How long did it take before your business took off?

Question

I know there is no right answer to this question, but it's been about 6 months since we got into the investment world and we were told over and over again by different books/gurus/educational groups that if you work hard and take action the deals will happen. We've done a deal and are working on doing more, but in no way shape or form has our business taken off yet. I know their job is to "sell the stuff" but I feel like we were doped into thinking it would be easier than it is. We're currently putting in anywhere from 8 - 15 hours a week at the business, sometimes more if there's a strong lead. I'm a teacher full time and will be doing investing full time over the summer, which I'm hoping will get us more results. I'm interested in hearing how long it took everyone else before they really got into the groove, especially the veterans out there. I could use a little motivation here!

J Scott · Answer

If you've already done a deal, your business has taken off more than 95% of all starting investors, so be proud of that!!!

Keep in mind that you've picked a tough time to be jumping into investing -- there are a lot of investors jumping in, including some large institutional investors, and inventory is low.  Stick with it, and will all come together.

The fact that you've already done a deal says that you're not stalling or sabotaging yourself, which is half the battle...things will pick up and it will continue to get easier with each deal.

Justin S. · Answer

Liz Brumer  I think you will find it will take you a couple years before you find your business firing on all cylinders.  You will do plenty of deals during this time period but it takes a while to find the right people, figure out the right strategies, etc.  Then as the market changes, you will be constantly creating new strategies etc.

That is at least how it worked for me.  Since going solo, I did three deals the first 4 months, and then have done 30 in the last 12.  But I've changed my buying strategy 3-4 times during that time period.

Anson Young · Answer

Liz, it certainly depends.  8-15 hours dosnt sound like much, mostly because I have no idea how you are spending that time.  How much marketing are you doing?  Or are you using an agent to fish the MLS?  Obviously the name of the game is deals in the door.  If you are marketing, that means how many leads are you getting?  If its not enough, you arent marketing enough or need to change up your marketing.  If you have an agent fishing the MLS, ask for access yourself to hunt down deals rather than be drip fed once a day on stuff that 'might' meet your criteria.

Even though I do OK, I always feel that I can be doing better, so I dont think I will ever look at my biz and say 'I've made it!'.  But if you are meeting certain goals (income, production, # of properties), and that to you means you 'made it', it really just means you need new, bigger goals!

John Thedford · Answer

Liz Brumer. Liz I just read your blog. Very informative and thanks for the info.

Liz Brumer-Smith · Answer

Thanks everyone! My partner and I actually did another deal just 3 days after I started this post...I guess your words really got me motivated. You can read about the deal at my blog. It didn't go as smoothly as I would have hoped, but hey it's another deal under our belt.

http://lizbrumer.wordpress.com/2013/05/26/the-dangers-of-brokering/

Bill Gulley · Answer

Liz, keep the faith, privately held notes can be a slow market. As a buyer there are some things you can do to pick up more of what might be available.

First, consider the discount and yield you really require (I assume you're buying in your own portfolio). Consider laening more on the credit side if you can. This can give you the basis for guidelines that be set up for Realtors to initially identify a potential borrower. Take your "program" to Realtor meetings. Sellers can carry back and you can purchase at closing to provide funds. You can also buy part of the note (we had a recent thread on that) as sometimes the seller can't take a big hit but does need a little more cash at closing. When Realtors bring you deals your business will go up.

Contact the Division of Family Services (or similar named agency) and let the "in take processors" who qualify people for benefits that you buy notes. The applicants for benefits usually need to sell any note to qualify. Along these same lines, let administrators of nursing homes know you buy notes.

Send a nice introduction to estate attorneys, trust companies and local banks. They can have clients who need to dispose of notes and trustees need to get rid of them usually due to accounting and audit requirements of assets in the trust.

I was not that successful compared to the above suggestions by running a small newspaper ad, but it did pull in a few. Consider newspapers in surrounding areas you would be interested in.

I was an originator who started a mortgage company, my take-off isn't fair to compare as I started as an in-house mortgage center in a large RE company and quickly moved into another public office. So in the big picture I hit the ground running. I was debt free in the business in a few months and totally debt free in three years, so don't slow down! Good luck!  :)

David Ramos · Answer

Liz Brumer thanks for the thread, and like you said it is very reassuring. I'm also on the very basic-initial steps towards getting my RE investment business on the road, but I have spent most of my time educating myself on books, trends, and most of the culture of Real Estate investments. Theory is good, but action is way much more engaging, motivating, and more rewarding. Keep it up and I'm sure that after your first deal, the others will be right around the corner. Best of regards!

Liz Brumer-Smith · Answer

Thanks for the responses everyone. J  Scott that is definitely reassuring, I appreciate your feedback. Anson Young, my partner and I invest in non-performing notes currently and we're working on doing more marketing for private investors and have been making calls to get more leads. It's about a 50/50 for needing more leads coming to us (notes to be sold) and buyers for those notes or private investors to work with on our leads. Any time that is being spent on the business is typically advertising for private investors/meeting with investors/or contacting more leads for notes. If it isn't being spent on that we are spending it on doing due diligence on a property. We also spend time attending our local REIA events and meetings to help us network and meet other investors.

We spent the last two weeks moving, and to be honest. Completely neglected the business but now that we're settled were back and we're burning!

Congrats Wayne  Woodson for getting there. 4 years or not, you're farther along than most! :)

Wayne Woodson · Answer

It took me 4 years before my business really took off. Thats mostly because I started then stopped and started again.

How long did it take before your business took off?

Most Popular Reply