Monday, August 5, 2013

Personality Types in Real Estate Investing

If your goal is to go out and make money in buying and selling real estate, you have to have a certain personality type to be successful. If you are a wall flower, stay at home, watch TV and avoid crowds type of person then real estate sales is probably not the best fit. Working in real estate requires working with people—buyers, sellers, hard money and soft money lenders, bankers, realtors, negotiators, contractors, leasing agencies and many more. You can’t avoid people; you have to go in search of relationships with these people to be successful. If you feel uncomfortable talking to people, asking questions about their personal life, committing to meeting with people on a regular basis and you don’t want to be in a commitment relationship, don’t go into real estate. Real estate buying, selling and investing is all about people and contacts.

You can’t wait for the buyers and sellers to come to you; you have to go get them or at the very least do all you can to attract them. While you can avoid some personal contact by doing direct mailings, building a presence on the internet, outsourcing the marketing, and, to be completely successful, you will have to outsource a lot. For example, you will want to have property managers  for your buy-and-hold properties. There are only 24 hours in a day, so to try to do everything is neither practical nor healthy.  What I see is that if you are going to outsource everything (and thus have to pay all these people), you might as well just go out and buy tax liens. The profit level is often higher and you don’t have to deal with hurt feelings, accusations of equity stealing and a myriad of personalities.

Of course what is so appealing to people and draws them into these get rich through real estate investing programs is the concept of doing this with “other people’s money.” But we are back to the concept that you have to find, nurturing and keep the investors (the ones with the money) happy. While the “deal” might incise them into considering your request for money, they have to trust you. How do they trust you? Because you have established a friendship with them, a camaraderie or good-fellowship as it was. You do this by finding things you have in common and building a rapport.

The fact is that certain personality types just should not go into real estate. You have to want to go out and schmooze.

When you sign up for one of the many real estate investing programs you find yourself spending a lot of money on cd’s and dvd’s, seminars, classes, and “mentoring”. But at the end of the day, you still have to be able to schmooze. The more seminars and classes you attend the more you find out what you don’t know. Every state has different land and social values, laws, and legal structures. All the gurus make it sound so easy, just a few hours a week and you too can be wealthy. --Peter Souhleris and Dave Seymour--The Flipping Formula, Cody Sperber--The Clever Investor, Marko Rubel—ProfitGrabber, Susan Lassiter-Lyons—Lassiter Marketing Group LLC, Daniil Kleyman--Rehab Valuator, and their dvd's are very entertaining. and many more, all have good information and their dvd's are very entertaining. But they also say anyone can do this business. I’m saying that might be true, but it is going to be harder for the hermit.

So if you are not a people person think long and hard before you commit your hundreds or thousands of   dollars in a real estate investing program. Once you have paid the money it is often impossible to get it back no matter how many hours you spend trying to make the system work.

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