The real estate investing business can be very difficult at times. This is certainly not earth shattering news, but it is something that every investor needs to hear. For every successful deal, there will be a few that are lost within weeks of closing. That is the nature of the business and a cruel reality. The best way to avoid the ups and downs and not to be so reliant on every deal closing is to create of roadmap for how you want your business to go. Have a plan before you start any rehab or wholesale process. Just like a typical roadmap, it will have directions and offer guidance, as to where you want to go. All you have to do is follow it!
Anyone can say they want to close 50 deals next year, but unless you know how you are going to do it, you probably won’t reach your goal. Your roadmap for success starts with identifying a defined action plan for how to achieve success. Many new investors shy away from doing the tasks that they know they need to in order reach their goals. It can be uncomfortable calling a dozen hard money lenders in a week, but after you make the first few calls the rest get easier. Once you have a hard money lender, or any new contact in place, it will be something you wish you had done months or years earlier.
The more defined your system and action plan is, the easier it will be to follow. It is typically not failure that leads investors astray, but rather success. Once they get a few deals in their pipeline or close a few, they stop doing the things that brought them success in the first place. They become unorganized, unfocused and undisciplined all because they do not have a solid foundation to fall back on. By having a roadmap on every deal and in every aspect of your business, you will stay on the grind and have a vision of where you want your business to be and work harder to get there.
Having a roadmap means knowing that little things added up become a big deal. If you were to take just one wrong turn off a highway driving across the country, it could take a while to get back on track. The same thought process can be applied to your business. If you were to get involved with just one deal that is not really in your comfort zone, it could lead to a negative series of events that can take a while to correct. The deal may be good for another investor, but it is not in your roadmap and may carry too much risk or require your capital to be held up for too long for you.
If you don’t know where you want to go, it can be very difficult navigating the everyday travels of the real estate business. Regardless of where you are in your business, take the time and write down ultimately where you want to go and then how you are going to get there. Having this roadmap will help you in times when you may be a little lost.