06 Nov INVESTORS’ CORNER: Real Estate Hypnosis I
Editor’s note: This is the first of a two-part column.
- pl. hyp·no·ses (-sz): An artificially induced altered state of consciousness.
Real estate hypnosis is the artificial induction of believing the “rules” of real estate don’t change. That well-established principles of real estate must be followed or you risk failure. Real estate hypnosis is an industrywide belief that success can only come by doing what other successful investors have done in the past.
In other words, real estate hypnosis is teaching all investors to do the same thing. It’s setting forth artificial guidelines that must be followed and therefore, we as investors lose the very essence of what makes investing in real estate so great: creativity.
Throughout the course of history, the people who are remembered are the people who did things differently. They bucked the trend. They did things society or industries told them couldn’t be done. They sang songs and played music the “public” didn’t approve of. In other words, they diagnosed the hypnosis society was imposing upon them and did things their way, despite the potential backlash.
Do you often wonder why you haven’t done a real estate deal? Do you want to do more deals? Are you frustrated because there is so much competition with other investors? Would you like to find deals other investors don’t know about? If you answered “yes” to any of these questions, you have to get rid of your real estate hypnosis and start doing things differently.
Don’t know where to start? Well, let’s start from the beginning. You may have heard other investors say, “You make your money when you buy.”
Truth is, price is irrelevant. What if I told you that you could pay the full asking price and still be massively profitable? What if I told you that you could offer more than the asking price and still be massively profitable? Most people look at price as the single most important item when deciding to buy or sell a home. I couldn’t care less about the price. I want the seller focused on the price, so that I can focus on what I want: terms.
What if the seller insisted on $100,000 for the investment property? And you felt it was only worth $85,000? Offer $100,000, payable at $694.45 for 144 months. The seller got what they wanted and you got the terms you wanted. Everyone wins.
Chris McClatchey is a national speaker and education director at the National REIA and a longtime friend of the Metrolina Real Estate Investors Association, which provides education, mentoring, and networking for real estate investing in the Charlotte region. He can be contacted at www.myrealwealth.com. For more information, visit www.MetrolinaREIA.org.