This article is for the new real estate investor who is trying to network and get to know seasoned investors, like I did when I was a new.
A seasoned investor is defined as one who has bought and sold, repaired or rehabbed or wholesaled several houses.
One who knows the in's and out's of real estate investing.
Many new investors look for a mentor who is a seasoned investor.
So you want to find someone you can wholesale deals to, who will show you gold mine areas for houses, allow you Multiple Listing Access (MLS), and give you the security of knowing they can close and pay you on your house in 5 business days? Or maybe you want to take him or her to lunch, heck you will go so far as to buy lunch! Well most seasoned investors are great to know and together you can make a lot of money.
However, they seem to elude us, or we are intimidated by their vast knowledge and experience, or they are just too busy to catch up with initially.
This was one of my dilemmas when I was a brand new investor.
First off they are very busy.
They run usually a small business, where they are managing, advertising, and trying to learn Quick Books.
If not that, they are driving all day looking at houses, running crews, to Sam's club buying new printers, and problem solving with staff, Realtors, and the title company.
This of course is in between trips to Home Depot or Lowe's, where they scourer the isles looking for that elusive item.
Not to mention there crew is taking easy on there dime at this time! What I have found in the Las Vegas area are that most seasoned investor's age is usually thirties and above with a family.
Therefore they are taking kids to practice, and trying to have a social, or spiritual life with family and friends.
And maybe at the end of the week eek out sometimes oh so precious time all to themselves, so yes they are busy, very busy.
When I began, I simply assumed they would spend time with me as they realized I would bring them great deals, because I was serious about this business! Didn't they know that? Seemed like a fair trade, their time and expertise and my house deals, well soon to be house deals, well that was my dream anyway many house deals.
What I did not know was that they had several other new investors calling and emailing them for their time.
Fresh out of some Robert Allen's boot camp or had just read the latest Carlton Sheets course.
As time went on, I understood the seasoned investors time constraints.
As I began to do more and more deals I too had new investors calling me.
So what did I do? I gave graciously of my time as I was not going to be the same way some of the seasoned investor were to me when I was new.
I was going to give of my time and expertise freely.
Humph! I would tell the new investor I will help you then you can help me by offering the house to me first.
So the new investors would call, I would chat with them, answer their emails, and run their comparables (comps) on their properties.
If needed I would do skip traces to find their missing sellers (now I have someone do skip tracing for me and she is great, but still it's an expense incurred.
) Sometimes I would take them to my best areas and subdivisions where I found the best deals, my gold mine areas.
Other times we would get lunch and I would listen and encourage them in their hopes, challenges, and dreams.
Yes we were off to the races! Then shortly thereafter I would receive a call from ninety five percent saying they had quit.
They were going back to collage, getting a 9-5 job and so on.
I began to realize most had stars in their eyes, wanted to get rich quick, or looking for an easy out from collage.
Or the older ones had too many battle scars and couldn't seem to get up again, from some past experience.
Tough to say, but true to form.
So where did that leave me...
the seasoned investor? Honestly? Frustrated, let down, and occasionally angry.
And yes, burnt out with newbies.
Then I would see posted in the real estate forums, "how do I find seasoned investors to work with?" That is why I wrote this article for new investors.
Seasoned investors offer a lot, they have great real estate software, MLS access, cash, and experience.
They offer great resources, knowledge, have title companies and Realtors in their back pockets, and know the other seasoned investors.
All the tools of the trade a new investor desires.
Furthermore the seasoned investors want new investors to bring them wholesale or bird dog deals.
They are looking to make new investor friends.
So what do you do to ally with these guys? This is what you do! First do your homework and don't be lazy about it.
Study and learn the areas, types of houses, cost of houses you will make offers on, and basic costs of repairing the rehabs.
Then drive for dollars and find a house.
Driving for dollars means driving around a subdivision looking for old abandon, or boarded up houses, and locating the owner.
Do your work or research on the house.
So you can talk of, and compare apples to apples with the experienced investor.
Determine if there is even any money or equity in the house before you call the seasoned investor.
See who owns the property, is it a regular or the most desired, the elusive motivated seller? Or is it owned by a realtor, county owned, or does another investor own it? If it's the latter you may decide not to waste your seasoned investor or your time going after it.
Next continue to do your homework and attempt to contact or find the owner/seller.
Now, when you call the salty investor try saying something like this; "Iggy Investor, I have a 3 bed 2 bath boarded up single family house.
Cross streets are Jones and Bethany.
Balanced owed is $30k and it comps at $170k.
I have done some research yet cannot find the sellers.
Want to grab a cup of coffee and see if we can get it?" Now, doesn't that sound better than "lets us grab some lunch, so I can pick your brain.
" I cringe when I get that line from a new investor I just met.
Why doesn't that work? Its simply because it's a one sided relationship, all give on the investors part and nothing from the new investor except his or her dreams of what they may or may not do.
Notice there was not mention of wholesale or bird-dog.
One thing a seasoned investor taught me a long time ago was to forget my making money.
That's right, get my mind off my pockets initially and see if I could bird-dog, not even wholesale but 'dog some properties to show my willingness to help make them money.
Because trust me the first 15 houses I bugged my seasoned investor with, were definitely not deals.
Of course the next hundred or so were definitely worth his time! I trust this makes sense and you have been able to look at this from the other side of the coin.
If so then you will have a much better chance of making a new strong profitable relationship with your seasoned investors.
All the Best, Bill Guerra WillBuyAnyHouse.