Flipping Homes – Why Does It Only “Look” So Easy?
I got a really interesting question this week and wanted to address this one head on:
“Why does it “look” so easy to get started in flipping homes? But I’ve been doing it for over a year and have yet to make my first deal.”
I’m going to first answer this question with a question. How many offers have you actually put in on properties?
My assumption here is that you probably haven’t done much in the way of taking action to achieve your goals.
Far too many people get seduced by the sexy promise in this business of easy money with doing little to no work. They think that they can just jump into the game and profits are going to start falling from the sky.
Yes it’s true that you can do hardly any work in this business, but you have to look at it comparatively…
Flipping homes is far less work than going to a 9-5 Monday through Friday. But it’s never going to happen for you without taking some kind of action.
The other thing is that the amount of action that you need to take in the beginning is going to be quite a bit more than it will be 6-12 months after you get going. That is assuming you are taking action and doing the right things during those first six to twelve months.
When the gurus sell you on their programs for flipping homes, they are showing you the end result – having financial freedom, very little time spent working, etc.
That’s what they have to do in order to sell you their training program. What they don’t talk about is the hard work you have to put in for a short period of time to be able to get to that point.
When I’m talking about taking action in the beginning, I’m really referring to setting up systems that can put the best deals in front of you by attracting people to you.
The name of the game in this business is finding properties. If you aren’t finding properties and putting in offers, you will NEVER do deals! That’s the bottom line.
You have to approach investing in real estate as a business. The most crucial component to any business is marketing. If you don’t have a steady influx of leads, you’ll never make any sales.
In your flipping homes business, your leads are people who need to sell their property, the sales are the ones you actually buy their property.
Your first year as a real estate investor should be spent putting as many different marketing systems in place as possible. Marketing takes time, particularly strategies that you can automate.
After you have your marketing systems in place, it’s a numbers game. Depending on your offer strategy, you are looking at making roughly 25 offers for every one that gets accepted.
So if you’ve put in less than 25 offers in the last year, you should not be surprised that you haven’t landed a deal yet!
To round out this conversation, you should also be spending the first year of your business getting your money lined up so that when you do actually have an offer accepted, you don’t lose out on it because you aren’t prepared to fund the deal.
Most of the people that come to this website find this part of the business to be the most challenging. And I can tell you in no uncertain terms that it was for me when I first got started too.