Do you really need a flash car, a fancy house and a Rolex to become a successful at real estate investing?
You have probably seen other real estate investing pros whipping around in Ferraris, filming videos from their waterfront mansions, spending hundreds on lavish lunches and real estate agents posing next to a Mercedes Benz in the property ads. Money and success can certainly attract more money but does that mean you need to be this flashy to get involved in real estate investing?
Some of those new to the business can find this ‘chicken or the egg’ dilemma frustrating but do these individuals have these things because they are successful or are they essential tools of doing business?
It is true that it might be a little easier to walk away from a lunch meeting with a private investor if you pull up in a decent car instead of your beat up 1997 Chevy but that doesn’t mean borrowing for show is essential or smart for real estate investing success. Don’t get caught in the trap of spending before you have it. Truly profitable real estate investing is about profits not just cash flow. Let your profits pay for your toys after you are financially independent, don’t gamble to get deals.
The most important thing is to be able to talk your prospect’s language, know what they like and what will close the deal for them. Even if you have your eyes set on real estate investing in some of the glitziest neighborhoods in the country, know that it is just as easy to flip a multimillion dollar home as a $50,000 home. If you feel that you need to step up your game a little to close deals with the area’s uber rich then visit open houses, go test drive a Lamborghini and hang out where your prospects hang out. They don’t have to know you took the bus or a are driving a rental ‘because your Bentley is in the shop’.
Dressing the part can make you feel like a million bucks, but it might be better to have a million bucks in the bank. Hold off on that $3,000 suit until you at least have enough savings to get your through the next 6 months without making a penny. Besides you will find many of the world’s elite wandering around in shorts and flip flops most of the day because they can. Plus there is a lot to be said for letting people underestimate you when it comes to negotiations.