Cash Flow Guys Podcast 058 Now What Do I Do? And So It Begins….
So I motivated you to buy your first rental property, and now comes the reasons why you cannot buy one.
No Money:
Sell junk you don’t need, sell others stuff they don’t need, get a part time job, find someone with an IRA sitting idle, stop overspending, quit smoking, quit drinking. No money is a lame excuse, recently in my mentoring club it took the members a matter of MINUTES to list 100 ways to earn $97.00 to join the mentoring club and be held accountable while you learn. Unlock equity from your other properties (responsibly) Equity is overrated, focus on income versus expenses.
No Credit / Bad credit:
Contact a reputable credit repair company, do exactly what they tell you to do, when they tell you. Yes, it will take work and repetition, but in the end it is worth it. Anyone can clean up their credit if time and discipline are applied to the problem.
No Time to Learn:
In a week there are 168 hours, 56 for sleeping, 40 hours to work a job, 35 hours for eating, showering, driving, ect….37 hours left over to pursue your dreams. Can’t concentrate when reading? Open an audible account and listen to audiobooks, listen to podcasts. Cannot afford books? They are free at the library (including audio books) Podcasts are free also.
Prices to High:
Cash Flow Buyers should not care as much about price as they do terms. Paying cash for a property is only to be used as a last resort. Learn to find problems not properties. People with problems are motivated to sell for a reduced price or on terms. Write offers that solve their problems. DO NOT WAIT for market corrections and then plan to use leverage with bank loans...when the market tanks, the banks tighten the purse strings. Timing the market always leads to disappointment because real estate market cycles adjust slowly unlike the stock market.
I am afraid of too much debt:
As compared to what? Do you honestly think you can multiply the cash you have on hand right now enough to retire from? Can you honestly say that with a straight face? How exactly are you going to grow the actual cash you have right now to an amount large enough to retire from with a better quality of life? How about your child’s college tuition? Will your FEAR of good debt result in your child going to community college instead of having the best education possible? Denise Fleming, are you listening to me? What if you lost that high paying job tomorrow, then how will you provide for your family? It takes good debt, aka leverage to grow financially. That is because your returns are then based on much larger amounts than what you have personally invested. Are you allowing the irresponsible acts of yesterday control tomorrow? Are you going to blame the past, your family, the market and the weather on your lack of wealth? I advocate good debt, not bad debt. That means whatever is leveraged MUST be able to support the amount of debt assigned to it with a healthy profit built in. You can be conservative AND apply leverage to your advantage.
I am afraid:
What are you afraid of? Looking stupid? You cannot learn and look good at the same time, not possible, get over it. Anyway, who are you going to impress when you are flipping burgers at 70 years old? Fear Stands for: False Evidence Appearing Real, fear is a liar….don’t believe in it. I understand fear of success to be a real thing, many suffer from it but you should not.
Don’t want to deal with tenants and toilets:
Here is the good news, they make property managers to handle that. Also? don’t rent to scumbags, unless you are a slumlord….. then scumbags are all you deserve to have in your properties.
Provide a quality product and quality experience and you will receive the same in return.
Be smart about who you rent to, never be desperate to rent your property to just anyone. Making money will hurt sometime, not all the time but sometime. If it were easy, then everyone would be rich.
Is dealing with property management or tenants better or worse than retiring poor? Only you can decide. Know this, if you think your Government, or Wall Street is going to help you retire you better think again. Wall Street is about fees, I frankly have no earthly idea what Government is about.
No experience:
You can get experience starting tomorrow. You can build a team without spending a dime, that is just an investment of time. (OH look I made a rhyme) Educate yourself, find a mentor, hire a coach, get an accountability partner, join a mastermind, go to an investor’s meeting.
Lack of experience is nothing more than a lame excuse, the only thing stopping you from learning is your lack of action, so simply take action.
My next group coaching is specifically designed to overcome the “I don’t have any experience” excuse. We are also going to tackle the “I am afraid excuse”. My students come out of my program ready to take massive action. During my coaching sessions my students learn negotiation skills and adapt a mindset that puts them on the fast track to success. To apply to my next group coaching session visit CashFlowGuys.com/coach.