I’ve been in the real estate investing business long enough to know that doubts and worries plague nearly every newbie who comes on the scene. Usually they’re strapped for cash (which means little to spend on marketing), as well as being very short on knowledge and experience.
It’s especially disturbing when they see other investors in their area spending large sums on marketing and closing deal after deal. The competition can be pretty scary.
Does this describe you?
Hey Moguls, Steph Davis back with you again for this lesson in which I’m talking to the beginning investors in the group...
I want to say to you that none of what I just mentioned matters. The truth is, nearly all successful investors (who you see as successful in the business), did not start out that way. They came into the arena just like all of us — with little money and little knowledge... and probably apprehensive.
But what the successful do have is motivation, determination, the right mindset…
Sure, it’s easier to pull in the leads and close deals if you have a bundle of cash on hand. Mailings cost money, internet leads can cost money, ads cost money — none of it is free.
Still, it is possible to snag your first few deals with little to no cash. You’ll have to work a little harder, and invest more time to make up for the lack of cash. In other words, your investment will be drive, desire, and hustle.
Benn There, Done That
When I got started, I was in this exact same predicament...
No money, and I really didn’t know what I was doing. All I possessed was an intense drive, and a desire to succeed.
It was in 2006, and I had quit my job as a bartender. I had no income, I had no savings to fall back on.
So what did I do?
I worked hard. I put out flyers at gas stations, banks and ATMs… I attended REIA meetings and networked… I made cold calls. I was determined to do whatever it took to make it happen.
This is why I can say that it absolutely can be done with little to no cash on hand, because I did it.
Here’s More Proof
A student of mine was in a similar position...
He was working long hours at his job all week and had only weekends to spend time on his investing business. So, I worked with him to create a marketing strategy that would cost very little.
This included 3 types of marketing:
1. Driving for Dollars
I’m sure you’re familiar with this...
The only expense is gas.
The plan was to spend 2 hours on both Saturday and Sunday driving through targeted neighborhoods looking for abandoned houses, or ones that looked to be in a distressed situation.
Then, my student would return home and do research. For the ones that looked promising, he sent them a letter.
2. Cold Calls
The second strategy was to spend time calling ads from Craigslist and the newspaper. These were FSBOs or properties that looked to be listed at a discount.
Those listed below market value give an indication that there might be seller motivation.
3. Investor Deals
In this third strategy, my student simply went through past emails received from other investors presenting deals for which they were looking for buyers...
Oftentimes, a deal will go south if the investor has not found a buyer, but the seller is still willing to sell.
In his research, my student found the house had not sold, so he’d contact that seller either with a phone call or a letter. This is a simple strategy that costs nothing but time, but can produce many motivated sellers.
When he was just over 60 days into his commitment, he closed two deals!
His drive and desire paid off.
How Bad Do You Want It?
I shared this story to illustrate that if you have the drive, the desire and the determination – you can make it happen. My student was willing to give up his weekends for 3 months. (He actually only had to give them up for 2½ months.)
Not everyone is tenacious enough or committed enough to stay the course — others would get discouraged and just give up.
What about you? How bad do you want it?
What’s Your Story?
How did you get things rolling when you started out? We’d love to hear about it. Leave your comments below in the comment box.
Assess your own resources — how much money can you budget and how much time can you invest in your marketing plan?
List the marketing strategies that best fit your available resources.
Create your 90-day plan.
Commit to sticking with your plan and don’t quit.
Steph Davis
started wholesaling in October of 2006. At the time, she had been stuck at a job bartending for the past 10+ years. She was broke and miserable, and desperately wanted out of the bar scene, which I had been stuck in for the last 10+ years.
She ended up closing four wholesale deals by the end of 2006.
Since then, she's closed more deals than she can count, has written two best selling wholesaling courses (Flip This REO and The Cash Buyer Ninja) and continues to teach others how to wholesale with videos, interviews, and as much useful information as she possibly can, because she knows what it’s like to be a broke beginner, struggling to get that first deal.