By Cliff Gager, Real Estate Expert — So here we are, another new year just clicked the clock in times square, and already its fast approaching mid year! Is it me or does the time fly faster as we get older?
One thing that never gets old is the hunt for great real estate deals, this is the one thing that I don’t think I will ever grow tired of. Sure fixing them up, selling them or renting them, and getting a check at closing is all great, but the hunt for a good house with a good deal and a perfect scenario that fulfills all my buyers needs is the thing I look forward to the most!
As a real estate investor for over 25 years, I have seen many different types of markets – buyers and sellers – and everything in between. Booms – bubbles – and crashes, so when I hear someone in any of those types of markets complain about not being able to find a “deal”, it makes me wonder what are they doing!
You see it doesn’t matter if it is raining outside or the sun is shining brightly, what happens inside behind the closed doors of the every day average household is the thing that directly affects us as real estate investors. People have good times in bad times and bad times in good times! So if you know where to look and when to make an offer, the deal finding quest becomes less challenging!
When I started buying houses back in 1992, I had no idea what I was doing, but as a mortgage broker I worked with about 3 small individuals that were buying – fixing – and selling. As the mortgage broker, my role was to help them get acquisition money to purchase the properties; and I was also financing their buyers once they completed the repairs; so I knew the money side of the deals from start to finish. It was pretty much a cookie cutter scenario – not really difficult if you knew how the process went.After doing this for some time I knew I had to do this for myself too!
So at the same time I made this decision to start buying and selling my own deals- I also developed my very own strategy for making offers on the properties that I purchased. Over time, I tweaked and refined my offer strategy until I came up with the method that I use right up to this very day. On the surface, and because it’s so unique, people really don’t understand the concept behind this offer strategy;, and someone won’t really ever understand it unless they take the time to look more closely at the reasoning behind it!
The key aspect of this strategy is psychological. It works because it feeds the inner needs of the seller, but on a subconscious level. Put another way: it gives them what they want, even though they probably don’t really know what they want in the first place!
I call it the “honey badger” strategy of real property purchase offers. I got the idea to call it this because a few years back, I came across a funny video on the internet (caution if you watch it, it has some bad language) – and when one of my students watched the video, they picked up on it and declared my strategy as the “Honey Badger Method of Real Estate”!
As you watch this video, you see that the honey badger is this truly wonderful kind of animal: you see that they’re relentless; and they don’t care about anything – which is to say, nothing seems to stop them (watching them persevere like this is really amazing) from getting what they want.
So, kind of like the honey badger, I have found that if you have a “take it or leave it” attitude with sellers, it makes your life a little easier during the offer process!
Of course: by this, I don’t mean that you go into the process and be a bully – clearly, that does not work. What you do want to do though, is to make them understand that their house or listing is not the only one out there; and you do not need to buy that house today (even if you desperately do need to buy it!). This is based on the premise of the old saying that “when you give something to someone that they didn’t really want in the first place – and then take it away from them – for some strange reason, all of a sudden/suddenly, they want it back!”
Strange? I know!
But it is oddly true!
So then as I started teaching people all over the United States this odd but effective offer strategy we saw that it will work anywhere and in any type of market! It is quite simple, and it works! But it only works if you stick to it! Once you understand that this aspect of the process of finding a deal, you can then proceed to duplicate it, automate it, and delegate it! Build a team to implement this strategy… and understand it is one part of many that will bring you to your goals in being a profitable real estate investor. Although the strategies you use are important, you have to maintain a positive attitude and always keep pushing forward!
You have to play to win every time even though you know you are not going to win every game. And you have to play because if you do not play the game you automatically lose! I see many people in this business walk away right at the time they are ready to start winning! Don’t quit… don’t give up Keep pushing forward!
In conclusion: if I was asked what is the most important thing one needs to do to be a successful real estate investor, I would have to say one word… learn.