non-existent animal…The 3-headed donkey example is a simple example that does no harm to your mind, because you’ll likely forget it as quickly as you created the picture to begin with. But the notion of “avoiding failure” is far more significant.

As a test, consider this command: Right Now, Think about avoiding failure. The same principle holds true here. Before you can consider the notion of “avoiding” failure, you’ve first got to focus on what the term “failure” means. And it’s not pretty. It could mean losing some money. It could mean losing your home. It could mean going bankrupt. It could mean all sorts of things…

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…but one thing is true: Everything about your mental concept of failure is negative. And when one focuses so heavily on “avoiding failure”, those negative mental images will definitely permeate your mind and will almost certainly leave you in a semi-paralyzed state, unable to take action. And when you don’t take action, you don’t succeed. Period.

So here’s my next (and final) challenge to you for this e-Lesson: Right Now, Think About Massive Success As A Real Estate Investor.

What will it mean for you to be massively successful? Will it mean that you own a portfolio of 50 houses that throw off $10,000 to $20,000 per month in cash flow? Will it mean freedom from your job and employer? Will it mean being able to pay for your children’s college education?

Whatever it means to you, the attraction of success is certainly more motivating to your mind than is the avoidance of failure. When you focus on success, your mind will be able attract

…But when you focus on avoiding failure, then your definition of “success” will be nothing more than the avoidance of disaster.

And nobody ever became truly wealthy by focusing on the avoidance of disaster.

HOWEVER…

This does not mean you shouldn’t use good business sense in advance to protect yourself from problems. For example:

* You should absolutely run your real estate business through a legal entity (corporation, partnership, LLC, etc) of some sort to shield you from any personal legal liability.

* You should use the very best legal forms & documents available whenever agreeing to buy or sell property.

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* And you should certainly seek out excellent advice from people who are already successful as investors, rather than learning everything “the hard way”

Aiden Win

Mr. Foreclosure

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P.S. Still thinking about joining Foreclosure Insiders Club? I hope
that I have impressed upon you to ACT without fearing failure.
Besides, you don’t risk a penny because of my 56 day money-
back guarantee.

And you get Over $1400 worth of bonuses too!

P.P.S. If you are serious about eventually quitting your day job
and just making huge profits in real estate PART TIME, then I
recommend signing up for the Annual Foreclosure Insiders Club Membership. From what I observed, the members who sign up for 1 year do 300% better than the ones that don’t. That’s because they made a commitment to succeed.

If you want to make a commitment to yourself and your family then choose the 1 year membership.

Also, you lock in your spot for 1 full year AND you save a lot of
money too!

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Take advantage of this 90 minute toll free webinar. Anytime you can get free training you should act on it.

Hans Anderson

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This is a fantastic article from coach Mary Kay teaching you the 7 main points when you need to assign a deal to an investor who is into investment property buying.  Mary Kay explains exactly what you should be doing.

What You Need to Assign a Deal to an Investor

By Coach Mary Kay

When I first started out in the foreclosure investing arena, I assigned the majority of my deals for quick finder’s fees. Now, as a seasoned investor, I selectively accept contract assignments. Yesterday one of my Coaching Clients asked me to review the details on what is needed to assign a deal to an investor.

Copyright © 2009 Foreclosures.com. This article is available for free distribution under the following terms: a) You may not edit, delete or add any content to this article. b) You must maintain all links to Foreclosures.com. c) This article must be distributed free of charge. d) This Resource Box must stay intact.

Kick Start Your Foreclosure Investing

Copyright © 2009 Foreclosures.com.
This article is available for free distribution under the following terms:
a) You may not edit, delete or add any content to this article.
b) You must maintain all links to Foreclosures.com.
c) This article must be distributed free of charge.
d) This Resource Box must stay intact.

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