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Editor’s Note: Dennis Fassett is a former corporate finance executive turned real estate investing “Cash Flow Mercenary.” Dennis specializes in single-family and multi-family cash flow properties and thoroughly enjoys assisting his fellow investors with their own strategies, including how to buy your first apartment building.
As an ongoing contributor to Mogul’s “Market News Updates,” Mr. Fassett provides us with his own unique, lively, and thought-provoking commentary on the timely industry news and events of today that are impacting our industry. And be sure to check out his other super-helpful Market News Updates. For now, enjoy...
From Dennis Fassett, Cash Flow Mercenary...
I freaking hate talking about New Year’s resolutions. I think they’re stupid.
Why?
Because if something is that important to start, why do you have to wait until the page on a calendar flips? Why not make a March 15th resolution or one on September 27th?
I just don’t get it.
But since, by coincidence, we’re at the beginning of another year, I suggest you make two very important January 6th resolutions – today - regarding your real estate business.
Why 2? Because if you’re new in the business, or you’ve been in for a while and are just spinning your wheels, then there are really only 2 things that you need to do. And they don’t include attending yet another “free” seminar by that traveling TV guy or dropping five figures on that “coaching program” that promises checks in your mailbox without doing any work.
Two things. That’s it. They are:
1. Dive into the Deep End
Let me be blunt – you need to get moving. I mean TODAY. Not this afternoon. Not after dinner. Do something – right now – that’s specifically focused on putting money in your pocket.
The road to success in real estate investing is littered with the bodies of people who are still looking for one more book; or one more seminar; or just one more nugget of information that will give them the critical mass necessary to take the first step. With all the information out there, it’s an easy trap to fall into.
Let me give you an example...
Back in early 2008, I decided that I was going to buy my first apartment building. I attended a couple of seminars; attended a couple of local networking groups dedicated to apartment buildings; bought some books and courses. Then I got busy looking at apartment buildings. All told, I spent about 90 days learning, and then closed on my first building (20 units, $900k) in less than 90 days after I finished learning, using none of my own money.
And I knew absolutely zero about apartment buildings when I started the process.
My point isn’t to brag. Far from it. I know people who bought bigger and better buildings much quicker than that.
No, my point is that last fall I ran into a group of people who had attended the very same seminars and networking groups that I did back in 2008. Not one of them had ever even gone out and looked at an apartment building, much less bought one. I asked them why. Every single one of them said that they just didn’t “feel like” they had enough information to get started. SEVEN years later.
The knowledge gap that you have before you may seem like the Grand Canyon. It’s not. It’s a gap the width of a sidewalk crack.
So get your tush in gear. Right now.
2. Massive Action
I had heard about this “massive action” thing multiple times when I was just getting started in real estate investing, but I had no clue what it meant.
So I did what a lot of investors do – I dipped my toe in the water and proceeded with extreme caution. Why? I have no idea. Fear, probably. So I did my direct mail. I made my ridiculously cautious offers. I turned the crank on my business at a rate that was comfortable for me.
And after two full years in the business, what did I have? Three measly rental houses and one wholesale deal under my belt. That’s it.
I was disgusted at the end of the second year when I looked back at how little I had accomplished and all the time I had wasted. And right then and there I decided to change things. I joined an active local real estate networking group. I carved out more time to spend on my business. And I started treating it like a business.
And because of all that, without even knowing it, I did “massive action.” How ’bout that!
When I looked back after year 4, I was blown away. I was up to 11 rental houses, I had done three profitable flips, and I had done another 10 wholesale deals, even though flips and wholesaling weren’t even my focus.
The most amazing thing though was that pretty much all of that activity had occurred within a short 16-month window. That’s massive action. And it built an awesome foundation for my future investing.
If you’re just starting out or if you’re looking to do a reset – this is me calling you out.
I don’t care what your LLC name is. I don’t care if you have business cards. I don’t care if you have an 800 number vs. a local number or you know what contracts to use. All of that is meaningless window dressing and none of it matters – because it won’t put one dime in your pocket.
What you need to do is get going and start making a mess. Today. You can figure out how to clean it up later.
What Say You?
Have you taken the plunge and gone after your first deal? Or, have you done deals but are stalling out? Talk to me in the comments section below.
Dennis Fassett
earned a BS in Economics and followed that up with an MBA in finance. After working and corporate finance and banking for several years, he started buying single family houses, and quickly built a very nice portfolio of cash flowing rentals. When the credit markets started to dry up and he couldn’t get any additional single family mortgages he shifted his focus to apartment buildings. He now has over $3 million in rental real estate. He manages most of it his self and still has a day job. Dennis has even created his own Private Equity fund to buy apartment buildings.